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Tech Tuesday, 11-10-11

Scott Thompson's picture

Our weekly round up of the big news in media technology and digital media.

iOS5 and iPhone 4s launch

After the iPhone 4S announcement last Tuesday, we took a look at the reaction in terms of the different types of people who were disappointed with the lack of "iPhone 5", and those who were actually buying smartphones today. (It was interesting to see Apple announce a million pre-oprders within 24 hours (compared to the 600,000 in the same timeframe after the iPhone 4 announcement last year.)

Tomorrow will see the launch of the iPhone 4S itself, as well as the availability of iOS5 to download — which will bring a number of new features, not just to the iPhone 4S, but the iPad, iPhone 4 and 3GS as well. These include iCloud (and new iTunes features— with UK availability yet to be announced), message "notification centre", iMessage (similar to BlackBerry's BBM, but for the Apple platform), and a Reminders application (ie. to-do lists.)

Of particular note in terms of the impact on media behaviours;

  • iPod application split into Music and Video — (perhaps hinting at broader plans for Apple in the Video area?)
  • Newsstand — a similar application to iBooks, but with a focus on subscription-based media (ie. Newspapers and magazines.)
  • Integration with Twitter (making it easier for app developers to integrate it with their apps)
  • New web browser features; allowing users to bookmark pages to a "Reading List" to read later, with the bookmarks available in the Safari browser on the PC/Mac, and a "Reader" mode that strips 'clutter' from web pages for easy, undistracted reading.

The Reader mode should be of particular interest to advertisers; while the benefit to users is clear (particularly the ability to tie together articles that run across multiple pages into a single page), the benefit to publishers is less so (if their site design — and advertising — is swept aside.)

But the one group do stand to benefit from this are application developers. If iPhone and iPad users are less likely to see display advertising on websites, then in-app advertising (including Apple's iAds) will become more appealing.

Steve Jobs

However, the latest Apple innovations were overshadowed by the news of Steve Jobs' death last week. Much of the technology world is still reeling from the news, and there are still scores of tributes and stories being shared. From the two companies he led (Apple and Pixar), to tributes from some of his fiercest competitors

Even Samsung and Google reportedly cancelled the launch of the latest Android handset, saying in a statement that "We believe this is not the right time to announce a new product as the world expresses tribute to Steve Jobs’s passing.

As a driving force in the development of the modern computer, from the earliest days of the graphical user interface, through the smartphone and touchscreen explosion and early steps into voice control, his influence on the industry will undoubtedly be missed by many.

New iPad apps

A new ComScore report from the US says that web traffic from smartphones and tablets are now driving nearly 7% of all digital traffic — with iPads driving even more than iPhones. So the importance of these platforms is growing — not just in terms of mobile devices, but as alternatives to PCs.

"At long last" (as the New York times put it), Facebook have announced their iPad application; a free download, designed to create an "immersive and fun" experience.

TechCrunch reports that the a will also bring application discovery to the mobile platform — seeing a friend post a Words with Friends, tapping the link could open up the Words with Friends iPad application (if you had installed it already), or open it in the App Store (if you hadn't.) The feature is also being added to the mobile version, with plans to do the same for Android applications (which TechCrunch says is in the works.)

Facebook and Apple are reported to have been caught up in negotiations for some time, following Apple's launch last year of its "Ping" social network for music, which was planned to be integrated with Facebook.

The app, it turns out, had become the hostage of a tense negotiation between Facebook and Apple executives for a deal to further integrate Facebook into the next version of Apple’s operating system, iOS 5.

The latest wave of negotiations have presumably been around how in-app transactions would be dealt with; Apple insist on a 30% cut of in-app purchases, while Facebook are standardising around Facebook Credits as their platform's currency — where Facebook take a 30% cut of every transaction. Obviously, it would be tricky for both to take their cut of any transactions taking place within the Facebook iPad/iPhone application.

BusinessInsider.com reports that Apple appear to have won; while Facebook are bringing Facebook Credits and Applications to the mobile web, within the iOS App Facebook Credits will not be accepted.

On the publisher side, The Guardian is launching an iPad application of their own, priced at £9.99 a month (following a 3 month free trial, sponsored by Channel 4), with NMA.com reporting that is is expected to launch this week, with free access budled into print editions

The Guardian have put together a promotional video about their iPad application and its place within a broader shift to digital media. As editor Alan Rusbridger explains;

"We are not going to be scrambling to update it every minute or every hour— we will do that on the browser […] This is going to be a different kind of read, a bit more reflective."

(A bit more like a newspaper then?)

The video goes on to talk about the column and grid-based design (again, a familiar concept…), and the way interactivity will add to the advertising opportunities. Worth a watch.

Independant putting up paywall

As expected, the Independent is to launch a paywall for non-UK readers, expected next week. Citing the pressure from the BBC, creating a need to make a distinction between UK and foreign visitors, the main target will be readers in the US and Canada.

Microsoft announce TV partners for Xbox

Announcing a major step in their ambitions to turn the Xbox 360 into a true media centre for the living room, Microsoft have announced a wide range of "entertainment leaders" who, through the Xbox 360 games console, will "transform TV."

A key difference between Microsoft's console and competitors from Nintendo and Sony is the lack of a web browser on the Xbox 360 — meaning that Microsoft effectively act as gatekeepers to online content on the console. So while the BBC iPlayer has been available for some time on the PlayStation 3 and Wii, negotiations around bringing it to the Xbox 360 have been held up by conflicts between the companies' policies (Microsoft insisting that additional content be exclusive to Xbox Live! subscribers, while the BBC insists that access to BBC content be available to all.)

BBC, Channel 4, Channel 5, LoveFilm and Blinkbox have all been announced as UK partners (but no ITV), while Sky TV has been available to those who subscribe to both Sky and Xbox Live! for some time.

Tech Tuesday, 4-10-11

Scott Thompson's picture

In this week's round up of the big stories in digital media and tech, Amazon launch their Kindle tablet, lots of news about Facebook, and new ways to advertise in online video.

Amazon announce new Kindles

Last week, Amazon announced the launch of a new set of Kindle devices; a refreshed (and cheaper) "basic" model with a touch-screen alternative, and the Kindle Fire; a $199 tablet which is already being hailed as an iPad killer.

While it isn't the first device to spark these sorts of headlines, it is probably the first that will actually set the tablet market alight. Compared to the $499 iPad base model (and many similarly-priced competitors), the Fire comes in at a completely different price bracket. With a novel "split browser" (sharing the job between the device itself and Amazon's EC2 cloud servers), built on Google's Android platform (although devoid of any Android branding or applications), and featuring Amazon's "Special Offers" (ie. advertising, which can be removed for a fee), this appears to have a number of interesting implications for the online media, and we will be having a closer look at what it means later in the week.

Spotify gains 1 million facebook users

I mentioned last week that Spotify were requiring all new users to have a Facebook account, following the launch of the new Spotify Facebook application. Figures from InsideFacebook.com indicate that since the F8 Developer Conference, Spotify has added 1 million users of its Facebook application. Similar growth has been seen by Rdio (a music service with a similar application), while SoundCloud, iHeartRadio, and Deezer have all lost Daily Active Users — none of whom are yet using Facebook's social features.

It looks like a powerful argument in favour of using the socially-connected applications, and it will be interesting to see whether we will see similar reactions outside of the music apps.

Facebook facing investigations

Following a number of complaints around privacy concerns (some of which were mentioned here last week), Facebook are being audited by Irish privacy regulators, facing similar investigations in Australia, and the FTC in the US is considering an investigation.

"People talking about"- new Facebook metric

A new Facebook metric for brands is expected to be announced tomorrow. SocialBakers.com describes the changes

People Talking About is one of four metrics Facebook will measure on all Facebook Pages. The metric should be available from tomorrow, and it represents the number of people that are talking about the page, sharing content from the page and further interacting with the page, thus creating stories. Its basically a metric of active fans.

