Tag Archives: mobile marketing

Facebook turns brands into people, too

Mitt Romney was quoted as calling corporations the same as people.  The public largely saw that as an esoteric tax reference.

However, when Facebook transforms brands and corporations into people, well that’s another story.  The new Facebook brand timeline and advertising strategy has created life for brands, and likely even more fortunes for Facebook. 

Your personal timeline will have more sponsored content from the brands that you love and more importantly – “liked”.  Those annoying dental implant ads on the right-hand side of your Facebook page will be replaced with sponsored content stories from different brands. Ads acting like content, brands acting like people, and all in the socially connected universe of Facebook.

The transformation of ads into timeline content is a win-win-win for Facebook.  Firstly, it solves an obvious problem that the right hand side ads on Facebook is a odd mixture of legitimate brands and low-end junk.  The quality of their ad inventory has not been consistent. Secondly, the only real way to monetize their significant mobile audience is through timeline insertion of content (ads).  This has been obvious from the beginning for both Twitter and Facebook.  They have both now started down that path.  To date, Google has been more successful with mobile monetization through their search products.  Facebook will now try to match that with they social news approach.

The Facebook strategy has a good chance of giving Google a run for their money.  Why? What do people do with their mobile devices that brands care about?  They search and they interact with Social Media – mainly Facebook.

Lastly, this strategy focuses Facebook on large brands that support their social mission.

While there is still a place for the smaller “Mom and Pop” establishments in the Facebook Universe, the Facebook Ad engine is clearly aimed at global brands with significant budgets.  Facebook is, without a doubt, aiming for to be the primary digital ad platform of choice for brands in the future.

The Google Vs. Facebook War just got a lot hotter.

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Filed under advertising, android, Content, facebook, Google, mobile, Social Media, social networking, Twitter

Google Acquires Patents – and Also Motorola

Google + Moto is the BIG NEWS of the summer.  It was big enough to grab me out of my blog vacation.  While the pundits are filling the airwaves with analysis on this one , I view it perhaps more simply, more straightforward.

The battleground for supremacy in connected devices (mobile smartphones, Tablets, and  set-top boxes) has moved from the R&D labs to the court rooms.  The patent wars between Apple and Google are fierce, with Microsoft bulking up on its own portfolio as part of the consortium that bought the Nortel patents.

Motorola was worth the price Google paid just for their patent portfolio.  In patent wars if you get sued, you better have a patent in your portfolio that can hurt the attacker.  In this way you trade mutual assured destruction with a patent stand-off.

When Google acquired the rights to Motorola’s 25,000+ patents, they bought both defensive capability and offensive firepower.  Apple may go after Android for an Apple patent but what are the changes that Google now has a patent that can hurt Apple?

It is impossible to design and produce a device such as an iPhone, iPad, or Android device that will not infringe on someone’s patent.  Impossible.  What a company must do is acknowledge that they will infringe and hope the other guy also infringes on their patents and us the mutual infringement to to either create a license arrangement or to have both companies do nothing.

Google’s price of $12.5B is about $500,000 per patent, which seems to be a bargain compared to the $4.5B  Apple and Microsoft for 6000 Nortel patents.  Their price was  $750,000 per patent.

Lets assume that the Motorola sale  is approved and Google gets the Motorola patent portfolio.  Google’s next problem is that they have also bought a company that makes handsets.  I say this is a problem because this is a huge company in a market that is different from Google’s core competency.  This is also a company that competes with Google’s other OEM partners for Android Devices.  The conventional wisdom is that these other OEM partners will start to defect, en mass,  to Microsoft.

Yeah right….

What does defect even mean?  Microsoft will pay these companies to produce some Windows phones anyway.

Android is free.  Can Microsoft compete with free?  Google makes its money on Android from their ad business.  Microsoft must make money from their software license for Mobile 7 operating system.  Besides for being years late to the party, Microsoft is structural disadvantaged to compete.  At best they can hope to be a number 3 player.

Google has two choices.

