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Weekly Blueliner Newsminer

August 30, 2010 – 1:39 pm
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Good afternoon, everyone.  We are back with the Weekly Blueliner Newsminer, a Monday edition.

1.  Paul Allen Sues Apple, Google, over patents

This story broke on Friday afternoon.  It’s not unlike the suit by Larry Ellison of Oracle over Java Technology, but equally as laughable.  According to the piece, Allen had been sitting on these patents for years and just now realized that they have value.  It’s like the alphabet inventors suing the estate of James Joyce because they are still making revenue from the sales of Ulysses.  I’ve documented on the space about the mobile technology being in a virtual shootout for control.  This is just another gun firing the pistol.

2.  HP and Dell square off for 3Par

HP and Dell continue to reach outside of their traditional customer PC markets by bidding for the data management firm.  The latest word is that 3Par executives consider HP to have a superior presentation and plan to nullify the agreement with Dell.  Both corporations are looking to gain control in the race for cloud computing.  Cloud computing is an emerging industry with remote data centers offsite.  Firms now are expanding their reach into the market with CRM solutions that can be an asset for small businesses.   These days, tech firms are looking to exhaust their piles of cash on the balance sheet.  Whether their decisions benefit shareholders will be seen later on.

3.  Yahoo and Microsoft team up to counter Google

After two years of rebuffing the pursuit, Yahoo and Google team up to gain market share in search advertising.  Bing, Microsoft’s emerging search index, has made moves with an alliance with Facebook, who presents a wealth of personal data for marketers seeking to leverage revenue from social media.    Small businesses will have a wider array of pay per click rates to choose from that fits their respective budgets.  Yahoo receives a strong chunk of the revenue gained from search on their site, while Microsoft provides the algorithms. Both companies can also start experimenting with product innovation, giving hope to restoring Yahoo’s former glory as a search leader.

4.  Intel makes a second deal in two weeks; this time for Infineon

Intel continues to expand into wireless technology buy purchasing Infineon.  Infineon specializes in electronics for automobiles along with producing chips for security cards.  Intel’s track record of expansion has been relatively weak of late, and it is unclear when the investment will return dividends since mobile technology has negligible security issues at this time.  This should be nice for Infineon, as they can focus on product innovation, which has been their weakness.

5.  Google to Acquire Angstro

Google acquired this start-up to build their portfolio and challenge the social media industry, where Facebook clearly is the titan. Angstro has developed applications that mine personal data to deliver search results on a person’s professional network. Angstro also creates social networks and caller IDs for sites like LinkedIn.  Google is clearly worried about Facebook as an emerging search presence and after the disaster of Buzz, looks to pull a rabbit out of their hat. It could be too little, too late.

That’s the Blue news for now. See you next week.

Blueliner Discusses Mobile Marketing

August 23, 2010 – 1:04 pm
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Mobile technology currently is in transition. Large firms seek to establish control over broadband waves, while others want to limit application sharing. Blueliner looks to set its own initiative with this campaign that synthesizes the 7 Pillars of Marketing with a vision of a future where digital content is shared through a multichannel network of platforms. The slideshow also asks pertinent questions about mobile technology as an information device, while spotlighting studies that demonstrate its nascent growth for advertisers and marketers. Enjoy.

What Will Geolocation Do?

August 19, 2010 – 6:00 pm
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The launch of Facebook Places application brings a cornucopia of themes to the table. Foursquare has seemingly taken an earnest stance with Facebook’s geolocation initiative, as seen in this video with Holger Leudorf, the Foursquare Vice President of Mobile and Partnerships.

Competition is healthy within any marketplace, as the crux of free market capitalism.  Privately, I wonder about the start-ups’ true thoughts.  Foursquare has done a solid job of leveraging partnerships with Starbucks, for example, into a multi-pronged channel that delivers advertising and brand equity amongst a loyal base. They have also been a hit with local restaurants and retailers by providing an analytic dashboard to track customer data and grant mayor medallions for repeated visits.

