The State of the Internet: Past & Present

Hola Todos!

Last week, The Wall Street Journal held its annual All Things D conference, of which the heavyweights of the heavyweights (Tim Cook, Sheryl Sandberg, Dick Costolo, Elon Musk and many others) came to Rancho Palos Verdes, CA to sit down with Walt Mossberg, Kara Swisher and colleagues to discuss the state of the tech industry.

Although all the presentations are nuggetworthy some way, shape or form, Mary Meeker’s (VC at Kleiner Perkins Caufield & Byers and formerly of Morgan Stanley) annual State of the Internet is especially noteworthy.  It’s amazing to see 117 slides go in 23 minutes flat – I mean this presentation moves! Moreover, I feel this presentation has been shared around the blogosphere more than any other at D11.  For instance, here’s one post from Philip Elmer-Dewitt of the Apple 2.0 Blog highlighting 10 of the 117 slides that pertain specifically to Apple.

I say watch the presentation and check all 117!

Best regards

Dr. Dan-o

 

Daniel M. Ladik, Ph.D.,

Associate Professor of Marketing

Stillman School of Business

Seton Hall University

 

 

 

 

Topic Talk Thursday – The Digital Divide

Hola Todos!

Today’s topic talk is courtesy of Heather Linton, an Instructor of Marketing at Ithaca College (Ithaca, NY), with specific interest in the fields of tourism and digital marketing. When you get a chance, visit Heather’s site  digitaldmo.com or find her on LinkedIn (heather@heatherlinton.com) for more information.  In her topic talk, Heather discusses the digital divide and its impact this divide has on society.

Heather, the floor is yours….

 

Hello everyone,

While browsing Ted.com looking for interesting examples for my marketing classes, I came across a fascinating presentation by Richard Wilkinson.  (http://www.ted.com/talks/lang/en/richard_wilkinson.html). He theorizes that within each country, income gaps (differences between the highest and lowest relative income in a society) determine the extent of many social issues. The average well being of our societies is no longer dependent on our national income; what matters is the differences between individuals within each society. The chart below shows that countries that are more equal in terms of income (like Japan and Sweden) have much lower rates of health and social problems (list on the left). Countries that are less equal in terms of income (like the USA, Portugal, and the UK) have higher rates of health and social problems. I highly recommend watching the 15-minute video to view his full talk, but I want to talk about a different issue here.

 

In my classes we talk briefly about the digital divide, and I began to wonder what sort of ethical impact this has on society. Since I am one of the lucky ones with very good internet access, I began researching.

First of all, in case you’re not familiar with the digital divide, it is broadly defined as “the gap between those people who have internet access and those who do not” (www.dictionary.reference.com). The PewResearchCenter (http://pewinternet.org/topics/Digital-Divide.aspx) furthers this definition, stating “Internet access is best understood as a spectrum, ranging from people who have never been online, to those who have dial-up or sporadic access, to those who have broadband at home and at work.” This could also encompass entire communities, not just individuals.

So why aren’t people online? Another Ted talk by Aleph Molinari (founder of Mexican company RIA) (http://www.ted.com/talks/lang/en/aleph_molinari_let_s_bridge_the_digital_divide.html) gives a good 10-minute overview that is worth a watch. He brings up the point that the digital divide is a new type of illiteracy. His reasons for the digital divide are as follows:

  1. Can’t afford the technology
  2. Don’t know how to use the technology
  3. Don’t understand the benefits that derive from technology

The world population is nearly 7 billion, but only about 2 billion are digitally included – about 30% of the population. This means that the remaining 70% of the world, close to 5 billion people, do not have access to computers or the internet. In the map below we can see that most people with internet access are in North America and Europe, and most of the rest of the world isn’t able to broadcast themselves and share ideas and connect with others in a way that you and I take for granted.

Map from http://www.chrisharrison.net/index.php/Visualizations/InternetMap

Organizations like One Laptop per Child (one.laptop.org) and RIA (http://www.ria.org.mx/site/) have similar missions of providing internet access, training, and information to those on the lowest end of the digital divide around the world, although their strategies to reach those goals vary.

Molinari also theorizes that although our world is going through a digital revolution, 70% of global citizens aren’t able to be a part of this. They won’t be able to compete in labor markets as we move towards a more digitally based workforce. They will be less informed as information moves online, and less inspired and responsible. He argues that internet should be a right, not a luxury. It allows us to connect, it empowers us, and is a tool for change.

However, we also need to consider users domestically as well. While 93% of teens were online as of May 2010 (most recent Pew data available), only 42% of adults age 65 and older used the internet.