Number 1: They can acquire the patent portfolio and then spin out the Motorola Mobility Business, probably re-cooping half their initial investment.  They could sell Motorola’s handset and tablet businesses, along with licenses to the patents they now own to either HTC or Samsung, their two most important OEM partners.  This would be an amazing move.

Number 2:  Keep the Motorola hardware business and expand Android into the Cable Set-Top Box market.  This is the riskier of the paths as the sheer weight of a big manufacturing company could alter the culture of Google for the worse.  This path would be an attempt to become “Apple”.  While this path seems to be the assumed defacto strategy of Google, I am placing my bets on scenario #1.  This will take a couple of years to play out, so hold onto this link and let’s see if I am right.

An indicator that we are on Scenario 1 will be if Microsoft acquires RIM (Blackberry) or Nokia.  This would be an acknowledgment that the Google OEM manufacturers are not going to defect to Microsoft and that they must own a hardware company to compete.

This has only gotten worse in the last 10 months!

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Filed under Acquisitions, advertising, android, Apple, blackberry, Cable, Droid, Google, HTC, iPad, mobile advertising, Mobile Application Stores, mobile commerce, smart phone, Smartphone

Windows Mobile – Just not Cool

With the holiday season upon us, my son is back from college.  Yesterday he had a dozen of his friends over to “hang out”.  Since this was costing me around 100 pizza bagels and a couple boxes of mozzarella sticks, I thought it was only fair for me to have an impromptu mobile focus group of college students.

Most of them were on the Verizon Network, with one on AT&T and one on T-Mobile.  There were 7 Smartphone class devices (1 iPhone, 3 Blackberrys, 3 Android), 3 Multimedia class devices and 2 feature phones.  Those who had the more impressive devices were much quicker to wave them in the air and show them off, while the feature phone owners were trying to avoid eye contact.

Their preferred manner of communicating with each other was text first, then voice, then Facebook, then IM, and lastly email.

I then described the features of a Windows 7 phone, without naming it.  The live tiles, music integration,  gaming system integration, etc.  I got a reasonable concurrence that those features were “cool” and was asked if they were available on their “app stores”.

More on that a little later on.

I then asked them if they heard of the Windows 7 phone and what they thought of it?  I got lots of frowns and looks of disgust,  “A Microsoft Phone?, not cool” , “That’s for computers, not phones”, “Will it work all the time?”.  You get the general reaction.  The group thought the basic features of the Microsoft phone were desirable, but had a very negative reaction to the name and software system.

I asked them if they would trade in their phone for a free Windows 7 model?  Only the feature phone owners indicated that a free Windows phone would be better than the 2006-era voice and text via t9 models they were forced to endure.

This result is similar to other impromptu focus groups I have managed with my kids’ friends.  Their phone is a social accessory. It is the most important electronic gear they own since they have it with them 24/7.  Blackberry’s have strangely entered the “cool zone” and are as socially acceptable to the teen crowd as iPhones and Droids.  Windows phones are clearly not cool, even though their features are desirable.

What does this mean for Microsoft?  They made a big mistake, another in a long list of mobile missteps, by naming their mobile phone after a PC operating system.  Did I mention that 75% of my sample group used Apple computers as their main machine?  Microsoft has been very successful with XboX, partly because it was NOT called Windows Vista Game System.  Microsoft called their mp3 music player “Zune”, not Windows music player.  Zune has been a market failure, not because of its name, but rather it was outclassed and out marketing by Apple iTunes and iPod.

Microsoft released sales figures for their mobile device on 12/21.  They touted 1.5M devices sold in the first 6 weeks.  This number, however, reflects the number of devices that are in the Carriers stores and pipeline, not how many have been sold to actual subscribers.  Verizon has over 2000 direct retail outlets and easily a similar number of resellers.  You can appreciate how many phones you have distribute to fill the distribution pipeline.

In comparison Android is activating 300K phones a day and Apple sold (really sold) 3M iPhones in its first 3 weeks on the market, over three years ago.

What should the team in Redmond do now?  I believe the clue is in one of the comments from my son’s friends.  “Where can I get these in the App store?”  If XboX gaming on a mobile is valuable, then Microsoft should develop their own apps for Blackberry, iPhone and Android and make money from their “competitors” mobile platforms.

