Business

Changes to business digitisation brings

  • Google AdWords Move Up A Gear

    Google AdWords Move Up A GearIn a quest to blast their already soaring profits further up into the stratosphere, Google will test a cost-per-impression bidding model for AdWords ads, letting advertisers specify groups of sites or specific sites in Google’s ad network.

    Instead of the current cost-per-clickthrough method used for text listings on its search and content networks, advertisers would set a maximum cost-per-thousand impressions price.

    Google said it would operate a single auction to determine which ad to show based on the effective cost per thousand (CPM).

    Advertisers would have to bid a minimum of US$2 (£1.04/€1.54) to reach a thousand people, while competing against other promoters for the same inventory, potentially leading to lucrative price wars for popular keywords, Web sites or categories.

    The site-targeted ads will include static banner ads as well as animated formats – a move sure to annoy hapless surfers already weary of wriggling, spinning and rotating gizmos.

    Google AdWords Move Up A GearGoogle has, however, promised limitations on the animated advertising fluff that can appear on their adverts, with blinking ads that continuously loop already declared verboten.

    Advertisers will be able to manage ads from their Google AdWords account and create their own “ad networks” by entering the URLs or themes and topics of sites where they’d like to slap up their adverts.

    Google will then produce a list of suggested sites (along with a maximum number of impressions for each site), letting advertisers select the sites to run their ads.

    The advertising space will come in four formats – banners, skyscrapers, wide skyscrapers and leaderboards – with Google checking submitted ads for “appropriateness”.

    Google AdWords Move Up A GearThe search engine heavyweights are hoping that the approach will appeal to advertisers who are fussy about where their brand appears or are aiming for a certain niche demographic.

    “This is the first step toward meeting as many of our advertisers’ needs as possible,” said Tim Armstrong, Google’s vice president of advertising sales.

    Google’s move comes as arch-rivals Yahoo prepare a significant expansion of its own service to place ads on other websites, also expected to include graphical ads.

    Google

  • “3G TV” Airs In Singapore

    3G TV Airs In SingaporeOver here in Digital-Lifestyles land, we’re always getting our ears bent by some PR-type banging on about how mobile TV is going to be “the next big app” to hit handsets.

    Luxembourg (amongst others) have already broadcast trials and commercial pilots, and now Singapore mobile operator M1 is getting in on the act, airing previews of its made-for-mobile TV drama.

    The service, snappily dubbed “3G TV”, is the result of a partnership between MediaCorp Studios, the Media Development Authority of Singapore and M1. The trio are hoping to flog off the series to other operators in the region.

    With mobile TV slowly coming up on the consumers’ radar, high quality content will be a critical factor on whether the service takes off, so mobile companies and TV content owners are keen to do lunch, chew the fat and go for a synergetic workout afterwards.

    Mr P Subramaniam, director of M1’s sales and marketing department served up this pearl of wisdom to Channel News: “What’s more important here is the whole revolutionary concept behind this, how consumers look at it and take it up. And that’s where it’s going to get really exciting.”

    3G TV Airs In SingaporeM1 and its partners plan to knock out dramas with a specific mobile version, which will be different to the regular TV episodes, allowing viewers the choice of watching a broadcast TV version or an extension of the same show on mobile.

    The first drama to emerge from this collaboration, titled “PS I Love You”, is due to appear on mobile phones in Singapore by June of this year.

    Not everyone is convinced that creating custom drama content for mobiles is going to be a monster hit, but with mobile companies, TV content owners and producers are keen to test the demand for this potentially lucrative new outlet.

    More collaborations are expected to emerge in the forthcoming months.

  • Google Profits Up Fivefold

    Google Profits Up FivefoldChampagne corks were popping like manic machine gun fire at Google yesterday as the company reported a thumping fivefold increase in profits in the first quarter.

    The Californian search giant purred loudly as it revealed that net income for the quarter ended 31 March, based on generally accepted accounting principles, was $369 million (£193/€282m) or $1.29 (£0.67/€0.98) a share, compared with a measly $64 million (£33.5m/€49m) or 24 cents a share, for the same period a year ago.

    Naked execs excitedly rolled around in beds covered in dollar notes* as revenues for the quarter racked up to $1.26 billion (£0.65bn/€0.96bn), a massive 93 percent increase from the previous year.

