Business Models Category

ADO advises Finnmob’s mobile venturing in New York

Well it has been Three years since I worked at Nokia, and it is great to start to work officially with Finland here in NYC.

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Finnish Mobile Association brings Finnish mobile expertise to New York

- There is life outside Nokia, media and advertising industries convergence with mobile seen as the next big thing.

May 2, 2011, Helsinki, Finland – Finnish Mobile Association (FinnMob), Greater Helsinki Promotion and Finpro are expanding operations to New York to promote Finnish mobile industry expertise and help Finnish companies to make it in the US. The trio aims to open doors for Finnish companies wanting to enter the world of mobile media and advertising.

FinnMob and Finpro are also establishing a new incubator and co-working space for Finnish companies in New York. They will offer office space as well as mentoring services and introduction to local investors. Today, there are more investments made in high-tech companies in New York than Silicon Valley.

“We can certainly see a shift from West Coast to East Coast happening in the technology market. For example, Google just opened their new media headquarters in New York. As convergence of mobile and media is continuing, it is important for mobile companies to be in New York, where all the major digital, media and advertising agencies are based. We believe that the next big revenue source for mobile will be from media and advertising,” comments Ismo Rantala, Managing Director of FinnMob.

FinnMob has been warmly welcomed to New York and they work closely with the New York Mayor’s office and New York University. The goal for FinnMob’s expansion to East Coast, is to find 30 most potential media houses that could benefit from mobile technology and introduce them to Finnish expertise.

”We have created a database of over 400 Finnish mobile companies, who we will be promoting in New York. If Finnish companies want to break in the US, they should head to the East Coast instead of Silicon Valley” Rantala continues.

Second goal of the project is to attract R&D to Finland, where there is talented workforce available. Many global companies already have presence in the country and Finland is leading the way in mobile gaming fuelled by the success of Angry Birds.

Finnish Mobile Association promotes Finnish mobile industry expertise globally. FinnMob acts as a matchmaker for Finnish companies looking for global opportunities by opening doors for potential new clients, investors and partners.

For more information:

Ismo Rantala, managing director

FinnMob

Ismo.rantala (at) finnmob.com

Tel. +358 40 556 7770

2011 Top 10 Android Hot Topics

I Just arrived here at CES…. Clear day, but cold here for the desert! Definitely Android’s presence at this major Consumer Show will help warm up the mood.  2011 is going to be a great new year in the mobile industry in North America as both Apple and Google battle it out for the leading market share of smart phone devices.

#1- Devices, Devices and more  Devices

We are all looking forward to some of the new devices that will hit the street with Android.  As an open system and an entry platform into the mobile area the competition with ensue between Consumer electronic manufactures, PC manufactures, incumbents and anything you can embed an OS.

The Apple vs. Google’s Android (24.6% vs. 23.5% respectively according to Comscore) competition has first of all made a major dent in RIM’s leadership.  Will Blackberry move from #1 to #3?

At CES this year we expect a fresh taste of many of the new devices to come.

#2-  The blurring line between Smartphones and Tablets

This jostling is not only in the Smartphone race, but in the tablet market as well.  Apples iPad with its 44% marketshare getting nibbled to death from Android’s estimated 39% marketshare by 2010 according to the Piper Jaffray’s estimates.

Although there has been polarization of the different formats, a new breed of formats occupying that middle ground has started.

What makes this interesting is in the multiple forms of display sizes from the 3.5 inch Retina displays, advanced OLED’s all the way up the spectrum to the 10.1 inch and larger.  How will content itself polarize for these different formats? Or maybe not?

#3- Apps and Media Marketplaces

The big differentiator in this new era of advanced internet devices is in the content.   Apple’s leadership in the iTunes marketplace ( more then 300K strong)  has not been threatened yet, but with Android’s openness as the angle for developers to bring in new and exciting things in parallel to the shear volume of content.  The Android Marketplace has will quickly reach the 200k level and continue to grow strongly!  HTML5 mobile apps and content that blend web experiences on native app experiences is something we should keep an eye out for this year with the overall Android App and Marketplace experience.

#4 NFC and the mCommerce explosion

It has been a long-time coming to see this opportunity of Near Field Communications baked into devices.  The quiet release in Google and Samsung’s Nexus S with the Android 2.3 and the NFC chip is an indication that these enablers will be aggressively now released into the market as part of the competition to bring in these new business models. Apple, RIM, Microsoft as well as the mobile operators have all entered this foray becoming the next big battleground for local and location based payments.

