U.S. On-demand Internet Content Revenues to Approach $9 Billion by 2010

31 01 2006

U.S. consumer spending for online entertainment, including on-demand gaming, music, and video services, will grow by 260% in the next five years, according to Digital Lifestyles: 2006 Outlook, a new study from Parks Associates. Driven by broadband usage and innovations in digital entertainment platforms and content services, revenues will grow from $2.4 billion in 2006 to nearly $9 billion in 2010.

* The number of worldwide consumer broadband subscribers will grow from 184 million in 2005 to more than 360 million in 2010;
* The number of households worldwide using data networking equipment will grow from approximately 82 million in 2005 to more than 135 million in 2010; and
* Worldwide subscribers to IP multichannel video services (IPTV) will grow from approximately five million in 2005 to nearly 70 million in 2010.

More.



Search meets the Syndication Engine

31 01 2006

A nice reminder for later about using RSS for categories / search results, etc., (almost a direct analog to when some folks bookmark certain searches and just periodically re-issue). News readers have certainly replaced some of the things that folks used to go to SE’s for, as well as inserting additional competition for time while online. Certainly no reason the SE can’t easily morph to also be avail through this type of interface.

Search Meets The Syndication Engine
by David Berkowitz, Tuesday, January 24, 2006

A RIDDLE: WHEN IS A search engine not a search engine?

One of the most popular blog search engines isn’t really a search engine at all, and its index spans far more than just blogs. Today, we’ll devour a few lessons from Feedster in exploring how it offers a new model for the search business.

What is Feedster? It depends on whom you ask. On Feedster’s site, the company writes, “Feedster is foremost a search engine.” Yet when I asked Feedster President Chris Redlitz whether he’s concerned about Google or Yahoo! dominating his business, he said, “If we were just a search engine, we’d be much more concerned. We’re really much more of a syndication business.” Feedster, the search and syndication engine, specializes in aggregating RSS feeds, the behind-the-scenes backbone used by blogs and a rapidly growing variety of content ranging from major news sources to classified listings.

This is how a niche search engine aims to stay competitive: by specializing its focus and differentiating its model. While a search engine on the surface, Feedster aims to engender long-term loyalty by syndicating its results and allowing users to subscribe to the feeds. That means the most valuable consumer for Feedster is not the one searching its site; it’s the subscriber, who then accesses the feeds from his/her preferred reader of choice. The subscriber can even choose to receive feed updates via e-mail.

While the feed reader business, connoting a software or online application for gathering and accessing blogs and RSS feeds, is still in its infancy, the safe long-term bets for the winners there are the usual suspects: Google, Yahoo!, Microsoft, and AOL. In other words, many of the most valuable consumers of Feedster are those accessing its content via another search engine’s site. Thus Feedster’s greatest potential competitors are also its most promising distribution channels.

One key differentiator for Feedster is that it has much more content than just blogs, emphasized Redlitz. “We get compared to Technorati a lot,” he said. “They’re a blog search engine… We’re different because we’re feed-centric. We’re not just looking at the blog pulse.”

Feedster’s business model centers on RSS advertising, syndicating ads every few posts into its feeds. If you’re looking to run an advertising campaign on Feedster, get in line. “We’ve probably turned away more campaigns than we’ve run,” said Redlitz. Holding Feedster back for the time being is an inventory crunch. Redlitz said Feedster could double its inventory this year, yet advertiser demand is spreading beyond the early adopters. I asked Redlitz when he foresaw inventory meeting advertiser demand. He answered bluntly, “I don’t think it will.”

In the context of other developments in the search engine space, Feedster fits in most closely with vertical search, both as a vertical search engine itself and as a distribution channel for other vertical search sites. In aggregating others’ feeds, Feedster can be a resource where consumers can subscribe to publishers’ feeds of news, jobs, movie reviews, recipes, message board posts, product listings, travel deals, and other types of content. The syndication model changes the nature of search from a pull to a push model, and in the push model, search isn’t really search at all.

Keep an eye on Feedster’s next moves. The company is launching a mobile service in Japan in the next several weeks, and consumers will likely benefit from personalization options down the road. One thing’s for certain: even while billing itself as a syndication engine, Feedster’s future developments will inevitably parallel where search engines head.

So now, when is a search engine not a search engine? In Feedster’s case, it’s when it can better serve consumers by making search only a small but integral part of its value proposition. It’s not what you are; it’s the value you provide.

David Berkowitz can be reached at dberkowitz@gmail.com or via his blog at MarketersStudio.com.



WisdomArk Receives $6.3 Million in Series A Funding From El Dorado Ventures, Venrock Associates and Benhamou Global Ventures

26 01 2006

Another company shooting for the aging boomer market. On the whole, I like this product concept class in that it’s got a strong, uplifting, celebratory nature to it, if handled well.

