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	<title type="text">paidContent news watch | Marketing</title>
	<subtitle type="text">The Economics of Digital Content</subtitle>
	<link rel="alternate" href="http://paidcontent.org/" type="text/html"/>
	<link rel="self" href="http://paidcontent.org/rss/topic/" type="application/atom+xml"/>
	<updated>2012-02-12T15:52:28Z</updated>
	<rights>Copyright (c) 2012, paidContent</rights>
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		<entry>
			<title>The Most Important Thing About Bridesmaids&#39; $40 Million In VOD Revenues</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-the-most-important-thing-about-universals-40-million-in-vod-revenues-/"/>
			<id>tag:contentnext.com,2012-02-10:article/419-the-most-important-thing-about-universals-40-million-in-vod-revenues-</id>
			<published>2012-02-10T17:51:33Z</published>
			<updated>2012-02-10T19:37:35Z</updated>
			<author>
				<name>Daniel Frankel</name>
				<uri>http://paidcontent.org/member/23818/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>Universal Pictures put a lot of palms on foreheads this week when it announced that its summer comedy hit <em>Bridesmaids</em> has taken in $40 million so far across cable and internet VOD platforms. Certainly, it&#8217;s a big performance&#8212;long-entrenched entertainment data tracker Rentrak christened it the biggest VOD haul ever, while Steve Savage, co-president of New Video, a leading-edge distributor to digital channels, called the number &#8220;extraordinary.&#8221; But, perhaps, the bigger news was the fact that Universal was releasing any VOD number at all.
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					<p>Universal Pictures put a lot of palms on foreheads this week when it announced that its summer comedy hit <em>Bridesmaids</em> has taken in $40 million so far across cable and internet VOD platforms. Certainly, it&#8217;s a big performance&#8212;long-entrenched entertainment data tracker Rentrak christened it the biggest VOD haul ever, while Steve Savage, co-president of New Video, a leading-edge distributor to digital channels, called the number &#8220;extraordinary.&#8221; But, perhaps, the bigger news was the fact that Universal was releasing any VOD number at all.
</p><p>Unlike theatrical distribution&#8212;studios give out granular performance data for their movies every Sunday to the press&#8212;precious little in the way of revenue or transaction figures on movie VOD distribution makes it to the press. For example, while Rentrak would tell us that the Warner Bros. (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=TWX" class="ticker" title="TWX">NYSE: TWX</a>) comedy <em>Due Date</em> ranks second all-time in VOD distribution, followed by another comedy from the same studio, <em>Hall Pass</em>. A Rentrak representative told us the company has revenue and transaction data on those films and many others, measuring their performances across cable and satellite VOD, as well as internet VOD and download platforms.</p>

<p>And what it calls the &#8220;movies on demand business&#8221; is up, growing 9 percent last year to nearly $1 billion, according to Rentrak&#8212;this compares to the $10.73 billion made by studios at theaters in the U.S. and Canada in 2011, and the nearly $15 million grossed selling and renting DVD and Blu-ray titles domestically.</p>

<p>But citing its relationship with the studios, Rentrak said it&#8217;s prohibited from giving out VOD data on specific movies beyond ranking unless authorized. A digital executive for one of the major studios told us it&#8217;s &#8220;normal&#8221; practice for big media companies not to routinely release data about developing platforms. The public, he said, would have no use for data points that are too new to have context. The executive insisted that once it evolves just a bit more, we&#8217;ll soon start to see data that make the monetization of digital film distribution as transparent as theatrical release.</p>

<p>We&#8217;re not holding our breath on that. Back in 1997, when the DVD was launched, some in the home-entertainment market were saying the same thing. Fifteen years later, when Universal touted <em>Bridesmaids</em>&#8217; $100 million in U.S. DVD and Blu-ray sales in the same press release, that nearly opened as many eyes as the VOD number.</p>

<p>On some level, we tie this reluctance to the byzantine nature of the old-Hollywood accounting culture, its remnants still intact despite the corporate takeover of the studios by media corporations&#8212;the less the world knows about your revenue streams, the less you have to share them.</p>

<p>&#8220;Sure, the more transparent a studio is, the more phone calls they get from lawyers looking for a piece of the pie,&#8221; said Marc Schiller, an independent film marketing executive who works with filmmakers including Ed Burns. Strategically, that philosophy may have worked in regard to the DVD business, which was further &#8220;downstream&#8221; in the distribution chain, Schiller said.</p>

<p>But particularly on the independent side of the film business, where producers and their distribution partners are releasing VOD simultaneous with theatrical release&#8212;or, in the case of the so-called &#8220;ultra VOD&#8221; model, weeks before it&#8212;not having enough data is a planning detriment, he said.</p>

<p>&#8220;It&#8217;s vital that we know what the benchmarks for success are,&#8221; Schiller explained. &#8220;Rentrak box-office data is readily available for people who need to understand and develop strategies around theatrical distribution. But one of the major challenges in putting a VOD release strategy together is that there isn&#8217;t enough historical data.&#8221;</p>

<p>In the independent film business, he said, filmmakers and their distribution partners tend to work more collaboratively, and the VOD reporting process tends to be a little more transparent. </p>

<p>The New Video Group, which distributes more than 6,000 movies through outlets ranging from DirecTV (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=DTV" class="ticker" title="DTV">NYSE: DTV</a>) to iTunes, maintains an online dashboard to give its filmmaking partners real-time performance data on their movies. &#8220;We are as perfectly transparent as we can be,&#8221; said Steve Savage, New Video&#8217;s co-president. </p>

<p>But even in the independent world, information about VOD distribution doesn&#8217;t exactly seem to be free-flowing. For example, another VOD buzz number that recently surfaced was the more than $5 million reportedly grossed by the Wall Street-themed Kevin Spacey film <em>Margin Call</em>. The film&#8217;s backers gave that number to the press, &#8220;But you can ask 90 percent of the people in the film industry, and we still don&#8217;t know where that number came from,&#8221; Schiller said. </p>



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											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-new-video-cinedigm-form-digital-film-distribution-alliance/" title="New Video, Cinedigm Form Digital Film Distribution Alliance">New Video, Cinedigm Form Digital Film Distribution Alliance</a></li>
<li><a href="http://paidcontent.org/article/419-can-mel-gibson-make-money-on-a-movie-that-gets-shunned-by-theaters/" title="Can Mel Gibson Make Money On A Movie That Is Shunned By Theaters?">Can Mel Gibson Make Money On A Movie That Is Shunned By Theaters?</a></li>
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									<category term="667" scheme="http://paidcontent.org/topics" label="Entertainment"/>
							
									<category term="671" scheme="http://paidcontent.org/topics" label="Movies"/>
							
									<category term="673" scheme="http://paidcontent.org/topics" label="DVD"/>
							
									<category term="699" scheme="http://paidcontent.org/topics" label="Marketing"/>
							
									<category term="700" scheme="http://paidcontent.org/topics" label="Media &amp; Publishing"/>
							
									<category term="709" scheme="http://paidcontent.org/topics" label="TV"/>
							
									<category term="714" scheme="http://paidcontent.org/topics" label="VOD"/>
							
									<category term="724" scheme="http://paidcontent.org/topics" label="Social Media"/>
							
									<category term="730" scheme="http://paidcontent.org/topics" label="Video"/>
							
						</entry>
	
		<entry>
			<title>How To Use Facebook&#39;s Open Graph To Build Your Business</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-how-to-use-facebooks-open-graph-to-build-your-business/"/>
			<id>tag:contentnext.com,2012-02-09:article/419-how-to-use-facebooks-open-graph-to-build-your-business</id>
			<published>2012-02-09T19:31:48Z</published>
			<updated>2012-02-10T14:45:49Z</updated>
			<author>
				<name>Ben Elowitz</name>
				<uri>http://paidcontent.org/member/11096/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>Last year, it became clear that Facebook is well on its way to <a href="http://digitalquarters.net/2011/09/sos-the-social-operating-system/">becoming a social operating system</a> underlying our digital lives.&nbsp; And the enhanced Facebook Open Graph makes that vision a reality.&nbsp; 
</p>
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					<p>Last year, it became clear that Facebook is well on its way to <a href="http://digitalquarters.net/2011/09/sos-the-social-operating-system/">becoming a social operating system</a> underlying our digital lives.&nbsp; And the enhanced Facebook Open Graph makes that vision a reality.&nbsp; 
</p><p>My company, Wetpaint, was fortunate to participate in a beta phase with Facebook and be a launch partner with The Washington Post (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=WPO" class="ticker" title="WPO">NYSE: WPO</a>) social reader project; in the process, we have gotten a glimpse of how to build media for a fully social web, and it&#8217;s had a<a href="http://digitalquarters.net/2012/01/social-leaderboard-17-growth-in-traffic-from-social-and-wetpaint-is-the-new-1/" title=" dramatic"> dramatic</a> impact on our business. </p>

<p>We have learned that without question, there is a ton to be gained in audience acquisition, branding, and retention by integrating into the Open Graph.&nbsp; And, based on the few months’ head start we’ve had, I wanted to provide a brief guide to what has worked, and explain how to take full advantage of the Open Graph.&nbsp; </p>

<p>Here, then, are the four most important elements:&nbsp;  </p>

<p><strong>1. Determine what’s inherently social in what you do for your audience</strong> – This is the most important part, and it’s not easy, because people don’t want to share everything they read online.&nbsp; Rather, they share the things that are helpful to others, or contribute to their public identity. </p>

<p>Don’t fight it.&nbsp; Work with it, instead.&nbsp; Provide content your audiences will use to define themselves and enhance their reputations as a curator.&nbsp; With your content, what specifically can they share, and what can it say about them?&nbsp; </p>

<p>I especially like this item from a cousin who recently posted this <a href="http://www.flavourgasmic.com/2009/05/deep-fried-captain-and-coke/">recipe for fried Coke</a> (what? oh yes!).&nbsp; If you think it means she’s a southern gourmet, you’d be right:&nbsp; she makes the best fried chicken I’ve ever had. And posting recipes like this makes sure we all know about her decadent down-home style.&nbsp; </p>

<p>People also respond to things that make them smile.&nbsp; Who wouldn’t like a picture of a <a href="http://icanhascheezburger.com/2011/09/06/funny-pictures-t-rex-you-so-crazy/">cat laughing with a dinosaur</a>?&nbsp; Sharing it makes a statement about what gems you can find, what loops you’re in, what makes you chuckle, and that you like brightening your friends’ day.&nbsp; </p>

<p>We are thumbs-up with things that back our opinions, or show we are in the know about things that are important to how we want to be perceived. For a news site, this means interests and causes that we want to support; and, for a sports site, it’s our tribal badging and admiration of teams and players. </p>

<p>And for games, movies, and events, it’s more about sharing something special together. Whether a concert or a conference, convening with others turns content into an experience. The phenomenon of Social TV that we see at Wetpaint, and throughout all TV programming, is proof positive that media events are made to be shared.&nbsp; </p>



<p>&nbsp;</p><p><strong>2. Start thinking in verbs – other than “Like”</strong> – To date, publishers have been focused on the page.&nbsp; Now it’s time to think about the interaction – not just with the page, but with the content.&nbsp; Think in verbs.&nbsp; Facebook has suggested a handful of obvious ones.&nbsp; Your audience should “watch” videos; “listen to” songs; and “read” articles.&nbsp; But beyond that, you can also add your own creative alternatives:&nbsp; “view” photo galleries, “lust for” celebrities, “OMG” scenes on TV, “vote for” reality TV contestants.&nbsp; All of these help define a relationship between your audience and what they love.&nbsp; And as a publisher, you get to take credit for that introduction and its viral distribution among a user’s circle.</p>

<p><strong>3. Own objects, not just content</strong> – In the now-more-open Open Graph world, the objects of our affections are no longer just dumb pages.&nbsp; Rather, you can define objects in the real-world – with the promise of improving Facebook’s and your audience’s connections to them, and to you.&nbsp; As with the examples above, the limit of what you can define is constrained only by your creativity; however, the focus should be on objects that are natural social extensions of your consumer experience.&nbsp; Don’t try to socialize objects that no one wants to share – I don’t want to circulate that I “zero balanced” my “bank account.”</p>

<p><strong>4. Live in Facebook’s world </strong>– It’s not really just Zuckerberg’s world … it’s your users’ world, too.&nbsp; 500 million Facebook users are logging in every day, and spend seven hours per month (on average) on Facebook.&nbsp; That’s why it’s important to create an experience that blends with the social world; and that experience needs to be connected, and in real-time. The more you integrate into Facebook’s clearing house, the more you can benefit from seamless transitions, access to connected user data, and user expectations of implicit sharing.&nbsp; Facebook Connect is critical; as is earning the Likes to be in a relationship with your audience.&nbsp; When you do that, you can program your users’ news feeds.&nbsp; At Wetpaint, we average 30 impressions per fan per month.&nbsp; I’ve never had that much communication in any of my relationships with friends or family (much to my mother’s dismay, which she reminds me of all the time), yet our consumers have it with us all year long.&nbsp; And, beyond the news feed, creating a Facebook canvas app (we’re working on a new one now) means you can truly be everywhere your audience wants you to be – both in Facebook and on the Web.&nbsp; </p>

<p>With the new Open Graph features, a short-term way of thinking about the opportunity is that you are integrating into Facebook’s technical architecture.&nbsp; But a far more meaningful – and, ultimately, more beneficial – way of thinking about it for both your users and your business is that you are integrating into your users’ lives.&nbsp; </p>

<p>I overheard someone at last year’s F8 event say that Facebook is no longer “Face”-book, it’s really becoming “Life”-book.&nbsp; It’s that level of integration with real life that can create the most powerful opportunities for the next era of the Web.&nbsp; </p>

<p><em><a href="http://digitalquarters.net/about/">Ben Elowitz</a> (@elowitz) is co-founder and CEO of <a href="http://www.wetpaint.com">Wetpaint</a>, a web publisher, and author of the <a href="http://www.digitalquarters.net">Digital Quarters</a> blog. Prior to Wetpaint, Elowitz co-founded <a href="http://www.bluenile.com">Blue Nile</a>, the online retailer of luxury goods. He is also an angel investor in various media and e-commerce companies. </em>
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									<category term="659" scheme="http://paidcontent.org/topics" label="Advertising"/>
							
									<category term="1069" scheme="http://paidcontent.org/topics" label="Features"/>
							
									<category term="1070" scheme="http://paidcontent.org/topics" label="Guest Voices"/>
							
									<category term="699" scheme="http://paidcontent.org/topics" label="Marketing"/>
							
									<category term="724" scheme="http://paidcontent.org/topics" label="Social Media"/>
							
									<category term="726" scheme="http://paidcontent.org/topics" label="Community"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="888" scheme="http://paidcontent.org/topics" label="Facebook"/>
							
