25 Jun 2010

Study: 43% of Online Americans Addicted to Social Networking

Experian Simmons is out with a new package of stats that document the incredible growth of social networking in the US. (Experian is an Edelman client.) Here are some of the notable highlights...

First, some 66% of online Americans use social networking sites today, up from just 20% in 2007. This has been covered a lot before. However, what's notable is that it's an increasingly additive activity - 43% visit multiple times each day.

Second, social networking is largely synonymous with Facebook. This doesn't bode well for others that are positioning themselves as a social network since it could confuse consumers. (Since it does not require mutual friending, Twitter to me really isn't a social network but a continuous public communications channel.)

Third, social networking is largely viewed as a way to connect with friends, not co-workers or business partners. This may show that people are splitting up their personal/professional networks. This was something LinkedIn CEO Jeff Weiner and I recently discussed and it flies in the face of edge cases like me who have co-mingled the two. (LinkedIn is an Edelman client.)

Last but not least, social networking appears to be more predominant in the western and mountain states, even more than in the east.

#

23 Jun 2010

Essay: The Apple Threat to Online Advertising

The following essay is also my column this month on Forbes.com.

Caption: Safari's new Reader view could rob publishers of page views especially if it finds its way into iOS devices

Watch Out: Apple May Aim To Reshape Online Advertising

Apple, without a doubt, is creating a massive sea change in how we interact with digital content. Note that I didn’t say “the Web.” This is because the millions of iPad and iPhone users spend more time within Apple’s walled garden of apps rather than in a browser. However, there’s a potential dark side to the millions of Apple devices being sold and it should give every marketer pause.

If you look just below the surface of all the hype around the iOS devices (the iPads, iPod Touches and iPhones), there’s a dirty little secret. Apple might be positioning the platform as a Trojan Horse that reshapes digital advertising as one man—Apple CEO Steve Jobs—thinks it should work. While this messianic zeal benefits users, it could conceivably create a competitive moat for Apple and its partners.

Jobs has more than a passing interest in online advertising. He co-authored a patent filing in 2008 called “Advertisements in Operating System.” Now Apple has put into place systems that handicap existing dominant formats like rich-media ads and interstitials.

Case in point: Safari. On June 7, the day Apple unveiled the new iPhone, it also shipped Safari 5. The browser, available for both PCs and Macs, has a feature called Reader that neutralizes multipage articles and interstitial ads by giving the user the option to read an article in a new clean view that strips away all but the text of the article.

A primary benefit of the new Reader view is that it allows a user to consume a multipage story without having to endure multiple clicks, interstitials and a new set of banner ads. This sounds great but it may rob publishers of ad impressions.

Now, granted, no one is saying that Safari is a powerhouse. It has a minuscule 10% share, according to Net Applications. However, keep in mind this feature is found only in the desktop version of Safari today. There’s no reason why Apple wouldn’t bring Reader to the growing armada of iOS devices—which commands an 60% share of all mobile browsing, according to Quantcast. The end result may be that more publishers will flock to the App Store and iAds.

Equally troubling is Apple’s posture toward rich-media ads. In the April open letter “Thoughts on Flash” Apple and Jobs clearly outlined why they are not allowing Adobe to push forward with its plans to bring the technology to the iOS ecosystem.

Most of Jobs’ arguments were primarily based on technology issues and user experience. Ads were only mentioned briefly. However, if you read between the lines, there may be another motive. Apple could be trying to pave the road for the success of iAds. (Disclosure: Edelman, my employer, is Adobe’s PR agency.)

The takeaway here is that as iOS devices grow in popularity, the platform encourages advertisers to increase their iAd budget and/or develop their own apps. This benefits developers and iAds advertisers. Now, I’m no lawyer, but it’s conceivable that if the iOS platform one day achieves any kind of dominant position the way Windows has, this may be viewed as an anti-competitive move.

No single company will ever control the Web. However, as Apple’s power grows and it begins to push into advertising with new formats, it must not put up roadblocks to other formats as it has done in the case of Flash or could do with its Reader view. Pressure from CMOs and others in the industry like the Association of National Advertisers and the IAB will ensure that even as Apple devices gain share advertisers will have the same freedom of choice in how they advertise in the post-PC age that they did in the previous era.

10 May 2010

Video: Bill Gross, CEO, TweetUp, Idealab

Last week in LA I had a chance to visit Idealab, an incubator that pioneered pay-per-click advertising a decade ago. The purpose of my visit was to meet CEO Bill Gross and his team and to learn more about TweetUp, an innovative new service that, I believe, has a great shot of creating a demand-driven ad network around Twitter.

(Idealab, not TweetUp specifically, is an Edelman client.)

Unlike Twitter's own ad platform, TweetUp will surface not only tweets but tweeters. What's more, they will be integrated as widgets/columns in key ecosystem apps like TweetDeck and contextually via large sites like Business Insider.

To me, TweetUp's greatest appeal lies in that it's a mix of paid, earned and social. In order to receive the best position for your tweets, the TweetUp system needs to perceive that you are an expert in the topic/keywords you are bidding for.

For more, see the above short video I shot with Bill Gross, their CEO.