To be honest, these kind of things did strike me as initially kind of morbid, but if dealt with in combination with what folks still want to do with the rest of their lives, you’ve got a very nice, postively-oriented combo.

WisdomArk, Inc., developers of a new consumer web service aimed at helping communities of family and friends collaborate in the capture, sharing, and preservation of life stories, announced today that it has received $6.3 million in Series A funding from El Dorado Ventures, Venrock Associates, and Benhamou Global Ventures.

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New technique finds Earth-like planet

25 01 2006

Now this is cool! :)

A new planet-hunting technique has detected the most Earth-like planet yet around a star other than our sun, raising hopes of finding a space rock that might support life, astronomers reported on Wednesday.

‘The team has discovered the most Earth-like planet yet, and more importantly, has demonstrated the power of a new technique that is sensitive to detecting habitable planets,’ Turner said in a statement.

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BTW - Doing this for a bit now, there’s definitely a fairly replicated pattern in most of these news stories - the lead paragraph is important, the first paragraph after is nigh-unto useless, and then go with the third - that’s it - another new search idea “FirstandThird.com” - indexing only those two paragraphs from every news story on the planet - who needs more? ;)



Retailers must toss elder buyer stereotypes

25 01 2006

Retailers must quickly change the way they think about older consumers to better capture some of the $1.7 trillion people over 50 years of age spend on goods and services, consulting firm Deloitte & Touche USA said on Sunday.

One-third of consumers in the range of 55- to 61-years-old prefer to shop online, Conroy said, citing results of a survey that Deloitte plans to release in coming days. And survey respondents said they own an average of 5.9 high-tech gadgets such as iPod music players or digital cameras.

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Microsoft ad technology tries to tell men from women

25 01 2006

I actually worked on something similar a bunch of years ago, at the time more oriented toward personalization of search results, but, if anything, the threshold of how good you have to be on to make it worthwhile should definitely be lower in an ad context, so should be a good feature when they launch, (presuming they actually do it well, which, unfortunately, MSN Search does not raise great faith in - perhaps their folks in Beijing will be better at! ;) ).

Is hardly iron-hard, but you definitely can predict several demographic components by how people express the same / similar ideas, at least good enough to try using as ad segmentation technique, and then as long as you can keep pushing the acquisition needle further over, you keep investing! :)

“Microsoft Corp may soon be able to tell whether an Internet search query comes from a man or a woman.

“…’There’s a confidence interval around one’s gender,’ [Jed] Nahum said in a telephone interview. ‘Advertisers can start to tailor their message based on those estimates. Using the new technology, Microsoft will be able to tell, for example, that someone searching for the term `Dodge Caravan’ is more likely to be female than someone searching for `Dodge’ alone.’”

More (warning: coming from Taipei, so it’ll take a sec to load)



Community Ownership / Investment

25 01 2006

A very interesting idea on raising funds from a broader community, (where each person who likes an idea can add fuel to the fire without raising a sweat) without imposing the heavily-onerous, (and largely exclusionary for small companies) rules around public ownership. The Web definitely needs something akin to a “tip jar with upside,” which unfortunately seems to be precluded by most extant business / legal structures here in the US. Will have to check into a bit more….



Google Agrees to Censor Results in China

24 01 2006

A follow-on to my moment on NPR. The not offering Gmail or Blogger in China’s a nice touch. We’ll see how long that holds. More



IDC’s FutureScan: All the Signs Say It - 5% U.S. IT Growth in 2006

23 01 2006

For the first time in the 18-month history of IDC FutureScan, all the indicators have lined up to depict an expectation of 5% growth in U.S. IT spending this year. More

Nice! :)



Dylan on NPR!!

20 01 2006

They say everyone gets their 15 seconds of fame, I just got my 1:45! :) A good episode of OnPoint talking about Internet Censorship and Surveillance, including whether Search Engines were colluding with repressive governments by filtering results in China, Iran and others, (including France! ;) ). The discussion started to turn a little dark toward the Search Engines being active and willing participants in such repression, so I called in and hit them up for the right answer, given the practices of even our own government post-9/11, (where any search engine can be subpoenaed covertly for query logs on anyone / everyone, and you’re not even allowed to disclose that such a request was made).

Didn’t get one, of course, (unfortunately, short of some kind of supranational authority to preserve the ideals we have, but which other countries definitely do not share, I don’t know what that answer could be - I _really_ wish that I did).

Anyway, pull up the broadcast, go to 36:01, and you’ll hear “we have a call from Dylan in Northborough” - guess what - that’s me!!!! :) Yeah!



Yahoo reaches out beyond browser

6 01 2006

It has announced plans to allow people to use Yahoo e-mail, messaging and other services on mobile phones and via the TV.

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2006 May See $292 Billion in Advertising Expenditures

4 01 2006

Hmm - didn’t know that Cable TV advertising was that hot. Other than that, certainly more confirmation of good news in the Internet sector.

