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Will Amazon Launch New Focus on Online-Based Advertising in 2013?

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December 21, 2012

Amazon could possibly throw the online advertising world into a frenzy with its upcoming “proprietary real-time bidding platform that plugs into exchanges and supply-side platforms, including Google’s AdX and PubMatic,” set for a full release in early 2013. “This platform lets the company retarget its users across the Web based on their browsing and purchase habits on Amazon’s owned-and-operated properties,” reports Ad Week. With Amazon’s recommendation engine and database, this could “be a game changer,” according to the article. Continue reading Will Amazon Launch New Focus on Online-Based Advertising in 2013?

IAB Study Determines Mobile Video is Not All About Being Mobile

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December 17, 2012

Most consumers who watch television programs or movies on their wireless devices are not actually doing so while on-the-go, suggests a new report from the Interactive Advertising Bureau. The IAB report found that 63 percent of viewing takes place at home, while 36 percent takes place in a room that already has an existing device available to watch the content.

The report notes that two-thirds of respondents watch more than one hour of video a week on their smartphones or tablets. However, 85 percent of it is consumed in short bites of less than 10 minutes, according to VentureBeat.

“We need to see mobile as a primary screen for on-demand consumption, not as an afterthought,” says David Levin, president of digital agency 360i.

The report also points out that entertainment content is the most consumed, with music in the lead, followed by movie trailers, tutorials and funny short video clips. Perhaps most interesting to advertisers, the IAB study learned that 53 percent of respondents indicated they’re okay with mobile video advertising and 48 percent said the ads should relate to the video content being watched.

Video Ads on the Increase as Online Video Views Reach Record Levels

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December 5, 2011
  • Have you noticed a recent increase in ads that appear in Web videos?
  • We’re watching more Web video than ever before; comScore reports more than 42 billion online video views in the U.S. for October alone. New figures from start-up FreeWheel indicate we’re also watching more Web video ads.
  • According to FreeWheel, which serves and manages video ads for companies such as Turner, Vevo and Fox, there has been a 128 percent ad view growth from Q1 of 2010 to Q3 of this year.
  • Online viewers have also increasingly finished the ads they start watching, especially when accompanied with longer Web videos.
  • “Big picture, the Web video business is still very much a work in progress,” reports AllThingsD. “And there’s still a long way to go: Video ads grew 42 percent in the first half of the year, but still only make up 6 percent of the overall Web ad business. But if it keeps headed in this direction it’s going to quickly make up ground.”

Cinematographer Praises the Soon-to-be-Released Canon EOS C300

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December 2, 2011
  • Jonathan Yi is a freelance director and cinematographer who works largely in film and advertising. He teaches camera and cinematography at New York University’s Tisch School of the Arts film program.
  • Yi recently posted an impressive six-minute test video of the new Canon EOS C300 that makes comparisons with current DSLRs and reveals a new standard for digital cinematography.
  • “I believe that Canon made a beautiful camera that is sensible, reliable and portable in a way that I’ve always dreamed a camera could be. It prioritizes great skin tone and has higher ISO sensitivity than any other camera out there,” he writes. “I know there’s nothing I can say to change the minds of the RED fan club. For the rest of the skeptics, I think once you get your hands on it you’ll understand how great this camera really is. Please buy this camera in January and go film some good skin tones in the dark. You’ll love it.”
  • The EOS C300 and EOS C300 PL are expected to be available in early 2012, at an estimated cost of less than $20,000.
  • Yi’s (very) detailed review is available on the Canon site, in which he writes: “As Canon’s flagship 1080p HD cameras, the EOS C300 and EOS C300 PL are designed to fit a wide variety of production needs. They are at home as A Cameras for Independent Films, Commercials, Television and Dramas as well as B Cameras on Major Motion Pictures, offering in addition to the more common 23.98P frame rate, several selectable frame rates including a straight 24.00P setting for intercutting directly with film originated material. Full HD 1920×1080 (1080p) is currently the most used and needed deliverable frame size for these applications. The EOS C300 and EOS C300 PL provide easy adoption and simplified workflow that 4K cameras currently cannot deliver.”