The interesting point is that unlike the existing metrics, this new metric looks outside of the number of "likes", comments and views of your brands' Page and into wider Facebook conversations.

New Facebook "expandable" ad unit

Meanwhile, Facebook have introduced a new ad unit— named "expandable", but unlike the familiar rich media expandable units, the Facebook ad will "expand" to show the number of likes and comments an ad has received.

Discussions tabs to go from Facebook Pages

From October 31st, "Discussions" tabs will be removed from Pages. Facebook say

We've found that the best way to encourage conversation and feedback is through posts and comments on your Wall. We've removed these tabs for now as we work on tools to help you moderate and filter content.

Users of Discussions tabs have found them difficult to moderate (as they lack the API and tools that Pages offer), and are often abused. (Also, they had the snag that banning a user from posting to a Page didn't stop them from posting in the Discussion tab.)

Google launch AdWords for Video

Making it easier for advertisers to appear in YouTube content, Google have launched AdWords for Video. Bringing their auction-based advertising system to video content, using the same interface as existing search and display ads, this is likely to build interest in video advertising, simplifying the process and opening up Google's "TrueView" advertising formats (which use a "cost per view" quality measure- ads that get more views become more efficient to buy, similar to search advertisings "Quality Score.")

This should make it easy for new advertisers to get involved in the video marketplace, while surpressing low-quality advertising from their platform.

Meanwhile, AOL and VivaKi are partnering in a project to identify new advertising formats for online video. This follows on from The Pool (VivaKi's research into new video advertising models) in the US, which resulted in the "choose a pre-roll" Ad Selector model (currently in the field in the UK.)

iPhone event

By the time you read this, you will probably know about Apple's event this afternoon (6pm UK time- as I write), where they are expected to announce the latest iPhone and launch iOS 5 and iCloud.

As there has also been a new iPod Nano around this time of year for the last few years, it seems likely that a new Nano model will also be announced (perhaps with WiFi to access iTunes in the iCloud?) — although those who were expecting the iPhone to follow a similar pattern (with previous new models released in July for the last three years) have been waiting longer than expected. (Meanwhile this week, Microsoft has killed off the Zune, its dedicated MP3 player, as it is focussing on Windows Phone for their mobile music and video strategy. Might this mean an iPod-Touch-challenging Windows Phone that isn't a phone?)

Given that iPhone 4 users will be at most 15 months into (probably) a 2 year contract, it seems likely that the new handset will be a relatively minor upgrade (ie. an iPhone 4s aimed at first-time smartphone buyers or those migrating from other smartphone platforms, rather than an all-new iPhone 5), but that the more interesting news will be about the new iOS 5 software. With some interesting rumours about speech recognition and an artificial intelligence "Assistant", as well as what is already known about iOS 5 features (such as iCloud, iTunes Sync and integration with Twitter), we expect to have a deeper run-down once the news is out.

Tech Tuesday, 27-9-11

Scott Thompson's picture

In our weekly round-up of the big stories in digital media and technology; more on F8, Spotify insists on social, iOS5 approaches, Google Plus goes public, Twitter's international expansion, Amazon's tablet tomorrow

Reactions to Facebook F8

The impact of last week's Facebook F8 developer conference is still being felt, when Facebook announced new types of Facebook apps and a new user profile page ("Timeline.") In short; expect to see more of your friends' actions on Facebook via the new Ticker (that is, actions that were previously being filtered out by Facebook's EdgeRank algorithm), and even more actions through new Open Graph applications. All of which will make it harder for brands to reach their 'Fans' for free – encouraging them to use Facebook's paid advertising products to get the sort of visibility which they might previously have got for free.

For more information about the immediate impact of the changes, read our analysis of what the F8 announcements mean for advertisers

As well as the changes announced at the developer conference, some new options for advertisers have been revealed; to promote old brand posts with Sponsored Stories, and to add 3rd party tracking to Facebook advertising to help track traffic being driven to brands' own websites.

But as with anything (especially at Facebook's scale), the changes have prompted some negative reactions. Naturally, a few bugs in the system (specifically, showing "de-friended" users) have popped up, but some complaints around privacy issues have been more concerning.

The discovery that Facebook appears to be tracking users even when logged out has raised privacy concerns. (Warning- the link is to some quite heavily technical discussion, and an even heavier technical follow up.)

Suffice to say that while Facebook might not be using user tracking data from the cookies that they are dropping, the fact that they are setting cookies at all (including for users who haven't agreed to anything in Facebook's T&Cs which might include opting-in to using cookies) is possibly a more important issue. With recent changes to the regulations around cookies, questions about whether Facebook is in breach of EU cookie laws have risen, and NMA have a few comments from publishers.

Of course, the EU regulations don't talk about what is done with data, but simply the technology of storing data on users' computers.

Other publishers are questioning whether they have made the right decision in tying themselves to Facebook's platform, while the longer term impact of Facebook's dominance creating a two-tier internet of those who are in control of 'their' online profiles, versus those who are happy for Facebook to be in control.

Spotify tie to Facebook

One of Facebook's partners who demonstrated the new system (and, for me at least, is responsible for a lot of the visible usage of the new Open Graph functionality) has made the interesting decision of requiring a Facebook account for all new users.

What Spotify have done tells us something interesting about the way they value their users; turning down a potential paying subscriber because they don't want to sign up to Facebook so that they can ensure that their listeners are sharing their listening habits speaks volumes about where they feel the real value lies.

Along with the launch, Spotify have cancelled the Spotify Open membership and are giving new users 6 months access without time limits (after which it will revert to the 10 hours streaming/5 plays per song limit for free accounts.)

iPhone announcement & Facebook apps

With confirmation today that Apple have an event on the 4th October when they will "talk iPhone", it seems likely that we will be hearing about the latest version of the iPhone, along with the full release of iOS5 and iCloud.

Not much else is known about Apple's plans, but rumours are circulating that Facebook will be launching their iPad app and an updated iPhone app at Apple's event.

Its interesting to note that this time last year, Apple announced their "Ping" social network for music – which received a fairly lukewarm reception. One of the key features that was apparently removed at the last minute was an integration with Facebook – it will be interesting to see whether (assuming the rumours about the Facebook iPhone and iPad applications are true) whether Apple have any plans to integrate Ping with the new Open Graph features. Might this year see the announcement of the kind of features that Apple had planned for last year?

Google Plus goes public

With a big blue arrow promoting Google+ on the home page, Google have made Google+ open to anyone, without invitation.

(For more about the significance of Google's Plus project, have a look at our 5-part post going over what it means for Google, search and online advertising.)

With estimates of 43.4 million users (up 30% in 2 days since the launch, but still far from Facebook's 800 million), it is far from clear what sort of role the network will play for users, and whether the reaction to Facebook's changes will drive users to Google's network, or even prompt a backlash to social networking as a while.

But Google's intentions to get advertisers involved are moving forwards too, with business profiles expected soon, and integration of the plus one button on Google Display Network. Users who click the +1 on ads will be able to effectively bookmark them for later viewing, while advertisers will see the ability to target to friends of those who +1 the adverts. (This is in addition to the +1 buttons which have been on search ads for some time.)

Along with opening up to the public, some new features have been added; hangouts (video chat) are now available on mobile (Android now, with iOS expected to follow soon), and 'on air' (ie. live broadcasting to a wider audience than just those participating in the chat.) Users can also now share their circles, making it easier for people to help one another to find users and share particular groups of interest.

Twitter's international expansion

Twitter setting up a European headquarters in Dublin twitterhq With no news about how many staff it plans to employ or what its plans for the office are, it isn't clear whether this (their third international office, after London) will be a centre of business operations, or more fo a centre of financial transactions (Ireland's tax laws being famously relaxed.)

Meanwhile, following the setting up of the London office, Twitter has launched their first UK advert, with Sky as their first advertiser and a number of others expected to follow soon.

Amazon's tablet draws closer

An Amazon event tomorrow (Weds 28th Sept) looks likely to mark the launch of their Kindle tablet– now expected to be branded Kindle Fire.