Likewise, they could provide a Zune application for music on these platforms (well maybe not iPhone).  My point is that if Microsoft has valuable applications then sell them as applications.  If my small sampling is at all indicative of how Microsoft’s core targeted market is reacting to their mobile device, they have to seriously re-think what they have done.  Find a cool name for the phone, don’t rely on a Zune/Xbox positioning, and tout the basic phone interface as better than other Smartphone’s.  To some degree they have tried the latter with the ad campaign promoting the ease of use of their device.

The real question will be is the market willing to accept another smartphone platform at this point? What do you think?

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Filed under advertising, android, Apple, AT&T, Droid Incredible, facebook, Google, iphone, Ipod, iTunes, mobile, Verizon, Windows, Windows Mobile, wireless, XboX, Zune

Calling Microsoft’s Next of Kin

In  Microsoft’s struggle to remain relevant in the exploding mobile device market, they withdrew their latest attempt at a teen social networking device from the market.  The Kin’s market life was about 50 days.  It was a decent device , just  two years late to the game.

You can light a candle in memory of the Kin at kinrip.com. Its a very touching memorial website.  May its memory be a blessing.

According to Engadget part of Kin’s delay was caused by Microsoft scrapping the IP, or part of it, that it paid $500M for in their acquisition of Danger and instead re-developing the device on the soon to also be defunct Windows CE system.   Engadget also reports on corporate power plays, executive infighting and internal office politics.   Not what you would expect.

If this is not a Harvard Business Case Analysis in the making for a new crop of Cambridge bound MBA’s , I don’t know what would be.  You can read the full Engadget analysis through this link. The key element that is dominating the new super-phone marketplace is the ever-increasing velocity of innovation.

Microsoft announced their new Smartphone OS –Windows Mobile  7 – in January 2010.  The first devices with this Microsoft OS are expected to hit the market near the December holiday season.  In that same period of time Apple released their new iPhone and a new iPhone OS, the iPad, an Ad network, and who knows what else we will see in the next 6 months!   The Android ecosystem will have almost two-dozen variants, with each new device more spectacular than the last.  HP acquired Palm and is integrating their technology into their netbooks, and perhaps producing another new line of smartphones.  RIM’s Blackberry will have several releases and a new OS,  and of course Nokia’s product line has a makeover with a new operating system.  The speed of innovation is accelerating at a dizzying pace.  This is great for consumers, great for innovation and great for moving services to the market quicker.

And Microsoft?

They introduced, and then killed one phone and announced that they will have a new system by the end of 2010.

One thing is certain; the world is not waiting around for Microsoft to deliver their Windows Mobile 7 devices.

But maybe we should be, and here’s why.

Microsoft has  too much corporate talent, financial resources and computing market reach to just pull up their tents and go home in the most important computing segment.   Microsoft survived the debacle of Vista because they are Microsoft,  and have had virtual monopoly power in desktop computing.  In mobile, Microsoft is not the leader in market share, thought leadership or industry hype.  They have to slug it out with a crowded field of very nimble and powerful competitors.  This means they have to innovate and be quick about it to survive.   Having almost a one-year duration from product announcement to introduction is just not getting it done.

The irony is that the marketplace could really benefit from a strong Microsoft presence.

Apple is getting very economically aggressive with their high perch in smartphones.   Google’ Android Platform will likely eclipse Apple in aggregate sales in the next year. Do we all want to place our computing futures completely with Google?  Make no mistake about it , I am a big fan of Apple and Google.  It’s just that absolute power in markets has its downsides.  From a U.S. perspective, the only companies with the overall corporate strength to play on the same field with Apple and Google are RIM and Microsoft.  Nokia could be a legit player, globally,  but their position in the U.S. is just not strong enough.

In the irony of ironies, Microsoft is the leading candidate to challenge the emerging monopolistic leaders in the smartphone business.  They can keep the competitive environment going well into the future and prevent it from stagnating into a duopoly.    The issue is that Microsoft seems incapable of getting out of their own way, with failure following failure in this space.  The Kin is just the latest mobile problem for Microsoft.   Even the name “Windows Mobile 7” is a window (sorry for the pun) to the desktop corporate computing bias.   Android, Blackberry and iPhone all sound cool.  Windows Mobile 7 conjures up images of blue screens.