Secret Google Lab Where the Future is Imagined and Robots Run Free

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November 15, 2011
  • A top-secret lab called Google X is tackling a list of 100 “shoot-for-the-stars” ideas, including an elevator to outer space, a refrigerator connected to the Internet that orders groceries as they run out, and robots that serve a variety of tasks.
  • A Google worker familiar with the project likened it to how the CIA is mysteriously run. “In interviews, a dozen people discussed the list; some work at the lab or elsewhere at Google, and some have been briefed on the project,” reports The New York Times. “But none would speak for attribution because Google is so secretive about the effort that many employees do not even know the lab exists.”
  • Most of the ideas are only conceptual at this point, but others may eventually see the light of day. One idea that may reach the public involves driverless cars. It would not only provide a new business for Google, but promote the company’s navigation or information technology for cars as well as location-based ads.
  • Additional ideas in development include ways of connecting objects to the Internet, such as a garden planter that could be watered remotely, a coffee pot set to brew from another location, or a light bulb that could communicate wirelessly with Android devices.

Panel Notes from FoE 5: At What Cost? Privacy Issues in a Digital World

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November 14, 2011

The following are some notable comments from a panel at last week’s Futures of Entertainment conference at MIT.

Panel: “At What Cost? The Privacy Issues that Must Be Considered in a Digital World”

  • If individuals release personal information to the world, they have to distinguish when they are really losing their privacy and when they are legitimately sharing information.
  • Just because we are sharing information in different patterns today, that doesn’t mean that we have to think of privacy as a whole any differently.
  • Everyone needs to know and be aware of what each service provider’s positions are regarding privacy.
  • There should be a push to track and openly comment on user privacy policies by companies.
  • There is no question that personalization requires giving one’s information. But this is only because we have not been creative enough in developing a solution that doesn’t require information sharing. Not enough thought has gone into having personalization and privacy live side by side without compromise.
  • Here are a few examples from outside the entertainment space that have been able to personalize a user experience without compromising their privacy: Using GPS information for vehicles on the road, traffic patterns can be generated. Companies extract information from each vehicle, and anonymise the information. By using the information in aggregate each driver can receive a personalized traffic report.
  • Adnostic is a system that provides targeted ads without tracking. It does the ad recommendations by pushing all the tracking to the client side, so that the centralized 3rd party service never knows what you are doing.

Speakers:
Jonathan Zittrain (Harvard University)
Helen Nissenbaum (New York University)

Study says 80 Percent of Mobile Users Multitask while Watching TV

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November 14, 2011
  • Digital advertising agency Razorfish recently partnered with Yahoo to conduct a study regarding consumer behavior and the simultaneous use of television and mobile devices.
  • “While 80 percent of mobile users multitask in front of TV, 70 percent say they multitask once a week, and 49 percent on a daily basis,” reports Lost Remote. “More than 60 percent check their phones at least ‘once or twice’ during a show with 15 percent active on their devices the entire time.”
  • These multi-taskers are primarily attracted to content related to reality shows, news, comedy, sports and food.
  • The study suggests that 38 percent believe the mobile activity enhances TV broadcasts, while an equal 38 percent find it distracting.
  • Lost Remote reports: “94 percent of mobile multitaskers communicate while watching TV, while 60 percent are looking up content. Of the communicators, the most popular activities in order are: texting, talking, email, social networking and IM.”
  • Razorfish and Yahoo also learned that most of the mobile activity takes place during commercial breaks.

Pandora Targets the Vast Majority Who Pay Little or Nothing for Music

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November 11, 2011
  • Speaking at the GigaOM RoadMap conference this week, Pandora CTO Tom Conrad suggested that more than half of Americans do not pay for music each year, while 40 percent only pay about $15 annually.
  • “Conrad revealed that his company aims to monetize the vast majority of listeners who pay little or nothing per year for music,” reports TechCrunch.
  • “While there are opportunities to build businesses on the 10 percent who are willing to pay more, Pandora plans to focus on monetizing the majority via advertisements. Other music companies might be wise to target the non-paying segment as well.”
  • Pandora is working to expand across multiple areas, including “in the home, the television, the living room, the bedroom, even embedded above the ice maker on your refrigerator,” and in your car.
  • Conrad doesn’t feel threatened by Spotify’s success. “I see Spotify as largely complementary to what Pandora does,” he said. “Spotify’s CEO Daniel Ek says he thinks Spotify is the future of the record store, and that Pandora is the future of radio.”