    “This was a very strong quarter for Google,” revelled Eric Schmidt, chief executive for Google, “We continue to execute well and we have been able to take full advantage of the growth in online advertising.”

    Internet advertising revenue as a whole is becoming a large, well-fed cash cow, increasing by 32 percent last year to just under $9.6 billion (£5.02bn/€7.34bn), compared with $7.3 billion (£3.81m/€5.58m) in 2003, according to the Interactive Advertising Bureau.

    Google’s own sites, which rely heavily on paid search results and on users clicking on ads, brought home $657 million (£343.6m/€501.7m) – 52 percent of the company’s total revenues and a 116 percent increase over the same quarter a year ago.

    Google Profits Up FivefoldRevenues generated from Google’s partner sites through its AdSense programs generated $584 million, or 47 percent of revenues, – a hefty 75 percent increase over partner-related revenues a year ago.

    They’ve also been bulk-buying new desks and chairs and introducing crowd control around the water cooler at Google, with the company hiring another 461 employees since the end of the fourth quarter last year, bringing the total up to 3,482 full-time employees.

    (*we may be exaggerating slightly here)

    Google

  • ITN Launch 3G UK Election Coverage On Vodafone Live!

    ITN launches 3G mobile election coverageITN is set to steal a march on its rivals by delivering up-to-the minute election analysis and comment through a partnership with Vodafone Live!

    The UK news broadcaster will be providing an election news service to Vodafone Live! subscribers, headed up by their political team, including Nick Robinson and Alastair Stewart.

    The service will aim to keep party loyalists and floating voters abreast of the fast changing political scene in the final days before the general election, with a salvo of updates and announcements sent direct to 3G handsets.

    The package will also include a general election video and text news service featuring ITN’s team of journalists and presenters – and we sincerely hope that it doesn’t resemble the high tech, eye-popping, candy floss mess that currently passes for their TV election coverage.

    The service will include daily text updates and a picture message sent at 8pm every evening, consisting of a video and text summary of the key political events of the day, plus an opinion polls round-up.

    Unfortunately, the service doesn’t seem to be interactive, with no option for subscribers to vote or comment on the delivered news stories.

    ITN launches 3G mobile election coverageNicholas Wheeler, managing director of multimedia content at ITN, commented: “This is a new facility using mobile technology that was not available at the time of the last election.”

    “We are seeking to engage our audience in new ways using a range of interactive platforms.”

    With a rallying, hands-on-the-flag clarion call, he concluded: “We aim to break more news stories and we aim to push back the frontiers of political reporting in the UK.”

    ITN

  • IDV Global Media-On-Demand: Chinese Seek US Content

    Chinese On-Demand Platform Looks For US ContentA coalition of government policy makers, technology and broadband companies from China have rocked up to the NAB2005 Media Show in Las Vegas.

    They’re in town to invite opportunity-seeking US companies to supply programming and interactive content to the Chinese coalition-backed IDV Global Media On-Demand platform, expected to launch in China early next year.

    Developed by California-based IDV, the platform was a top-secret project until premiered at the China Media-on-Demand Coalition press conference last week in Beijing, and reflects China’s eagerness to create new technologies for the Internet and telecom.

    IDV-Global Media – headed by ex-Microsoft’s Xbox game console designer, Kevin Bachus – expects the new technology to allow Chinese media companies to securely distribute programs worldwide, direct from publisher to consumer.

    Bachus rose to media attention when he left Microsoft to start a rival games console business, Infinium Labs. Their product, the Phantom Game Service, downloaded game content directly over an Internet connection. Digital-Lifestyles has been covering the Phantom since the start of 2004, from its first demo, through the announcement of its launch, to them receiving a $50 million credit investment.

    Some of the press had speculate that Bachus had left Infinium. At the start of this week he issued a statement denying that he had left Infinium for IDV Global Media.

    Duncan Clark, managing director of the Beijing-based consulting firm BDA China Ltd., warned that IDV-Global Media will need support from a range of participants, including telecoms, media and electronics companies (and the government agencies that regulate them) for the project to work.

    “What this initiative claims to attain, aligning the interests of many different players in the value chain, is something that has eluded many a media mogul outside China,” Clark sagely added.