Similar to the BlackBerry Playbook, it will have a 7" screen, and be tied to Amazon's online content networks for books, music and films. (TechCrunch also reports that Barnes & Noble are expected to launch the second version of their Nook Colour tablet/reader, which is a similar Android-powered tablet, sold in the US at low prices and tied to the booksellers' services.)

Tech Tuesday, 20-9-11

Scott Thompson's picture

A weekly round up of the biggest news in technology and digital media. This week, new features for Facebook, Google launch their mobile Wallet, Twitter talk Analytics, we get a closer look at Windows 8, the EU's developing Smartphone landscape, and more…

Facebook launch "subscribe" button— hinting at further changes to come?

Last week it was "Smart Lists." The week before it was music. three weeks ago it was sharing settings. And the week before that, it was "news" stories. Facebook have been making a number of small but significant changes to the way users can organise their friends and share content with them, but this week is a more fundamental shift in the nature of Facebook relationships, with the launch of the "subscribe" button.

Unlike being someone's "friend" (which requires both "friends" to confirm the relationship), you can now keep track of a Facebook users' public posts without needing their permission with the new "subscribe" button. Once users have allowed it (which they must explicitly do by visiting the subscriptions page), they can then choose to follow "status updates", "life events", "photos & videos", "games", "comments & likes" or "other activity." In addition, users can use the same Subscribe button to choose what sort of content they want to see from their friends.

For most users — especially those who don't like to post in public — the change won't affect the way that they share content (although it may help them to maintain Facebook friendships with particularly noisy friends; for example, by unsubscribing to updates from games, but keeping subscribed to photos and videos.) But for those who Facebook call "interesting people you're not friends with" (like journalists, artists and political figures), this allows a way to let others "follow" them without having to set up a seperate Facebook Page for their 'public' persona.

Its hard to describe without falling into the "follow" language used by sites like Twitter and Tumblr; other sites (including social networking sites like Google+, and blog networks like Blogger and Wordpress) have allowed these kinds of asymmetrical relationships, and some will inevitably see this as a reaction to Google+. The fact is, despite being realtively unheard of just 5 or 6 years ago, Facebook is now the incumbent in the social media marketplace, and it will be difficult for them to innovate without drawing comparisons to other sites.

A test of whether they can will come this Thursday, as they host their annual f8 developer conference, with the motto of "Read. Watch. Listen." It is expected that they will announce a new set of buttons to go alongside the "Like" button, labelled "Read", "Listened", "Watched" — which sound very interesting to online publishers of text, music and video — as well as a "Want" button which will undoubtedly be of interest to anyone wanting to generate interest in a product.

Facebook's VP of Engineering has set high expectations, claiming that this years' conference will be bigger than last year (when they launched the Open Graph and plugins for 3rd party websites— including the now ubiquitous "Like" button), and possibly the biggest ever.

Social stats tools on their way

To put the importance of social sharing into some context, a recent study by BrightEdge found that more than half of the top 10,000 websites now have a Facebook share button on their homepage, with sites featuring Twitter buttons generating seven times as many mentions on the site as those who don't feature them. Although Facebook mentions are harder to analyse (as many of them appear in private conversations with limited visibility) and aren't specifically referenced by the study, it seems reasonable to assume a similar correlation for Facebook buttons.

For anyone trying to understand (let alone manage) these kinds of conversations, reliable tools to access relevant data in real time are essential — so its good news that we can expect to be seeing more, and soon.

At a recent event in London, Facebook's director of product marketing told attendees that Facebook "will be passing a lot of data [to agencies and brands] very, very soon, just not personal data [of Facebook users]."

Meanwhile, Twitter have announced an analytics tool which is currently in a limited trial, which will help to analyse the impact of Twitter on website traffic (presumably using the recent changes to the way links are posted), and the effectiveness of integrated Tweet buttons. Expect to see more in the next few weeks.

Google Wallet

Yesterday, Google officially unveiled "Google Wallet" - their move to integrate mobile even deeper into day to day life.

Using NFC technology (similar to that used in Oyster cards, electronic keycards, and currently being rolled out into new credit cards), this allows mobile phones to replace the cards you probably carry around in your wallet; credit cards, debit cards and loyalty cards — and probably more.

As Google describe their vision;

Eventually your loyalty cards, gift cards, receipts, boarding passes, tickets, even your keys will be seamlessly synced to your Google Wallet. And every offer and loyalty point will be redeemed automatically with a single tap via NFC.

Currently only availble with the Citi Mastercard and Google's "Prepaid card" (which can be paid into with other credit cards) and on the Nexus S 4G handset on the Sprint network, this is a limited launch in the US— but with NFC payment terminals starting to appear around the US (and with a few being spotted around London), expect to see this technology becoming more visible very quickly. With Google, mobile networks and credit card companies all wanting to get involved in quick and easy low-value payments (there are currently limits on the maximum transactions that can be made over NFC), expect to see a push to raise consumer awareness and drive adoption.

For more of a flavour, check out TechCrunch's review from California, and Mashable's review from New York.

"The Daily" launches in the UK… Very quietly. The Guardian spotted that News Corporation's iPad-only 'newspaper' has quietly launched in the UK.

Launched in February in the US, the UK version of the application offers access for either £0.69 a day or £27.99 as an annual subscription.

So far, neither the content or advertising has been localised for a UK audience — it seems that the 'launch' is simply a case of making the US-focussed app accessible to UK-based ex-pats. With 100 dedicated journalists working on the title, $30m invested in the launch and an estimated cost of $500k a week, an expansion into a dedicated UK edition would presumably carry some further investment, and more of a marketing splash. (At the very least, we would expect to hear about the advertising opportunities first!

Microsoft, Yahoo, AOL selling each others inventory

In a bid to challenge Google's share of the online display market, Microsoft, Yahoo and AOL have reportedly entered into an agreement to sell one anothers' advertising inventory. With plans to extend their offering to other web publishers, this is a bid to make the most of the value the kind of spaces that don't get sold directly by the publishers, and tend to be sold through display advertising networks (at low cost, and with little benefit to the publishers in terms of data collection and understanding of performance.) The deal is understood to currently be for the US market only, but presumably (if successful) will be rolled out to other markets.

Exactly how this inventory-sharing will work is currently unclear — in particular, it raises questions about how the inventory could be targeted, how advertising data would be managed — ultimately, how it would be more valuable to them than simply selling it on to a third party agency/network.

First look at Windows 8

Over the last few months, we have seen a few glimpses of what Microsoft have planned for the next version of Windows. But at the recent BUILD developer conference, a number of new features have been unveiled, along with the first developer preview.

One of the most notable technical developments is that Windows 8 will be able to run on both x86 processors (the sort of machines which can run current versions of Windows) and ARM processors — the type used in mobile phones and tablets. Similarly, the user interface has been redesigned, using Microsoft's "Metro-style" (similar to the design style of Windows Phone 7), which is optimised for touch screens. This means that manufacturers will be able to build tablets that will be able to run Windows 8.

However, the transition to the same operating system running on PCs, laptops and tablets isn't quite as clear-cut as Microsoft's ambitions might make out, with some considerable confusion over whether all applications will be able to run in the Metro environment on ARM (ie. mobile) devices. Although "Metro" is a feature of Windows 8, it will also feature the familiar Windows Desktop. So, two technical environments (x86 and ARM processors), two user interface environments (Desktop and Metro), and legacy versus new Windows 8 applications. All that is clear that at least one combination won't work…

The transition that computers are making from the familiar "PC" form-factor to a range of dektop, laptop, mobile and tablet (not to mention Connected TVs and other embedded devices) is going to be a difficult one, but it is interesting to see a number of different approaches being taken from different players in the market. Whatever Microsoft do, the sheer scale of their Windows platform means that it is going to have a signficant effect on the way we see "computers" over the next few years.

Latest smartphone landscape stats from comScore

Speaking of mobile computers, the latest smartphone market statistics from comScore for the major 5 European markets have been released.