Nevertheless, I think that reality will surface to the top.  Facebook has become the behemoth of social networking, and they want more. Their partnership with Bing to gain market share in search indexing, along with its leveraging of user profile data to tailor campaign strategies, can offer credibility to geolocation that eludes Foursquare at this moment in time.  In fact, it could pose a threat to Craigslist by carving out target demographics.

Places will allow novice users to manage their accounts through one interface, and Facebook wants to be the final destination for your interactive experience.  In today’s deluge of information, an option of efficient streamlining is gladly taken.  The odds are that Foursquare can survive for a little while longer with hardcore loyalists,  but reports are surfacing that some Foursquare users are already migrating to Facebook Places.

Places can take Facebook deeper into a dimension of privacy debate.  Users have deactivated accounts this year after heavy criticism of protocol negligence.  It can be difficult to remember the level of information placed on your user profile, and the inclusion of geo-location magnifies the potential for risk amongst those sharing their points on Earth.  The downfall of MySpace was more than just a hackneyed design scheme.  Cases of pedophilia and other malicious acts popped up in several states, damaging the website’s integrity amongst the public. 

Everything intensifies when information is shared through mobile devices, which already have automated GPS systems through carrier networks.  Surely, one must exhibit prudence when combining too much information through various user interfaces.  I doubt that Carmen Sandiego would love geolocation.  She couldn’t steal treasures and teach geography to children if they already knew her whereabouts.  Serendipity is fun sometimes.  Geolocation kills it for me.  Sorry, Facebook.

The Wild West of Mobile Advertising

August 16, 2010 – 5:16 pm
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Apple rolled out a mobile advertising platform this summer to much fanfare, and had several strong partnerships on the docket. According to the Wall Street Journal, only Unilever PLC and Nissan pushed campaigns this summer. Other companies have slowly unbundled their platforms, with little evidence of a great impact.
From a distance, one could wonder if Apple’s penchant for proprietary control could catch up with them in the mobile advertising market. Their battle with Adobe over Flash has silenced in the public, but nobody is convinced that HTML5, despite its open source adaptability, can surpass the reliability of Flash video. Adobe executives are incensed at Jobs’ effort to monopolize interactive content. The Android has used Flash Interactive to great affect and continues to creep up the sales chart. Larry Ellison, CEO of Oracle, served Google with a suit in the District Court this past Friday, accusing Google of copyright infringement in the Android open source platform. Google had a secret dalliance with Verizon that grew criticism from the cyberworld to the hot dog vendor on Seventh Avenue by FIT.
I spoke with a woman this weekend who was a marketer for Johnson & Johnson, and we both agreed that the rate of interactive advertising growth has exploded beyond comprehension. As I type on this keyboard, the technorati is looking to claim their space within the cloud sector by all means necessary. Government agencies like the FCC may need to rule on intellectual properties with little legal precedent. The platform distribution ranges from television to personal computer to mobile phone to display stands.

It is unclear if the absolute freedom of digital space remains in jeopardy. On another level, one cannot quantify at this point the value of mobile marketing. The potential for revenue is strong if marketers can get applications available quickly. Apple could learn this lesson as they attempt to eliminate third-party applications.

Introducing The Tweet Button

August 12, 2010 – 3:33 pm
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Today, Twitter officially launched the “Tweet” button. Aesthetically, the image is nice.  It evokes the firm’s cloudy theme and has some shadowing to soften up the blue.  The button is a partnership with TweetMeMe,  the organizer of Twitter’s data set.  The button aims for readers to share content more efficiently.  Once content is passed on, then Twitter will suggest followers to that account.  Now, let’s account for the effects of this news.

This button could prove as a watershed moment for Twitter.  The button upgrade initially appears to be a response to the ‘Like’ button of Facebook. ‘Like’ has been leveraging data between its personal profiles and web domains, resulting in a wealth of transactions.  Nick Halstead of TweetMeMe states that this announcement is to strengthen the position of each side rather than generate revenue. The recent suggestion algorithm used by Twitter supports this statement. Tweeters aren’t in love with the interface, however, and seek adjustments.