    IDV GMOD’s platform is an end-to-end solution that includes a second generation PC with a 3D “platform-on-platform” architecture developed by IDV – the first system to receive certification from China as the standard for second generation PCs.

    Content will be delivered to consumers by digital feeds from global sources, including a next generation Internet, based on the IPv6 technology, with revenue sharing arrangements for partners.

    This system will supply sports events, movies, TV shows, next gen games and other interactive entertainment direct to private residences or hotel rooms worldwide, with the same interface, in High Definition (HD) quality video.

    The wonderfully named Dr Fan Yeqiang, deputy director of the China Institute of Policy Studies (CIPS), said in a statement, “Now US media publishers and distributors have a direct platform on which to earn millions of dollars in incremental revenues from their content in the China market. We are offering a safe, certified delivery system never available to US media companies before.”

    NAB2005 Media show

  • Electoral Commission Supports o2 WAP Site To Boost “Da Yoof” Vote

    Electoral Commission Supports o2 WAP Site To Boost Da Yoof VoteThe Electoral Commission is supporting efforts to get the UK’s young voters well up for the forthcoming election by encouraging them to get down wiv their mobiles.

    With voting turnout fairly miserable among 18-25 year olds, mobile operator o2 has tried to get “Da Yoof” interested by adding an election section to its O2 Active WAP portal.

    This will include information on postal voting, how to find the nearest polling station, how to vote, how to obtain a postal vote and answers to frequently asked questions about politics.

    Voter turnout fell to an all time low of 59% in the 2001 General Election, and recent polls have suggested that turnout in the coming general election may slump as low as 55 – 56%.

    Turnout was lowest in 2001 amongst the younger generation of voters and a recent poll of 3,000 O2 Active users around the 18-24 mark revealed that only 38% intended to vote.

    Electoral Commission Supports o2 WAP Site To Boost Da Yoof VoteBecky Lloyd, campaigns manager at the Electoral Commission rapped: “It’s important that we communicate with the younger electorate in particular through a medium with which they are comfortable and familiar and mobile phones are a good way of doing this.”

    Russ Shaw, Marketing Director at o2 beat boxed, “The Electoral Commission is trying to increase participation in the General Election. O2 Active provides a perfect mechanism for doing so by putting a simple tool for learning more into the pockets of 3.8 million people. This is just one way that this new, instant, always with you communications medium can be utilized by organisations and businesses trying to reach more people, particularly amongst younger audiences.”

    It’s not the first time o2 have promoted the use of their mobiles for political discourse – in November 2004, the company hosted a “live text chat” with Prime Minister Tony Blair.

    Wicked!

    The UK’s mobile users are among some of the earliest adopters worldwide. According to new research by MobileYouth, a British child will own its first mobile at age eight, compared to a US child, who will own theirs at 12.

    o2 WAP portal
    o2’s “live text chat” with Tony Blair.

  • Adobe To Buy Macromedia: US$3.4Bn

    Adobe To Buy Software Firm Macromedia For US$3.4 billionDigital document software giants Adobe have announced that it will be buying up rivals Macromedia for about US$3.4 billion (£1.7bn/€2.6) in stock.

    Adobe, best known for its market-leading document distribution Acrobat PDF software and Photoshop graphics suite, said the deal would help the company meet customer demands for wider-ranging applications, including audio and video capabilities.

    The deal, announced early today, is expected to close in the fourth quarter of 2005, subject to shareholder approval.

    Bruce Chizen will continue as Adobe’s chief executive and Shantanu Narayen will remain president and chief operating officer. Macromedia chief executive Stephen Elop will join Adobe as president of worldwide field operations.

    Here’s the PR spin on the deal:

    “The combination of Adobe and Macromedia strengthens our mission of helping people and organizations communicate better. Through the combination of our powerful development, authoring and collaboration tools – and the complementary functionality of PDF and Flash – we have the opportunity to drive an industry-defining technology platform that delivers compelling, rich content and applications across a wide range of devices and operating systems.

    Adobe To Buy Software Firm Macromedia For US$3.4 billionBy combining the passion and creativity of two leading-edge companies, we will continue driving innovations that are changing the ways people everywhere are experiencing and interacting with information.”