In the last year (July 2010-July 2011), the smartphone market across the EU has grown by 44%. The big changes have been Google's Android platform, which has grown from 6% (of a 61m subscriber market) to 22.3% (of an 88.4m subscriber market.) Nokia's Symbian platform, on the other hand, has seen a considerable drop from 53.9% to 37.8% of the market. With Nokia having announced their partnership with Microsoft (and expected to launch their first Windows Mobile phone soon), they must be concerned that the only other platform losing share is Microsoft's (down from 11.5% to 6.7% of the market.)

RIM and Apple have remained fairly stable in comparison, growing 1.5% and 1.2% respectively (although in a fast growing market, it should be remembered that even Symbian's loss of share comes from a growth in actual user figures.)

Further figures looking at the difference between the 5 markets reveal that mobile users in the UK are more likely than the other markets to use a smartphone, send text messages, install and use applications, use a mobile web browser, access news, social networking sites or blogs, or play games. (It seems we are quite an active bunch...)

Interestingly, the one thing we were less likely to do with our phones is to listen to music, which the Spanish are most likely to be doing.

More stats over at the comScore blog.

Tech Tuesday, 13-09-11

Scott Thompson's picture

Our weekly collection of the news in technology and digital media.

This week, changes at the top at Yahoo!, Virgin Media's platform embraces iPads, Google's chase for Hulu, Facebook's growth and developments, something to watch out for for Facebook Page publishers, Microsoft and Twitter, and Mobile shopping.

A mobile Christmas?

A reminder that Christmas is approaching. OK, its still over a quarter of a year away, and it isn't approaching any faster than it has been since last Christmas, so there is plenty of time left to get your shopping done. In fact, there may be more time than usual as for many, online shopping will make it quicker and easier than trawling the high street for that perfect present.

But that last minute shopping should be getting easier, as searching the web is playing an increasingly important role, alongside searching the high street. Google have published some figures based on trends from previous years. Google project that 15% of "Black Friday" searches will be from mobile devices. 44% of total searches for last minute gifts and store locator terms will be from mobile devices.

What we have seen in past years is a "double peak" pattern in traffic in December; the first peak as online shoppers look to get their orders through in time for pre-Christmas delivery, and a second as online searchers look to inform their last-minute offline shopping. As Google point out, these last-minute searches are effective drivers of in-store purchases.

Google have some recent research that investigates the role of mobile and search in shopping behaviours in some more depth – well worth a read if you still need convincing of the growing importance of mobile today.

The IAB also has some fresh research that backs up Google's findings (available online to members only), in a look at mobile commerce. Amongst their headline findings are an increase in the size of the average transaction to £17.49 (up £5 in the last year), with websites accounting for slightly larger purchases (on average) than mobile applications; with 40% of all respondents say that they would prefer to go directly to a website (and around 60% of non-m-commerce users), the main barriers at the moment appear to be mainly technical; the drivers of a more convenient experience and the opportunity to make impulse decisions are replacing the image of mobile shopping as either a last resort, or an area of experimentation for consumers.

As smartphone penetration continues to grow (passing 50% of all European handset sales, according to IDC this week) and tablets continue to see growth, PC sales are seeing the effect – analysts at Gartner have cut their forecasts for 2011 PC sales for the third time this year, from forecasting a 15.9% growth in January, to their latest prediction of 3.8% growth. With 60% of laptops selling for less than €499 (while the average tablet selling price is €445), IDC are saying that there is a direct "budget cannibalisation" happening.

Trouble at the top for Yahoo!

Carol Bartz, Yahoo!'s CEO, informed Yahoo!'s staff that she was fired over the phone last week via an all-staff email. As she explained in an interview with Fortune how the board "f—-ed me over", and how they are "trying to show that they are not the doofuses that they are", Bartz may have lived up to her reputation as a tough-talking CEO, with language that would be unfamiliar to anyone who has been following her career. But it may also have been one of her most expensive interviews, as she will probably have fallen foul of a $10m non-disparagement clause in her contract.

(As the Wall Street Journal pointed out back in June, the last Yahoo! "vote of confidence" didn't end well for their previous CEO either.)

Unsurprisingly, she subsequently resigned from the board of directors. Her interim replacement as CEO is Tim Morse, previously Chief Financial Officer.

The move has led to some interesting rumours – that Yahoo has put itself up for sale, and that it could be contemplating a merger with AOL (although analysts opinions are that this is unlikely, as it would stand to benefit AOL much more than Yahoo!)

Virgin Media launch iPad app for TiVo box

At the IBC Conference and exhibition in Amsterdam last week, Virgin Media announced a forthcoming iPad application that would work alongside their new TiVo-powered set-top box. The application will take the role of a remote control, allowing users to change channels, set recordings and browse the EPG, as well as use the iPad as a secondary TV screen to watch on-demand programmes (even if the TiVo box itself is showing something else at the same time.) Virgin Media already have iPhone and Android applications which allow EPG access, and to set remote recordings; presumably, some similar functionality to the iPad application will be added in a future revision.

At the conference, Virgin talked about the application being a part of a planned staggered roll-out of functionality for the platform, "so as not to overwhelm our customers."

Google wants Hulu… But what else?

AllThingsD reports that Hulu has been shopping around for prospective buyers, interested in taking on the US-based online TV platform.

Hulu's corporate owners are currently mulling bids from three would-be buyers: Amazon, Yahoo, and the Dish Network. And then there's Google. The search giant has also made an offer for the video site, but it seems to be playing a different sport than the rest of its peers: Rather than bid on what Hulu's owners have offered for sale, Google has proposed a different acquisition, on a larger scale, say people familiar with the sales process.

As the Financial Times reported this weekend, Yahoo, Amazon and Dish are all expected to offer between $1.5 billion and $2 billion for Hulu, in exchange for the free video site, its subscription service and the rights to exclusive content for at least two years. What the additional, larger scale acquisition could involve isn't clear (AllThingsD suggests more content, and/or exclusive access for longer.) Perhaps a clue might lie in what else the owners of the site – News Corp's Fox, Disney's ABC and ComCast's NBC – might have access to that they are able to sell.

One of the problems that Google TV has faced is certain content (including Hulu) being blocked from Google's platform. I would guess that Google's main interest in Hulu is less about the access to content that they could deliver online (for example, whether they could integrate Hulu's library with the YouTube platform) and more about the longer-term future of the Google TV platform.

Bing and Twitter

Around the time that Google was unveiling Google Plus, their "Realtime Search" function quietly disappeared as Google's agreement to use Twitter's data to feed its search results had expired, and the functionality has yet to resurface. This week, in a 'cute' exchange on Twitter Microsoft and Twitter announced that Microsoft had renewed their deal with Twitter.

I've already talked about the partnership between Facebook and Microsoft, and how it could present a threat to Google. While the lack of "realtime search" may not in itself be a big deal to most users, it seems likely that the real value of the data exchange will be about those sharing the news, rather than the realtime news itself.

The next US President is tweeting

Some more big numbers from Twitter, as they announce 100 million active users.

In a blog post, they explain that 35 global heads of state are using Twitter, along with every Cabinet agency in the US, 84% of state governors, and every major candidate for President – along with an impressive roster of athletes, entertainers, humanitarians and reporters. More than half of their active users log into Twitter every day –and 40% of them don't tweet themselves, simply signing in to follow other users.

Twitter CEO has added to these numbers at an informal meeting in New York, revealing that 55% of Twitterers are doing so via mobile devices, and that over 400 million unique users a month are visiting the Twitter.com website.

Facebook's revenue growing as fast as its user base

Reuters reports that Facebook's revenue is growing rapidly – more than doubling to $1.6 billion in the first half of 2011, with net income at $500 million.

As the company is still moving towards and IPO, this profit margin of around 30% puts them in a strong position, as the market tries to estimate the value of the company. But as it is still a private company, it is not obliged to provide public reporting of its finances – meaning that it isn't clear how much of the $1.6 billion in revenues is coming from advertising, and how much is coming from the 30% cut it takes from sales of virtual goods and Facebook Credits transactions.