						</entry>
	
		<entry>
			<title>How Accenture Used A Mobile App To Get On The BBC</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-how-accenture-used-a-mobile-app-to-get-on-the-bbc/"/>
			<id>tag:contentnext.com,2012-02-09:article/419-how-accenture-used-a-mobile-app-to-get-on-the-bbc</id>
			<published>2012-02-09T09:06:09Z</published>
			<updated>2012-02-10T16:41:11Z</updated>
			<author>
				<name>Robert Andrews</name>
				<uri>http://paidcontent.org/member/47/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>When the consulting firm&#8217;s logo appeared routinely in Six Nations rugby broadcast graphics this weekend, James Cridland was amongst the viewers to ask: &#8220;<a href="mediauk.com/tv/discussions/tv-chatter/accenture-advertises-on-bbc-sport-how" title="Accenture advertises on BBC Sport - how?">Accenture advertises on BBC Sport - how?</a>&#8221;</p>

<p>Sponsorship on the license-funded BBC in the UK is strictly forbidden. But the workaround, for Accenture, was to build a mobile app&#8230;
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					<p>When the consulting firm&#8217;s logo appeared routinely in Six Nations rugby broadcast graphics this weekend, James Cridland was amongst the viewers to ask: &#8220;<a href="mediauk.com/tv/discussions/tv-chatter/accenture-advertises-on-bbc-sport-how" title="Accenture advertises on BBC Sport - how?">Accenture advertises on BBC Sport - how?</a>&#8221;</p>

<p>Sponsorship on the license-funded BBC in the UK is strictly forbidden. But the workaround, for Accenture, was to build a mobile app&#8230;
</p><p>Back in January, the RBS 6 Nations tournament <a href="http://newsroom.accenture.com/news/rbs-6-nations-signs-accenture-as-new-technology-partner.htm" title="anointed">anointed</a> Accenture with &#8220;official technology partner&#8221; status. That&#8217;s a relatively new trend, but not <em>entirely</em> - 12 months ago, the Barclays Premier League <a href="http://paidcontent.org/article/419-eas-soccer-tech-tie-up-caused-sky-to-breach-ofcom-rules/" title="named">gave</a> Electronic Arts (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=ERTS" class="ticker" title="ERTS">NSDQ: ERTS</a>) the same status.</p>

<p>To earn the status, technology partners must each provide a service to the tournament. EA provided match data. Accenture built the <a href="http://itunes.apple.com/gb/app/official-rbs-6-nations-championship/id489164343?mt=8" title="official Six Nations mobile application">official Six Nations mobile application</a>, with tournament news, live scores, squad lists, tables and video highlights.</p>

<p>Broadcasters are frequently bound, by the terms of their contracts with tournaments they air, to show the brands of these supposedly integral tournament partners. EA got to show its logo alongside live on-screen match facts on Sky Sports. Accenture&#8217;s logo is displayed along with rugby scores broadcast to by the BBC, Ireland&#8217;s RTE etc. Many other broadcasters do the same for many other sports.</p>

<p>What&#8217;s interesting here is Accenture is not just providing a private partner service to the tournament but, through the mobile app, is itself providing to the tournament&#8217;s end audience the same kind of content media consumers might expect to obtain from an organisation like the BBC</p>

<p>BBC Sport gave paidContent this statement&#8230;</p>

<blockquote><p>&#8220;Accenture are the official data supplier for The Six Nations and  as a technology company are responsible for providing the statistics for The  Championships. This &#8216;facility&#8217; is available to all partners/media covering the  event.</p>

<p>&#8220;The relationship is between &#8216;Six Nations Rugby Limited&#8217; and  &#8216;Accenture&#8217;. In accordance with BBC and EBU guidelines (which provide  for the crediting of official data processing and timing suppliers) the BBC  credits Accenture as official data supplier on a number of occasions throughout the match.</p>

<p>&#8220;For television, a corporate logo  accompanies a select number of statistical match graphics. This is common  practice, industry wide, and should not be confused with reflections given to event title sponsors.&#8221;</p></blockquote>

<p>We run this story in the interest of clarification and curiosity and not necessarily as a BBC-bashing piece.</p>

<blockquote class="twitter-tweet"><p>How come the BBC are allowed to show the Accenture logo during the stats coverage in the rugby? <a href="https://twitter.com/search/%2523sixnations">#sixnations</a> <a href="https://twitter.com/search/%2523England">#England</a></p>&mdash; Toby Morris (@tobym20) <a href="https://twitter.com/tobym20/status/165865563577528320" data-datetime="2012-02-04T18:33:26+00:00">February 4, 2012</a></blockquote>
<script src="//platform.twitter.com/widgets.js" charset="utf-8"></script>

<blockquote class="twitter-tweet"><p>How did Accenture advertise on BBC Sport, when the Editorial Guidelines specifically prohibit it? More: <a href="http://t.co/xYerEPuD" title="http://www.mediauk.com/tv/discussions/tv-chatter/accenture-advertises-on-bbc-sport-how">mediauk.com/tv/discussions…</a></p>&mdash; James Cridland (@JamesCridland) <a href="https://twitter.com/JamesCridland/status/165880371123204096" data-datetime="2012-02-04T19:32:17+00:00">February 4, 2012</a></blockquote>
<script src="//platform.twitter.com/widgets.js" charset="utf-8"></script>
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									<category term="699" scheme="http://paidcontent.org/topics" label="Marketing"/>
							
									<category term="715" scheme="http://paidcontent.org/topics" label="Mobile"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="853" scheme="http://paidcontent.org/topics" label="BBC"/>
							
							
							
						</entry>
	
		<entry>
			<title>Facebook&#39;s Mobile Plan: Carrier Billing, Analytics For Apps Via Bango Deal?</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-facebooks-mobile-plan-carrier-billing-analytics-for-apps-via-bango-deal/"/>
			<id>tag:contentnext.com,2012-02-08:article/419-facebooks-mobile-plan-carrier-billing-analytics-for-apps-via-bango-deal</id>
			<published>2012-02-08T10:35:45Z</published>
			<updated>2012-02-08T13:39:46Z</updated>
			<author>
				<name>Ingrid Lunden</name>
				<uri>http://paidcontent.org/member/34/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>Last week, we highlighted how Facebook is <a href="http://paidcontent.org/article/419-facebook-has-a-mobile-card-up-its-sleeve-in-addition-to-advertising/" title="already using mobile devices for commercial services">already using mobile devices for commercial services</a>&#8212;enabling people to buy Facebook Credits and charge them directly to their mobile bills. Now, it’s increasingly looking like that may just be the beginning: today, UK-based mobile billing and analytics specialist Bango (AIM: BGO) announced that it had signed a deal to provide unspecified services to the social network.
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					<p>Last week, we highlighted how Facebook is <a href="http://paidcontent.org/article/419-facebook-has-a-mobile-card-up-its-sleeve-in-addition-to-advertising/" title="already using mobile devices for commercial services">already using mobile devices for commercial services</a>&#8212;enabling people to buy Facebook Credits and charge them directly to their mobile bills. Now, it’s increasingly looking like that may just be the beginning: today, UK-based mobile billing and analytics specialist Bango (AIM: BGO) announced that it had signed a deal to provide unspecified services to the social network.
</p><p>This is a significant deal for Facebook on two separate fronts:</p>

<p>&#8212;<strong>It ties Facebook up with one of the bigger companies in the area of mobile billing</strong>: Bango is the payments provider for RIM&#8217;s App World, which yesterday once again laid claim to being the second-most profitable app storefront after Apple&#8217;s&#8212;largely because of the fact that it has a strong business in paid apps and that those apps are billed directly to users&#8217; mobile bills in 34 countries. RIM (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=RIMM" class="ticker" title="RIMM">NSDQ: RIMM</a>) yesterday claimed that <a href="http://paidcontent.org/article/419-rim-app-world-is-now-at-60000-apps-13-percent-of-publishers-earn-100k/" title="13 percent of its App World developers earn in excess of $100,000">13 percent of its App World developers earn in excess of $100,000</a>, which is massive considering how many developers earn next to nothing.</p>

<p>In December last year, Bango also <a href="http://paidcontent.org/article/419-amazon-may-be-eyeing-up-carrier-billing-for-its-mobile-content-business/" title="secured a deal with Amazon">secured a deal with Amazon</a>. </p>

<p>Like the Facebook <a href="http://www.stockmarketwire.com/article/4305636/Bango-signs-deal-with-Facebook.html" title="announcement">announcement</a> that deal provided no detail about what it was that Bango would do for the company&#8212;although that, too, could be an opportunity for Amazon (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=AMZN" class="ticker" title="AMZN">NSDQ: AMZN</a>) to build carrier billing into its mobile apps. A spokesperson contacted today declined to comment on the details of either the Amazon or Facebook deals, although she did confirm that Amazon was an active customer.</p>

<p>The use of carrier billing also begs another question: for what? That could point to Facebook offering richer mobile services on its web platform. The could include paid content apps or the ability to pay for other goods and services, perhaps linked up with location-based deal offerings. As the <a href="http://blogs.ft.com/fttechhub/2012/02/facebook-bango-mobile-payments/?utm_source=twitterfeed&amp;utm_medium=twitter#axzz1ljhmbgZF" title="FT">FT</a> points out, that&#8217;s something that Bango itself started to promote, coincidentally just when news began to leak out of Facebook&#8217;s own HTML5 push, code-named &#8220;Project Spartan.&#8221;</p>

<p>It could also mean Bango working alongside or in place of other billing partners: Bango competes directly with Facebook partners Zong and Boku.</p>

<p>&#8212;<strong>The other significant side of Bango&#8217;s business is in the area of analytics for mobile web sites as well as apps</strong>. This is a service it already provides various high-profile publishers like CNN, Fox (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=NWS" class="ticker" title="NWS">NSDQ: NWS</a>), and EA Mobile, among others&#8212;as well as to mobile ad agency AKQA&#8212;to help track how mobile content is used and consumed. That helps the publishers not only track what content &#8220;works&#8221; but also can be used to build profiles to sell advertising and marketing services.</p>

<p>If reports are true, that is another area where Facebook is going to have to start doing some serious tracking, too: the company is reportedly going to start inserting &#8220;sponsored stories&#8221; into mobile users&#8217; feeds, which would represent Facebook&#8217;s first big foray into offering marketing services to brands since filing for its IPO last week&#8212;where it pointedly mentioned it had yet to start offering such revenue-generating services.</p>

<p>Facebook is holding an <a href="https://www.facebook.com/business/fmc" title="advertising confab">advertising confab</a> at the end of this month&#8212;its first high-profile foray into wooing Madison Avenue&#8212;where it may well announce more details about how its mobile plans are progressing.</p>

<p>The other point to be made here is that it is interesting that Facebook is taking the road less traveled by companies like Apple (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=AAPL" class="ticker" title="AAPL">NSDQ: AAPL</a>) and exploring routes to align itself with carriers as it expands what it does on mobile. It&#8217;s not the first time: Facebook has a whole swathe of non-smartphone users that can update their statuses by mobile; many of those feature phone Facebookers are using SMS, which also require carrier interconnections to operate. 
</p>
											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-amazon-may-be-eyeing-up-carrier-billing-for-its-mobile-content-business/" title="Update: Amazon Eyeing Up Mobile Carrier Billing With New Bango Deal?">Update: Amazon Eyeing Up Mobile Carrier Billing With New Bango Deal?</a></li>
<li><a href="http://paidcontent.org/article/419-rim-app-world-is-now-at-60000-apps-13-percent-of-publishers-earn-100k/" title="RIM: App World Is Now At 60,000 Apps; 13 Percent Of Publishers Earn $100k+">RIM: App World Is Now At 60,000 Apps; 13 Percent Of Publishers Earn $100k+</a></li>
<li><a href="http://moconews.net/article/419-blackberry-takes-larger-cut-of-developer-revenues-in-updated-app-world/" title="BlackBerry Takes Larger Cut Of Developer Revenues In Updated App World">BlackBerry Takes Larger Cut Of Developer Revenues In Updated App World</a></li>
<li><a href="http://paidcontent.org/article/419-facebook-may-not-be-into-mobile-ads-yet-but-plenty-of-others-are/" title="Facebook May Not Be Into Mobile Ads Yet, But Plenty Of Others Are">Facebook May Not Be Into Mobile Ads Yet, But Plenty Of Others Are</a></li>
<li><a href="http://moconews.net/article/419-facebooks-next-step-in-mobile-domination-a-feature-phone-app/" title="Facebook's Next Step In Mobile Domination: A Feature Phone App">Facebook's Next Step In Mobile Domination: A Feature Phone App</a></li>
<li><a href="http://paidcontent.org/article/419-facebook-has-a-mobile-card-up-its-sleeve-in-addition-to-advertising/" title="Update: Facebook Has A Mobile Card Up Its Sleeve In Addition To Advertising">Update: Facebook Has A Mobile Card Up Its Sleeve In Addition To Advertising</a></li>
</ul>

									]]>
			</content>
			
									<category term="659" scheme="http://paidcontent.org/topics" label="Advertising"/>
							
									<category term="1123" scheme="http://paidcontent.org/topics" label="Apps"/>
							
									<category term="699" scheme="http://paidcontent.org/topics" label="Marketing"/>
							
									<category term="715" scheme="http://paidcontent.org/topics" label="Mobile"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="847" scheme="http://paidcontent.org/topics" label="Amazon"/>
							
									<category term="849" scheme="http://paidcontent.org/topics" label="Apple"/>
							
									<category term="888" scheme="http://paidcontent.org/topics" label="Facebook"/>
							
									<category term="982" scheme="http://paidcontent.org/topics" label="RIM"/>
							
									<category term="805" scheme="http://paidcontent.org/topics" label="Countries"/>
							
									<category term="817" scheme="http://paidcontent.org/topics" label="Europe"/>
							
									<category term="832" scheme="http://paidcontent.org/topics" label="UK"/>
							
							
							
						</entry>
	
		<entry>
			<title>Apple Promises A Crack Down On Those Who Manipulate App Store Rankings</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-apple-promises-a-crack-down-on-those-who-manipulate-app-store-rankings/"/>
			<id>tag:contentnext.com,2012-02-07:article/419-apple-promises-a-crack-down-on-those-who-manipulate-app-store-rankings</id>
			<published>2012-02-07T15:00:32Z</published>
			<updated>2012-02-08T00:07:33Z</updated>
			<author>
				<name>Ingrid Lunden</name>
				<uri>http://paidcontent.org/member/34/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>It took one allegation of download bots on a message board, very little in the way of actual confessions, and a whole lot of murmurs, but Apple (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=AAPL" class="ticker" title="AAPL">NSDQ: AAPL</a>) is showing that it will respond swiftly if anyone starts messing with its App Store. But further investigation into the practices reveals that it may be hard to pin down who, exactly, is to blame for the practice when it does take place.
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>It took one allegation of download bots on a message board, very little in the way of actual confessions, and a whole lot of murmurs, but Apple (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=AAPL" class="ticker" title="AAPL">NSDQ: AAPL</a>) is showing that it will respond swiftly if anyone starts messing with its App Store. But further investigation into the practices reveals that it may be hard to pin down who, exactly, is to blame for the practice when it does take place.
</p><p>It all started with a report from last weekend, penned by a developer on the Touch Arcade <a href="http://forums.toucharcade.com/showthread.php?t=121800" title="forums">forums</a>, alleged that that some app publishers are using download bots to boost their rankings.</p>