#5 Connected and Suggest Advertising

2011 will be a year of advertising innovation beyond the basic impression based CPM models of past.  Android will be a unique platform where Google will bring out is best of ideas of mobile and local advertising that will go beyond the basic behavioral response, but to include the context of location and push.  How will this be mitigated so that our social privacy is not evaded? The debate will continue as the competition ensues.  Google’s Admob vs. Apple’s iAd will be two of the big battle grounds, but expect to see all of the local retailers, commerce and media companies bringing in new and exciting formats to make it more relevant for advertisers in this cross-media, physical and local connection.   The shear volume of Android handsets entering the market should make this a very dynamic addition to Google’s strength, but with Facebook’s Places Mobile Application and the opportunity to bring advertising into this mix as social ads will be another interesting spike in this evolution.

#6  Application Search… the other blurring line

Up until now, Applications have been silo’ed creatures that had activation to content only when downloaded and launched.   I would expect this to be another unique battleground as the plethora of content grows, access in-app will become more and more important as well as the indexing of relevant content on the go.  Twitter search has had the make-up to be the next big thing in the search space, but now will the growth of endless applications paralleling websites as the content for mobility; search will take a potential exciting new direction in the coming year with Applications.

#7  TV and Rich-Media Convergence

Android should make an exciting platform for the future of TV.  In 2010 we saw Google TV, Apple TV and the evolution of real-time video streams anytime, anyplace as a growing trend, now in 2011 with the advances in LTE and more and more content becoming available online this will be another battleground for the mindshare of consumers.

As the Android OS continue to show up everywhere in 2011 ( taxi’s, airplanes, billboards, etc..) this opportunity will make way for interactive video everywhere on the go.  However, how long will it last before content owners hold back from licensing content to Google’s TV initiatives?

This trend is also bringing in new entrants such as Vizio that has been a top Flat-panel manufacturer now entering into the smart device area as well.

#8 Chrome OS vs. Android OS cross-platform

Google has been strategic in keeping these two different platforms separated as they build within the two different marketplaces of mobile and online, but how long will this last. Android platform has been strong with the evolution of the opensource Webkit Browser based on a Safari core.  The Chrome Browser vs. The Safari browser dynamics has now put Google in a unique position for moving forward with its own enablers in parallel with taking the best from both worlds.   2011 will be the year of the Cloud when it comes to the connected OS cross-platform.

#9 Android , Google Music and Content Distribution

It seems like Apple has enjoyed the luxury of being predominant player for the last several years in the mindshare of the music industry. With the shear volume of Android handsets and tablets flooding the market, it would only make sense to see some unique play into the music space by Google.  This space has been a minefield of content rights licensing and business models.  In 2001, the world will begin to relook at the Limewire’s and the Bit torrents of the world that have made such dent on the business models of music.  Intel will launch a new architecture for content protection embedded on its chips that will find their way into the Android devices to come and the App Marketplaces will evolve with new dynamics for business models around the distribution and rights of music to attempt to give content owners more choices in revenue generation.

#10 Social Relevancy and the Android OS

It was rumored in 2010 that Facebook was attempting to launch their own devices the same way Google brought the reference platforms of Nexus One and Nexus S into the market.  There is no stopping Facebook from moving forward with this strategy, but it is clear that further enhanced and improved Social Relevancy will become a key part of the entire OS of Android in the near future starting with Android 2.3.  Facebook and Google have not always shared similar views, but with the large market penetration of Android moving forward they will find the right mix of cooperation strategies that will make this a platform that will leverage social interactions and conversations as a core to the overall user experience.

Much ADO about Media: 2011 Predictions

We have entered 2011 and I have to say the first decade did fly by rather quickly for us in the mobile industry.   I am a big fan of JWT and their things to watch deck.  I thought I would share it and highlight the top 10 in my mind for those realigning and creating a  mobile strategy this year.

Google’s Victory over Viacom ( Is there a way to protect copyright content?)

As I was watching Adam Lambert sing at Nokia Theater last night, it was not surprising to see the sea of lights from all of the mobile phone display’s  from the back of the hall.  Everybody seemed to be videotaping the show.  Now with the latest phones with the 5M ~15M Pixel Camera’s, controlling what is being recorded in high-quality to share is just going to get more and more difficult.  An Artist like Adam that puts on an incredible show is so tempting to record and share with your friends from your new iPhone 4.0. So what do Content Companies do?