I know that’s not fair but,  it is what it is.

Windows Mobile 7  seems like a name picked for internal synergistic and political reasons and not one geared for mobile market success. If there was ever a company that seemed to have all the assets in place to dominate the mobile smart phone business, it was Microsoft.  Now they are trying to be in the mix and be relevant.

If Windows Mobile 7 is not a success, then the last card for Microsoft to play will be the another acquisition , perhaps RIM?

For the sake of keeping Apple and Google honest in this space, I am hoping for a success from Microsoft.

Do you believe that Microsoft’s Mobile team can deliver?

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Filed under Acquisitions, android, Apple, Droid, iPad, iphone, microsoft, mobile, Mobile Application Stores

“Where” is that Secret Facility on Foursquare?

One of the really interesting aspects of smartphone apps is the innovation and product mutation process.  Over the past couple of weeks I have downloaded over 100 apps on my Droid.  Some apps were good, many were not.  With the exception of Skydroid (99 cents), all were free.  For the record the Skydroid golf GPS program worked really well on my recent golf outing.  It did not help my game at all, but it was useful ad fun to use.

"Where" Local Information Portal

One of the more interesting and useful apps I have been using is “Where”.   “Where” aggregates all the most important mobile search and information functions in one app that utilizes your location for giving you the most relevant results.    Weather, News (including micro local news!), Places (a combination of restaurants, hotels, shopping, bars, etc), Movies, Gas prices, Yellow Pages, Traffic, and even a dedicated icon for the nearest Starbucks.  For the city-folk, it includes an app to locate a Zip Car.  All of these come with easy lists, or are searchable via text or voice input.

Instead of going into several dedicated apps to do the same “on the fly” searches, you can just stay within the “Where” dashboard.   They also have a widget for the Droid that will give you the latest alert on any of the categories you have displayed.  The widget still needs some work, but is useful.

There is a similar function to “FourSquare” that encourages venue checkin and reviews. Foursquare is  the much bigger app for the “hey look where I’ve been crowd”, but “Where” should be watched.

What is interesting about both “Where” and “Foursquare” is how they took a

Foursquare places near me - Interesting...

working model on mobile and morphed it into something more useful.   “Where” actually went backwards to go forward.  They observed that the single function search and LBS apps were good but cumbersome to use in a real life use case.  For example, let’s find a movie to see, a place to eat and maybe a club later on.  “Where” handles that use case.  “Where” re-invented the information portal.

For the record I have no idea what the top secret Delta Facility or the Mothership are in my list.  But I will now have to check them out!  If this is my last blog article you will know why!

My Mother's Day Trip - on Foursquare

Foursquare capitalized on the fascination with Twitter and tweeting your status and focused it on venues.  This creates a social scene network.  Where are your friends?  Do you want to see them?  What do they think of that bar, restaurant, deli, etc?  It is a real time social networking app that is part Twitter, part Zagat’s, and part dating and hook-up.  Foursquare also uses location based services to locate you and give you a list of close by venues for you to check-in.

Both of these apps are using geo-located search technology to make their apps very easy to use.  They are both ad supported.  “Where” has a coupon tray for local coupons on products and services.  They both provide functionality that is superior to a vanilla Google search.

So what do they need to move to the big time?

Foursquare is clearly in the Zagat space.  Foursquare is what the mobile version of Zagat should be.  Foursquare and Zagat announced a partnership in February.  The combined application should be interesting!  To the leading edge augmented reality crowd –  yes I have tried Zagat on NRU – its very cool and the whole subject of augmented reality will be the topic of a future article.

“Where” needs the venue reviews and overall utilization that Foursquare and Zagat enjoy.  Additionally “Where” can benefit from the social networking features of Foursquare.   What I am not to subtly suggesting is that while Foursquare and “Where” have definitely moved the bar (no pun intended 🙂 ) , they are much more compelling together, and eventually even more compelling in a real partnership with Zagat.