<p>The services, it said, are being offered by third parties who will give your app the download bot treatment for as little as $5,000, and that many apps in the top rankings are using them already&#8212;pictured here. Some were also offering services to place favorable reviews on apps.</p>

<p>While Apple yesterday at first issued a &#8220;no comment&#8221; to paidContent when asked about it yesterday, overnight the company changed its tune and posted the following on its <a href="https://developer.apple.com/news/" title="developer site">developer site</a>, cautioning developers against manipulating rankings on its charts. </p>

<p>Notably, it doesn&#8217;t mention download bots specifically, but what it does do is suggest that the practice of using them, and any other services that inflate an app&#8217;s standing, will get that app the boot:</p>

<blockquote><p><strong>Adhering to Guidelines on Third-Party Marketing Services</strong><br />
Once you build a great app, you want everyone to know about it. However, when you promote your app, you should avoid using services that advertise or guarantee top placement in App Store charts. Even if you are not personally engaged in manipulating App Store chart rankings or user reviews, employing services that do so on your behalf may result in the loss of your Apple Developer Program membership. Get helpful tips and resources on marketing your apps the right way from the App Store Resource Center.</p></blockquote>

<p><strong>The question is, however, how hard it will be to substantiate who, exactly, uses these kinds of services, and who is ultimately culpable for how marketing is implemented. </strong></p>

<p>One of the bigger app developers named in the original report, CrowdStar, spoke up in the Touch Arcade forum comments twice. With the name of the company offering the service redacted in the original report, the company never firmly denied (or confirmed) whether they used that marketing company&#8217;s services, but it did deny creating or using &#8220;farms or bots for downloads or reviews.&#8221;</p>

<p>Later, co-founder and CEO Peter Relan later told paidContent in an email that his company allocates &#8220;significant six- and seven-figure budgets on advertising through channels such as iAds, Flurry, Chartboost and many others, and also do direct developer cross-promotion partnerships.&#8221; </p>

<p>But he also admitted that some of this is slightly out of its control (the italics are mine): &#8220;<em>Ad networks keep their ad partner information confidential, but we hope that none of the partners ever use farms or bots</em>. If there are policy issues identified by the mobile platform, ad networks should adapt&#8230; We ask all our ad partners to uphold platform policies and stay abreast of changes.&#8221;</p>

<p>He also said that CrowdStar has had to resort to terminating relationships with marketers who cross the line only once before. &#8220;We found that an ad partner could not satisfy our queries about bots and we stopped using the partner,&#8221; he wrote.</p>

<p>It remains to be seen whether Apple will actually start to take down apps that it deems to have used these tools&#8212;and how, exactly, it will be able to track that the practice. </p>

<p>It&#8217;s also worth wondering how and if Apple will go after the numerous companies offering these services.</p>

<p>One that I contacted (as a would-be potential customer), says that his services to add reviews and ratings to apps range in price from $99 to $499; he also offers 100 iTunes accounts for $499 to be used for &#8220;data entry&#8221; and potentially other services, like downloads. He&#8217;s just one of many, a developer told me.</p>

<p>The discovery issue is a thorny one for the world of apps, and with the total number of apps now standing at over 1 million, that problem&#8217;s only growing. App stores like Apple&#8217;s are becoming increasingly harder to navigate and for users to discover apps, and some developers will be looking for any opportunity they can to game that situation.</p>

<p>There have been some examples of other practices that result in boosting downloads&#8212;namely Tapjoy offering users free credits in a game in exchange for downloading another, which Apple also forbade&#8212;although this was a much more open system, never hiding what it was doing, and was arguably was also good for app discovery and advertising revenues. 
</p>
											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-pontiflexharris-survey-incentive-and-video-ads-turn-off-mobile-users/" title="Pontiflex/Harris Survey: Incentive And Video Ads Turn Off Mobile Users">Pontiflex/Harris Survey: Incentive And Video Ads Turn Off Mobile Users</a></li>
<li><a href="http://paidcontent.org/article/419-tapjoy-still-shunned-by-apple-on-ppi-ads-launches-new-video-format/" title="Tapjoy, Still Shunned By Apple On PPI Ads, Launches New Video Format">Tapjoy, Still Shunned By Apple On PPI Ads, Launches New Video Format</a></li>
<li><a href="http://moconews.net/article/419-tapjoy-takes-on-ex-sony-playstation-network-chief-as-its-new-cmo/" title="Tapjoy Takes On Ex-Sony PlayStation Network Chief As Its New CMO">Tapjoy Takes On Ex-Sony PlayStation Network Chief As Its New CMO</a></li>
<li><a href="http://moconews.net/article/419-new-30-million-funding-round-for-tapjoys-mobile-marketing-biz/" title="New $30 Million Funding Round For Tapjoy's Mobile Marketing Biz">New $30 Million Funding Round For Tapjoy's Mobile Marketing Biz</a></li>
<li><a href="http://moconews.net/article/419-take-that-apple-tapjoy-lures-developers-to-android-with-5-million/" title="Take That, Apple: Tapjoy Lures Developers To Android With $5 Million">Take That, Apple: Tapjoy Lures Developers To Android With $5 Million</a></li>
<li><a href="http://moconews.net/article/419-a-rock-and-a-hard-place-tapjoy-says-apps-struggling-since-apple-nixed-p/" title="A Rock And A Hard Place: Tapjoy Says Apps Struggling Since Apple Nixed PPI">A Rock And A Hard Place: Tapjoy Says Apps Struggling Since Apple Nixed PPI</a></li>
<li><a href="http://moconews.net/article/419-tapjoy-imposes-cap-on-pay-per-install-app-downloads/" title="TapJoy Imposes Cap On Pay-Per-Install App Downloads">TapJoy Imposes Cap On Pay-Per-Install App Downloads</a></li>
<li><a href="http://moconews.net/article/419-has-apple-changed-how-it-ranks-most-popular-apps/" title="Is Apple Changing How It Ranks Popular Apps?">Is Apple Changing How It Ranks Popular Apps?</a></li>
<li><a href="http://paidcontent.org/article/419-tapjoy-raises-21-million-as-it-bounces-back/" title="Tapjoy Raises $21 Million As It Bounces Back">Tapjoy Raises $21 Million As It Bounces Back</a></li>
</ul>

									]]>
			</content>
			
									<category term="659" scheme="http://paidcontent.org/topics" label="Advertising"/>
							
									<category term="1123" scheme="http://paidcontent.org/topics" label="Apps"/>
							
									<category term="699" scheme="http://paidcontent.org/topics" label="Marketing"/>
							
									<category term="715" scheme="http://paidcontent.org/topics" label="Mobile"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="849" scheme="http://paidcontent.org/topics" label="Apple"/>
							
									<category term="1148" scheme="http://paidcontent.org/topics" label="iAd"/>
							
									<category term="1164" scheme="http://paidcontent.org/topics" label="iTunes"/>
							
							
							
						</entry>
	
		<entry>
			<title>Facebook Mobile Ads Developing: Sponsored Stories Coming &#39;Within Weeks&#39;</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-facebook-mobile-ads-developing-sponsored-stories-coming-within-weeks/"/>
			<id>tag:contentnext.com,2012-02-06:article/419-facebook-mobile-ads-developing-sponsored-stories-coming-within-weeks</id>
			<published>2012-02-06T11:00:18Z</published>
			<updated>2012-02-06T11:17:20Z</updated>
			<author>
				<name>Ingrid Lunden</name>
				<uri>http://paidcontent.org/member/34/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>It&#8217;s not digital advertising in the sense of display ads and search results, but it looks like we are getting a bit more color on what it is that Facebook will do first in the world of mobile marketing, and it could be coming online &#8220;within weeks.&#8221;
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>It&#8217;s not digital advertising in the sense of display ads and search results, but it looks like we are getting a bit more color on what it is that Facebook will do first in the world of mobile marketing, and it could be coming online &#8220;within weeks.&#8221;
</p><p>The company is gearing up to start inserting &#8220;featured stories&#8221; into people&#8217;s mobile feeds&#8212;effectively, marketing-led posts&#8212;which could start appearing as soon as early March. The date and news of the launch comes from the <a href="http://www.ft.com/intl/cms/s/0/a0bd164c-500c-11e1-a3ac-00144feabdc0.html#axzz1lY792Clp" title="FT">FT</a>, which cites several people familiar with Facebook&#8217;s planning as its source.</p>

<p>Since filing its S-1 for an initial public offering last week, there has been a lot of speculation on how, exactly, mobile will fit into Facebook&#8217;s money-making picture longer term. The company was very sober in its description of its mobile business&#8212;usage is growing faster than even desktop engagement, but there&#8217;s no money in that growth yet, it admitted. </p>

<p>That was something of a bum note in a document that otherwise <a href="http://paidcontent.org/article/419-2.7-billion-daily-likes-and-other-numbers-to-be-divined-from-facebooks-/" title="dazzles">dazzles</a> with its growth story to date.</p>

<p>If the FT report is true, it could mark the first step in Facebook&#8217;s strategy to change that and start to make marketing dollars out of its 425-million active mobile users, and take a portion of a mobile ad market that is going to top <a href="http://paidcontent.org/article/419-2012-mobile-ad-spend-revised-up-to-2.6-billion-google-fueling-the-machi/" title="$2 billion">$2 billion</a> in the U.S. alone this year.</p>

<p>Facebook still has a long way to go before its mobile presence&#8212;via the mobile web and apps&#8212;is a mirror, or even enhanced, version of what it offers on the desktop. However, it does look like there may be also some developments underfoot there as well, in the form of <a href="http://techcrunch.com/2012/02/05/news-feed-app-bookmarks/" title="app buttons">app buttons</a> appearing on Facebook&#8217;s mobile web site.</p>

<p>Meanwhile, the news of &#8220;featured stories&#8221; appears to be a development on a story from <a href="http://paidcontent.org/article/419-facebook-has-a-mobile-card-up-its-sleeve-in-addition-to-advertising/" title="last week">last week</a>, which quoted Paul Gelb, head of mobile for agency Razorfish, saying that his company was trialling rich-media mobile advertising with Facebook.</p>

<p>Facebook may well be looking into more classic display ads for its mobile interfaces, but in any event Gelb later clarified that he was referring to &#8220;rich media featured stories&#8221;, not ads.</p>

<p>But if featured stories are what are in play here, Facebook gave nothing away in its own statement to paidContent: &#8220;We want to clarify that we are not working with any agency to create paid ads on our mobile platform,&#8221; a spokesperson said in an email.</p>

<p>Even so, the past few days are not the first time that the subject of Facebook mobile sponsored stories have come up: in December, Bloomberg also noted that Facebook would launch such a service in March 2012.</p>

<p>Facebook has already taken over in markets like the U.S. and UK in terms of having the biggest share of revenues in online display ads, so it seems like a no-brainer that it would take that pole position into the mobile sphere. However, issues over privacy, and the basic lack of real estate on a mobile screen have been some of the gating factors in Facebook taking up the mobile marketing opportunity more aggressively. </p>

<p>When Carolyn Everson, Facebook&#8217;s global VP of marketing solutions, spoke at paidContent&#8217;s Advertising conference in September 2011, she highlighted Facebook&#8217;s caution in this mobile:</p>

<p>“We are holding ourselves to as high a standard as possible on mobile,” she said. “I don’t rule mobile out, but we are working hard to figure out what the right model is. We haven’t figured that out yet.”</p>

<p>As we noted at the time, check-in deals have been the one exception to that so far: when a user is in a location where Facebook can deliver a relevant offer, those deals are pushed to users. But if that has driven revenues to Facebook, it was not enough to merit a mention in the S-1 form. 
</p>
											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-facebook-has-a-mobile-card-up-its-sleeve-in-addition-to-advertising/" title="Update: Facebook Has A Mobile Card Up Its Sleeve In Addition To Advertising">Update: Facebook Has A Mobile Card Up Its Sleeve In Addition To Advertising</a></li>
<li><a href="http://paidcontent.org/article/419-facebook-readying-mobile-ad-push-for-2012-right-around-the-expected-ipo/" title="Facebook Readying Mobile Ad Push For 2012, Right Around The Expected IPO">Facebook Readying Mobile Ad Push For 2012, Right Around The Expected IPO</a></li>
<li><a href="http://paidcontent.org/article/419-paidcontent-advertising-video-everson-no-facebook-mobile-ads-for-now/" title="paidContent Advertising Video: Everson: No Facebook Mobile Ads For Now">paidContent Advertising Video: Everson: No Facebook Mobile Ads For Now</a></li>
<li><a href="http://paidcontent.org/article/419-facebook-we-havent-even-scratched-the-surface-with-marketing/" title="@ pcAds: Facebook Says It Hasn't Even Scratched The Surface With Marketing">@ pcAds: Facebook Says It Hasn't Even Scratched The Surface With Marketing</a></li>
<li><a href="http://paidcontent.org/article/419-facebook-may-not-be-into-mobile-ads-yet-but-plenty-of-others-are/" title="Facebook May Not Be Into Mobile Ads Yet, But Plenty Of Others Are">Facebook May Not Be Into Mobile Ads Yet, But Plenty Of Others Are</a></li>
<li><a href="http://paidcontent.org/article/419-now-facebook-must-prove-to-wall-street-its-ads-really-work/" title="Now Facebook Must Prove To Wall Street Its Ads Really Work">Now Facebook Must Prove To Wall Street Its Ads Really Work</a></li>
<li><a href="http://paidcontent.org/article/419-2.7-billion-daily-likes-and-other-numbers-to-be-divined-from-facebooks-/" title="2.7 Billion Daily Likes And Other Key Numbers From Facebook's S-1">2.7 Billion Daily Likes And Other Key Numbers From Facebook's S-1</a></li>
<li><a href="http://paidcontent.org/article/419-facebooks-status-s-1-filed-for-5-billion-ipo/" title="Facebook's Status Update: $5 Billion IPO Filed">Facebook's Status Update: $5 Billion IPO Filed</a></li>
<li><a href="http://paidcontent.org/article/419-2012-mobile-ad-spend-revised-up-to-2.6-billion-google-fueling-the-machi/" title="2012 Mobile Ad Spend Revised Up To $2.6 Billion, Google Fueling The Machine">2012 Mobile Ad Spend Revised Up To $2.6 Billion, Google Fueling The Machine</a></li>
</ul>

