Tag Archives: facebook

Why Google gives Android for free?

mobile-advertising-forecast
You will find more statistics at Statista

The chart already answers why Google gives Android for free.

Google is set to dominate advertisement, in any digital form.

  • Google dominates online, which it is about to surpass print media as an industry.
  • With Android, Google is set to dominate mobile ads, whatever form it may take, beyond search and display. As eyeballs go to mobile, Google will have an advantage position by controlling the OS.
  • And TV is the next one to disrupt. Youtube might be turning to be profitable by now. The experiments in online video ads are beginning to pay off, as it shows the amount of content agreements Youtube is getting into.

Googe wants to control the underlying technology platform, so that whatever evolution digital ads go, they are at the leading edge. Chrome and Android are the most obvious cases. On2, Widevine acquisitions followed the same rationale.

Google strategy to kill competitors is also getting more and more obvious: Give for free the core value of your competitor.

  • Google Apps against Microsoft Office
  • Chrome and Chrome OS, to make the OS irrelevant, as all apps run in the browser.
  • Android against Apple iOS

Digital advertisement, powered by Google, is one of the biggest enablers of the Digital Renaissance. Google enables both publishers and advertisers of any size to benefit from online advertisement. They are one of the biggest ‘patrons of the arts’ for the long tail.

Highlight data points in the chart:
Mobile ads market in US is $4 bn in 2012. Facebook managed to get $339m, even if they just started mobile ads this year.

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[Chart] Search Vs. Discovery

 

The chart via Business Insider seems conclusive on the Google versus Facebook war of who is more relevant for online advertisers.

When people want to buy something they go first to Google. Full stop.

If I want to buy a bycicle to go to work I will go first to Google or Amazon and research. But what if I discover in Facebook that my friend just got an ebike from China, and I did not even know electric bikes existed? What if Facebook shows a banner on a brand of eBikes close to my friend’s post?

The chart neglects the value of discovery. How important is for marketers how people discover their products?

Google is king on search, but social media is king to discover new things. That is gold for advertisers too. Not sure if $50bn worth of it though… At the end I might still search the ebike on Google and check the reviews in Amazon.

 

 

Social Vs. Search

Google should worry about this: More people are discovering content through social networks than through search.

Anyone that had a website a few years ago knows well that most traffic use to come via Google. This has changed. As the chart shows, more traffic is being referred by social networks than by search engines.

People trust recommendations from people they know more than any machine search algorithm. As this becomes the way people finds new stuff, advertisers are going to be more and more interested in Social Networks.

Search will not disappear nor Facebook will kill Google. However in “organizing the World’s information”, in particular the one that matters to you, the people you trust are a big part of the story. Facebook seems to be organizing that better than Google.

Chart via CHART OF THE DAY: How Facebook (And Social Media) Is Eroding Google’s Influence

Mark Zuckerberg: Social is THE Feature

Mark Zuckerberg, CEO of Facebook, predicts that “social” will rethink industries such as TV, news, music and film.

The clip is a bit long.This is my summary of his key points:

Facebook started their photo product after big names like Flickr were established. Facebook first photo-sharing service was very simple and lacked features like high resolution or sorting, that were available elsewhere. However, you upload a photo and all your friends get it. That is powerful and engaging.

Facebook realized that “the social feature was most important that all the other features put together.” […] “Social rethinks the whole space.”

That is why Facebook makes the platform open for others to build on. Zynga, Playfish and Playdom are examples of gaming companies built entirely on Facebook. Surprisingly, Zynga’s market value is larger than EA’s!

In Zuckerberg’s words, “gaming is just the first vertical to tip” as it happened in many platforms before. Game apps on iPhone and iPads are the most popular. Even for the early PC, one of the things that got PCs to homes were games.

What are the next verticals to come? TV, music, news, movies. Zuckerberg predicts “In 5 years some of these verticals will be completely rethought and their business rebuilt.”

Zuckerberg did not mention Telecom, but hasn’t Facebook already changed the way we communicate? Will “social” transform telecoms even further?

Video found via the Silicon Alley insider.
It is a one hour clip. See minute 16:50 for the topic in this post.