Facebook Smart Lists

Facebook has been experimenting with some new ways of helping users to organise their friends, with "Smart Lists." These will help users' to categorise their different friends, into "coworkers", "classmates" and "local."

The fact that "Local" friends are anyone within 50 miles of your current location will probably be less useful to UK users than those in the US (although it seems like a reasonable assumption that Facebook will be refining distances for different markets.)

Although these have been compared to Google+'s "Circles", Friend Lists of Facebook have been around for some time – although it is likely that they aren't extensively used by many users. But as a starting point for users who have never got round to organising their Facebook contacts (or who were unaware of the functionality), this seems to be a good way of introducing the "lists" feature to users, and helping them to be more aware of updates or pictures that they only want to share with specific groups. As with the existing Friend Lists, users can share updates selectively with certain lists, or filter their news feeds to only see updates from them.

How these will affect brand engagement isn't currently clear though– if users choose to filter their updates (rather than everything going into a single news feed) then it seems likely that updates from brands will be shown less. On the other hand, an increased focus on particular friends' also means an increased visibility of their brand interactions – Likes, comments etc. We will be keeping a close eye on this as it rolls out.

Facebook publisher applications may be reducing engagement

A study from Applum (developer of the EdgeRankChecker tool) in levels of engagement on Facebook has revealed a considerable difference in levels of engagement for updates to Facebook Pages that are published through 3rd party applications, (such as HootSuite and TweetDeck.) On average, posts that are sent through these applications receive an average of 70% fewer Likes and Comments than those posted directly through the site.

The reasons for this were initially unclear. Applum suggested that content not being optimised for the Facebook platform may have been one reason – for example, posts being written with Twitter's 140 character limit in mind then being cross-posted to Facebook, or failing to take advantage of the ability to attach media such as photos to Facebook posts. (Presumably, users of these tools may also have been less likely to follow up with future engagement on the site.)

But InsideFacebook subsequently found that Facebook has a "whitelist" of companies whose applications are treated differently, protecting their content from being reduced in certain ways. (For example, a collection of posts being consolidated in a users' feed, displaying a "Show x more posts from [application]" link.) Developers on this whitelist are understood to be forbidden from discussing its existence, but InsideFacebook claims that Facebook have confirmed that "trusted partners" are having their posts treated differently. For brands who are keen on optimising their Facebook presence – particularly with a view to ongoing engagement beyond simply collecting "Likes" on a page should bear in mind that their choice of application could have a significant effect on engagement levels.

(They should also talk to us about our Return on Experience engagement evaluation.)

Remembering 9/11

Finally, with the tenth anniversary of 9/11 last Sunday, the memorial service obviously attracted a lot of attention, with websites, newspapers and broadcasters covering the remembrance services, as well as a look back over the impact on the last decade. But as TheNextWeb points out, some publishers use of social media was seen as either pointless or tasteless, with The Guardian quickly reacting to negative feedback by pulling their "@911TenYearsAgo" feed early.

But what is perhaps more interesting to consider is the way that a very similar set of tweets by Jeff Jarvis (a US journalist and media commentator – who has previously written for the Guardian) to chronicle his 9/11 experience came across in a completely different way to the more formulated 'branded' efforts. (His collected tweets can be seen on Storify.com) Although the fundamental idea was the same, the fact that Jarvis' account was of a very personal, human experience (as opposed to a dry collection of stark facts that didn't offer any new news or insight) meant that they came across completely differently, with a much more personal thread running through the account.

Tech Tuesday, 6-9-11

Scott Thompson's picture

A weekly update on the world of digital media and technology. This week, rumours of the Amazon Tablet turn to reports, which should contribute to the rapidly growing mobile application inventory- while one premium publisher pulls out of the paid-for app model. And Channel 4 strengthen their 4OD platform, as they move towards better demographic targeting, while Facebook pull out of the Daily Deals market, and strengthen their music connections.

First glimpse of the Amazon Tablet

We've been expecting to hear something about this for a while, but MG Siegler at TechCrunch has the scoop; the Amazon Tablet is real.

Many of the details are confirmation of earlier rumours; it has a 7", full colour touch screen — similar to the Blackberry PlayBook in terms of form factor, with no buttons on the surface, and no camera. But although it is internally running Android, it has a very different user interface and applications to those Android phone or tablet users. Apps include a Kindle book reader, Amazon Cloud Player for music, Amazon Instant Video player, and the Amazon Appstore. In other words, no Google apps, or Google Android Market, and no trace of Google's services.

As MG Siegler puts in in his TechCrunch post;

They are not working with Google on this. At all.

With plans for a launch targeting the end of November, the initial device will be WiFi only, with plans for a larger 10" version and one with 3G next year. And the price? $250- half the price of the base iPad model. Additionally, users will get a free Amazon Prime subscription (regularly priced at $79 a year.)

Perhaps most interesting is the branding; apparently, it will simply be called the Amazon Kindle, just like the current black and white eReader device (rather than a more descriptive "Kindle Colour" or "Kindle Touch.")

No news yet on plans for a UK launch, but I would hazard a guess that it would come in early 2012, with a launch focussing on Amazon's core US market, where Forrester analysts predict it will sell between 3-5 million before the end of the year — assuming supply can meet demand. All those cheap TouchPads from HP's recent clearout seem to have sold well, and the presence of a market for cheap tablets shouldn't come as a surprise. But if Amazon can manage to successfully cross-subsidise cheap tablets with an increase in sales (whether virtual goods delivered to the devices, or physical goods delivered through the Amazon store), then it will certainly have an interesting impact on the market — and don't forget that Amazon aren't afraid of advertising, having sold ad-supported Kindles at a discount, as well as partnering with a DSP in the last few months…

FT retreats from iOS

As I recently mentioned, the changing of Apple's rules about publishing on iOS devices has led to some changes in the way Amazon are approaching the device. Whether the new Kindle's development is a direct result of this friction is hard to say — but they aren't the only ones changing tactic. In June, the FT launched a web app targeting Apple's devices, giving them a way to sell content to iPhone and iPad users without the 30% cut on payments that go through Apple's own systems.

This week, the FT completed the transition, pulling their apps from Apple's app store.

Mobile advertising inventory growing

A report from Flurry looking at the growth of mobile advertising inventory in applications is growing rapidly — fast enough that available inventory could absorb the entire online display advertising spend (at a CPM of $2.50) by the end of the year.

The first thing that needs to be noted is that inventory is the total number of slots which could potentially be filled with advertising, at a potential value of $2.50.

The second point is that while there is undoubtedly a fast growing opportunity being created by the growth of smartphones and app usage, there might just as well be a downside. If the available inventory is filled with cheap advertising (that is, advertising that feels cheap to the consumer), then it leads to a devaluing of the medium. (In much the way that online advertising 10-15 years ago often being associated with irritating pop-ups and flashing images led to problems with the image of online advertising as a whole.)

The growth of mobile app inventory is a sign of the growth of mobile as a medium, and good thing for anyone interested in the potential that mobile has to offer — and particularly for Flurry, whose business lies in selling it. But the value lies in how effectively and profitably that inventory can be filled.

Facebook

Reports of a service that puts music into Facebook's home page are coming through, with some specific details from Reuters, with an announcement expected at the end of September.

Music will come from a number of Facebook partners (including Spotify, Rhapsody, Rdio, Slacker and MOG.) Although the services can already be used on Facebook, the move to integrate more deeply with the site expected to lead to an increase in engagement with the services (sharing songs and playlists, seeing what friends are listening to etc.)

The development seems to be a case of Facebook sticking to what its users want from the service — unlike the Daily Deals service it launched earlier in the year, which is being shut down after 4 months of testing.

The news will probably be welcomed by Groupon (a prominent competitor in the "deals" market), although reports from Hitwise about declining levels of traffic may be a more pressing concern.