									]]>
			</content>
			
									<category term="659" scheme="http://paidcontent.org/topics" label="Advertising"/>
							
									<category term="1123" scheme="http://paidcontent.org/topics" label="Apps"/>
							
									<category term="688" scheme="http://paidcontent.org/topics" label="Legal"/>
							
									<category term="1141" scheme="http://paidcontent.org/topics" label="Privacy"/>
							
									<category term="699" scheme="http://paidcontent.org/topics" label="Marketing"/>
							
									<category term="715" scheme="http://paidcontent.org/topics" label="Mobile"/>
							
									<category term="716" scheme="http://paidcontent.org/topics" label="Money"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="888" scheme="http://paidcontent.org/topics" label="Facebook"/>
							
							
							
						</entry>
	
		<entry>
			<title>Now Facebook Must Prove To Wall Street Its Ads Really Work</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-now-facebook-must-prove-to-wall-street-its-ads-really-work/"/>
			<id>tag:contentnext.com,2012-02-02:article/419-now-facebook-must-prove-to-wall-street-its-ads-really-work</id>
			<published>2012-02-02T10:58:02Z</published>
			<updated>2012-02-02T15:29:03Z</updated>
			<author>
				<name>Robert Andrews</name>
				<uri>http://paidcontent.org/member/47/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>Facebook has made a $3.1 billion business from a social advertising sector many, even it, concede is experimental and unproven. Now it must find that proof. But experimenting on Wall Street, as well as Madison Avenue, could prove challenging.
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>Facebook has made a $3.1 billion business from a social advertising sector many, even it, concede is experimental and unproven. Now it must find that proof. But experimenting on Wall Street, as well as Madison Avenue, could prove challenging.
</p><blockquote><p>&#8220;Our advertisers typically do not have long-term advertising commitments with us,&#8221; Facebook&#8217;s <a href="http://www.sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm" title="S-1">S-1</a> warned. &#8220;Many of our advertisers spend only a relatively small portion of their overall advertising budget with us.</p>

<p>&#8220;In addition, advertisers may view some of our products, such as sponsored stories and ads with social context, as experimental and unproven.</p>

<p>&#8220;Advertising on the social web is a significant market opportunity that is still emerging and evolving. We believe that most advertisers are still learning and experimenting with the best ways to leverage reach, relevance, social context, and engagement offered by Facebook.&#8221;</p></blockquote>

<p>Facebook manages to target standard display advertising very well because it knows so much about users, but the biggest opportunity may yet lay in getting users to participate in and distribute to their friends ad campaigns that are part of their social experience may yet hold greater promise. It is a long way from there, however.</p>

<blockquote><p>Forrester analyst Nate Elliott cautions (<a href="http://uk.reuters.com/article/2012/02/02/uk-facebook-growth-idUKTRE8110F520120202" title="via Reuters">via Reuters</a>): &#8220;I worry that the billions of dollars of revenue that they generated last year aren&#8217;t as solid as they need to be because the <strong>advertisers who spent the money aren&#8217;t as thrilled with the results they got</strong> for it.&#8221;</p></blockquote>

<p>Amongst advertising&#8217;s biggest skeptics is advertising&#8217;s biggest beast. WPP CEO Sir Martin Sorrell <a href="http://www.bbc.co.uk/news/business-15971279" title="thinks">thinks</a> advertisers will be challenged to reach social network users without offending them, making Facebook a better PR and word-of-mouth medium than a straight advertising one.</p>

<p>Indeed, Facebook has been trying to strike that very balance. But, with its quest to roll out the perfect formats still ongoing, <strong>Facebook has made frequent missteps</strong> along the way, such as its Beacon system, which proposed sharing users&#8217; web purchases to friends before it was aborted.</p>

<p>Today, less than half a percent of people who Like big brands&#8217; Facebook Pages actually bother to engage with them, according to new <a href="http://m.zdnet.com/blog/facebook/only-1-of-facebook-page-users-engage-with-brands/8142" title="research">research</a> from the Ehrenberg-Bass Institute.</p>

<p>Social is not Facebook&#8217;s only advertising play. Its offering today is focused mainly around display ads that run alongside users&#8217; feeds. Here, Facebook is so big that, in some key markets like the U.S. and UK, it&#8217;s actually the <a href="http://paidcontent.org/article/419-social-network-ads-linkedin-falls-behind-twitter-facebook-biggest-of-al/" title="biggest player of all in display advertising, social or otherwise">biggest player of all in display advertising</a> - social or otherwise - leaving those that effectively created the display field&#8212;Yahoo (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=YHOO" class="ticker" title="YHOO">NSDQ: YHOO</a>), AOL (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=AOL" class="ticker" title="AOL">NYSE: AOL</a>) and others&#8212;in the dust.</p>

<p>But it&#8217;s social advertising where perhaps the greatest potential lays. And frankly <strong>Facebook, like its advertisers, has not yet cracked the nut</strong>; that mission goes on.</p>

<p>If, previously, upgrades like Beacon, Timeline and its perpetual redesigns have prompted user outcry, expect future responses to manifest as share price fluctuation when such revisions take place in the public glare of Wall Street.</p>

<p>Still, users&#8217; redesign shock often subsides, stock price can rebound accordingly. And, if Facebook can execute fully on the social advertising holy grail, it can become spectacularly successful.</p>

<p>None of this looks very problematic today.<strong> In 2011, Facebook advertising revenue rose 69 percent</strong> because it showed 42 percent more advertising thanks to a growing user base; it scored an 18 percent higher price per ad.</p>

<p>But Facebook concedes these growth rates may not be sustainable. &#8220;Our user growth has been a primary driver of growth in our revenue,&#8221; its S-1 says. &#8220;But <strong>&#8220;our rates of user and revenue growth will decline over time&#8221;</strong>, especially in the west.</p>

<p>One Facebook ad buying agency thinks that slowdown could be a <em>good</em> thing&#8230;</p>

<blockquote><p>&#8220;The market has now entered a phase where there is no longer any super-growth in user numbers to dilute the increases in cost caused by demand increases,&#8221; Alchemy Social managing director Will Ashton writes in a new white paper. &#8220;As such, we expect costs to increase at rates substantially higher than those we have seen previously.&#8221;</p></blockquote>

<p>In other words, <strong>advertisers rushing to Facebook are driving up demand</strong>, but the slowdown in Facebook user growth suggests finite supply, driving up the rates it can charge.</p>

<p>Outside the west, Facebook has a huge opportunity in mobile, having gathered 425 million users. But it&#8217;s not monetising a single one because it is not selling any ads through mobile. Worse - until then, mobile success could actually hurt the company from within&#8230;</p>

<blockquote><p>&#8220;Growth in use of Facebook through our mobile products, where we do not currently display ads, as a substitute for use on personal computers <strong>may negatively affect our revenue and financial results</strong>,&#8221; the company warns. &#8220;Our ability to (generate mobile revenue) successfully is unproven.&#8221;</p></blockquote>

<p>$3.1 billion in 2011 ad revenue suggests Facebook is well on its way. What an amazing number for such a young paradigm. But some investors may question whether much of that was short-term experimentation by advertisers, meaning Facebook must work hard to prove its value to them as much as they have to itself.
</p>
											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-2.7-billion-daily-likes-and-other-numbers-to-be-divined-from-facebooks-/" title="2.7 Billion Daily Likes And Other Key Numbers From Facebook's S-1" muse_scanned="true">2.7 Billion Daily Likes And Other Key Numbers From Facebook's S-1</a></li>
<li><a href="http://paidcontent.org/article/419-the-facebook-ipo-lowdown-2-1-12/" title="The Facebook IPO Lowdown 2-1-12" muse_scanned="true">The Facebook IPO Lowdown 2-1-12</a></li>
<li><a href="http://paidcontent.org/article/419-facebooks-status-s-1-filed-for-5-billion-ipo/" title="Facebook's Status Update: $5 Billion IPO Filed" muse_scanned="true">Facebook's Status Update: $5 Billion IPO Filed</a></li>
<li><a href="http://paidcontent.org/article/419-report-facebooks-ipo-to-start-at-5-billion-and-its-coming-wednesday-am/" title="Report: Facebook's IPO To Start At $5 Billion, And It's Coming Wednesday AM" muse_scanned="true">Report: Facebook's IPO To Start At $5 Billion, And It's Coming Wednesday AM</a></li>
<li><a href="http://paidcontent.org/article/419-social-network-ads-linkedin-falls-behind-twitter-facebook-biggest-of-al/" title="Social Network Ads: LinkedIn Falls Behind Twitter; Facebook Biggest Of All" muse_scanned="true">Social Network Ads: LinkedIn Falls Behind Twitter; Facebook Biggest Of All</a></li>
</ul>

									]]>
			</content>
			
									<category term="659" scheme="http://paidcontent.org/topics" label="Advertising"/>
							
									<category term="699" scheme="http://paidcontent.org/topics" label="Marketing"/>
							
									<category term="716" scheme="http://paidcontent.org/topics" label="Money"/>
							
									<category term="719" scheme="http://paidcontent.org/topics" label="IPO"/>
							
									<category term="724" scheme="http://paidcontent.org/topics" label="Social Media"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="888" scheme="http://paidcontent.org/topics" label="Facebook"/>
							
							
						</entry>
	
		<entry>
			<title>Verizon Says More Than 600 Websites Used In Cybersquatting Scam</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-verizon-says-more-than-600-websites-used-in-cybersquatting-scam/"/>
			<id>tag:contentnext.com,2012-01-30:article/419-verizon-says-more-than-600-websites-used-in-cybersquatting-scam</id>
			<published>2012-01-30T18:53:55Z</published>
			<updated>2012-01-30T18:53:56Z</updated>
			<author>
				<name>Jeff Roberts</name>
				<uri>http://paidcontent.org/member/21598/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>In a case that shines light on the world of professional cybersquatters, Verizon is suing a website and a domain name registrar that placed ads on hundreds of sites with Verizon-like names. 
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>In a case that shines light on the world of professional cybersquatters, Verizon is suing a website and a domain name registrar that placed ads on hundreds of sites with Verizon-like names. 
</p><p>In a complaint filed in Los Angeles federal court, Verizon accuses &#8220;serial cybersquatters&#8221; Parked.com and registrar DNLtd of controlling more than 660 websites. The complaint says their unidentified owners used shell companies as part of a scheme to collect ad revenue when users seeking Verizon landed on these sites by mistake.</p>

<p>The phone giant has already won back control of sites like verizn.com and cerizon.com, but is using the lawsuit to seek trademark and cyber-squatting damages of $100,000 per site.</p>

<p>According to Verizon, Parked helps customers, including Yahoo! (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=YHOO" class="ticker" title="YHOO">NSDQ: YHOO</a>), squeeze money out of unused websites by placing ads on them. It&#8217;s unclear if Yahoo! is also making money by serving ads onto the blank sites.</p>

<p>Verizon says DNLtd worked with Parked by taking over expired domain names under its control. The complaint also says the defendants make money by offering a service that, like an unlisted phone number, masks website registrants&#8217; real identity in the Whois directory.</p>

<p>Both Parked.com and DNLtd are incorporated in the Cayman Islands, meaning it will  be difficult for Verizon to obtain the identities of the owners who are now listed in the lawsuit as &#8220;Does 1-10.&#8221;</p>

<p>Big companies have been tangling with cybersquatters for years but this case is remarkable because of the number of sites involved. Verizon says the defendants have used &#8220;over 660 domain names which are confusingly similar&#8221; and lists eight pages of names on its complaint. Here&#8217;s a sample:</p>

<p><a href="http://paidcontent.org/images/editorial/c_large_square/verizon-cybersquatting-lsq.png" target="_blank"><img src="http://paidcontent.org/images/editorial/c_large_square/verizon-cybersquatting-lsq.png" /></a></p>



<p> 
</p>
											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-yee-ha-domain-name-cash-grab-officially-under-way/" title="Yee-ha! Domain Name Cash Grab Officially Under Way">Yee-ha! Domain Name Cash Grab Officially Under Way</a></li>
<li><a href="http://paidcontent.org/article/419-new-internet-names-feared-loathed-by-all/" title="New Internet Names Feared, Loathed By All">New Internet Names Feared, Loathed By All</a></li>
<li><a href="http://paidcontent.org/article/419-did-someone-steal-ariannas-sex-domain/" title="Did HuffPo Just Get 'Sex-Squatted'?">Did HuffPo Just Get 'Sex-Squatted'?</a></li>
<li><a href="http://paidcontent.org/article/419-how-internet-naming-authority-icaan-plans-to-double-its-revenues/" title="How Internet Naming Authority ICAAN Plans To Double Its Revenues">How Internet Naming Authority ICAAN Plans To Double Its Revenues</a></li>
</ul>

									]]>
			</content>
			
									<category term="688" scheme="http://paidcontent.org/topics" label="Legal"/>
							
									<category term="699" scheme="http://paidcontent.org/topics" label="Marketing"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="1024" scheme="http://paidcontent.org/topics" label="Verizon"/>
							
						</entry>
	
		<entry>
			<title>Industry Moves: ESPN; Yahoo; Wikia; AdoTube</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-industry-moves-espn-yahoo-wikia-adotube/"/>
			<id>tag:contentnext.com,2012-01-26:article/419-industry-moves-espn-yahoo-wikia-adotube</id>
			<published>2012-01-26T22:28:14Z</published>
			<updated>2012-01-27T17:20:16Z</updated>
			<author>
				<name>Amanda Natividad</name>
				<uri>http://paidcontent.org/member/11/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>&#8212;<strong>ESPN</strong>: The sports network is seeing a reorg: John Kosner has been promoted to EVP, digital and print media, from SVP and GM of the divisions. Marie Donoghue has been promoted to SVP, global strategy, from SVP, business affairs and business development. Meanwhile, longtime leaders John Wildhack and Norby Williamson will switch roles. Wildhack is now EVP, production and Williamson is EVP, programming and acquisitions. The four executives will continue to report to President John Skipper.</p>


				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>&#8212;<strong>ESPN</strong>: The sports network is seeing a reorg: John Kosner has been promoted to EVP, digital and print media, from SVP and GM of the divisions. Marie Donoghue has been promoted to SVP, global strategy, from SVP, business affairs and business development. Meanwhile, longtime leaders John Wildhack and Norby Williamson will switch roles. Wildhack is now EVP, production and Williamson is EVP, programming and acquisitions. The four executives will continue to report to President John Skipper.</p>

