In a recent talk, I described the value of thinking about Internet companies such as Facebook as producers of meso-audiences: “The only revenues that come to the Internet companies are from advertisers. . . . They can describe the meso-audiences in much greater detail than can the mobile operators and can offer raw material for the production of audiences unlimited by national boundaries.
One out of six minutes on Facebook for average Americans. With women spending four times the time. Consumer brands, from the beer giant Budweiser to start-ups like the clothier Trunk Club, want to reach people where they are spending their time. More and more, that place is Facebook. In June, the social network accounted for about one of every six minutes that Americans spent online, and one of every five minutes on mobile phones, according to comScore, a research company.
The shift from the economy of things to the attention economy is now almost complete. The buying and selling of things will continue, but will be subservient to the production of attention on an industrial scale and its buying and selling. The data economy is fast catching up as another key element of the picture. Since most people are accessing the Internet through mobile devices and their small screens, as we have been saying for many years, this has become the most critical battleground. For the last two years, Facebook has been growing like a beanstalk in mobile advertising, gaining ground against Google, its chief rival.
To complete the tritych on companies transitioning to the mobile-centric future, here are some thoughts and facts about Google’s progress, or lack thereof: Despite Google’s mobile challenges, among web businesses it might be the biggest beneficiary so far of consumers’ shift to mobile devices. Google services are the top web property on smartphones, reaching 87 percent of the mobile audience through apps and mobile browsing, according to comScore. (Facebook is next with 85 percent.) And Google earned 42 percent of all mobile ad revenue in the United States last year, significantly more than any other company, according to eMarketer. Its share of mobile revenue, however, was down from 50 percent the year before and is not growing as quickly as that of Twitter, Apple and Facebook.
The discussion on whether Facebook will succeed in making the transition to a mobile-dominated world happened on these pages as well. But now the numbers have come in. The transition is done. About 757 million people around the world used the social network on an average day last month, and three-quarters of them logged on using mobile devices. Facebook’s business has also been transformed.
Nathan Eagle is well known for his big data work in the Kibera slum in Kenya and elsewhere. Now it looks like he has monetized his knowledge to the tune of USD 15 million. On Monday, the Publicis Groupe, one of the world’s largest advertising holding companies, will announce a $15 million investment in Jana. The investment is the first by the company in a mobile technology start-up. As part of the investment, Maurice Lévy, the chief executive of Publicis, which is based in Paris, will join the board of directors at Jana.
The stream of blog posts started with a single SMS – apparently by the President of the country to every mobile user. It was initially thought a commercially paid advertisement aimed at the forthcoming Presidential Election but the operators confirmed it is a favour requested by the Telecommunication Regulatory Commission. Does this violate the election laws of the country? Was that an unsolicited entry to mobile users’ personal spaces? LIRNEasia with groundviews and W3Lanka blew the whistle first now it is the turn of the mass media.
Will the shift to mobile as the primary interface to the Internet, dethrone search engines such as Google, that generate their revenues from advertising? An interesting discussion in NYT. As people increasingly rely on powerful mobile phones instead of PCs to access the Web, their surfing habits are bound to change. What’s more, online advertising could lose its role as the Web’s primary economic engine, putting Google’s leadership role into question. “The new paradigm is mobile computing and mobility,” said David B.
Based on LIRNEasia’s broadband QoSE research findings, we ran an advertisement in the Daily Mirror (Sri Lanka’s leading English daily) on 24 November 2009. The advertisement focused on four facts. The first three were on value for money, advertised download speed as opposed to actual download speed and bandwidth bottlenecks. The lack of regulation on contention ratios (how many users per “channel”) was highlighted as the fourth fact We pointed out that LIRNEasia’s recommendation about imposing contention ratios of 1:20 (Business) and 1:50 (Residential) had been adopted by the Telecommunication Regulatory Authority of India (TRAI), with minor changes. TRAI mandates contention ratios of 1:30 for Business and 1:50 for Residential.
Google has acquired a leading firm in mobile advertising, causing observers to think that mobile advertising will take off in a big way. The growing popularity of the iPhone and other powerful mobile devices ensures that mobile ads will become more ubiquitous, but predictions for the growth of the business vary widely. “We see mobile as a huge growth opportunity for us,” Susan Wojcicki, vice president for product management at Google, said in an interview. “We see an opportunity working with AdMob to really accelerate our efforts in an important industry for Google.” Google is already ahead of its rivals, Microsoft and Yahoo, in one segment of the mobile advertising business: ads linked to search queries.