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Filed under advertising, android, blog storming, cloud computing, Content, CTIA, Droid, Droid Incredible, facebook, HTC, HTC Incredible, Love, mobile, mobile advertising, Mobile Application Stores, mobile commerce, reviews

HTC Droid Incredible – The Rest of the Story (Spoiler Alert!)

What Droid Incredible Really Does – and Does Not (Unofficial Review)

After resisting Droid-Rage during the holiday season, I succumbed to the uber- hyped latest Android super phone – the HTC Incredible.  My venerable Blackberry Curve just was not as sleek or sexy and clearly did not have the cool robot graphics.

There are numerous blog reviews and YouTube videos that will espouse all the virtues of Verizon’s number 1 smartphone.  While they are largely correct, they do not tell the whole story.  Yes it is fast, works on a great network, has more features that a human can possibly comprehend, or use – and even makes phone calls.   I will provide another article with my fav Droid features – this article is about the other side.

To quote Paul Harvey  – “And now the rest of the story….”  Here are my top six issues with my Droid.

1. Speed comes at a cost – The Achilles Heal of the Incredible

All the blazing application response and connectivity comes at a cost in battery utilization.  The first day I had my Droid I had to charge it 2 times.  What good is all that capability if the phone is dead?  If you get a Droid you must stay close to a charging source and become an active energy manager.  You should turn-off the GPS when not needed, limit the number of running applications and even re-consider all of those really cool active widgets which use periodic connectivity to update themselves.   If you need an icon of the sun to let you know its sunny outside, perhaps you need more than a new phone.

2. The display rocks – unless you want to use it outside during the day

The AMOLED technology used in the HTC screen is the latest, but not quite the greatest.  The display is great when used inside.  I just got back from a round of golf and the phone was practically unusable in the sunlight.  The bigger issue is using the super Google driving directions app with a map view.  The map will not be viewable in a car during the day!

3. Its not the number of Apps that matters – its having the right ones and ones that actually work

I never got that impressed with the claims of absolute number of apps on device platforms.  If the iPhone has 300K and the Android 30K , what does that really mean?  It’s a little like counting the number of Nukes that the U.S. and Russia have in their arsenals. .  Quality, not quantity really matters. Android has the basic Facebook and Skype apps.  Its the other 30K that may need some help.  My impression is that the apps on the iPhone are not just more numerous, but are generally of higher quality.   Perhaps the Android platform chased absolute numbers to claim lots of apps without as much quality consideration.  Several apps just did not work at all and others just stopped working.  I tried to download the linkedIn app and had a failure.  This is an area that the Android platform will likely get right at some point.

I want quality apps for the handful I will actually use.  Android has to close the app quality gap with Apple.

4. iTunes Integration – Music and Video – ???

The iPhone clearly excels at music and video desktop integration.  The challenge for any other platform is to create seamless integration for their platforms with the defacto standard for online music. Given the critical nature of this feature, one might assume that HTC or Verizon would provide a solution that makes this happen.

And you would assume wrong.  There are a couple of solutions that purported to achieve this function.  I tried both SailingMedia and DoubleTwist.  Both of these third-party solutions did not work.  While I could probably play with them for another hour or so and figure out what the issue is – why should I have to do that?  I did load my music directly by dragging my music to the mp3 folder on my device.  The music plays fine and the external speaker is loud –if that matters to you.  There does not appear to be a pre-loaded video player and I have yet to get a video, other than YouTube to play successfully.  Again, I’m sure I will figure it out – but why should I have to?

5. Gmail Good – Gmail Bad

I use gmail for my personal email domain, I figured that the Android platform would be a good choice for my use.  For the record my Blackberry worked perfectly with my gmail account.  As expected my gmail account integrated easily with my Droid.  My issue with email is the rather poor gmail app on the device.  I tried to use the HTC mail app and for whatever reason it does not seem to work when my gmail application is active.  As with my other issues, I am sure with a little time I can get it to work.