<p>&#8212;<strong>Yahoo</strong>: MaryBeth Malcolm has been promoted to senior director, Yahoo (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=YHOO" class="ticker" title="YHOO">NSDQ: YHOO</a>) category development and marketing solutions. The company also announced two new category leads: Debbie Menin to lead entertainment and travel, and Karina Montgomery heading up CPG/FMCG and health. Menin and Montgomery report to Malcolm, who reports to Elizabeth Ritzcovan, VP, marketing solutions. Throughout her tenure at Yahoo, Malcolm has overseen development of advertising programs on the Yahoo Homepage, Mail, Messenger, Mobile, Finance and Flickr. Previously, Montgomery was VP, sales development at SocialVibe, while Menin was entertainment practice head at AOL.</p>

<p>&#8212;<strong>Wikia</strong>: Hilary Goldstein joins as gaming category manager and Eric Moro is now entertainment category manager. They&#8217;ll lead Wikia&#8217;s community by curating and creating content as well as industry partnerships. Goldstein was previously editor-in-chief of IGN Games, while Moro was editor-in-chief of IGN&#8217;s movies, TV and Blu-ray/DVD site.</p>

<p>&#8212;<strong>AdoTube</strong>: Thomas MacLean has been hired to lead the new Detroit office as VP of sales. He previously was strategic accounts manager at Kontera. AdoTube also has new account executives, Bia Parente and Carter Wall.
</p>
									]]>
			</content>
			
									<category term="659" scheme="http://paidcontent.org/topics" label="Advertising"/>
							
									<category term="662" scheme="http://paidcontent.org/topics" label="E&#45;Commerce"/>
							
									<category term="665" scheme="http://paidcontent.org/topics" label="Travel"/>
							
									<category term="667" scheme="http://paidcontent.org/topics" label="Entertainment"/>
							
									<category term="670" scheme="http://paidcontent.org/topics" label="Games"/>
							
									<category term="676" scheme="http://paidcontent.org/topics" label="Sports"/>
							
									<category term="1071" scheme="http://paidcontent.org/topics" label="Industry Moves"/>
							
									<category term="1096" scheme="http://paidcontent.org/topics" label="Industry Moves Roundup"/>
							
									<category term="699" scheme="http://paidcontent.org/topics" label="Marketing"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="875" scheme="http://paidcontent.org/topics" label="Disney"/>
							
									<category term="877" scheme="http://paidcontent.org/topics" label="ESPN"/>
							
									<category term="1033" scheme="http://paidcontent.org/topics" label="Yahoo"/>
							
						</entry>
	
		<entry>
			<title>1 Out Of Every 12 Magazine Ad Pages Now Contains An Action Code</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-1-out-of-every-12-magazine-ad-pages-now-contains-an-action-code/"/>
			<id>tag:contentnext.com,2012-01-26:article/419-1-out-of-every-12-magazine-ad-pages-now-contains-an-action-code</id>
			<published>2012-01-26T15:20:49Z</published>
			<updated>2012-01-26T18:34:51Z</updated>
			<author>
				<name>Laura Hazard Owen</name>
				<uri>http://paidcontent.org/member/19747/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>Mobile action codes&#8212;including 2D barcodes, QR codes, Microsoft (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=MSFT" class="ticker" title="MSFT">NSDQ: MSFT</a>) Tags and watermarks&#8212;became much more prevalent in the top 100 U.S. magazines in 2011, increasing 439 percent from 352 codes in Q1 to 1,899 codes in Q4.
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>Mobile action codes&#8212;including 2D barcodes, QR codes, Microsoft (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=MSFT" class="ticker" title="MSFT">NSDQ: MSFT</a>) Tags and watermarks&#8212;became much more prevalent in the top 100 U.S. magazines in 2011, increasing 439 percent from 352 codes in Q1 to 1,899 codes in Q4.
</p><p>Mobile marketing and technology company Nellymoser creates these types of ads for magazines and conducted the research, so the company obviously has skin in this game, but its findings are interesting for showing how marketers are changing the ways they use these action codes. (The report doesn&#8217;t focus on how well action codes are actually, you know, spurring action but I&#8217;ve asked for some follow-up data.) Some findings:</p>

<p>&#8212;Mobile action codes are much more likely to be used in ads than in editorial content&#8212;the ratio of advertising codes to editorial codes was 25:1 by December 2011. Editorial codes were primarily used to run sweepstakes.</p>

<p>&#8212;Most action codes were used to showcase a video (54 percent), often a video created specifically for mobile use. 30 percent were used for data capture and list building, especially sweepstakes. &#8220;While sweeps can be run with one action code, there is a growing trend towards sweepstakes that span an entire publication with multiple advertisers and editorial sections participating, each with its own code,&#8221; the report says.</p>

<p><a href="http://paidcontent.org/images/editorial/_original/nellymoser-o.png" target="_blank"><img src="http://paidcontent.org/images/editorial/_original/nellymoser-o.png" /></a></p>

<p>&#8212;Nearly 40 percent of codes were created by the beauty, home and fashion industries and the codes were especially likely to appear in women&#8217;s magazines.</p>

<p>Full report <a href="http://www.nellymoser.com/action-codes/qr-codes-and-tags-in-magazine-advertising" title="here">here</a>.
</p>
									]]>
			</content>
			
									<category term="699" scheme="http://paidcontent.org/topics" label="Marketing"/>
							
									<category term="700" scheme="http://paidcontent.org/topics" label="Media &amp; Publishing"/>
							
									<category term="703" scheme="http://paidcontent.org/topics" label="Magazines"/>
							
									<category term="715" scheme="http://paidcontent.org/topics" label="Mobile"/>
							
						</entry>
	
		<entry>
			<title>2012 Mobile Ad Spend Revised Up To $2.6 Billion, Google Fueling The Machine</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-2012-mobile-ad-spend-revised-up-to-2.6-billion-google-fueling-the-machi/"/>
			<id>tag:contentnext.com,2012-01-25:article/419-2012-mobile-ad-spend-revised-up-to-2.6-billion-google-fueling-the-machi</id>
			<published>2012-01-25T18:00:51Z</published>
			<updated>2012-01-26T17:34:52Z</updated>
			<author>
				<name>Ingrid Lunden</name>
				<uri>http://paidcontent.org/member/34/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>A big endorsement today for mobile advertising from eMarketer: their analysts today said they were revising up their forecasts for U.S. mobile ad spend to $2.61 billion, from their previous estimates of $1.8 billion. Why the rise? Google&#8217;s &#8220;exceptional&#8221; mobile advertising performance in mobile search advertising, and more reliable market data.
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>A big endorsement today for mobile advertising from eMarketer: their analysts today said they were revising up their forecasts for U.S. mobile ad spend to $2.61 billion, from their previous estimates of $1.8 billion. Why the rise? Google&#8217;s &#8220;exceptional&#8221; mobile advertising performance in mobile search advertising, and more reliable market data.
</p><p>eMarketer were the same analyst house that last year revised up their mobile ad forecasts to over $1 billion&#8212;the first time a company had made that proclamation. In the event, those revenues reached $1.45 billion, they said, nearly double what they were in 2010. Their 2012 figure represents a rise of 80 percent on last year.</p>

<p>Yesterday Yahoo&#8217;s new CEO Scott Thompson claimed that there wasn&#8217;t yet a clear leader in mobile advertising, and that it was still an open field. That may be the case in that there is still a lot of room for growth, but there is actually a company dominating the mobile ad business at the moment: Google (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=GOOG" class="ticker" title="GOOG">NSDQ: GOOG</a>). </p>

<p>In 2011 eMarketer <a href="http://www.emarketer.com/PressRelease.aspx?R=1008798" title="says that">says that</a> Google had about 51.7 percent of all mobile ad revenues, with sales of $750 million. The second-two biggest platforms were far behind it. Apple&#8217;s iAd took in $92.4 million for a 6.4 percent share; while Millennial earned $90.9 million for a 6.3 percent stake.</p>

<p>Google totally dominated the mobile search category&#8212;an area where Apple (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=AAPL" class="ticker" title="AAPL">NSDQ: AAPL</a>) and Millennial currently do not play&#8212;with some 95 percent of all revenues. Google was not shabby in display, either, leading in that category, too&#8212;although not as comprehensively, with only 24.8 percent of the market, with Millennial Media and Apple&#8217;s iAd very close to each other for second place.</p>

<p>As a sign of how fragmented mobile display advertising remains, &#8220;other&#8221; was the biggest category of all with 39.6 percent of all sales.</p>

<p><img src="http://paidcontent.org/images/editorial/_original/mobile-display-emarketer-o.gif" /></p>

<p><strong>How different mediums will grow</strong>. eMarketer predicts that spend in mobile search will double in 2012, with $1.28 billion spent in the medium compared to $652.5 million in 2011. Higher-value display and rich-media ads will see less investment&#8212;which could either be a sign that mobile is still working to earn its stripes as a credible medium with big brands, or a tacit belief that these formats simply are not working as effectively as search at the moment.</p>

<p>Display will be worth $861.7 million, a rise of 93.5 percent on 2011; video will be worth $151.5 million, a very respectable rise of 122 percent.</p>

<p><img src="http://paidcontent.org/images/editorial/_original/mobile-ad-spend-by-format-o.gif" /></p>

<p>Very usefully for those of us who take forecasts with a grain of salt, eMarketer has also published a kind of leader board for how much different research groups believe mobile ads will bring in the year ahead. eMarketer is coming out at the top end with some of the more bullish predictions.</p>

<p><img src="http://paidcontent.org/images/editorial/_original/mobile-forecasts-compared-o.gif" /></p>

<p>Mobile marketing and advertising services have also attracted the attention of venture capitalists: it was one of the big draws in a record-breaking year for mobile investment, according to research from the investment bank Rutberg &amp; Co.
</p>
									]]>
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									<category term="1148" scheme="http://paidcontent.org/topics" label="iAd"/>
							
									<category term="898" scheme="http://paidcontent.org/topics" label="Google"/>
							
									<category term="1033" scheme="http://paidcontent.org/topics" label="Yahoo"/>
							
							
						</entry>
	
		<entry>
			<title>David Kenny Replacing Mike Kelly As CEO Of The Weather Channel Companies</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-david-kenny-replacing-mike-kelly-as-ceo-of-the-weather-channel-companie/"/>
			<id>tag:contentnext.com,2012-01-24:article/419-david-kenny-replacing-mike-kelly-as-ceo-of-the-weather-channel-companie</id>
			<published>2012-01-24T13:45:35Z</published>
			<updated>2012-01-24T15:10:36Z</updated>
			<author>
				<name>Staci D. Kramer</name>
				<uri>http://paidcontent.org/member/3/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>In a surprise move, <a href="http://www.weather.com" title="The Weather Channel Companies">The Weather Channel Companies</a> is swapping out CEOs. David Kenny is replacing Mike Kelly as CEO effective immediately; the Akamai-Digitas vet also will be chairman of the company owned by a consortium of Bain Capital, The Blackstone Group, and NBC (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=CMCSA" class="ticker" title="CMCSA">NSDQ: CMCSA</a>) Universal.
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>In a surprise move, <a href="http://www.weather.com" title="The Weather Channel Companies">The Weather Channel Companies</a> is swapping out CEOs. David Kenny is replacing Mike Kelly as CEO effective immediately; the Akamai-Digitas vet also will be chairman of the company owned by a consortium of Bain Capital, The Blackstone Group, and NBC (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=CMCSA" class="ticker" title="CMCSA">NSDQ: CMCSA</a>) Universal.
</p><p>It appears so far that this is less about any issues with Kelly&#8217;s performance and more about getting Kenny. Kelly will become an advisor to TWCC and to Bain, and Kenny begins in his new role effectively immediately.</p>

<p>Kelly had been CEO of TWCC since July 2009 and other past roles have included head of media at AOL (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=AOL" class="ticker" title="AOL">NYSE: AOL</a>). Kenny, meanwhile, brings with him some skills that could help TWCC&#8217;s growth in the years ahead. He comes from streaming and content delivery giant Akamai (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=AKAM" class="ticker" title="AKAM">NSDQ: AKAM</a>), where he had been <a href="http://paidcontent.org/article/419-ex-publicis-exec-david-kenny-joins-akamai-as-president/" title="president">president</a>. Prior to that, Kenny racked up of years of experience in digital marketing and interactive advertising: he co-founded <a href="http://paidcontent.org/article/419-david-kenny-preparing-to-exit-publicis/" title="VivaKi">VivaKi</a>, the digital and television arm of Publicis Groupe, and he was chairman and CEO Digitas Inc. He also sits on the board of Yahoo.</p>

<p>In an interview with paidContent a few moments ago, Kenny said that the offer of a CEO job had come out of initial conversations for him to join the board of The Weather Channel. &#8220;We&#8217;d been talking about how to move faster on programming and other areas,&#8221; and that gradually progressed to the subject of Kenny taking on a bigger role. </p>

<p>He told paidContent that the three key areas he hopes to focus on as CEO are to invest more in programming, digital assets and international expansion. In programming, the emphasis will be on making more long-form content, while the mobile apps and the website will focus on more basic weather information. Both of these are largely ad-supported at the moment, and Kenny said this is how they will remain.</p>

<p>As for international, this is where you can see the Akamai content delivery expertise coming into view: &#8220;TWCC has been more focused on the U.S. up to now, but there is an opportunity globally and I believe you will see a much more global enterprise going forward,&#8221; he said. </p>

<p>In a departing internal memo to staff, which paidContent has obtained and is copying below, Kelly gave Kenny a full endorsement in the role: &#8220;TWCC will be in good hands with David Kenny at the helm,&#8221; he wrote. He noted also that the pair have been good friends for many years.&nbsp; </p>

<p>Under Kelly, TWCC has seen some huge growth in its digital media business&#8212;specifically around its many apps for mobile devices. </p>

<p>Being about weather&#8212;a subject that is continually changing&#8212;these apps have picked up a particularly loyal following. </p>

<p>At <a href="http://paidcontent.org/article/419-pcmobile-sunny-skies-over-the-weather-channels-mobile-strategy/" title="paidContent's mobile conference">paidContent&#8217;s mobile conference</a> last year, Kelly noted that mobile users use The Weather Channel’s apps 26 days a month, with 30 million of the company’s apps getting downloaded in 2010. Overall reach for the company, as reported last year, was 35 million people, covering access from TVs, PCs, and mobile devices. During one period last year the company launched 10 separate apps in 11 weeks.</p>