Meanwhile, BP has launched a daily deals scheme of its own, aiming to drive footfall across its petrol stations. The deals will offer discounts from 10 FMCG partners, with a mobile-optimised website at the heart of the project to collect data and customer insight.

Channel 4's online developments.

As Channel 4 relaunch 4OD with a focus on personalisation, they have also released their online programme ratings, with 242m programme views this year, and 3.4m monthly views for July (9m of which were in the Entertainment genre - the most popular for the site.)

Correction- 3.4m average monthly viewers, and 29m monthly views for July (9m of which were in the Entertainment genre - the most popular for the site.)

The news comes as they prepare to offer better demographic targeting for advertisers.

The approach highlights a significant difference in online strategies for the various broadcasters, with Channel 4 focussing on building a strong advertising platform for targeting users, while (as Jessica Davies points out at the NMA), ITV, Channel 5, Sky and BBC WorldWide are more aggressively pursuing a payment-based model.

The advantages to aiming for value in scale could give them some other benefits - such as the ability to recruit game show contestants via the online version of the game.

Tech Tuesday, 23-8-11

Scott Thompson's picture

A weekly round-up of the big news in digital media and technology

Following last weeks big news about Motorola's sale, mobile is again dominating the news as the PC market is in decline, HP make some major changes in direction, and Vodafone start selling Android apps. Meanwhile for website owners, Twitter looks likely to catch the attention of traffic analysers, and the Facebook "Like" button could be getting some site owners into trouble…

Decline of the PC?

Sales of PCs in Q2 this year appear to be in decline. The latest figures on the PC market from Gartner report a 19% decline in Western Europe (compared to the same period last year.)

The main driver seems to be falling interest in the consumer segment, with a 27% decrease in sales (the professional segment dropped by 9%.)

The biggest drop in the market is in the "mobile PC" segment, which saw a 20.4% drop across Europe, and "mini-notebooks" which fell by 53% — presumably hardest hit by the growth of the tablet market. Desktop sales were also down 15.4%

A weak performance by Acer (hit hard by the "mini-notebook" decline) meant that HP became the biggest PC vendor across Western Europe. In the UK, where total PC sales were down 15%, HP also rose to the number one spot, where Acer were also overtaken by Dell, dropping from the top seller (by volume) to third place.

Isabelle Durand (principal analyst at Gartner) commented that;

PCs are not attracting consumers' disposable income, particularly in light of alternative devices. While remaining an important device to consumers, there are few compelling technological reasons to drive PC replacements.

In other words, consumers looking to replace PCs are increasingly looking for something other than a PC for a replacement, while the technological improvements are not offering as strong of a driver to prompt users to upgrade to new models. (A five year old PC can still perform reasonably well for general web surfing, emailling, word processing etc— which is often all that many people really want to do.)

So, HP moved into number 1 positions in both the UK and Western Europe. They are now selling more PCs in the European market than anyone else.

(I just wanted to reiterate that point before you got to the next story.)

HP kills webOS, looks to sell PC division

After announcing their latest financial results (a 2% increase in quarterly turnover), HP dropped a couple of bombshells.

Firstly, that they will be dropping development of the webOS mobile operating system (developed by Palm, who were bought by HP in April last year), and operations for webOS devices. This effectively marks the end of Palm's brands; although HP said they will look to "optimise the value" of webOS, it seems unlikely that a third owner would be able to successfully maintain a competitive position against competition against Microsoft and Google's mobile OS software, as well as Apple and BlackBerry's integrated (software and hardware) mobile products.

The impact on the UK's media landscape will probably be subtle- market share of webOS devices has been minimal in comparison with other smartphone platforms (the latest Pre3 phone was snubbed by UK mobile operators), but the rapid move of TouchPads to the bargain bucket (with sub-£100 clearout prices) could create an interesting blip in the tablet landscape, depending on how many devices are still in the sales channels. (With no software support or upgrades likely and a relatively tiny apps market, their future seems limited as anything other than a web browser.)

But the real shocker was the news that HP is also "exploring strategic alternatives" for its Personal Systems Group (PSG). From the Wall Street Journal's coverage of the earnings call;

"The tablet effect is real, and sales of the TouchPad are not meeting our expectations," Apotheker says, explaining the movement of consumers from PCs to tablets as one of the problems with the PC division. So H-P is exploring options for its unit that "may include separation through spinoff or other transactions."

As John Gruber at DaringFireball.net points out, this is a part of a broader strategic repositioning of HP, away from selling consumer devices and towards a focus on being an enterprise software and consulting company. A massive £7 billion ($10.3bn) investment in Autonomy Corp. is a clear indication of the direction HP is moving towards.

As I mentioned here shortly after HP bought Palm, they seemed to be more interested in Palm's patent portfolio and the potential for using the touch-based operating system in devices like web-connected printers. Clearly, their appetite for developing the software (and hardware) against more dedicated competition was limited. Without devices to sell, how Palm go about "optimising the value" of their patents should be interesting to watch.

But from the perspective of the media industry, its certainly unusual to see a business abandoning a future market in tablets, smartphones and PCs— but holding onto its printers…

Vodafone tie Android Market sales to phone bills

One of Apple's strengths in the Apps Store has been a tight integration with iTunes — after developing a simple way to buy music with small payments of less than a pound for a single, they already had the infrastructure in place to sell iPhone and iPad applications quickly, and at low cost.

It looks like Vodafone users will soon be able to have a similarly straightforward experience, as Vodafone have announced "Operator Billing" for the Android Market. Users will be able to make payments on the Android-equivalent of Apple's App Store without having to enter credit card details for payment, billing directly to their phone bills or prepay accounts. Launching in the UK and Germany, the service is expected to follow in other countries — of particular interest will be markets where large numbers of users are either unwilling or unable to use credit cards.

If Android usage mirrors that seen in the US, this will be of particular interest to publishers, as recent figures from Nielsen indicate that twice as much time is being spent with Android applications than on the mobile web, with the top 10 applications accounting for 43% of all time spent with applications; a huge share for a relatively small number, leaving strong competition among the rest of the 250,000+ Android apps available.

Twitter "gets the respect it deserves"

Last week, Twitter turned on "link wrappers". What this means is that any links posted on Twitter will be wrapped in a shortened "t.co" link — although users will be able to see the full link, they will go via the shortened link.

Twitter's (stated) reason for this is that Twitter will be able to more accurately track traffic levels to different links, and to block links that are scams, spam or malware. But from a website owners perspective, this means that web analytics will now categorise all traffic from the Twitter.com website and Twitter client applications as coming from Twitter. (Previously, traffic from client applications could have been categorised as direct traffic, or from the specific application.)

While this isn't going to do anything to change consumer behaviour (ie. the number of people visiting a website from Twitter), it is going to make Twitter more visible as a source of online traffic. In turn, this will probably lead to increased attention being paid to Twitter from marketers, looking for ways to maximise value from the network. Advice from TheNextWeb.com;

If you haven’t already, I suggest you check which domain has sent you the most traffic since Wednesday – compare Twitter’s T.co vs. Facebook.com vs. StumbleUpon for example – I think many of you will now find Twitter ranks number ONE.

At the moment, unlike URL shorteners such as bit.ly, Twitter aren't offering any specific analytics for t.co links. However, they are expected to be offering access to data in the future — although whether this will be freely available or part of a paid analytics product for professional Twitter accounts is yet to be seen.

Facebook "like" button declared illegal?

Apparently putting a Facebook "like" button onto your website may be illegal — if you are in the german state of Schleswig-Holstein.

The issue revolves around the allegation that the "Like" button sends back tracking data about website visits back to Facebook — whether or not the user is signed into Facebook, or even a member. Thilo Weichert, speaking from the data protection centre of the german state, demanded that websites in Schleswig-Holstein remove the "Like" button from their pages, facing a fine of up to €50,000 if they fail to comply.