Chart from http://pewinternet.org/Infographics/2010/Internet-acess-by-age-group-over-time-Update.aspx

 

Think of all the information that adults age 65 and older would benefit from being able to find online. Healthcare and diet resources, part-time or home-based jobs, social connections for those who find it difficult to leave their homes, better relationships with their families who are already sharing their lives online, etc. Why aren’t they online? I believe for the reasons Molinari notes above – they can’t afford it, they don’t know how to use it, or they just don’t know why they should be online.

This also brings up the issue of high-speed internet being available to everyone. Many people in rural areas can’t get cable internet or DSL, and are stuck on dial-up, which certainly doesn’t provide full internet capabilities, or satellite, which is expensive and also challenging to use. This means many things, like individuals can’t accurately research purchasing or life choice options online. Rural healthcare facilities, even in the US, may not have access to information networks that would greatly benefit their staff and patients. The list goes on.

What other issues do you see related to the digital divide? Some governmental groups and NGOs are looking for solutions, but what do you think? How can you take action and reach out to your friends or family who aren’t online and help them get there?

 

Best regards,

Heather Linton,

Instructor of Marketing at Ithaca College (Ithaca, NY)

Founder, digitaldmo.com

Nike is in the Vanguard – AGAIN – This Time with Digital & Interactive Advertising

Hola Todos!

I knew this would happen someday (I always thought the feature article would be about Proctor & Gamble but Nike is an excellent exemplar too).  I’ll let the quotes speak for themselves (click here for full article):

 

“Nike’s spending on TV and print advertising in the U.S. has dropped by 40% in just three years, even as its total marketing budget has steadily climbed upward to hit a record $2.4 billion last year.”

“Clearly they think they can get by without big television campaigns anymore.”

“That’s a major change, Nike CEO Mark Parker explained to Fortune. “Connecting used to be, ‘Here’s some product, and here’s some advertising. We hope you like it,’ ” he says. “Connecting today is a dialogue.”

“(Nike) spent nearly $800 million on ‘nontraditional’ advertising in 2010, according to Advertising Age estimates, a greater percentage of its U.S. advertising budget than any other top 100 U.S. advertiser. (And Nike’s latest filings indicate that that figure will grow in 2011.)”

“(Nike) has overhauled its $100 million-plus campaigns around major events like the World Cup and Olympics to focus on online campaigns first. The result? Before, the biggest audience Nike had on any given day was when 200 million tuned in to the Super Bowl.  Now, across all its sites and social media communities, it can hit that figure any day.”

 

I have been singing this song for the past 3 to 4 years now: the decline of traditional shotgun mass-marketing national TV advertising and the rise of interactive, two-way, trackable and ROI calculating advertising – all at the same time being significantly micro-targeting to smaller and more specific customers.  Well done marketing team at Nike, well done.

I have a feeling that 12 months from now, Nike will not be the only company in the top 100 advertisers list that spends more on interactive & two-way advertising than traditional mass marketing TV ads.

 

Best regards,

Dr. Dan-o

 

Daniel M. Ladik, PhD

Associate Professor of Marketing

Stillman School of Business

Seton Hall University

The History of Marketing with a Heavy Focus on the Shift from Outbound to Inbound Marketing

Hola Todos!

While I would never call this Infographic “exhaustive” as the title of this blog post suggests (click here for blog post), I still found the information “nuggetworthy.” The downside to Infographics are that they trade off content depth for visuals as correctly described in one of the post-blog comments: “Infographics are very interesting and quite visual but shallow in depth. If that is the goal, it serves it’s purpose.”

My suggestion is to focus on the latter half of the Infographic beginning with header “The Age of Inbound Marketing” sandwiched date-wise between 2000 “The Bubble Pops” and 2003 “Fighting Spam.”

Best regards,

Dr. Dan-o

 

Daniel M. Ladik, PhD

Associate Professor of Marketing

Stillman School of Business

Seton Hall University

 

 

 

 

 

Apps, Pinterest, Human as Brand, Apple CLV & Potpourri

Hola Todos!

I had a crazy/nutty/busy last week so I did not get a chance to read much – or as least read as much as I usually do.  Moreover, classes are in full swing so we a plethora of different conversation threads active among us.  I love to add fuel to the fire so here are some excellent new stories from the last week:

How to Create a $1M App with a $10K Marketing Budget

Super Bowl Advertising – Social TV Experience (e.g., Shazam, GetGlue, etc) in the Forefront

Google Knows Too Much About You

Human as Brand/Fan Identity w/The Phantom Menace

Human as Brand/Fan Identity w/Kathy Ireland

Pinterest – Why Image-Sharing Network Pinterest Is Hot

Pinterest – The Appending Affiliate Links to Some Pins

How Pinterest is Becoming the Next Big Thing in Social Media for Business

12 Most Effective Ways to Engage on Twitter

Apple, Customer Lifetime Value & Customer Churn

Enjoy!