<p>Kelly&#8217;s memo:
</p><blockquote><p>As you know, this morning we announced a change in leadership for TWCC.&nbsp; As we make this transition, let me take a moment to thank you for making the last two and a half years such a pleasant and rewarding experience. <br />
 <br />
I came to The Weather Channel with many goals, including building a strong team, developing long term plans and moving the business forward.&nbsp; A part of these efforts included our “one company” initiatives, which I believe have been a tremendous success.&nbsp; I’m proud of these accomplishments and even more proud of the teamwork it took to get it all done. I will continue to be involved in the company, serving as a special adviser to David and the Board of Directors and I will also serve as an adviser to Bain Capital.<br />
 <br />
TWCC will be in good hands with David Kenny at the helm.&nbsp; We’ve been friends for many years and I am certain he is the leader who will keep things moving forward and secure a great future for the company. <br />
 <br />
Thank you again for your hard work and dedication.&nbsp; We’ve come a long way together and we’ve seen the power of one company and the power of vision and values.&nbsp;  In the past years, we’ve seen record viewership and page views and saw our mobile business reach unimaginable heights.&nbsp; The resulting economic growth has put us in a strong position.&nbsp; Thanks for the great teamwork.&nbsp; Keep growing.<br />
 <br />
Sincerely,<br />
Mike Kelly</p></blockquote>
											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.co.uk/article/419-weather-channels-digital-director-to-lead-international-mobile-expansio/" title="Weather Channel's Digital Director To Lead International Mobile Expansion">Weather Channel's Digital Director To Lead International Mobile Expansion</a></li>
<li><a href="http://moconews.net/article/419-industry-moves-twcc-inmobi-vibes-topps/" title="Industry Moves: TWCC; InMobi; Vibes; Topps">Industry Moves: TWCC; InMobi; Vibes; Topps</a></li>
<li><a href="http://paidcontent.org/article/419-ex-publicis-exec-david-kenny-joins-akamai-as-president/" title="Ex-Publicis Exec David Kenny Joins Akamai As President">Ex-Publicis Exec David Kenny Joins Akamai As President</a></li>
<li><a href="http://paidcontent.org/article/419-david-kenny-preparing-to-exit-publicis/" title="David Kenny Preparing To Exit Publicis; Klues To Be VivaKi's Sole CEO">David Kenny Preparing To Exit Publicis; Klues To Be VivaKi's Sole CEO</a></li>
<li><a href="http://paidcontent.org/article/419-publicis-david-kenny-on-razorfish-buy-digital-revs-now-25-percent-of-to/" title="Publicis' David Kenny On Razorfish Buy: Digital Revs Now 25 Percent Of Total Revenues">Publicis' David Kenny On Razorfish Buy: Digital Revs Now 25 Percent Of Total Revenues</a></li>
<li><a href="http://paidcontent.org/article/419-pcmobile-sunny-skies-over-the-weather-channels-mobile-strategy/" title="@ pcMobile: Sunny Skies Over The Weather Channel's Mobile Strategy">@ pcMobile: Sunny Skies Over The Weather Channel's Mobile Strategy</a></li>
</ul>

									]]>
			</content>
			
									<category term="659" scheme="http://paidcontent.org/topics" label="Advertising"/>
							
									<category term="1123" scheme="http://paidcontent.org/topics" label="Apps"/>
							
									<category term="1071" scheme="http://paidcontent.org/topics" label="Industry Moves"/>
							
									<category term="699" scheme="http://paidcontent.org/topics" label="Marketing"/>
							
									<category term="700" scheme="http://paidcontent.org/topics" label="Media &amp; Publishing"/>
							
									<category term="709" scheme="http://paidcontent.org/topics" label="TV"/>
							
									<category term="710" scheme="http://paidcontent.org/topics" label="Cable &amp; Telecom"/>
							
									<category term="715" scheme="http://paidcontent.org/topics" label="Mobile"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="1008" scheme="http://paidcontent.org/topics" label="AOL"/>
							
									<category term="943" scheme="http://paidcontent.org/topics" label="NBC Universal"/>
							
									<category term="1149" scheme="http://paidcontent.org/topics" label="NBC"/>
							
									<category term="974" scheme="http://paidcontent.org/topics" label="Publicis"/>
							
									<category term="1033" scheme="http://paidcontent.org/topics" label="Yahoo"/>
							
						</entry>
	
		<entry>
			<title>McDonald&#39;s Social Media Director Explains Twitter Fiasco</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-mcdonalds-social-media-director-explains-twitter-fiasco/"/>
			<id>tag:contentnext.com,2012-01-23:article/419-mcdonalds-social-media-director-explains-twitter-fiasco</id>
			<published>2012-01-23T22:13:31Z</published>
			<updated>2012-01-24T01:04:32Z</updated>
			<author>
				<name>Jeff Roberts</name>
				<uri>http://paidcontent.org/member/21598/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>This morning I spoke with McDonald&#8217;s social media director, Rick Wion, about how the company&#8217;s own Twitter ad became a viral delight for pot heads and social critics. Here&#8217;s a detailed account of how the #McFail debacle went down.
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>This morning I spoke with McDonald&#8217;s social media director, Rick Wion, about how the company&#8217;s own Twitter ad became a viral delight for pot heads and social critics. Here&#8217;s a detailed account of how the #McFail debacle went down.
</p><p>According to Wion, the fast-food chain&#8217;s troubles began after it launched a 24-hour campaign to insert <a href="https://support.twitter.com/articles/142101" title="promoted tweets">promoted tweets</a> into the streams of Twitter users. The campaign was intended to share happy farmer stories and featured two keyword hashtags. The company used these hashtags in its tweets and also paid for them to appear at the top of the results when a user searched for those terms.</p>

<p>The campaign proceeded uneventfully until 2pm last Wednesday when McDonald&#8217;s switched from its first hash-tag #MeetTheFarmers to its second one <a href="https://twitter.com/#!/search/%23mcdstories" title="#McDStories">#McDStories</a>.</p>

<p>&#8220;Within an hour, we saw that it wasn&#8217;t going as planned,&#8221; said Wion. &#8220;It was negative enough that we set about a change of course.&#8221;</p>

<p>Even though the company used the hashtag only twice, a legion of critics pounced on #McDStories to tell their own tales of weed or animal cruelty. Some offered crass personal accounts like that of @MuzzaFuzza who wrote &#8220;I haven&#8217;t been to McDonalds in years, because I&#8217;d rather eat my own diarrhea.&#8221;</p>

<p>The hashtag continues to take on a Twitter life of its own&#8212;most recently as a social media parable for marketers. </p>

<p>If there&#8217;s any consolation for McDonald&#8217;s, it&#8217;s that the company&#8217;s original positive message (&#8220;When u make something w/pride, people can taste it&#8221;) continues to appear at the top of the search results. This is happening not because the company is paying for it to stay there (as I speculated earlier) but because of the tweet&#8217;s popularity.</p>

<p>&#8220;It&#8217;s what we call a &#8220;Top Tweet&#8221;&#8212;a Tweet that is getting extremely high engagement when people do a search for a term. These are chosen algorithmically,&#8221; explained Twitter spokesman Matt Graves, adding that any tweet that is promoted at the time will be clearly marked in yellow.</p>

<p>The #McDStories will subside eventually but there remains the question of whether McDonald&#8217;s could have done anything differently.</p>

<p>According to Wion, McDonald&#8217;s carefully selects the words or phrases used to describe its promoted tweets but that it&#8217;s inevitable both &#8220;fans and detractors will chime in&#8221; (although the latter appear to have a clear majority in this case..)</p>

<p>His point appears to be that a certain amount of social media blowback is unavoidable if a company is a lightning rod in the first place. </p>

<p>The episode also shows that, in the case of Twitter, a hashtag released into the wild can&#8217;t be re-captured:</p>

<p><a href="http://paidcontent.org/images/editorial/g_medium/mcfail-twitter-m.png" target="_blank"><img src="http://paidcontent.org/images/editorial/g_medium/mcfail-twitter-m.png" /></a></p>



<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>
											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-mcfail-mcdonalds-loses-control-of-hashtag/" title="#McFail: McDonald's Loses Control Of Hashtag">#McFail: McDonald's Loses Control Of Hashtag</a></li>
</ul>

									]]>
			</content>
			
									<category term="699" scheme="http://paidcontent.org/topics" label="Marketing"/>
							
									<category term="724" scheme="http://paidcontent.org/topics" label="Social Media"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="1094" scheme="http://paidcontent.org/topics" label="Twitter"/>
							
						</entry>
	
		<entry>
			<title>Longtime Netflix Marketing Chief Leslie Kilgore Bumped To The Board</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-longtime-netflix-marketing-chief-leslie-kilgore-bumped-to-the-board/"/>
			<id>tag:contentnext.com,2012-01-20:article/419-longtime-netflix-marketing-chief-leslie-kilgore-bumped-to-the-board</id>
			<published>2012-01-20T23:01:34Z</published>
			<updated>2012-01-21T00:01:35Z</updated>
			<author>
				<name>Daniel Frankel</name>
				<uri>http://paidcontent.org/member/23818/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>In a move that seems designed to shore up confidence in its communications skills following the Qwikster and price-hike debacle, longtime Netflix (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=NFLX" class="ticker" title="NFLX">NSDQ: NFLX</a>) marketing chief Leslie Kilgore is moving to the board.&nbsp;  
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>In a move that seems designed to shore up confidence in its communications skills following the Qwikster and price-hike debacle, longtime Netflix (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=NFLX" class="ticker" title="NFLX">NSDQ: NFLX</a>) marketing chief Leslie Kilgore is moving to the board.&nbsp;  
</p><p>She&#8217;ll be replaced in the interim by Jessie Becker while the company conducts an external search to fill the job. <br />
Also announced by Netflix late Friday, Jonathan Friedland, who joined the company early last year to lead communications has been promoted to chief communications officer. Both report directly to CEO Reed Hastings. </p>

<p>Kilgore, who has been employed by Netflix since 2000 and is one of the company&#8217;s most highly compensated managers, will be a non-executive director.</p>

<p>The switch comes after the most tumultuous six-month period in Netflix’s history. In July, its subscribers – and subsequently, its investors – roundly rejected the company’s decision to split pricing for its DVD and streaming services, causing some bills to rise by 60 percent.</p>

<p>That was followed in September by the even more poorly received decision by Netflix to spin the company’s DVD rental business off into an operation called Qwikster. Although the pricing change stuck, that decision was quickly reversed. </p>

<p>Netflix stock, which had peaked at $298.73 a share on July 13, dropped all the way to a $63.86 nadir on Nov. 25. The company also revealed in its third-quarter earnings report that it had lost 800,000 subscribers during the period. Netflix next reports earnings Jan. 24.</p>

<p>In after-hours trading Friday, Netflix’s stock price was valued at $100.20 a share on the NASDAQ – up from a value of $93.39 Wednesday after an NPD Group report indicated the company still controls 55 percent of the fast-growing U.S. movie- and TV-streaming market. Netflix will deliver its fourth-quarter earnings report Wednesday.</p>

<p>Kilgore – a Wharton School and Stanford graduate who had previously served as a brand manager for Procter &amp; Gamble and as director of marketing for Amazon (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=AMZN" class="ticker" title="AMZN">NSDQ: AMZN</a>) – helped manage a period of huge growth for Netflix in the 2000s, leading the creation its iconic &#8220;red envelope&#8221; brand identity.</p>

<p>Becker, herself an 11-year Netflix veteran, moves up from her post as VP of marketing for the company, overseeing acquisition channels. She also has a Wharton School/Stanford pedigree and an Amazon background.</p>

<p>Friedland arrived at Netflix in February 2011 from a communications post at Walt Disney (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=DIS" class="ticker" title="DIS">NYSE: DIS</a>) Pictures. Prior to that, he served a lengthy term as a foreign correspondent for the Wall Street Journal (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=NWS" class="ticker" title="NWS">NSDQ: NWS</a>) and was part of a Pulitzer Prize-winning team that covered the 9/11 aftermath.</p>

<p>Both Becker and Friedland will report to Netflix CEO Reed Hastings. </p>


											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-netflix-hit-with-class-action-suit-by-angry-investors/" title="Netflix Hit With Class Action Suit By Angry Investors">Netflix Hit With Class Action Suit By Angry Investors</a></li>
<li><a href="http://paidcontent.co.uk/article/419-interview-netflixs-hastings-aims-to-challenge-bskyb/" title="Interview Part 1: Netflix's Hastings Aims To Challenge BSkyB">Interview Part 1: Netflix's Hastings Aims To Challenge BSkyB</a></li>
<li><a href="http://paidcontent.org/article/419-interview-netflixs-hastings-hurt-by-criticism-but-over-the-transition/" title="Interview Part 2: Netflix's Hastings Hurt By Criticism But Over Transition">Interview Part 2: Netflix's Hastings Hurt By Criticism But Over Transition</a></li>
<li><a href="http://paidcontent.org/article/419-the-bleeding-in-the-home-entertainment-business-slowed-in-2011/" title="The Bleeding In The Home Entertainment Business Slowed In 2011">The Bleeding In The Home Entertainment Business Slowed In 2011</a></li>
<li><a href="http://paidcontent.org/article/419-netflixs-2-billion-streaming-hours-in-q4-blows-away-competitors/" title="Netflix's 2 Billion Streaming Hours In Q4 Blows Away Competitors">Netflix's 2 Billion Streaming Hours In Q4 Blows Away Competitors</a></li>
</ul>

									]]>
			</content>
			
									<category term="699" scheme="http://paidcontent.org/topics" label="Marketing"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="1126" scheme="http://paidcontent.org/topics" label="Netflix"/>
							
						</entry>
	
		<entry>
			<title>Is This The Year Ad Spending Online Tops Print?</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-is-this-the-year-ad-spending-online-tops-print/"/>
			<id>tag:contentnext.com,2012-01-20:article/419-is-this-the-year-ad-spending-online-tops-print</id>
			<published>2012-01-20T15:07:01Z</published>
			<updated>2012-01-20T22:00:02Z</updated>
			<author>
				<name>Daniel Frankel</name>
				<uri>http://paidcontent.org/member/23818/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>Internet advertising in the U.S. will once again post 20 percent-plus yearly growth this year, and, for the first time, surpass print ad spending, according to a new forecast.
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>Internet advertising in the U.S. will once again post 20 percent-plus yearly growth this year, and, for the first time, surpass print ad spending, according to a new forecast.
</p><p>So says research firm eMarketer, which cited Madison Avenue’s growing “comfort” with the online medium in a report released Thursday. As a predictive force, the firm has been on target of late – it <a href="http://www.emarketer.com/PressRelease.aspx?R=1008432" title="projected">projected</a> online ad revenue to come in at $31.3 billion in 2011, reasonably close to the group&#8217;s final tally of $32 billion</p>

<p>For 2012, eMarketer projects ad spending on internet platforms to reach $39.5 billion in the U.S., trumping the $33.8 billion it believes will be spent on newspapers and magazines. By 2016, it says online spending will hit $62 billion, not only doubling up on print but also approaching the lofty $72 billion projected for traditional television.</p>

<p>“Advertisers’ comfort level with integrated marketing is greater than ever, and this is helping more advertisers – and more large brands – put a greater share of dollars online, said eMarketer principal analyst David Hallerman in a statement.</p>