6. Steve Jobs is right – One button is enough

The Incredible Droid has 7 physical buttons -Home, Menu, Back, Search, optical trackball with click, volume and power/wake-up.  In addition to these physical inputs the standard screen has four soft keys – an up arrow to access all programs, a phone button (yes it can make a phone call!), a “+” key for adding widgets, programs and folders to a screen, and lastly a hidden slide down at the top of the screen that gives a list of alerts and running programs.  Wow – that’s a lot of things to keep straight!.  The really annoying input is the totally useless optical track ball and click selector that just happens to occupy the same spot as the single “home” key on the iPhone.  Needless to say, I have been pushing that click selector by accident through pure muscle memory from my iPhone and iTouch.  An optical trackball on a touch screen device?  Why?

Despite these issues, I am sure I will get around the downsides of this device and make it into a very useful tool for business and personal use.  However, how many customers will take the time to become an I.T. manager for their phone?

For the past several years I carried my Blackberry for phone use and light Internet use and an iTouch for fun.  The true test will be if I go to one device.

The iPhone, like all Apple products – just works out of the box.  The Droid can work, and even do more, but you have to know what you are doing and be willing to investigate the necessary solutions.  The Droid is clearly still rough around the edges.

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Filed under Apple, Droid, HTC, Incredible, Incredible, iPad, iphone, Ipod, iTunes, mobile, Mobile Application Stores, mobile commerce, skype, smart phone, Smartphone, Social Media, Steve Jobs, Verizon, wireless

HP answers Palm Code Blue

New Icon on Palm Web OS Smartphone?

The Smartphone business has been very busy this week.  One day before Verizon officially releases the Droid Incredible (I am tracking mine via Federal Express), HP scoops in and acquires Palm.  Palm does have some pretty good technology and mobile handset know-how.  Do they have $1.2 Billion worth?  HP says yes and, anyway – that’s just a rounding error for them.

If you have seen the Web OS on Palm’s devices you have to be impressed.  Why this really makes sense for HP is that it is so much more than Smart Phones.  Perhaps you noticed that Apple iPad launch last month?  Tablet and netbook computing are the next disruptive technologies.   The Palm OS will likely make a bigger near term impact on HPs tablet and netbook devices.    This is not good news for Microsoft.

The OS landscape for the sub-laptop market is rapidly fragmenting.    Android from Google, Chrome OS (Google competing with itself?), Web OS from Palm, Apple OS4, Windows 7,  Windows 7 mobile,  RIM and Symbian (Nokia).   The environments that appear limited in scope are RIM and Windows 7 mobile (just SmartPhone) and Windows7, Chrome OS (Netbooks). Android, Palm Web OS, Apple OS and Symbian all provide (in theory) a unified sub-laptop platform.

What’s a developer to do?    Can an OS thrive with a single hardware vendor – Steve Jobs would certainly say yes, so why not HP?

The near term loser is likely Microsoft.  By the time they have Windows Mobile 7 devices in the market, HP/Palm should have been able to iterate an upgraded device and spend significant marketing bucks attracting both consumers and developers.

All of this competition is good for innovation and good for consumer price points.  It will take at least another 3-4 years for this market to shake out completely.  When the dust settles you can count on Apple and Microsoft still standing – their present overall positions in OS technology are virtually unassailable.  What will be interesting is their relative market strength in this very interesting sub-laptop market.

If you dominate this new market you are THE company for the next generation.

HP has placed their chips on the table.  Who is next?

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Filed under Acquisitions, blackberry, cloud computing, iPad, iphone, Ipod, microsoft, mobile, mobile advertising, Mobile Application Stores, netbooks, Nokia, smart phone, Smartphone, Social Media, Verizon, wireless

Appvertainment from Jobs-Apple and the iAd

The announcement of iPhone OS4 changes the Smartphone  world – yet again.  As Steve Jobs described the 7 tent poles of the new iPhone/iTouch/Ipad OS, it was clear that the tent was not quite large enough for everyone. The center pole of this tent is clearly– iAds.

The raison-d’etre  for the much heralded multi-tasking feature is Appvertainment.  (e.g. iAds).    Do not be distracted by the fact that he introduced multi-tasking first and iAds last.  They are intimately linked.