The recent issue of the Universal McCann Insider’s Report presented highlights of Robert J. Coen’s 2006 advertising predictions delivered at the December UBS Global Media Conference. Coen prefaced his presentation by noting that in 2005 the U.S. economy expanded a little more than had been expected, but advertising growth has failed to outpace 2005’s nominal GDP growth of 6.3%.

In 2005, the article reports, national marketers continued to be overly cautious despite the relative improvement in economic conditions. Because company stock prices remained below previous highs all expenses, including those for advertising, were firmly controlled in 2005. Strong resentment of recent high media price increases was widespread and, as ad demand slowed in the year following the Summer Olympics and Presidential election. The pressure for measurable evidence of the return on advertising investments grew. These and other forces combined to interrupt the expected renewal of strong advertising competition and the expansion in advertising spending. The projection for total national advertising in 2005 is now $177,147,000,000 for a gain of 6.0% over 2004. When final Fourth Quarter revenue numbers for the broadcast TV Networks are in, it is expected that the full-year gain will be at best about one percent.

2005 Budgets Of National Advertisers

% Change

Over 2004

2005 Projections

($000,000)

4 Tv Networks

+1.0%

$16,880

Spot Tv

-7.5

10,517

Cable Tv

+ 15.0

18,888

Syndication Tv

+ 3.3

3,792

Radio

+ 1.5

4,441

Magazines

+ 5.0

12,859

Newspapers

+ 1.5

7,743

Consumer Media Sub-Total

+ 3.7

75,120

Direct Mail

+ 8.5

56,627

Yellow Pages

+ 1.5

2,142

Internet

+ 15.0

7,881

Other National Media

+ 5.6

35,377

Total National

+ 6.0%

$177,147

Source: Universal McCann, December 2005

The changes in national marketers’ advertising spending in many of the traditional mass media have been modest in 2005 but one exception has been mail advertising.

In the first half of calendar year 2005, the number of pieces of mail sent at the regular standard mail rate, used for most advertising, increased nearly 5%. This trend has been influenced by the telemarketing restrictions; but it is also another indication that marketers have, in recent years, focused their marketing resources on more immediate measurable short-term responses. Coen expects that many of these programs will be continued and even expanded in 2006 despite higher postal rates and higher paper, printing, and handling costs.

Trend In Mail Advertising Pieces

1st Half Of Year

Millions Of Pieces

%Change

Change In Pieces (000,000)

2000

36,800

+ 7.1

+ 2,400

2001

37,200

+ 1.1

+ 400

2002

35,300

-5.1

-1,900

2003

36,500

+ 3.5

+ 1,200

2004

39,600

+ 8.3

+ 3,100

2005

41,540

+ 4.9

+ 1,940

Source: Universal McCann, December 2005

Total National Advertising in 2006 is expected to increase at a slightly faster pace than it did in 2005. The rate of gain in spending by National Marketers for broadcast network television ads next year will be helped by the Winter Olympics and easy comparisons with 2005. Heavy Spot TV advertising gains are anticipated next year because of the intense political contests that are due to occur in 2006.

The Outlook For 2006 National Advertising

% Change Over 2005

2006 Projections ($X000,000)

4 TV Networks

+ 6.5%

$17,977

Spot TV

+ 8.5

11,411

Cable TV

+ 7.0

20,210

Syndication TV

+ 4.5

3,963

Radio

+ 4.0

4,619

Magazines

+ 5.5

13,566

Newspapers

+ 3.5

8,014

Consumer Media

Sub-Total

+ 6.2

79,760

Direct Mail

+ 7.5

$60,874

Yellow Pages

+ 3.0

2,206

Internet

+ 10.0

8,669

Other National Media

+ 6.4

37,650

Total National

+ 6.8%

$189,159

Source: Universal McCann, December 2005

In 2006 National Advertising growth should again outpace general economic growth, but ad spending by Local Marketers is not expected to improve much in 2006. The extra demand due to political spending will put some extra pressure on local media prices next year.

The combined spending for advertising next year by National and Local Marketers is now projected for a total of $292.0 billion, a gain of 5.8% over 2005. Next year we expect U.S. advertising to approximately match the growth in the economy, but advertising as a percent of GDP will probably remain at the stalled 2005 levels.

The Outlook For Total Advertising 2006

% Change Over 2005

2006 Projections ($X000,000)

Local Newspapers

+ 3.0%

$41,360

Local TV

+ 4.5

14,705

Local Radio

+ 4.0

16,129

Local Yellow Pages

+ 3.0

12,494

Other Local Media

+ 6.8

18,158

Total Local

+ 4.0

102,846

Total National

+ 6.8

189,159

Grand Total

+ 5.8%

$292,005

Source: Universal McCann, December 2005

To read the complete article, including summary charts of 2005 estimates for various categories of advertisers, please visit the McCann report.