<p>Overall, the firm expects total ad spending to grow 6.7 percent this year to about $170 billion, with that growth driven by the national election and increased spending on mobile platforms.</p>


											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-whats-coming-in-2012-digital-advertising-up-close-and-personal/" title="What's Coming In 2012: Digital Advertising, Up Close And Personal">What's Coming In 2012: Digital Advertising, Up Close And Personal</a></li>
<li><a href="http://paidcontent.org/article/419-highlights-of-2011-the-year-in-advertising-by-the-numbers/" title="Highlights Of 2011: The Year In Advertising, By The Numbers">Highlights Of 2011: The Year In Advertising, By The Numbers</a></li>
<li><a href="http://paidcontent.org/article/419-comscore-study-a-third-of-ad-impressions-are-never-seen/" title="ComScore Study: A Third of Ad Impressions Are Never Seen">ComScore Study: A Third of Ad Impressions Are Never Seen</a></li>
</ul>

									]]>
			</content>
			
									<category term="659" scheme="http://paidcontent.org/topics" label="Advertising"/>
							
									<category term="699" scheme="http://paidcontent.org/topics" label="Marketing"/>
							
									<category term="684" scheme="http://paidcontent.org/topics" label="Research &amp; Metrics"/>
							
									<category term="685" scheme="http://paidcontent.org/topics" label="Research"/>
							
						</entry>
	
		<entry>
			<title>Update: Motricity Restructures: Closes Asia Ops, Will Focus On Mobile Ads</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-motricity-restructures-closes-asia-operations-will-focus-on-mobile-ads/"/>
			<id>tag:contentnext.com,2012-01-19:article/419-motricity-restructures-closes-asia-operations-will-focus-on-mobile-ads</id>
			<published>2012-01-19T15:02:45Z</published>
			<updated>2012-01-19T22:12:46Z</updated>
			<author>
				<name>Ingrid Lunden</name>
				<uri>http://paidcontent.org/member/34/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>More woe for beleagured mobile services company Motricity: the company today announced that it is restructuring operations, pulling back from investments in Asia and focusing on growth in North America in areas like mobile advertising and enterprise services.
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>More woe for beleagured mobile services company Motricity: the company today announced that it is restructuring operations, pulling back from investments in Asia and focusing on growth in North America in areas like mobile advertising and enterprise services.
</p><p>The news comes after a series of other developments that point to the challenging market conditions for Motricity, which it is weathering amid a lot of shareholder allegations around insider trading and other fiduciary violations. Some of these shareholders are now taking <a href="http://www.robbinsumeda.com/shareholders-rights-blog/motricity-inc/" title="legal actions">legal actions</a> against the company. </p>

<p>Four months ago, the company&#8217;s founder and CEO, Ryan Wuerch, left the company and got replaced by president and COO <a href="http://moconews.net/article/419-motricity-hits-the-rocks-ceofounder-ryan-wuerch-out-jim-smith-takes-ove/" title="Jim Smith">Jim Smith</a> as interim CEO. In <a href="http://moconews.net/article/419-mobile-lowdown-9-26-11-apple-ipad-orders-apple-event-samsung-verizon/" title="September 2011">September 2011</a>, Motricity secured a $20 million loan from High River LP, a firm controlled by Carl Icahn, and at the time said that it was exploring strategic alternatives for the business, including a possible sale.</p>

<p>In its <a href="http://investor.motricity.com/releasedetail.cfm?ReleaseID=640822" title="statement">statement</a> today, Motricity said that it planned to put more investment into developing its mobile advertising and enterprise businesses as it turned away from other parts of the business that were &#8220;no longer strategic or profitable.&#8221; It did not provide any detail of how big its Asian operations actually are. Its last quarterly earnings statement, <a href="http://investor.motricity.com/releasedetail.cfm?ReleaseID=623694" title="Q3 2011 from November 2011">Q3 2011 from November 2011</a>, did not mention the region at all, and international carrier revenues were worth $3.6 million, compared to $19.6 million from North American carriers&#8212;although these could also include operations outside of Asia, such as the UK. Q3 2011 revenues, Motricity noted, fell below the company&#8217;s own guidance amid lower-than-expected international sales.</p>

<p>Motricity has a large base of customers, ranging from mobile operators such as AT&amp;T (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=T" class="ticker" title="T">NYSE: T</a>), Verizon and Vodafone (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=VOD" class="ticker" title="VOD">NYSE: VOD</a>), as well as top brands like Kraft, American Express and Coca Cola, and offers a host of mobile data solutions, ranging from messaging services through to mobile marketing and advertising.</p>

<p>Advertising in Q3 accounted for about $7 million in revenues, it said.</p>

<p>We have reached out to Motricity to ask how today&#8217;s news impacts employee headcount, and whether the company had any more news regarding the hiring of a permanent replacement for Wuerch. We will update this post as we learn more.</p>

<p><strong>Update</strong>: A spokesperson for Motricity, via email, told paidContent that the company has made &#8220;substantial reductions to headcount&#8221; already. But as some of those people affected are still at the company, they are still included in the current headcount, which is between 320 and 350 full-time employees. &#8220;We expect that, as a result of the recently announced reductions and our continued review of our costs structure, that number may be lower by the end of Q1.&#8221;</p>

<p>As for a permanent CEO, the board has called in executive recruitment firm Korn/Ferry, and it is expected that a decision will be made in the next several months.
</p>
											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://moconews.net/article/419-mobile-lowdown-9-26-11-apple-ipad-orders-apple-event-samsung-verizon/" title="Mobile Lowdown 9-26-11: Apple iPad Orders; Apple Event; Samsung; Verizon">Mobile Lowdown 9-26-11: Apple iPad Orders; Apple Event; Samsung; Verizon</a></li>
<li><a href="http://moconews.net/article/419-mobile-lowdown-8-26-11-gowalla-cheap-nokias-skype-microsoft/" title="Mobile Lowdown 8-26-11: Gowalla; Cheap Nokias; Skype; Microsoft">Mobile Lowdown 8-26-11: Gowalla; Cheap Nokias; Skype; Microsoft</a></li>
<li><a href="http://moconews.net/article/419-motricity-hits-the-rocks-ceofounder-ryan-wuerch-out-jim-smith-takes-ove/" title="Motricity Hits The Rocks: CEO/Founder Ryan Wuerch Out, Jim Smith Takes Over">Motricity Hits The Rocks: CEO/Founder Ryan Wuerch Out, Jim Smith Takes Over</a></li>
<li><a href="http://paidcontent.co.uk/article/419-virgin-media-picks-motricity-for-mobile-tv-services/" title="Virgin Media Picks Motricity For Mobile TV, Services">Virgin Media Picks Motricity For Mobile TV, Services</a></li>
<li><a href="http://paidcontent.co.uk/article/419-source-thumbplay-music-close-to-getting-sold-fate-of-ringtone-ops-unkno/" title="Update: Thumbplay Music Sold To Clear Channel; Fate Of Ringtone Ops Unknown">Update: Thumbplay Music Sold To Clear Channel; Fate Of Ringtone Ops Unknown</a></li>
<li><a href="http://moconews.net/article/419-motricity-to-buy-mobile-ad-firm-adenyo-for-100-million/" title="Motricity To Buy Mobile Ad Firm Adenyo For $100 Million">Motricity To Buy Mobile Ad Firm Adenyo For $100 Million</a></li>
<li><a href="http://moconews.net/article/419-going-non-native-appia-funded-by-eric-schmidt-and-more-from-getjar/" title="Going Non-Native: Appia, Funded By Eric Schmidt, And More From GetJar">Going Non-Native: Appia, Funded By Eric Schmidt, And More From GetJar</a></li>
<li><a href="http://moconews.net/article/419-motricitys-q3-revenues-up-35-percent-over-past-year/" title="Motricity's Q3 Revenues Up 35 Percent Over Past Year">Motricity's Q3 Revenues Up 35 Percent Over Past Year</a></li>
<li><a href="http://moconews.net/article/419-motricitys-stock-jumps-30-percent-after-adding-international-customer/" title="Motricity's Stock Jumps 30 Percent After Adding International Customer">Motricity's Stock Jumps 30 Percent After Adding International Customer</a></li>
</ul>

									]]>
			</content>
			
									<category term="659" scheme="http://paidcontent.org/topics" label="Advertising"/>
							
									<category term="688" scheme="http://paidcontent.org/topics" label="Legal"/>
							
									<category term="699" scheme="http://paidcontent.org/topics" label="Marketing"/>
							
									<category term="715" scheme="http://paidcontent.org/topics" label="Mobile"/>
							
									<category term="805" scheme="http://paidcontent.org/topics" label="Countries"/>
							
									<category term="806" scheme="http://paidcontent.org/topics" label="Asia"/>
							
							
							
						</entry>
	
		<entry>
			<title>Bellwether: Q4 UK Ad Spend Up Slightly On Online Growth</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-bellwether-q4-media-spend-slightly-up-on-the-back-of-interactive-ad-gro/"/>
			<id>tag:contentnext.com,2012-01-19:article/419-bellwether-q4-media-spend-slightly-up-on-the-back-of-interactive-ad-gro</id>
			<published>2012-01-19T11:44:35Z</published>
			<updated>2012-01-19T13:13:36Z</updated>
			<author>
				<name>Ingrid Lunden</name>
				<uri>http://paidcontent.org/member/34/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>In a climate where economic forecasts continue to remain cloudy, ad spend in the UK went up marginally in Q4 2011, with increased spend on internet advertising making up for declined spend in traditional media and other outlets, according to the latest figures from the <a href="http://www.ipa.co.uk " title="IPA Bellwether Report">IPA Bellwether Report</a>.
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>In a climate where economic forecasts continue to remain cloudy, ad spend in the UK went up marginally in Q4 2011, with increased spend on internet advertising making up for declined spend in traditional media and other outlets, according to the latest figures from the <a href="http://www.ipa.co.uk " title="IPA Bellwether Report">IPA Bellwether Report</a>.
</p><p>The survey of 300 UK media and marketing executives found that internet advertising budgets&#8212;covering areas like display and rich-media ads&#8212;were revised up by 13.4 percent during the quarter; the lower-costing medium of internet search, meanwhile, went up even higher: budgets for this were revised up by 14.9 percent. Traditional media, on the other hand, was down by 1.2 percent:</p>

<p><img src="http://paidcontent.org/images/editorial/_original/bellwether-marketing-budget-breakdown-q4-o.jpg" /></p>

<p>&#8220;There are signs that companies have become increasingly reluctant to invest in traditional media campaigns, instead diverting money towards the internet,&#8221; said Chris Williamson, chief economist at Markit and author of the Bellwether, said in the report.</p>

<p>This is also a reflection of the general trend that we saw for more consumers to turn to the internet&#8212;online and on their mobile devices&#8212;to look for the best deals around the holiday season.</p>

<p><strong>But even while this sounds good news for interactive players, it looks like the situation remains unstable:</strong></p>

<p>Overall, 20 percent of media execs said they were revising up their spend, while 19 percent said they were revising down. That means overall spend grew, but only by one percent. Still, that was enough to make this the second consecutive quarter of growth, as measured by the Bellwether folks.</p>

<p>IPA Bellwether analysis further found that respondents said that much of their increased spend was about protecting market share&#8212;and not because of an increase in consumer confidence. </p>

<p>In general, respondents reported a decline in business prospects, with some of the lowest figures seen since Q1 2009. One bright spot, however, may come in the form of summer sports&#8212;or so advertisers hope. Nicola Mendelsohn, IPA president, believes that &#8220;increased buoyancy&#8221; around the London 2012 Olympics and the European football championships will lead to more ad investment in 2012.
</p>
											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-itn-expands-online-news-content-strategy-with-multi-platform-ad-sales/" title="ITN Expands Online News Content Strategy With Multi-Platform Ad Sales">ITN Expands Online News Content Strategy With Multi-Platform Ad Sales</a></li>
<li><a href="http://paidcontent.org/article/419-comscore-study-a-third-of-ad-impressions-are-never-seen/" title="ComScore Study: A Third of Ad Impressions Are Never Seen">ComScore Study: A Third of Ad Impressions Are Never Seen</a></li>
<li><a href="http://paidcontent.org/article/419-wpp-another-move-into-asia-pac-buys-a-stake-inaustralias-dtdigital/" title="WPP: Another Move Into Asia Pac, Buys A Stake In Australia's DTDigital">WPP: Another Move Into Asia Pac, Buys A Stake In Australia's DTDigital</a></li>
<li><a href="http://paidcontent.org/article/419-youtube-fails-to-convince-ad-regulator-the-web-safeguards-kids-like-tv-/" title="YouTube Fails To Convince Ad Regulator The Web Safeguards Kids Like TV Does">YouTube Fails To Convince Ad Regulator The Web Safeguards Kids Like TV Does</a></li>
<li><a href="http://paidcontent.org/article/419-online-advertising-is-most-pitched-media-product-but-how-best-to-sell-i/" title="Online Advertising Is Most-Pitched Media Product, But How Best To Sell It?">Online Advertising Is Most-Pitched Media Product, But How Best To Sell It?</a></li>
<li><a href="http://paidcontent.org/article/419-wpps-kantar-buying-chinas-cic-for-social-media-market-research/" title="WPP's Kantar Buying China's CIC For Social Media Market Research">WPP's Kantar Buying China's CIC For Social Media Market Research</a></li>
<li><a href="http://paidcontent.org/article/419-interactive-tv-advertising-not-huge-now-will-this-be-the-year-it-grows/" title="Interactive TV Advertising: Not Huge Now, Will This Be The Year It Grows?">Interactive TV Advertising: Not Huge Now, Will This Be The Year It Grows?</a></li>
</ul>

									]]>
			</content>
			
									<category term="659" scheme="http://paidcontent.org/topics" label="Advertising"/>
							
									<category term="699" scheme="http://paidcontent.org/topics" label="Marketing"/>
							
									<category term="700" scheme="http://paidcontent.org/topics" label="Media &amp; Publishing"/>
							
									<category term="715" scheme="http://paidcontent.org/topics" label="Mobile"/>
							
									<category term="716" scheme="http://paidcontent.org/topics" label="Money"/>
							
									<category term="684" scheme="http://paidcontent.org/topics" label="Research &amp; Metrics"/>
							
									<category term="685" scheme="http://paidcontent.org/topics" label="Research"/>
							
									<category term="746" scheme="http://paidcontent.org/topics" label="Search"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="805" scheme="http://paidcontent.org/topics" label="Countries"/>
							