Website designers and SEO methodologists will delight in the simpler button’s ability to manage click counts.  Once these steps are made, then developers can use the new DataSift to leverage all that information into creating new streams.  DataSift pledges to build search rankings through fast rule processing, reflecting real-time status.  Hashtags will add value for the firm as advertising for corporate accounts.  The program is in development, planning to surface in the near future.

Mobile Ads Are For Lovers

August 4, 2010 – 5:50 pm
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The expansion of smartphones across the country are an opportunity for advertisers to reach a consumer from a different angle. This in itself is quite lucid.  According to an Infographic article on Fast Company, over two-thirds of the United States population owns a mobile device.  The article also states that coupons are emerging as a tool to stimulate sales, especially in the form of QR codes.  Beyond Calvin Klein’s racy billboards in New York and LA, corporations such as Sprint have deployed them at movie theaters for subscribers to claim prizes.

I recently visited the Ziegfield Theater in midtown and caught their promotion for the first time.  It took a little while to generate the coupon after several scans, but I received an offer for a free small popcorn after purchasing a large one with a large drink.  In my opinion, the deal was hardly enticing since movies in New York have become such an exorbitant cost.  I think that retailers stand to benefit greatly, along with national drugstore chains, where consumers tend to make impulsive and instantaneous decisions. For example, if Walgreens offered toothpaste and personal care items through a locked QR code, you would see profit gain. These products are an inelastic demand, leading to purchases for present and future inventory.

Marketers are still testing methods to entice consumers that are especially mobile.  The iPhone, with thousands of applications, have leaped forward, while the Droid is catching up with pure sales but lags in applications.  Mobile advertisers must give away themselves a little more in order to receive a bigger payoff, such as free admission to exclusive events.  The customer may spend those fees on items with higher ticket prices.  You then get a friend in New York and Pennsylvania.

Pluck of The Blackberry

August 3, 2010 – 4:53 pm
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Research In Motion currently faces a standoff with the United Arab Emirates over security regulations.  The maker of Blackberry has been renowned by transnational corporations and governments for their superior encryption technology, which allows for the fluid exchange of data information.  Not unlike Google’s foray into China, the Canadian firm is running into an emerging market that conflicts with the philosophy of their product and its functionality.  

The UAE is a liberal nation in a region rife with political volatility, so their desire to maintain some local surveillance is understandable.  At the same time, Blackberry should be careful of bending wholeheartedly to political din. Financial experts think that Asia and the Middle East could hold purchasing power later on this decade, but that day is not here yet.  The value of RIM’s share price is not contingent on sales in this region, reported as close to 2.5 percent.  They are annoying everyone who depends on the device for business transactions.

Indian officials have also raised concern about security oversight. RIM is working diligently to reach a solution, and can use these negotiations as a benchmark for the Middle East since the threat of Pakistan insurgents linger as well.  These conflicts could merely represent a clash of cultural perspectives or a threat to the development of digital marketing, which relies on the accessibility of information through hardware and program development. It could also be a gateway to totalitarian surveillance by a governmental body. The end result is unclear, and it’s not because of desert heat.

The Sweet Smell of MocoSpace

July 15, 2010 – 4:59 pm
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MocoSpace is a unique player in the social media landscape.  Since they started in 2005, the founders, Justin Siegel and Jamie Hall, fell into a segment base of multicultural users who do not have the capital to purchase broadband service and smartphones.  This base primarily uses feature phones, which possess games along with video and social-networking applications.  

The Wall Street Journal’s Digits blog conducted an interview with the two discussing many subtopics within the mobile communication industry. They brought up several interesting points in the segment.  One of them involved MocoSpace’s flexibility of user interaction, such as creating your account, profile customization, and privacy maintenance from your phone.  The home website has also been upgraded for seamless integration with your device, offering music from premiere artists in all genres.  Heavyweights like Bebo, Facebook, and MySpace started from a web platform and depend on internet traffic for their online advertising revenue.