Apple is pursuing their app centric  vs. search (Apple vs. Google) strategy for smartphones  through the introduction of their own OS integrated  ad serving technology.  Multi-tasking is the key component in this ad strategy to permit a user to return to an app after an ADHD moment is fulfilled by playing with a cool appvertainment.  Without multitasking you lose your application state/status and have to start over again.  Jobs is trying to change user behavior and reward users for clicking on an ad with an engaging experience, instead of punishing them by having them have to re-start their app.

Appvertainment targeting was not discussed. The social  and geolocation information that the host apps maintain on users will most likely be used for targeting purposes.  The Apple social game network API will no doubt  be used for providing this targeting information for game hosted appvertainments .    Apple is betting that App hosted ads will be valuable than Internet style search ads.

Jobs boosted that the Apple platforms would be capable of serving 1 billion app-ads per day by the summer of 2010.  Even if we cut that number in half and apply a modest $10/CPM ad rate – that represents daily gross appvertainment revenue of  $5M.  Apple’s vig on the ad revenue is 40%.  This is easily approaching a $1B+ annual revenue opportunity for Apple.

Click for full commercial

Another interesting aspect of this strategy is that Apple is clearly focusing on large brands and advertising agencies – in other words, the folks with the largest budgets.   This clearly makes sense.  The cost of an appvertainment production can easily be in excess of $250K+.  The inclusion of integrated and compelling video with engaging interactivity is not the domain of amateurs, but rather professional digital agencies.  The examples that Jobs demonstrated during his presentation (Nike, Disney and Target) are all major national brands with large budgets and big Madison Avenue agencies.

As I watched the presentation another thought came to mind –  “Is this legal?”  What would happen if Microsoft integrated a proprietary ad serving system in their OS and demanded 40% of the revenue of every ad served on a Windows machine?  This topic will clearly be discussed in the blogosphere and perhaps courtrooms in the future.

Did anyone hear a mention of sharing ad revenue with Mobile Carriers?

Another  “pole” of significance is the enhanced suite of enterprise features. Corporate CIOs have had a set of killer issues that prohibited the iPhone from significant corporate sanctioned and supported utilization.  Apple is trying to remove these roadblocks with OS4.  In addition to the enhanced  security and email capabilities is device management.  Device management includes the feature of permitting corporations to load their own private apps on the iPhone.    The execs at RIM should be concerned about their Blackberry franchise.

Apple would not be investing in enterprise features while maintaining an exclusive relationship with AT&T.  OS4 changes Apple from the Trojan Horse of a sexy consumer device on AT&T to a machine poised for world domination.

The competition between Google and their Android platform and Apple will only get fiercer.  Nokia is the only other global player who can play at this level.   Palm, RIM and even Microsoft will fight for the leftover niches.  It is a battle of the controlled and planed eco-system of Apple vs. the Open-Source world of Android.

The Apple tent has room for enterprise applications, has a new revenue source for app developers, and embraces big brands, ad agencies and publishers.  Adobe (no Flash support) and Google are outside the tent of OS4.  Microsoft got the biggest slight in this announcement as their mobile efforts were ignored as though not relevant.  And what about the mobile carriers?  Do they exist in the Apple world? Continue reading

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Filed under advertising, android, Apple, AT&T, Beezag, blackberry, facebook, Google, iPad, iphone, Ipod, iTunes, location based services, management, microsoft, mobile, mobile advertising, Mobile Application Stores, mobile commerce, mobile games, netbooks, new media, Newspapers, Open Network, opensource, pirates, smart phone, Smartphone, Social Media, social networking, Steve Jobs, Twitter, Web2.0, widgets, wireless

Kudos to Verizon for taking on Leadership – Mobile without Phone Numbers

Approximately one year ago I wrote an article entitled “The Future of Mobile – without phone numbers.” In my discussion I put forth the proposition that social networks would take over the fundamental connectivity for individuals and that phone numbers would be a network “IP address”.   This article generated 100’s of emails and questions, some supportive, some not, but all thought provoking. It was clear that I had hit a nerve.