1) I did notice that the overall event was being shot in High-Definition Video… So release a DVD for sale?  How long before that gets uploaded and shared? Sell other merchandise instead and make all content FREE?

2) Prevent people from bringing their mobile phones into events?  It reminds me of the lost umbrella room at Tokyo station, all lined up in order of date and train for pick-up? Will clubs need to have honeycomb shelves holding 10′s of thousands of phones like a cloak room?

3) DRM? This never seemed to work.

4) Better policing by the likes of Google on highly-trafficked User-Generated sites like YouTube?  Well this did not work for Viacom….. both sides have valid points, but with all the ads wrapped around the content, these seems to be some justice is sharing that revenue with the content owners and publishers in some form.

Google has loads of technology, that if a company like Viacom can prove to Google that the content was their content, should they not be paid a share of the revenue that Google is generating from it?   I do understand the reasoning and the Digital Millennium Copyright Act (DMCA) and the rights of the end-users to share, but for a company that is making profits via other means such as advertising, etc… surrounding the content, there must be a better mechanism to create a win-win for the original rights holders depending how the rights are set-up.

…. or I guess it all goes such that the publishing industry is just going to have to live with FREE, and all money comes from live events?  All Artists now need to become an Adam Lambert, Metallica, U2 or Lady Gaga to draw a crowd and profit in Events.  So Sell Viacom stock and Buy AEG or the local T-Shirt Merchandising company that has just gone public ? Is this the answer?

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Authored by Mark Hefflinger on June 24, 2010 – 8:02am.
San Francisco - Google (NASD: GOOG) was handed a major legal victory on Wednesday, as a federal judge granted summary judgment to the company in the $1 billion copyright infringement lawsuit filed against YouTube in 2007 by Viacom (NYSE: VIA). U.S. District Court Judge Louis L. Stanton agreed with Google’s argument that YouTube is a service provider as defined under the Digital Millennium Copyright Act (DMCA), and is therefore entitled to “safe harbor” — such that it cannot be held liable for copyright infringements committed by its users.

Judge Stanton noted that, while Google may have been aware of copyrighted content uploaded to its site, it has no way of knowing whether the uploads were authorized.

The judge said that the “burden is on the owner to identify infringement,” and gave his seal of approval to the current system for dealing with the issue, whereby copyright owners must notify service providers like YouTube and request that works uploaded without their permission be taken down.

“The present case shows that the D.M.C.A. notification regime works efficiently: when Viacom over a period of months accumulated some 100,000 videos and then sent a mass take-down notice on February 2, 2007, by the next business day YouTube had removed virtually all of them,” Judge Stanton wrote.

Viacom intends to appeal the ruling.

“We believe that this ruling by the lower court is fundamentally flawed and contrary to the language of the Digital Millennium Copyright Act, the intent of Congress, and the views of the Supreme Court as expressed in its most recent decisions,” the company said in a statement.

“We intend to seek to have these issues before the U.S. Court of Appeals for the Second Circuit as soon as possible. After years of delay, this decision gives us the opportunity to have the Appellate Court address these critical issues on an accelerated basis.”

“This is an important victory not just for us, but also for the billions of people around the world who use the web to communicate and share experiences with each other,” Google vide president and general counsel Kent Walker wrote on the company’s blog.

“We’re excited about this decision and look forward to renewing our focus on supporting the incredible variety of ideas and expression that billions of people post and watch on YouTube every day around the world.”

The mobile ad network world worries about iAD- Why?

With the recent announcements of Apple and the iAD release even thought the mobile networks such as Crisp, Millennial Media and a variety of others are launching services around iAD, I have been in discussion with many mobile ad networks that are a bit worried.

In the online advertising world there has been  the ad network business, the ad server business, the ad exchange business, the yeild management and analytics business and a variety of others. Even the buy and sell side have been separated to match the processes of the agency world.  In Apple’s endeavors to enter this space, they made a very interesting choice to be in the Ad Server, Ad Network, Ad Exchange and then manage the publisher relationships.  They went after the entire value chain!  At least is seems this way?

iAD could have been potentially an adserver strategy  like Doubleclick once was to the Ad Networks.  They had two products; one for Agencies and one for Publishers.   The only different would have been that  Apple integrated an Ad server like strategy into the platform, and then let the creativity come from the ad networks that surround around it.  The fact that Apple bought an ad network ( Quatto) to be part of iAD is like the analogy of  Google buying Doubleclick and integrating in an adnetwork.  Nothing is wrong with this when you are in a position to do so.   I think Apple might have been potentially wiser to stick with ad server like strategy over an ad network one for starters to be more neutral in the industry, as this is just my feeling as it would have been in alignment with the iphone platform strategy today…. just being sandwiched in the middle and taking a cut of the action.   To also become an  ad networks  would mean some level of competition to get brands to place ads via Apple versus the other ad networks for inventory…..time will certainly tell how Apple manages this, and even though being agnostic might had been a good first choice, they are in a great position build a great ad network for themselves and own everything since the world and users love the product.