Another key point illustrated in the interview centers around the user concept of building personal relationships.  This is partly due to the small number of users (13 million, opposed to Facebook’s 400), and also the base. MocoSpace users are not only seeking business partnerships, viral romance, or reacquainting with old flames from middle school.  They also seek those who seek one another.  At the moment, MocoSpace is the little engine that has done it amongst the titans, making the adjustments in a sector with exquisite gadgetry.  Here is the full transcript.

Bebo Gets Off The Mat

July 13, 2010 – 3:31 pm
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I’ll admit that when Bebo was passed off by AOL, I hardly batted an eyelash.  I couldn’t remember when or who gave me an account.  I just never felt that the site offered much for my daily travails, on a viral or tangible level.  The invites in my mailbox surfaced with obvious fake photos of scantily clad women and account details.  I checked the box, clicked once, and thought forever deleted. Bebo, along with Friendster, represented the Betamax to other social media scions with better interactive vision and capital.

Entrepreneur Adam Levin, however, purchased the site for a fraction of AOL’s fee.  Nevertheless, he has an optimistic strategy for returning the brand to a respected position.  The website still has nearly 120 million registered users, with 13 million using the site at least once a month.  The potential for growth exists, as Levin plans to segment Bebo into the tween market, as Facebook gains an older demographic base. It could work, if he is able to gain traction within the mobile marketplace.  But it must be fast.

Understandably, once your parents start parroting your actions, the edge is gone.  It’s a parable that stays true despite the era.  Coupled with this transition into a new market base, Levin switched advertising from AOL’s advertising scale, meaning that it can gain more revenue through setting its own fees.  It can also extract strong PPC rates through mobile technology.  According to the Wall Street Journal, 14% of users access the site through a mobile device. The article also mentions that Bebo is working on a mobile site that will not eat into tween’s limited data service plans.

I think one way to combat that barrier is to align the site with family carrier plans.  Once the site gains more credibility with tweens, they can persuade the parents to purchase a plan with free access, where everyone benefits in a transaction.  If they can strike a partnership with someone like Verizon, it could do a lot towards reinvigorating the brand.  McDonald’s was able to market children’s toys from recognizable programming that continued persistent chattering from the child to the parent, and foot traffic generates forever with this small strategy.  Let’s see what Levin has up his sleeve.

Microsoft Can’t Make Next Of Kin

July 1, 2010 – 4:20 pm
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Microsoft does certain things well.  Microsoft does certain things poorly.  Microsoft makes a strong effort at times, but lacks timing too.  Less than two months after a heavy advertising campaign for the adolescent market,  Microsoft will end sales of the Kin mobile.  Members of the marketing and development push will be folded into a campaign push for the Windows 7 mobile phone, due in October.  The company never issued an official statement, but many feel that the price points for Kin One and Two were just not fitting the public demand.  According to Ad Age,  the Kin One was priced at $49.99 while the Kin Two was $99.99 after rebates of $100.  A mandatory $30 monthly service fee didn’t help matters.

One could look at the quick abortion as a cautionary tale of investing too heavily into niche markets with social media as the backbone of your initiative.  Microsoft Kin used a woman in her twenties to connect through viral heavyweights from My Space to Windows Live.  But the phones were also lacking in traditional smartphone features, such as application use, calendar scheduling, and so forth.  Everyone loves to share wayward thoughts and images in real time, conscious and unconscious, without fear of persecution, which is an illusion anyway.  These actions are an innate human right, and social media lets us pursue it to the fullest.

Those who contribute professionally to society need software to structure themselves, such as e-mail and calendars.  These tools allow for the opportunity to interface personally with one another, maintaining some semblance of human interaction and exchange of creative spirit.  Then, and only then, will our pursuit of perfect communication reach a zenith.

Social media has taken our world by storm, spreading information with lightning speed, but it does not have the wherewithal to stand alone as a representative of our human persona, and it probably never will do this. Microsoft’s Kin was a testament to this reality check.