14 Apr 2010

Three Trends Slates Will Accelerate

A little over a week ago I moved my MacBook Air off my desk at home and jumped in using a slate to cover 90% of my work/personal needs (basically I just use my laptop to manage the slate). In the office, I only used my HP desktop for complex tasks that required it - like PowerPoint.

My verdict: if you are a knowledge worker and your computing needs center mostly around the web and text, as mine do, slates are ready for prime time. I am going to continue using my iPad as my primary device. And I hope to try HP's slate when it comes out (HP is an Edelman client).

I believe the slate format is the future - perhaps not mainstream today, but they will be soon. However, as the slates take off they're going to have an impact on marketing and media as well. Here are the three trends that I believe the format will accelerate...

1) Media Reforestation

Media is in a rapid state of evolution as consumption moves from atoms (e.g. print) to bits. I believe all tangible forms of media - everything you can see, touch, taste and smell - will be in sharp decline or extinct by 2012 in the US, and eventually globally.

Mobile devices, especially slates, are going to accelerate this trend. The experience of reading the Wall Street Journal on the iPad is better than the web site or the print edition. If News Corp. prices it reasonably, I will subscribe. I believe many millions will too.

Everyday a newsprint reader dies and is not replaced. However, newspaper readers will be around forever and slates give the medium a real shot in the arm. However, that's not to say there won't be pain - the economics are different.

2) The Attention Crash

On my iPad right now I have four feature-length movies, 2500 songs, two email accounts, Facebook, Twitter, six ebooks, dozens of articles I want to read (thank you Instapaper!), many news apps, games and more.

Now I am an extreme information junkie. Not everyone is. But these devices put infinite choices at our disposal. Yet the fact remains, we only have one brain.

We're deep into a crisis of attention. Slates will accelerate attention apnea. We will start and stop tasks, jumping from one to the other. The end result, more media snacking, fewer meals, And when we do consume meals, it maybe quality content like movies, news apps and TV shows that reign. Time will tell.

3) Work-Life Blending

The great thing about slates is the value they offer for the cost - $500 - as well as in their portability. This week I attended several meetings inside and outside the firm and I spotted iPads at every single one. Yesterday I attended a brainstorm at a major NGO that included people from around the globe. At one table of six there I saw four iPads. Most of these devices I suspect were purchased by individuals not their employers.

Slates, like instant messaging, Twitter, Facebook and the like, are going to sneak into corporations via the back door, though I suspect some employers will buy them for knowledge workers.

The trend here to note is that these devices blend our work/personal lives. Slates didn't cause blending but as more of us bring them to work, it accelerates. IT managers will need to provide sound guidance to ensure these devices and smart phones protect corporate information, while not stifling productivity. A byproduct: this is will likely encourage companies to become more social since slates and smart phones bring social networking deep inside the firewall.

That's what I see in my crystal ball. Slates largely accelerate trends that smart phones started. Now I may be wrong of course. Time will tell. But I see a lot of promise for these devices and potentially many winners, not just Apple.

13 Apr 2010

The Swiss Cheese Web Ain’t The Web

The following essay is also cross-posted on the Edelman Digital blog.

Edelman Digital Homepage

Seemingly overnight the Information Superhighway (does anyone call it that anymore?) became littered with potholes. In the last week Apple sold nearly 500,000 iPads, none of which support key technologies that we have come to rely on, including Adobe Flash, Windows Media and others. (Adobe and Microsoft are Edelman clients.)

For the last week I have been using my iPad as my primary device. I enjoy the slate format and think it’s the next big thing for computing – one that will see lots of winners. Unfortunately, this comes at a cost. I don’t get to experience the web like I used to, but a version of it that only Apple approves of – one that’s peppered with potholes that turns it into the swiss cheese web. The above image is what our own web site looks like on the iPad, which proudly uses Flash for certain features.

This poses a challenge for Web developers – one that Josh Bernoff so eloquently details on his post on the “Splinternet.” Should one develop the most robust experience using the best technologies on the market or should they kowtow to Apple’s vision for the Internet? Tough call.

In the end we believe that marketers should develop for the masses – the common denominator that unites the broadest universe of consumers. Right now, that’s desktop browsers with plug-ins. However, if developers need to start coding different versions of their site for different platforms, then we have trouble ahead. Standards are what made the web become a mass consumer medium.

Edelman Digital calls on Apple and all companies to support consumer choice – to allow consumers to have the same experience they are accustomed to on the desktop. Where once mobile devices were not powerful enough to run rich media technologies, that’s no longer the case. Why ban Flash and WMVs yet support Quicktime and PDF – two other standards. It makes no sense.

The Swiss Cheese Web ain’t the real web. At minimum Apple and others need to convey this up front (a disclaimer in their ads would be a nice start). However, it is our hope that they will open more and embrace the same standards that have allowed online innovation to blossom.

Steve Rubel's Posterous

Steve Rubel (bio) is SVP, Director of Insights for Edelman Digital, a division of Edelman - the world's largest independent PR firm.

He is charged with helping clients identify emerging technologies and trends that can be applied in marketing communications programs. Rubel also explores these topics on his site and in monthly columns for Forbes.com and Advertising Age. He can be found on Twitter and Facebook as well.

Steve can be reached via email at steverubel@gmail.com.

Note: Everything posted on this site is Steve's personal opinion. It does not represent the views of Edelman or its clients.