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Australian digital media forecasts by PWC

Great infographic by PWC Australia, with some great snippets of mobile device consumption  in Australia:

  • 19.6 million connected mobile subscribers
  • 93% smartphone penetration by 2018
  • 80% tablet penetration by 2018
  • Investment in public cloud services to grow 63% to $5.2 billion by 2016

digital trends driving mobile consumers

Google vs Facebook revenues: infographic

Google revenue

 

 

Probably not the fairest comparison given that Facebook only started monetising quite recently, but a stark reminder that Facebook is still securing its future (not that $6.4B a year isn’t enough to keep the business afloat), while Google remains a highly cashed up entity and still has strong market share (of course). Not sure where their numbers came from to say that Google has 53% of mobile advertising revenue so I’ll take the number with a grain of salt, but I think the comparative point is made all the same!

 

 

 

Google deploys NFC campaign in Aussie airports

Google Play OOH! Media NFC campaign

Great to see NFC campaigns alive and well here in Australia. As I haven’t travelled for work much recently, I actually came across this campaign via the NFC world site and not in real life. What a shame! I’ve shamelessly borrowed their links here but all credit to NFC World for picking up the story.

Google’s Play store partnered with OOH! Media to enable visitors to a number of Australian airports to control a digital panel screen by tapping their NFC enabled phone or by scanning a QR Code for those devices not so proximity inclined. The screen was essentially a way to browse through apps the user might like to download before their flight, to entertain themselves.

I like the concept of the Red Crystal software, which enabled users to do this seamlessly without having to download any software onto their phone.

As usual with NFC, a great video demonstration of the installation really brings it to life.

 

Yahoo: sacrificing $170 billion annual revenue for Tumblr’s $100 million. What?

Yahoo to acquire Tumblr for $1.1 billion

Yahoo to acquire Tumblr for $1.1 billion

Yahoo’s recent $1.1B bid for Tumblr has polarised opinions for and against, amongst people I’ve spoken to.

On the one hand, the acquisition can be seen as a shrewd move by Yahoo CEO Marissa Mayer to increase engaged audience amongst younger demographics. Bigger audiences across a wider spread of people can not only mean more advertising dollars to cater for those diverse audiences, but also a more effective management of the risk associated with being perceived as the fuddy-duddy network (I just made that up, but I think it’ll stick).

On the other hand, what’s the real value of having younger audiences on your network? I’m slightly more familiar with the Channel 10 TV network in Australia which has recently publicly stated its intentions to move as far away from the younger demographics as possible and to recast itself as a network catering to older audiences. Why? Advertisers know that while it’s cool to have young people watching or engaging with your content, it’s the older, more established markets that have money to spend on your products and services. They’re less fickle (most of the time), and they know what they want. They’re more established in life, and have higher incomes, less mortgages (or at least can handle them better). To showcase how younger generations respond to such things – the first thing that happened when loyal Tumblr users heard Yahoo might buy the network – was threaten to leave and find somewhere else that wasn’t run by fuddy-duddys.

Is it worth pursuing the younger demographics in the name of audience share?

Is it worth pursuing the younger demographics in the name of audience share? Graph via Comscore Datagems

So there’s certainly a big risk in going after the younger demographics.

Personally, now seeing what Yahoo intends to do with the $7.6 Billion it made from its 2012 sale of AliBaba, I’m wondering how the numbers stack up:

Tumblr, with $26M in revenue with accumulated venture capital debts of $125M. It was forecasting a $100M revenue year for 2013, all via advertising. Although the press release stated Tumblr has 300 million registered users, some educated guesses put it as low as 30 to 50 million people once you use the same measure that Twitter and Facebook do to measure their user numbers.

Alibaba, on the other hand was unwanted by Yahoo despite making $170 billion in revenue last year. It has less users – the company claims 79 million registered users – but in a transactional marketplace, it’s only the revenue and revenue per user that counts. Needless to say, with much of Alibaba’s audience starting in and around China – the prospects for scalable growth remain high, even to the pessimist.

So I’m worried that multi-billion dollar companies are selling off businesses that are making money, to buy ones that might. I’m always an advocate of pursuing new ideas, chasing the growth and changing things for the better, but I’m yet to be convinced that Yahoo is headed the right way. I’m happy to be proved wrong.

Deliriant Isti Romani – These Romans are Crazy!

When ‘digital’ becomes commonplace – where do we take the industry?

Digital media

The interesting thing about digital convergence for those that have worked professionally to develop and foster it is that it becomes harder and harder to define what you do, when the lines between different parts of the industry are blurred.

For example, what does it really mean these days to say to someone that you work ‘in the digital industry’? A few years ago, this was a coveted thing to claim, but in 2013, being a digital person could mean you know something about how to use a computer, which might make you thoroughly outdated, or it might mean you know something about social media – which would make put you on the same level as 1.1 billion other people. The list goes on.

Similarly, User Experience (UX) practitioners were once a fabled entity that were craftsmen far beyond the skill of any designer – but look up any decent online designer’s LinkedIn profile these days and you’ll inevitably see that they’re also a UX person too (whether you believe it or not).

So with convergence a thing of the past – and not something still to come – it leaves people like myself, who led the original charge into the digital era – to find new ways to continue to guide people, brands, and other organisations (Government and non-government) smartly into the next wave of ubiquitous media consumption.

That becomes tricky – we now see waves of experts in mobile, people who know analytics, people who know responsive design, and whatever else the buzzwords are of the day. The continuous proliferation of expertise in various areas of the digital economy still leave the most important question unanswered:

Where are we headed?

 

I saw some interesting work at Nielsen’s recent Consumer 360 conference which we hosted up in the Blue Mountains recently which took a broad look at the impact of convergence on advertiser brands (particularly retail). One of the key takeaways was something that those of us at the forefront of the industry know all too well:

Australian Consumers are far ahead of Australian organisations when it comes to consumption of digital media devices and platforms.

Ross McDonald, Media Industry lead for Google Australia, pointed out their estimates that only 1 in 3 Australian companies has a mobile-ready website. His advice to advertisers and other organisations with respect to digital? “Do more, and do it faster”

The challenge remains for industry leaders to find ways to nurture and accelerate this development.

Pre-tail: consumer demand for products before they launch

It’s no secret that people are becoming more savvy to ways of seeing what lies ahead in technology and product development. Platforms like Kickstarter and a host of copycats have now made it possible for everyday consumers to be able to get in on the ground level of a great idea, and in some cases, even have some ownership of that idea as an early stage investor.

That concept extends far beyond technology, and even reaches as far as fashion these days. Consumers using that age-old concept of people power can vote for, invest in or give feedback on any product concept before it goes to market, helping shape and refine the product while also giving those same consumer first-rights access to the product.

The infographic below is from the guys at trend-watching which showcases some of their views on Pretailing.

Pretailing

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