Archive for February, 2008

Monday, February 18th, 2008

Google turned search advertising into the most profitable media
business on the web by following the basic principle that advertising
must create value for consumers. Search advertising is so powerful
because the ads are relevant and USEFUL.

The most successful new advertising models will be those that create
huge value for consumers, not those that manipulate users or violate
their privacy.

(by Scott Karp)

From Publishing 2.0

The plot thickens:

Tuesday, February 12th, 2008

A.) Microsoft
agreed to buy cellphone software maker Danger. Danger, a Palo Alto,
Calif.-based company, builds Web browsing, messaging, social networking and
other software for mobile devices. The vast majority of its revenue comes from
selling its technology to a single client — T-Mobile USA for its Sidekick
phones. In a Silicon Valley twist, Danger was
founded by Andy Rubin, who went on to start Android, which Google acquired in
2005.

B.) Mobile
phone manufacturer Nokia is getting deeper into the advertising business with
the launch of the Nokia Media Network, which claims to bundle mobile ad
inventory from over 70 publishers. To assemble its new network, Nokia has lined
up partnerships with Discovery, Reuters, Hearst, Sprint and others in an effort
to offer advertisers access to premium inventory across numerous mobile sites,
said officials.

Mobile Marketing

Tuesday, February 12th, 2008

Why are so many players entering the wireless market, when
the consumer is not yet involved? The answer is the invisible elephant on the
table: advertising.

 

The wireless desktop remains the illusive next generation of
advisements. Imagine the following: A large cell phone carrier has 40 million
users. Let’s assume that 50% of them look at their cell phone once a day. 30%
look at their cell phone 4 times a day. And 20% look at it 10 times a day. As a
result they have more than 148 million eyeballs per day, and more than 4
billion eyeballs per month. In comparison, the season finale of American Idol
receives 30 million viewers. It becomes clear why so many folks are so
interested in the wireless adverting world. 

The iPhone

Tuesday, February 12th, 2008

Yes, it is true that America’s network operators should
open up their networks, but at the same time it is not impossible to create
consumer based applications for today’s infrastructure. One reason why wireless
applications have not gone mainstream yet, is that fact that consumer are not
at the table yet. More that more than 90% of the North American population has
regular phones and they exclusively use their phone to do phones calls (voice
calls). All the hype in the business press about applications, wireless
entertainment, business applications, and even wireless marketing is confined
to the business community. As a result there is not real consumer pressure to
“open up the networks” because consumers just don’t care.

 

Enter: the iPhone

For everyone that has ever played with an iPhone it becomes
blatantly obvious what they had been missing all these years. Within second
entertainment, songs, traffic, weather, and headline news are at your
fingertips. The internet is readily available, and easy to navigation, and
email message appear magically.

 

The iPhone has shown the world what is possible when it
comes to wireless entertainment, and they created what the industry has been
trying to achieve (and been talking about) for years. This has woken up the
giant Google, and they quickly announced a new operating system, and a
potential Google phone.

 

In 2008 the US government is licensing more wireless spectrum to the world through an auction
process, and many believe that Google has the ambition and deep pockets to win
the bid. If they do, they will be able revolutionize the way we use mobile
phone. If they rely on their existing business model, they could give away the
minutes (data + voice) for free, and charge a minimal amount for the hardware.
All revenues would come from advertisements to the wireless desktop.

Within 2 years Google could easily become a very relevant
player in the market.