Hard to be agnostic when you have the entire value chain and you want others to sit next to you, that is for sure.   It is like Apple becoming a record label trying to pull artists away from other record labels to join their network at the same time asking the record labels to link to their distribution…. I guess you can say they are doing this somewhat as well.   Apple has done a great job at being agnostic to a certain point even though it is a closed ecosystem.   There was a comfort in partnership and a long term trust from participants.

So I guess now that  they have the momentum, why not do it themselves? Google did this with Doubleclick.   Is this not like  it has been in the media world all the time? Companies do a lot of syndicating back and forth..  Disney definitely sells ads for its network, and so does most other media.   It is a clear indication that direct networks will stay  the predominate force for direct  network publishers.  I guess you could ask, how a company like Glam is any different?  They own a lot of publishers that are part of their focused verticals.  The difference I guess is that Apple now owns the entire thing ( the horizontal as well)  when content moves through the platform.

Monetizing Free via Advertising ARPU/Year

Here is a recent chart published by Silicon Valley Insider on the relative Average Revenue Per User (ARPU)/ Year in 2009 for some of the leading Internet players.  Google leads the pack with an ARPU of >$18 USD, where as the social media players are still much lower.  I think it is going to be interesting year in 2010 as Facebook/Twitter and others really build on there social advertising strategies.   I think what would be interesting to model is the time it took Google to reach this value as opposed to now both Facebook and Twitter.

I was once  told that the advertising business is “a distribution constrained business”;  based on the quality of segmentation and reach.  As Social channels do offer that deep insight, as they move from a Social utility business structure to more Social entertainment, I am interested to see how high they will go over the next 5 years and the major brands gravitation toward them.

There have been many charts that show Google’s search growth has been relatively flat, so  I would expect their first priority is definitely to move toward innovative location-based local advertising with a focus on mobile.  Even if we were to add up $18 per person for year for 2 years= $36 does not completely buy a mobile device.  There is still a long way to go for a free phone powered by advertising only by Google.

AOL Prime for the taking! Should be a Mobile Company

In the recent chart of the day by Silicon Valley Insider, I could not help think what a great opportunity it is now for a mobile company like Nokia, Sony, Samsung  or even Verizon to pick-up AOL for a sum of 4B+.  Just look at what they could  strategically leverage if managed, pruned and revamped properly to enter the Online Media space from Mobile. Yes- there are the possible Debt discussion, and  Yes- there has been the issue where the Social Media Portals have taken over the world, but if Twitter is valued at many billions, the clear assets of Platform-A, all the media properties and solutions, to me is clearly interesting in strategic  movement from Mobile to Online……

aol-fall

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Special Discount for MXM; Mobile Marketing Cross-Media

Like” MXM and get 50% off the AdMonsters OPS Mobile, NYC, Dec 7th

 

 

 

 

 

[ Cross-Media Strategies] CETworld Presentation 11.10.2011 Link

[ click here]  to get presentation on slide share

[ In-Store Media Cross Media] Exclusive Holiday event on Mobile Marketing In-Store. Nov 15, 2011, NYC

For friends of ADOstrategies, here is an exclusive invite code:  MXMinvite.  We are all celebrating the Book Release about “Mobile Shopping in the Impulse Economy by Gary Schwartz”

 

 

 

 

 

 

 

 

 

 

 

 

 

[Media-Cross-Media] ADO presents at CETWorld Nov 10th, 2011

We just presented at CETWorld ( Consumer Engagement Technology World) around the approached for the right digital strategy cross-media.  The title of the presentation;  Calmness after the Storm-Executing the Right Cross-Media Digital Strategy ( Digital Screens, Mobile, Social) 

[Brand Cross-Media] Battle of the Brand Marketing Mobile Apps, Oct 3rd NYC

ADObjects-Inc, Producer of MXMEvents has partnered up with MoMoNYC, NYCApps, NYCmobile for a unique event around “Branded Apps” on Oct 3rd, DROM

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