Networked Insights Hopes to Fine-Tune Social Data for TV Advertisers

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October 7, 2011
  • Nielsen data is no longer enough for effective TV planning and buying, suggests Networked Insights, a company that “analyzes social data to uncover trends and consumer engagement opportunities.”
  • Networked Insights recently published reports that focus on the value of television viewers’ social data. One such report examined top social TV shows from FOX, NBC, ABC, CBS and CW. Viewers were grouped by TV Fans, Millennials, Gamers, Electronic Consumers, Moms and Sports Fans, while general sentiments from each group were analyzed.
  • “What’s impressive is how the company looks at specifically where ad money is being spent to analyze the conversations around the show,” reports Lost Remote. “For example, before the show even premiered, they described NBC’s ‘massive ad campaign’ for ‘Whitney’ as a ‘Social Turkey,’ and that ‘over-hyping a show is underwhelming potential fans.'”
  • Another report revealed opportunities for a Toyota Corolla TV ad to improve its digital strategies, specifying where targeted spending would be most effective. Respondents included fans of AMC’s “The Walking Dead.” The article suggests that the case study “is pretty compelling proof that social data can help you get the competitive advantage in TV planning and buying if you listen in the right places across the social web.”
  • Networked Insights recently announced $20 million in series B funding from Goldman Sachs.

Are Popular Online Brands Leading to the Rise of Digital Monopolies?

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October 5, 2011
  • France recently banned TV and radio show hosts from naming Facebook, Twitter, or other specific sites unless directly referencing a news story involving the companies. The regulation was created to reduce bias for the popular social networks over other striving, lesser known sites.
  • Apple’s iTunes has benefitted from the phrase “Now available on iTunes” commonly tacked onto advertisements where it was previously customary to simply say “Now available in all good music stores” — which could today be updated to say “online music stores” in order to include other music providers.
  • Additionally, the phrase “Now available on Amazon.com” has become standard for book promotions, which basically provides free advertisement for the site while ignoring other providers.
  • Similarly, “Follow us on Twitter” and “Like us on Facebook” have dominated commerce. “Social networks only work when people use the same ones. In other words, they naturally lend themselves to being monopolized,” suggests The Next Web.
  • Some brand names have now become part of everyday language. Google, for example, has grown so popular that it is commonly used as a verb when describing the act of searching online. TiVo is also regularly used as verb, and sometimes replaces “DVR” in conversation.
  • The article casts doubt on the actual effects regulation would have on social media monopolies: “…users will typically go where all the action is taking place.”
  • “The Internet isn’t a monopoly though. It’s an oligopoly consisting of multiple monopolies from different digital industries, and the reason this is happening really isn’t all that complicated,” adds The Next Web. “Success breeds success, something which underpins most monopolies, whether we’re talking about dominant languages, biological species or, indeed, Internet technology companies. Hegemony stems from success, and it’s certainly not unique to the Internet age.”

Tout is Like Twitter for Video: Is This the Next Chapter in Social Media?

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October 3, 2011
  • Social startup Tout offers a Twitter-like microblogging service, but enables users to publish 15-second video clips instead of 140-character text fragments.
  • “In other words, now anyone can be famous for 15 seconds,” suggests San Jose Mercury News.
  • When asked how it’s different from the Facebook feature that lets users post video chats, CEO Michael Downing explained the “abbreviated and near-instant nature of ‘touts’ makes them like mini-conversations.”
  • Endorsements from high-profile users such as Shaquille O’Neal, Mitt Romney and ESPN are helping the service build momentum.
  • O’Neal is one of many celebrities who have taken to communicating via Twitter (he currently has more than 4 million followers). “But what I’ve been noticing about Twitter lately is that you don’t know who the person you’re talking to really is,” he said. “When you can see my picture, you know it’s me.” O’Neal is so impressed with Tout that he took an ownership stake.
  • Since launching in mid-April, the San Francisco-based startup has attracted 4 million unique visitors. “It took Twitter two years to hit 1 million visitors,” explains Downing. “We hit it in under 12 weeks.”