A major step towards my view of the future of mobile communications was taken by Verizon in the last week.  Verizon Announced at the Mobile World Congress in Barcelona, and later confirmed and launched at CTIA 2010, an integrated Skype calling service.  This service enables users to click any Skype username, make a call, and not be charged for mobile minutes.  This service even uses the mobile voice connectivity of Verizon for the wireless network of the call.

This is a major watershed event for the industry.  A major carrier embracing voice as a data service, with calls completed outside of the carrier’s equivalent phone number – DNS.

In fact, this capability had been  available by such applications as ISkoot.  What is big news is that Verizon is openly promoting this service and not charging for mobile minutes.   Another advantage of the Verizon version is that it is “always-on”.  I received my first Skype call on my mobile yesterday.  It just happened like any other mobile call.  It was an important business call and all I could think about at the conclusion was – that was cool.

The use of social networks and non-phone number connection services implies that that contact DNS aggregation services will become even more important.  My network contact list will be an amalgamation of my Facebook, Linkedin, Skype, Twitter,  existing phone books, AOL IM list and likely several others.  Aggregating my contact lists, storing them in the network cloud and presenting them to me on demand in a usable form is essential.

While at CTIA I was on a panel discussion with   Mike Mulica, CEO of FusionOne.  FusionOne is a leading example of such a network based contact/address book that spans social networks.  They are certainly a company worth watching in the future, as they appear to be “on the right side of the technology curve”.

A question that remains is how does Verizon generate revenue by connecting calls for free?  Simple answers include increased data subscriptions and greater subscriber growth via churn from other carriers.    In the U.S. market, with mobile penetration approaching 90%, carriers can only increase subscribers by churning their competitor’s customers.   Since the Skype app on iPhone is not as full featured and cannot be “always-on”, VZW has given leading edge users a reason to switch NOW.

In the future I would expect connections between Skype calling capability and other applications on Verizon, especially those provided through the Verizon’s own app store.  I also expect that full mobile video calling and even video conferencing via Skype is no doubt on the roadmap.

This feature is only available to VZW smartphone subscribers , and that means a $29.99/mo data charge.

Regardless of the long term revenue sources, VZW has taken a clear leadership position in its market and now has the their competitors determining a catch-up strategy.  Kudos to Verizon on this move.

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Filed under Acquisitions, advertising, android, Apple, AT&T, cloud computing, CTIA, facebook, FusionOne, iphone, location based services, MAc, mobile, mobile advertising, Mobile Application Stores, mobile commerce, portal, skype, smart phone, Smartphone, Twitter, Verizon, Web2.0, widgets, wireless

SNL Really!?! Really?

This past episode of SNL had a Toyota Prius commercial parody..

You can view it by clicking here:

What was even funnier than the skit was the targeted advertisements for this video clip on the NBC website.

When I first viewed it on the web I was shown a Toyota Sienna commercial. Would Toyota want to sponsor such an anti-Toyota commercial parody with Toyota’s advertising budget? Really!?!

Not to be satisfied with just one viewing, I reloaded the web video to see what I would get next. I was pleased that the Toyota Sienna ad had been replaced…… by a Lexus Hybrid Ad! Really? Really! The ad voiceover describes that while others are just now building hybrid cars, Lexus hybrids have traveled over 5 billion miles. This is the ad that runs before a skit on a Toyota hybrid that will not stop? Really!?!

To be truthful in my advertising of this advertising faux pas, these Toyota Ads , along with ones from, Sprint, Mercedes, Audi, Nissan, a Broadway Play and other food products. This ad rotation seemed to be running on all videos on the SNL site.

The Mercedes ad shows one of their cars rolling and bouncing down a test track highlighting its structural integrity in crashes! Really!?!

There was even an ad for the “Parenthood Driving Challenge”, sponsored by Nissan,

Despite this “run of site advertising mode”, Toyota and their agency cannot be thrilled at the commercial parody coupled with their partial sponsorship of their own humiliation.

Really!?!

Lastly it is worth asking, ”Did Ford actually sponsor that commercial parody?” It is their most effective advertisement in a long time. Really!

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Filed under advertising, Automobile, mobile, mobile advertising, Toyota, Web2.0