How much is an Internet Visitor Worth?

chart-of-the-day-revenue-per-unique-visitor-google-aol-twitter-facebook

Google makes $18 a year for each unique visitor. Facebook makes roughly $3.

Three observations from the chart:

1)  Google is far ahead of the others in monetizing their visitors. A sign that search advertising is much better paid than display. Facebook will need to invent something to market their ads more valuable.

2) Recently a tier-1 telco CEO demanded that Google should pay telcos  for the business they do on their networks. The yearly revenues per broadband subscriber for a telco can reach $240-$400. What Google or Facebook gets from a single user is peanuts compared with what the telco gets. What portion of Google’s revenue they want to get?

3) By chance the revenue per user for Internet giants look in the same range as what a traditional  ad-funded broadcast TV channel makes per average viewer in a year.

It would be interesting to see how Hulu would do on this chart. According to Bloomberg, the Simpsons on Hulu command a $60 CPM, while on prime-time TV the same ad would cost $20-$40 per thousand viewers. If Bloomberg is right, considering that Hulu aggregates much more content than a single broadcast TV channel, with a higher CPM, we should see Hulu go off the chart!  Assuming it could reach $100-$200 revenue per user per year, that starts to look something on which the telcos might want to ask for a share…

Music 2019

Ten years ago the RIAA fought the decrease in sales of music CDs by different means, including: taking their customers to court, lobbying to have the ISPs stopping Internet Access to anyone who shared music files, and imposing taxes to any device able to store or play music, assuming everyone was in piracy.

Ten years later, all these actions from RIAA seem ridiculous. In 2019 music is no longer sold in discs or in any physical format. All music is distributed online and, to what would have been a surprise for RIAA in 2009, for free. Artist distribute their tracks freely online, and encourage their fans to share them with their friends.

Social Networks like Facebook, MySpace, uTube and Amazon.net play now a central role in the music industry. All artists compete for attention and try to influence others to become fans. Becoming a fan of a band gives the user access to their songs, to their music videos and to buy their merchandise online.

Artists get the ad revenues from their sites, and more substantial revenues for the $0.99 monthly fees that the SuperFans (premium fans) pay to have access to exclusive content around artists, such as interviews, live chats,  or clips behind the scenes. Superfans enjoy other benefits, including discounts in tickets for live concerts.

In 2019, the labels and the RIAA have almost disappeared, and artists now deal directly with their audience, thanks to the social network platforms that manage the SuperFans subscriptions, as well as the online purchases.

Now there is a huge amount of semiprofessional artists that generate some revenues from their creations. Still there are a few celebrity artists that command hundreds of thousands of SuperFans.

Music did survive the era of the Recording Labels. The new Online Music era is more democratic in who gets the attention, and has removed inefficient intermediaries between artists and fans.

Cartoon found via Wired.com

This post is a prediction of what could be written in ten years from now about the Music Industry. Soon another post about Movies in 2019.

Google brings Social Networks to small Websites

Google presented yesterday Google Friend Connect. This new product enables to any Website to add Social Networking features. The video below is quite illustrative:

By simply copy and paste of code, any webmaster of a small website can add social capabilities to his site. In the video you see the example of Love Da Guacamole site. By adding a few gadgets from Google Friend Connect, the Love Da Guacamole site users can leave comments and ratings, share pictures and invite friends, all using their Google identity (or any other from Open Social sites, as Yahoo) and adding friends from their preferred social network (Facebook, LinkedIn, etc)

While MySpace and Facebook provide APIs aiming at enriching their existing profiles, Google is providing easy tools for small and medium websites to benefit from Social Networks and drive more traffic to them. Many small & medium websites use Google AdSense to manage their advertisement. Therefore the more traffic these tools drive, the more ads that Google will place in these sites. It is a win-win. Google wins, the small website win too. Hundreds of thousands of sites will be able to enjoy the viral benefits of Social Networks with Google Friend Connect. Once more, thanks Google!

Note: Not so fast… Google Friend Connect is only pre-released. You will have to wait a little more to put it in your site, unless you are one of the few white-listed developers.