									<category term="817" scheme="http://paidcontent.org/topics" label="Europe"/>
							
									<category term="832" scheme="http://paidcontent.org/topics" label="UK"/>
							
							
						</entry>
	
		<entry>
			<title>Industry Moves: HookLogic; SwoopThat; ABCi; Digitas; Yahoo</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-industry-moves-hooklogic-swoopthat-abci-digitas-yahoo/"/>
			<id>tag:contentnext.com,2012-01-18:article/419-industry-moves-hooklogic-swoopthat-abci-digitas-yahoo</id>
			<published>2012-01-18T19:18:18Z</published>
			<updated>2012-01-18T19:20:21Z</updated>
			<author>
				<name>Amanda Natividad</name>
				<uri>http://paidcontent.org/member/11/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>&#8212;<strong>HookLogic</strong>: Jeff Griffin joins in the new position of president of retail. Most recently, he co-founded Interpublic Group&#8217;s Shopper Science. Prior to that, Griffin was SVP of Premier Retail Networks (PRN).</p>

<p>&#8212;<strong>SwoopThat.com</strong>: Book publishing vet Dan Farley is joining the San Diego-based college textbook price comparison startup as EVP, business development. He is responsible for building partnerships with on-campus college bookstores, allowing the stores to serve as retail hubs by hosting SwoopThat.com technology on their websites and receiving affiliate fees. Farley was most recently the president and publisher of Macmillan&#8217;s Henry Holt &amp; Co. and the Macmillan Children&#8217;s Publishing Group, and before that was head of the consumer publishing division at Harcourt.
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>&#8212;<strong>HookLogic</strong>: Jeff Griffin joins in the new position of president of retail. Most recently, he co-founded Interpublic Group&#8217;s Shopper Science. Prior to that, Griffin was SVP of Premier Retail Networks (PRN).</p>

<p>&#8212;<strong>SwoopThat.com</strong>: Book publishing vet Dan Farley is joining the San Diego-based college textbook price comparison startup as EVP, business development. He is responsible for building partnerships with on-campus college bookstores, allowing the stores to serve as retail hubs by hosting SwoopThat.com technology on their websites and receiving affiliate fees. Farley was most recently the president and publisher of Macmillan&#8217;s Henry Holt &amp; Co. and the Macmillan Children&#8217;s Publishing Group, and before that was head of the consumer publishing division at Harcourt.
</p><p>&#8212;<strong>ABC Interactive</strong>: The Audit Bureau of Circulations has named Eric T. John VP of ABC Interactive, where he&#8217;ll manage products and services, day-to-day operations and building strategic business relationships. He&#8217;ll also work closely with ABC’s U.S. and Canadian Digital Advisory Committees as a staff liaison. He comes from AdKnowledge, where he was head of marketing.</p>

<p>&#8212;<strong>Digitas</strong>: Online advertising veteran Simon Calvert has signed on at Digitas as worldwide head of strategic planning, based in London and reporting to Mark Beeching, worldwide chief creative and strategy officer. Previously, Calvert was global chief planning officer and executive strategy director at Draftfcb.</p>

<p>&#8212;<strong>Yahoo</strong>: Javier Garcia has been promoted to GM of the U.S. Hispanic business, reporting to Armando Rodriguez, VP and managing director for Latin America and U.S. Hispanic. Garcia was the marketing development director for Yahoo (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=YHOO" class="ticker" title="YHOO">NSDQ: YHOO</a>) Hispanic Americas. Prior to Yahoo, he was director of media and mobile strategy at Diamond Advisory Services.
</p>
									]]>
			</content>
			
									<category term="659" scheme="http://paidcontent.org/topics" label="Advertising"/>
							
									<category term="1071" scheme="http://paidcontent.org/topics" label="Industry Moves"/>
							
									<category term="1096" scheme="http://paidcontent.org/topics" label="Industry Moves Roundup"/>
							
									<category term="699" scheme="http://paidcontent.org/topics" label="Marketing"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="1033" scheme="http://paidcontent.org/topics" label="Yahoo"/>
							
									<category term="805" scheme="http://paidcontent.org/topics" label="Countries"/>
							
									<category term="815" scheme="http://paidcontent.org/topics" label="Latin America"/>
							
						</entry>
	
		<entry>
			<title>WPP: Another Move Into Asia Pac, Buys A Stake In Australia&#39;s DTDigital</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-wpp-another-move-into-asia-pac-buys-a-stake-inaustralias-dtdigital/"/>
			<id>tag:contentnext.com,2012-01-18:article/419-wpp-another-move-into-asia-pac-buys-a-stake-inaustralias-dtdigital</id>
			<published>2012-01-18T10:11:24Z</published>
			<updated>2012-01-18T23:28:25Z</updated>
			<author>
				<name>Ingrid Lunden</name>
				<uri>http://paidcontent.org/member/34/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>Another day, and another big digital investment from the world&#8217;s largest advertising firm. WPP subsidiary Ogilvy has taken a 33.3 percent stake in DTDigital, a digital marketing agency based in Melbourne, Australia. The move is not just another signal of the firm&#8217;s growing base of interactive holdings, but one more sign of its intention to grow its business in the Asia Pacific region: it follows just after WPP research division, Kantar, announced the acquisition of <a href="http://paidcontent.org/article/419-wpps-kantar-buying-chinas-cic-for-social-media-market-research/" title="China's CIC">China&#8217;s CIC</a>, a social media consumer research firm.
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>Another day, and another big digital investment from the world&#8217;s largest advertising firm. WPP subsidiary Ogilvy has taken a 33.3 percent stake in DTDigital, a digital marketing agency based in Melbourne, Australia. The move is not just another signal of the firm&#8217;s growing base of interactive holdings, but one more sign of its intention to grow its business in the Asia Pacific region: it follows just after WPP research division, Kantar, announced the acquisition of <a href="http://paidcontent.org/article/419-wpps-kantar-buying-chinas-cic-for-social-media-market-research/" title="China's CIC">China&#8217;s CIC</a>, a social media consumer research firm.
</p><p>Financial terms of the deal were not disclosed in WPP&#8217;s <a href="http://www.morningstar.com/advisor/t/50947615/wpp-plc-acquisition.htm" title="market disclosure">market disclosure</a> of the investment. </p>

<p><a href="http://www.dtdigital.com.au/" title="DTDigital">DTDigital</a>, which also has offices in Sydney and Brisbane, was founded in 1996 and employs around 110 people. It focuses on digital marketing services, which clients ranging from retailers like Myers and Bunnings to multinational consumer brands like Honda.</p>

<p>The acquisition will not only help WPP expand its client contacts and business in the region, but it will also contribute to its overall aim to grow its interactive business.</p>

<p>WPP has bet big so far on interactive marketing and advertising: it is expected that in 2011 the company will make some 30 percent of its revenues from digital. In dollar terms that works out to digital revenues of $4.5 billion on overall revenues of $16 billion for the year, according to analyst consensus. </p>

<p>WPP says that it is aiming for digital to account for 35-40 percent of all revenues in the next five years.</p>

<p>DTDigital had gross revenues of A$14.38 million ($14.94 million) as of December 31, 2011, with assets of A$4.76 million ($4.95 million). </p>

<p>WPP also did not reveal the value of the CIC acquisition but that company reported revenues of 29.9 million RMD ($4.7 million) in 2011.
</p>
											<p><strong>Related</strong></p>
						<ul class="related">
<li><a href="http://paidcontent.org/article/419-wpps-kantar-buying-chinas-cic-for-social-media-market-research/" title="WPP's Kantar Buying China's CIC For Social Media Market Research">WPP's Kantar Buying China's CIC For Social Media Market Research</a></li>
<li><a href="http://paidcontent.org/article/419-apples-iad-compromise-only-400000-buy-in-and-madison-ave-style-wooing/" title="Apple's iAd 'Compromise': Only $400,000 Buy-In And Madison Ave-Style Wooing">Apple's iAd 'Compromise': Only $400,000 Buy-In And Madison Ave-Style Wooing</a></li>
<li><a href="http://paidcontent.org/article/419-zenith-display-proves-resilient-in-11-looks-robust-in-12/" title="Zenith: Display Proves Resilient In '11, Looks Robust In '12">Zenith: Display Proves Resilient In '11, Looks Robust In '12</a></li>
<li><a href="http://paidcontent.org/article/419-wpp-re-invests-in-chinese-video-game-ads-company/" title="WPP Re-Invests In Chinese Video Game Ads Company">WPP Re-Invests In Chinese Video Game Ads Company</a></li>
<li><a href="http://paidcontent.org/article/419-wpp-downgrades-its-growth-forecast/" title="WPP Downgrades Its Growth Forecast">WPP Downgrades Its Growth Forecast</a></li>
<li><a href="http://paidcontent.org/article/419-wpp-buying-further-in-to-chinese-online-ad-measurement/" title="WPP Buying Further In To Chinese Online Ad Measurement">WPP Buying Further In To Chinese Online Ad Measurement</a></li>
</ul>

									]]>
			</content>
			
									<category term="659" scheme="http://paidcontent.org/topics" label="Advertising"/>
							
									<category term="699" scheme="http://paidcontent.org/topics" label="Marketing"/>
							
									<category term="716" scheme="http://paidcontent.org/topics" label="Money"/>
							
									<category term="721" scheme="http://paidcontent.org/topics" label="M&amp;A &amp; Venture Capital"/>
							
									<category term="724" scheme="http://paidcontent.org/topics" label="Social Media"/>
							
									<category term="833" scheme="http://paidcontent.org/topics" label="Companies"/>
							
									<category term="1032" scheme="http://paidcontent.org/topics" label="WPP"/>
							
									<category term="805" scheme="http://paidcontent.org/topics" label="Countries"/>
							
									<category term="806" scheme="http://paidcontent.org/topics" label="Asia"/>
							
									<category term="807" scheme="http://paidcontent.org/topics" label="China"/>
							
							
						</entry>
	
		<entry>
			<title>Updated: In&#45;App Purchases To Overtake Sales From Paid Apps By 2013</title>
			<link rel="alternate" type="text/html" href="http://paidcontent.org/article/419-do-you-buy-this-free-apps-with-in-app-purchases-will-dominate-over-paid/"/>
			<id>tag:contentnext.com,2012-01-17:article/419-do-you-buy-this-free-apps-with-in-app-purchases-will-dominate-over-paid</id>
			<published>2012-01-17T14:47:16Z</published>
			<updated>2012-01-18T01:07:17Z</updated>
			<author>
				<name>Ingrid Lunden</name>
				<uri>http://paidcontent.org/member/34/</uri>
			</author>
			<contributor>
				<name>paidContent</name>
				<uri>http://paidcontent.org/</uri>
			</contributor>
			<rights>Copyright (c) 2012, paidContent</rights>
			<summary type="html">
				<![CDATA[
					
					<p>The consumer draw of free apps over paid apps has been well-documented, and so has the rise of in-app payments as a route to making money from those free apps. New research out today predicts that in-app purchases will, in fact, become the most dominant way that app developers will make money in years ahead.
</p>
				]]>	
			</summary>
			<content type="html">
				<![CDATA[
					
					<p>The consumer draw of free apps over paid apps has been well-documented, and so has the rise of in-app payments as a route to making money from those free apps. New research out today predicts that in-app purchases will, in fact, become the most dominant way that app developers will make money in years ahead.
</p><p>The <a href="http://www.isuppli.com/Media-Research/Pages/Free-for-All-In-App-Purchases-to-Dominate-Smartphone-App-Business.aspx?PRX" title="report">report</a>, from its IHS Screen Digest division, notes that in-app purchases accounted for about 39 percent of app revenues in 2011, and it predicts that in 2012 that proportion has gone up to 49 percent. By 2015 it will account for 64 percent of all revenues. </p>

<p><img src="http://paidcontent.org/images/editorial/_original/in-app-purchases-versus-paid-downloads-o.png" /></p>

<p>In terms of actual value, IHS says that in-app payments were worth $970 million in 2011, and will be worth $5.6 billion in 2015. (Sound too big to you? Please comment below.)</p>

<p><strong>Update</strong>: More on why those revenues will be so big. Ian Fogg, head of mobile for IHS Screen Digest, pointed out to paidContent in an email that the $5.6-billion figure &#8220;is driven by the vast numbers of new smartphones that will ship over the next few years. As the number of smart devices is so great, the app market revenues will grow greatly, and hence so will the in-app revenues.&#8221; He also noted that many pay-to-download apps also feature in-app purchasing options; that will additionally contribute to the total size of in-app revenues. [original article continues]</p>

<p>This represents a big opportunity for app store operators like Apple (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=AAPL" class="ticker" title="AAPL">NSDQ: AAPL</a>) and Google (<a href="http://finance.paidcontent.org/paidcontent?Page=QUOTE&Ticker=GOOG" class="ticker" title="GOOG">NSDQ: GOOG</a>), as well as mobile payments companies like Boku, Zong and PayPal to manage these payments. </p>

<p>And it also represents something of a success, too, considering how much <a href="http://moconews.net/article/419-iflowreader-latest-app-to-shut-up-shop-blames-apples-iap-agency-models/" title="opposition">opposition</a> there was to in-app billing when it was first launched by Apple with requirements to pay it 30 percent of each transaction.</p>

<p>&#8220;Apple has nailed the mobile gaming and mobile app payment business,&#8221; noted Wilhelm Taht, marketing director for mobile social media service Flowd, earlier today. &#8220;It&#8217;s super frictionless.&#8221;</p>

<p>Strangely, the report does not take account of mobile advertising as a route to making money from an app. That could be because the only apps that can actually make any significant money from advertising are those that get the very highest amount of traffic&#8212;other long-tail apps that lack scale will face a challenge in trying to use advertising as their main business model.</p>

<p>Today, free apps already have significantly more traffic than paid apps: Nielsen last week noted that consumers mainly use a mixture of these, or a free-only selection of apps; those who only opt for paid apps account for low, single-figure percentages in different categories (around two-three percent). Ironically, paid apps today remain the main way that many of the most successful apps (<a href="http://paidcontent.org/article/419-sweet-success-for-cut-the-rope-an-interview-with-zeptolabs-ceo/" title="such as games">such as games</a>) are making money.</p>

<p>Free-to-download apps that come with in-app purchasing&#8212;so-called &#8220;freemium&#8221; apps&#8212;represented 45 percent of all top-grossing iPhone apps, and 31 percent of the highest-earning Android apps in the U.S. </p>

<p>IHS Screen Digest estimates that some 68 percent of all top-grossing apps had at least some form of &#8220;additional content or functionality&#8221; available through in-app purchase, which could mean features like extra levels in games, virtual currency to continue playing or extra editions of a publication. </p>

<p>Virtual currency, it says, is the most common form of in-app paid content available today, accounting for 63 percent of all revenues made from in-app purchases.</p>

<p>But while we hear a lot about newspapers and magazines, and increasingly video-based apps looking to in-app payments as a way of getting their users to buy mobile content, overall, this represents a very small part of revenues today: in the UK in Q3 2011, publications accounted for only five percent of in-app payment revenues (no figures for the U.S.), while video accounted for only two percent of in-app revenues in the U.S. and none in the UK.
</p>
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</ul>

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