Viewership on the Rise: Online Video Ads Reach 50 Percent of U.S. Population

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September 27, 2011
  • American consumers cumulatively watched about 2.5 billion minutes of online ads in August, according to a new report released by comScore.
  • The report indicates that 86 percent of U.S. Internet users watched at least some online video content last month, and more than half of that content was accessed via YouTube.
  • Also worth noting: Facebook, already the largest photo site on the Web, was the third largest video site in terms of unique viewers.
  • The rankings “find Facebook retaining third position in August, with 51.6 million unique viewers, trailing VEVO in second (with 62 million) and Google Sites (i.e. YouTube) at 162 million,” reports TechCrunch.
  • According to comScore, video ads accounted for 13.4 percent of all videos viewed — and Hulu generated the highest number of video ad impressions (996 million in August alone), compelling figures for advertisers when you take into account that Hulu does not allow you to skip over videos.

Ooyala Everywhere Goes Social with TV Platform for Facebook Users

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September 14, 2011
  • Ooyala Social, a new HD-quality Social TV platform (and additional entry point for Ooyala Everywhere) allows Facebook users to “share video with their friends and family, live chat while viewing, discover new content and watch video across multiple screens and devices,” according to the company’s press release.
  • It supports several business models including rentals, subscriptions, purchases and advertising.
  • Discovering new shows is based on user’s social circles. Viewers can share videos they “like” with their friends, or “loan” a show for later viewing.
  • Users can watch from tablets, mobile devices and connected TVs. They can purchase, rent, or subscribe to content by using Facebook Credits, PayPal, a credit card or a mobile phone number.
  • “Broadcasters, distributors and Hollywood studios can capitalize on the Social TV trend by using Ooyala Social to make premium on-demand and live video widely and easily available on Facebook,” suggests the press release. “The solution offers built-in social features and other tools that enable media companies to grow audiences, boost viewer engagement and realize new revenue streams.”

Facebook Doubles Revenue: The New Operating System for Online Ad Delivery?

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September 12, 2011
  • Facebook’s revenues have doubled the first half of 2011 to $1.6 billion, putting the social network on course to possibly earn $4 billion this year.
  • “It’s simply too late for anyone, perhaps even Google, to create a social network that can compete with Facebook,” writes Robert Hof in a related story.
  • Reuters suggests this news underscores the social networker’s appeal to advertisers. “We really see Facebook as becoming like the operating system for delivering ads on the Internet,” said Dave Williams, CEO of Blinq Media.
  • Williams added that Facebook’s “like” feature, that now helps endorse products and companies, provides valuable data that other online services can’t match.
  • “Companies like Yahoo are relying on third party user behavioral data based on things like cookies. On Facebook that’s data that users have revealed about themselves,” he said.
  • “The price that companies pay for every consumer that clicks on a Facebook ad increased 62 percent between the fourth quarter of 2010 and the second quarter of 2011, according to Efficient Frontier, another firm that helps companies deliver ad campaigns on Facebook,” reports Reuters.

Content Swamps Yahoo: How Can Online Services Earn More Ad Revenue?

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September 9, 2011
  • Yahoo and other content aggregators are finding that the more content they have, the less value it has. Ad rates for Yahoo and AOL have plummeted. Meanwhile, services that find interesting content like Google are doing exceeding well.
  • Moreover, advertisers have a wider range of competitors to reach their target markets. And they are increasingly working with advertising exchanges that buy ad space inexpensively across multiple properties.
  • Even smaller publishers like Salon and Slate are not consistently profitable.
  • “It’s a simple rule of any market,” reports The Wall Street Journal. “The more information that is created, the more the value is reduced. And despite attempts to woo spending with bigger, bolder and more targeted ads, services that help consumers navigate that content, namely search, remain the big money makers online.”
  • “Most people make money pointing to content, not creating, curating or collecting content,” suggests Rishad Tobaccowala, chief strategy and innovation officer at Vivaki, the digital-media unit of Publicis Groupe SA.

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