    The combined company would have annual sales of just over US$2bn (£1.05bn/€1.5bn), based on the most recent fiscal and calendar year figures from both.

    The two companies have been battling it out for the hearts of creatives for several years – Adobe’s killer app Photoshop has long ruled the roost for designers, although Macromedia’s innovative rival product Fireworks was constantly nipping at its ankles.

    Macromedia is best known for its hugely-popular HTML authoring package, Dreamweaver, and its animation software ‘Flash’, which enables Web designers to deliver fast downloading, interactive multimedia content.

    Adobe’s late-to-the-party Flash riposte, ‘Live Motion’ never really got anyone excited, and its capable HTML authoring package, GoLive, failed to seriously trouble Dreamweaver’s dominance.

    There has been no announcement about the future of individual products, and bulletin boards on the Web are already speculating as to the future of competing products, such the high-end illustration packages, ‘Freehand’ and ‘Illustrator’ (Macromedia and Adobe, respectively).

    Adobe To Buy Software Firm Macromedia For US$3.4 billionBoth products have large, loyal user bases and there may be some concern that – in the words of Sparks – “this town ain’t big enough for the both of us”.

    There are also fears that with Adobe now free of any real competition in this lucrative sector, a damaging monopoly could emerge.

    Adobe
    Macromedia

  • Advertising in Games Forum predicts $1Bn in revenue 2010

    Advertising in Games Forum predicts $1 Billion advertising revenue in US by 2010Last week, 250 executives from advertising agencies, game developers and publishers swarmed into the first annual Advertising in Games Forum on 14 April 2005 in New York City.

    The audience, primarily made up of sharp-suited, silver tongued advertising agency executives, were there to discover more about market opportunities and expectations within the game industry.

    According to the organisers, The Game Initiative, attendees were treated to a feast of ‘key facts, figures and estimates’ spun out by leading industry experts at the forum.

    In a bullet point-laden onslaught of PowerPoint presentations, these key facts emerged:

    According to the Yankee Group, advertising in games is expected to rise to US$800 million in 2009 from nearly US$120 million in 2004.

    Around US$266 million – that’s more than one-third of advertising in games in 2009 – will come from (wait for it) “advergaming.”

    Advertising in Games Forum predicts $1 Billion advertising revenue in US by 2010For the benefit of buzzword-deficient execs, Yankee Group senior analyst Mike Goodman explained that this hideous word describes what you get when advertisers create a game around a product rather than place their brands within a well-known title.

    Mitch Davis, chief executive of video game ad network Massive Inc., whipped the watching execs into a frenzy of monetary expectation when he revealed that the audience video game advertising would top US$1 billion in the United States by 2010, and approach US$2.5 billion worldwide.

    Anita Frazier, Entertainment Industry Analyst, NPD Group opened up her big book marked ‘Facts’ and informed the Advertising In Games Forum audience that there are 100 million game capable cell phones currently in the Marketplace – with 65% of the population owning a cell phone.

    The sound of keenly rubbing palms grew to a crescendo as Frazier announced that within 16 months all cell phones in the marketplace should be game capable and thus brimming with cash-raking, game-downloading potential.

    Advertising in Games Forum predicts $1 Billion advertising revenue in US by 2010Fact-bloated attendees also learned that the top selling 2004 game titles (according to the NPD Group) were:

    1. Grand Theft Auto San Andreas – 5.5 million sold since launch
    2. Halo 2 on X box – 4.5 million units sold since launch
    3. Madden NFL 2004 on PS 2 – 3.5 million units sold since launch
    4. ESPN NFL 2K5 -1.6 million units sold since launch
    5. Need for Speed Underground 2 -1.7 million units since launch

    The top selling PC title of 2004 was Sims 2 with 750,000 units sold.

    The ‘best selling game title of all time’ title goes to Grand Theft Auto Vice City with a massive 6.5 million units shifted, with Super Mario 64 on the N64 coming in second with an impressive 6.0 million units.

    Game Initiative

  • BBC Launches Creative Archive Licence

    BBC Launches Creative Archive LicenceThe BBC has moved a step closer to establishing a ‘public domain of audio-visual material’ with the launch of its ‘Creative Archive’.