Facebook have said that their social plug-ins are in compliance with European data protection laws, saying that although they can pass on data about users (such as IP addresses), they are deleted after 90 days, as per "industry standard." So far, no other states (either within Germany or elsewhere in the EU) appear to have echoed these claims.

Tech Tuesday, 16-8-11

Scott Thompson's picture

Our weekly round up of the big news in technology and digital media.

Googorola?

Google announced yesterday that they had agreed to buy Motorola Mobility for about $12.5 billion; a huge sum in its own right, but a 63% premium on Friday's closing trading price.

Motorola Mobility is the mobile division of Motorola, which began trading as a separate independant company in January this year. In the US, they are well known for the Droid, Droid X and Droid 2 handsets, running Google's Android operating system, heavily promoted and distributed exclusively by Verizon. However, tight profit margins in an increasingly competitive market have seen Motorola losing market share over the last few years.

But it seems likely that the purchase wasn't just about the company's manufacturing assets; Motorola hold a large patent portfolio — an area that has caused Google a considerable number of headaches in recent months (as we mentioned last week, and in July when Google bid $4 billion in an auction for Nortel's patent portfolio — and lost.)

In a blog post, Google CEO Larry Page said that;

Our acquisition of Motorola will increase competition by strengthening Google’s patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies.

However, the fact is that this now puts Google into the phone hardware business; like Apple, Palm and BlackBerry, they are now able to develop integrated hardware alongside their software. Despite some supportive quotes, it does seem that this could potentially create some friction between them and other hardware partners. It will be interesting to see the direction that Google take Motorola's manufacturing in, and whether it will be towards the higher end and more innovative developments (along the lines of the "Nexus" series of Android handsets which showcase Googles operating system) or a lower cost, mass-market approach to the market.

In a related story this week, Samsung have been blocked by a German court from selling Galaxy Tab 10.1 tablets in the EU while an alleged patent infringement lawsuit is underway. The lawsuit revolves around the device design (ie. not related to software patents), which Apple claim to be "slavishly copied" from their iPad.

Update: MacUser reports that the sales ban has since been overturned after Samsung complained that the court did not have the authority to issue an injunction against its parent company.

Social shake-up

A couple of changes in the workings of some of the big social networking websites; starting with the biggest, as Facebook have started collecting related status updates into "news" stories. If a number of your friends have posted about stories containing the same key words (where the key word has a corresponding Facebook Page— ie. brands), Facebook will group them into a collection. This seems to work regardless of whether the posts tagged the brand names as links, or simply mentioned them, which will increase visibility of brand pages. (While it is possible to post a link to a brand page by preceeding it with an "@" character, this can only be done by users who have "liked" the brand and know about the feature.)

Twitter are making some changes to the way users see activity on the site, with the introduction of new activity streams. One stream ("@username") will show other users' interactions with your tweets (ie. which of your tweets have generated replies, retweets and 'favourites'.) The other ("Activity stream") will show the same sorts of interactions, but related to the people who you are following.

Meanwhile, the latest development in the new kid on the social networking block; Games have been added to Google+. Game playing is a popular pastime on social networks, with Facebook attracting a considerably different gaming demographic to the traditional "teenagers in bedrooms" audience. Whether Google+ (still in a limited "technical trial" phase) will see adoption by similar audiences remains to be seen.

Amazon launch Kindle Cloud Reader, enabling kindle books to be read online via desktop PCs (although only the Chrome or Safari web browsers are supported), or iPads. Notably, the iPad "Cloud Reader" comes at the same time as Amazon have removed the option of buying Kindle books from within the iPad application (to avoid Apple's 30% charge on in-app purchases.) Although the iPad/iPhone application still allows users to store and read Kindle books, they must now visit the website to buy new books. At the same time (although with much less fuss), Amazon are adding social features to the Kindle website, enabling users to more easily let others know what they are reading and share notes.

comScore have published some findings showing the level of usage of QR codes in the US, revealing that users tend to be male, young adults (18-34, with 25-34 indexing highest), and relatively high income groups — probably indicating the kind of people with access to the relevant technologies at the moment. At the moment, the biggest source is printed media (49.4% in magazines or newspapers), scanned in their own home (58.0%.) Although the strength of QR codes clearly lies as a response mechanism, its interesting to note that while it is generally being talked of as an out-of-home experience (where it offers unique opportunities and enables new behaviours), current usage is a little different — perhaps closer to familiar behaviours such as looking up a listed website URL.

Although it seems reasonable to expect these patterns to change as more people get access to capable devices, as Steve noted here recently, they will also face competition from other technologies offering similar experiences.

Tech Tuesday, 9-8-11

Scott Thompson's picture

A weekly collection of the big news in digital media and technology

This week has been pretty much overshadowed by the terrible scenes of the last few days in London and some other UK cities.

Hitwise have published some stats on how traffic to Twitter has spiked as people turned to realtime social news to keep track of events and stay in touch with friends in the city. Meanwhile, there has been some speculation over the role BlackBerry's BBM service played; obviously its a leap to claim that social networking tools are responsible for the events (at least as much as claiming rolling 24 hour coverage on TV is responsible), but as Ofcom's Communications Market Report revealed last week, BlackBerry is the most popular smartphone among younger people.

Mobile

Smartphones and mobile internet usage were something of a theme for Ofcom's report; with 50% of 16-24 year olds now owning smartphones, they are the most likely to be smartphone users, accounting for 27% of all smartphone users. Apple's iPhone is the most popular platform for all other age groups, with a 32% share of the smartphone-owning population. But the BlackBerry's BBM messaging service (offering free messaging between BlackBerry users, over RIM's private and secure network) is a strong driver of platform preference among younger users.

Ofcom's report has plenty more statistics (over 300 pages), with some particularly interesting insights into smartphone users' relationships with their devices, and is a very useful resource for anyone with a need for UK media landscape statistics. It is available in full at their website.

(Speaking of Apple, for a moment today, their stock market value passed Exxon making them the world's most valuable company.)

Meanwhile, Google made something of a statement through a blog post last week on the topic of smartphone patents. Entitled "When patents attack Android" (a play on the title of a recent radio show), the post sets out to describe

…a hostile, organized campaign against Android by Microsoft, Oracle, Apple and other companies, waged through bogus patents.

The friction revolves around the issue of patents; a smartphone involves hundreds of thousands of technologies, many of which are protected by patents. Google, being a relatively late entrant to the mobile handset market (you could argue that it isn't actually a player in selling handsets), doesn't have the kind of patent portfolio that Nokia, Samsung or Apple have at their disposal. There is a complicated network of lawsuits between manufacturers, where a common resolution involves agreements to cross licence patents, using one as a defence against the other. Google's argument is that this network makes it difficult for open-source software such as Android to compete against an organised network of businesses – such as those whose sales are threatened by the rapid growth of Android as a competitor.

Digital TV

This week also saw the release of Virgin Media's Entertainment index, carrying some interesting insights into how users of the new TiVo-based TV set-top box are using the new platform.

25% of TV channel views did not come from the EPG (traditionally the only way a TV channels can be accessed), coming from other services such as "intelligent search". Looking at the popular search terms being used, its interesting to see that half of the top ten were outside of BARB's top 50 programmes by audience;

  1. The Apprentice
  2. Camelot
  3. Doctor Who
  4. House
  5. Glee
  6. EastEnders
  7. Dexter
  8. Casualty
  9. Desperate Housewives
  10. Fringe

This also echoes some of the findings from our research at SMG into how PVR adoption changes viewing habits, with second or third choice channels seeing a noticeable uplift in viewing.

Some other stats of note; 79% of all the TiVo set-top boxes were used to access an app and, on average, each box launched apps 4.5 times a week.

Looking across Virgin Media's entire TV subscriber base in the first half of the year (ie. not just TiVo users, but all cable TV customers), customers made 484 million On Demand views; a 19% increase on the same period of 2010. Last year saw a noticeable rise towards the end of the year (15% higher viewing over the last six months, with particularly high viewing in the last three months), indicating that Virgin Media is likely to be on track for a landmark one billion On Demand views in 2011.