    The BBC, Channel 4, the British Film Institute and the Open University have teamed up to create the Creative Archive Licence, which aims to pave the way for the legal downloading of film, TV, radio archives and digital content via the Internet by the public.

    The four partners in the Creative Archive Licence Group have issued a call to other organisations to join them, with Teachers’ TV and the Arts Council England already committing themselves to join the gang.

    The Creative Archive Licence will give a new generation of media users legal access to material which they can use to express their creativity and share their knowledge – all completely free of charge.

    The Licence follows on from pledges in the BBC’s Building Public Value document which committed the broadcaster to ‘help establish a common resource which will extend the public’s access while protecting the commercial rights of intellectual property owners.’

    Mark Thompson, Director-General of the BBC liked the look of it: “The Creative Archive Licence provides a unique solution to one of the key challenges of rights in the digital age, allowing us to increase the public value of our archives by giving people the chance to use video and audio material for their own non-commercial purposes.”

    The Creative Archive Licence offers an innovative approach to the rights issues that often affect the use of archive material, allowing people to download and use footage and audio for non-commercial purposes.

    Each user will agree to abide by the licence conditions before gaining access to any of the available material.

    BBC Launches Creative Archive LicenceThe hope is that soon-to-be launched pilot download schemes will help fuel creativity activity across Britain, with clapperboard-toting types using the footage in personal projects, classroom presentations and their own arty-farty creations.

    The long term aim is for work created under the licence to be uploaded back to the originating Website and then shared with others across the Internet.

    Amanda Nevill, director of the British Film Institute, liked the cut of the project’s jib: “The Creative Archive Licence gives UK citizens increased opportunities to access and engage with moving image material from the bfi National Film and Television Archive. The project is an important step forward in enabling people to create their own works and explore the potential of digital film-making.’

    The Creative Archive Licence hopes to emulate the success of the US based Creative Commons system, where less rigid copyright arrangements have stimulated artistic activity.

    The BBC will initially be making footage from natural history and factual programmes available under the licence later this summer, and the BFI will be releasing a package of silent comedy, early literary adaptations, newsreel footage and archive footage of British cities in the early 20th century.

    Interestingly, because the BBC is license fee funded they are releasing the content to UK-only Internet users, relying on a GeoIP solution to allow downloads from only UK hosts (not that we think it would be particularly hard for determined folks to circumvent those restrictions).

    Creative Archive

  • Legal Action for UK P2P File-Sharers

    Legal Action for UK P2P File-SharersIn a never-ending quest to stem the flow of illegal file sharing, the UK record companies’ trade association, the BPI (British Phonographic Industry), has announced that is taking legal action against another 33 illegal filesharers in the UK.

    The legal action coincides with the IFPI’s (BPI’s international counterpart) announcement of action against 963 illegal filesharers in 11 countries.

    This latest action brings the total up to 90 who have faced legal action since its campaign against Internet piracy began last year.

    The UK recording industry started its campaign to spank pesky filesharers in October 2004 when it announced legal action against 26 illegal music swappers.

    Those cases have all now been settled, with defendants shelling out more than £50,000 (US$94,600, €73,200) total in compensation.

    Legal Action for UK P2P File-SharersThe BPI ramped up the pressure on March 4 this year, declaring that it intended to pursue proceedings against 31 more illegal filesharers. The offenders were sent details of the BPI’s legal claims against them yesterday after their identities were revealed by their Internet service providers.

    Sensing blood, the BPI also intends to proceed against another 33 illegal filesharers and will be going to the High Court next week to seek disclosure of their identities.

    The 33 new cases include users of the popular KaZaA, DirectConnect, BearShare, SoulSeek, Grokster and Imesh peer-to-peer applications.

    Legal Action for UK P2P File-SharersAll of the accused are alleged to have been indulging in an orgy of uploading involving hundreds or thousands of music files illegally and face civil action for an injunction and damages.

    BPI General Counsel Geoff Taylor wagged his finger in a threatening manner and intoned, “We have warned people time and again that unauthorised filesharing is against the law. Anyone who is engaged in this activity faces having to pay thousands of pounds in compensation. It’s now easy to get music online legally. We will maintain our campaign until the message gets across.”

    Try as we might, we still can’t get the words, “Stable door”, “horse” and “bolted ” out of our heads here.

    BPI
    IFPI