Social Media

In the world of social media advertising, Facebook has now opened its advertising API, allowing anyone to build on it to build their own advertising systems, making the most of the technological opportunities to optimise advertising buying more efficiently across relevant target audiences. Our team has been using this technology for some time- speak to the SMG Facebook Advertising team for more information on how it can be used to make your investment work harder.

As social media grows, the "Web 2.0" buzzword is apparently on the decline – and due to die completely on the 1st October 2012. It might seem like an oddly specific date to attach to such a nebulous idea, but there is some logic behind it; analysis on search queries shows a steady decline in interest in Web 2.0

Search

In the world of search, this week Yahoo UK's search results switched to Bing. Yahoo's US search results have been powered by Microsoft's technology for some time following an agreement last year (in which Microsoft's technology would power Yahoo's search, while Yahoo would continue to sell advertising around search results on their site.)

Tech Tuesday, 2-8-11

Scott Thompson's picture

A weekly round-up of the news you need to know in digital media & technology

Social

Some new Twitter stats appeared on the official blog this week;

  • Over 200 million Tweets per day (up from 65 million a year ago.)
  • More than 1 million Twitter apps - up from 150,000 a year ago.
  • More than 600 employees- up from 250 12 months ago.

No doubt, the numbers were posted to add some context to the latest change in Twitters' advertising, as they continue to seek a business model to match the valuation I mentioned last week, with a change in the way their Promoted Tweets will be displayed. The new Twitter ads will increase a brands' visibility among their followers, as Promoted Tweets will now rise to the top of their followers' timelines.

This means that only users who have already chosen to follow the brands who are advertising will be affected; users can dismiss the Promoted Tweets with a single click (although why they would do so isn't clear, given that they will sink from view as quickly as any other tweet.) Twitter will be testing the new initiative with a number of US/Global brands.

Which means that UK brands won't be able to experiment just yet… although not for long, as Twitter's London office (which we have mentioned before) is expected to open soon, with agency talks apparently now underway.

Making the most of Twitter's new advertising is considering the way that your followers' interactions with brands affects the way that brand messages reach their friends and followers. Along these lines, some interesting social media marketing insights were published by Comscore, in a new paper on social media; "The Power of Like." One nice stat to come out of it is that for brands, "friends of fans" constitute an audience 34 times larger than "fans" alone.

In a Starbucks case study, its noted that not all of their 24 million fans will see Starbucks' updates on the site. But when those who do decide to interact with it, then it reaches their friends (at no cost to Starbucks.) Have a look at the paper for more information.

(At SMG, we have been looking at ways to understand the value of "likes", "comments" and other interactions. Be sure to have a look at that as well.)

Meanwhile, Facebook's London office is growing, as they move to a new 36,000 square foot office in Covent Garden. This week, Facebook launched "Facebook for Business", a new resource for Facebook advertisers aimed at small businesses, with tips on creating and managing pages and ads.

(If you're looking for help and advice in this area, then once you have checked out Facebook's new pages, you should also speak to our team.)

Gaming

Nintendo slashed the price of the handheld 3DS console by around a third (in Europe), giving 20 'classic' games to the console's early adopters (or "ambassadors", as Nintendo are calling them.)

A clue as to why might be revealed in an interview with the EA CEO. Consoles are now just 40% of the games industry. Ten years ago, they were 80%. Surely the rise of smartphones and mobile apps (a market dominated by games) is playing a big part. Today, devices like the iPhone and iPad are growing in number - and importance. Not only do they offer an alternative gaming platform, but they are also opening up new gaming opportunities for audiences who wouldn't typically be interested in buying a dedicated gaming device.

With low cost mobile games offering competition to high cost games for dedicated mobile platforms, the opportunities appearing for either branded games or in-game advertising are worth watching out for.

Mobile

With news that the iPhone 5 is now expected in October, developments in the mobile world is proving to be just as disruptive to related markets as they are to direct competitors.

But it isn't all smiles in the App world. Apple recently changed the way they are dealing with in-app purchases, tightening the rules around how publishers can offer their own payment mechanisms, sidestepping Apple's iTunes system (and the 30% cut that Apple take.) Some recent changes made to the Kindle application have removed the ability to purchase content from within the application completely. As Amazon explain;

In order to comply with recent policy changes by Apple, we've also removed the "Kindle Store" link from within the app that opened Safari and took you to the Kindle Store. You can still shop as you always have - just open Safari and go to www.amazon.com/kindlestore. If you want, you can bookmark that URL. Your Kindle books will be delivered automatically to your iPad, iPhone or iPod touch, just as before.

Over at Forrester, analysts at "Apps aren't the killer app" – in a blog post, they point out that just 7% of US and EU phone owners regularly download mobile applications, and only 11% of US phone owners have ever downloaded an application from a store or marketplace. (Forrester also cite a study from Pinch media — albeit from over 2 years ago — that found that 80% of free apps are never used again after the day they are first downloaded.) Forresters advice (which I would echo) is that for the publishers of many mobile applications, the need for an app is driven more by the technology than consumer insight; for many cases, a mobile-optimised website is a better solution to the problem than building a dedicated application.

However, its worth pointing out that those figures are looking at a total population –the smartphone-owing population is still a minority, but one that is growing at an incredible pace.

News from BBC Worldwide about the launch of their iPlayer app for iPad is probably one good example of an opportunity that would be hard to seize using a simple web-optimised site; a free application available in 11 markets (Austria, Belgium, France, Germany, Italy, Luxembourg, The Republic of Ireland, The Netherlands, Portugal, Spain and Switzerland) will offer BBC TV content for sale at €6.99 a month, €49.99 for annual subscription, with advertising running around free, sample content.

The app is positioned differently to the UK's iPad application, with eight genres of content available (News Specials & Documentaries; Entertainment; Drama; Comedy; Science & Nature; Family & Kids; Music & Culture and Lifestyle), as opposed to the catch-up model of the UK's app. In addition, the inter nation application will allow users to download content to watch offline- a feature not available in the UK app.

Video

BSkyB has broken the £1bn profit barrier. Apparently undistracted by the recent News Corp. manoeuvring, the latest financial report from Sky shows an excellent year, with a 23% growth in operating profit breaking the £1 billion mark.

Sky is also seeing growing numbers of customers taking "triple play" bundles (broadband, telephony and Sky TV), and there are now 3.8 million Sky+HD customers (up 30% year on year) — an interesting number to keep an eye on as Sky continue to work on their AdSmart technology.

The way online video and TV will develop is certainly of interest to anyone with an eye on the future of media. Digital TV Research are forecasting a growth of on-demand TV revenues to grow to $5.7 billion by 2016 — excluding revenues from sports, adult and subscription services. This is a rise of 58% compared with 2010, with growth expected to largely grow from cable TV.

ITV are also making moves towards the paid-for model, as revealed in their latest financial reports; CEO Adam Crozier noted that;

We plan to have a pay mechanism in place around the turn of the year so that we can test what viewers are willing to pay for, and we continue to work with our partners on YouView, which is on track for launch early next year.

A US survey of online video attitudes and consumption (sponsored by video publisher MetaCafe) has some interesting findings; 63% "can't live without" their PC/Laptop, and 32% say its their primary medium for entertainment. (This compares to 60% who say they "can't live without" television, and 44% who say it is their primary medium for entertainment.)

But among 18-34 male consumers, the picture is slightly different- although the PC is slightly more important, the perceived role of TV is clearly shifting, with only 28% saying it is their primary medium for entertainment.

Its worth noting that with 14% saying the same about games consoles games consoles - which is presumably used through the television - this may be as much a distortion of having to make a single choice in the survey as reflecting different values of respondents.

As well as these attitude findings, it has some interesting stats about platforms; 25% of respondents say that they are accessing the internet through a TV set (mainly through games consoles), with a further 23% saying that they don't presently, but are interested in doing so. Plenty more stats are available in the presentation, available as a PDF to download.