Dr. Dan-0

 

Daniel M. Ladik, PhD

Associate Professor of Marketing

Stillman School of Business

Seton Hall University

 


Facebook and the IPO

Hola Todos!

Well…. the day has finally come – Facebook filed IPO earlier this evening and their S1 is now available (click here).

Right now, the blogoshere (Twitter, blogs, etc) is having a field day as my relatively small Twitter feed is seeing 10 to 15 new tweets per minute.

I am sure there will be better and more detailed articles published in the next 24 (Facebook has almost a 20 to 25% margin last year!  That’s better then I thought) but for now, here’s two really good ones

Details on the S1 (click here)

New expectations on a young and soon to be billionaire CEO (click here)

Happy reading..

Best

Dr. Dan-o

 

 

Apple’s New Sandbox – Textbooks: It Might Disrupt More than Just the College Textbook Industry

Hola Todos!

Being an Apple aficionado and a college professor, I watched Apple’s announcement of iBooks 2, iBooks Author, and iTunes University with great interest (click here to see Apple’s presentation). Here’s my take on the new initiatives.

First, Wall Street was not that excited.  Apple’s stock was down a number of points the day before and closed down on the day of the event.  Friday didn’t bring it back either but today, the stock earned back all the points Apple lost on Wednesday-Friday.  I bet this has more to do with Apple’s upcoming and expected record earning call on Tuesday than any of last week’s announcements.  As I like to poke fun at Wall Street, the Street was probably not excited because (1) Apple leaked many of the big thoughts in advance of Thursday’s presentation in the Big Apple but more importantly, (2) Wall Street is overly near-term and short-sighted as none of the new initiatives will impact Q2 in a major way.  While I agree nothing announced was mind-blowing like an iPad3, iBooks 2 has the potential to do what iTunes did to the record industry and that my friends, will be mind-blowing many quarters down the road.

Second, it was interesting to play “Monday Morning Quarterback” and blurt who were the big losers based on Apple’s new initiatives.  The most obvious are firms who run college bookstores like Follett and Barnes & Nobles. College students know all too well that it is very easy to drop at least $400 to $500 per semester on textbooks.  That revenue will disappear in the very near future.  Also middlemen/wholesaler firms involved in selling in the K to 12 marketplace will be disrupted.  All “used” non-university run college bookstores will disappear as well as rental services for educational books.  The other big losers are again Barnes & Nobles and especially Amazon.  Both of these firms have the relationships with the textbook publishers, the network to distribute textbooks AND an electronic device to distribute electronic textbooks (e.g., Nook and Kindle/Fire, respectively).  Yet, both of these firms dropped the ball and let Apple walk in al take this market away from them.  Apple did the same thing to Sony with the iPod/iTunes marketplace even though Sony had all the elements to do what Apple did in the Music industry. I’m sure the other firms will scramble around to cut deals with the college textbook publishers and these publishers would probably want to more sure Apple isn’t the only game in town.  But Apple got there first, and Apple by far has the best electronic device to experience electronic textbooks.  Round one goes to Apple.

Third, not discussed in a major way by Apple was self-publishing. Thursday’s event was powerful because not only are the three largest textbook publishers are onboard from day one, two of the three CEOs of these firms participated via pre-recorded video.  The way the iBooks Author program is set up, I could self-publish any book project rolling around in my head. Apple could not play this card up given the players involved in the announcement.  Yet, Amazon has been publicly trumpeting this song for the better part of three to six months, even to the extent of going after authors and signing them to lucrative self-publishing contracts.  My guess is none of the big three textbook publishers are happy with Amazon right now and I bet it made the deal making easier from Apple’s side of the equation.

Fourth, I think Dean’s and Universities should pay close attention to this iTunes University play with strong paranoia. Think about it this way, if this open or online initiative goes viral and expands quickly, small or mid-tier initiations could easily disappear.  Right now, MIT can only handle (e.g., classrooms, dorms, professors, etc) so many students a year.  For argument sake, let’s say its 20,000 students at $45,000 per year.  However, the MIT online degree program (which is taught by the same professors who are on campus) could handle 250,000 students at $7,500 per year.  (Please note; I am making this numbers up for pure illustrative purposes).  Given the realities of higher education today, some students might choose an online MIT option over a $20,000 per year pubic or $40,000 per year private University option. Now that would disrupt more then just the college textbook industry, it could up-end a multitude of higher education institutions.

Finally, I expect a new iPad in the very new future.  Yes this is an easy call, as we know iPad3 will be around sometime in March/April 2012.  However, I would also expect an iPad Mini or iPad Lite or iPad something closer to the $149 – $199 – $249 price points of the Nook/Kindle devices.  We all know the money is in the hardware.  Apple created the iTunes store to sell more iPods.  Apple created the iBooks2 store to sell more iPads.  Too many K to 12 students and K to 12 school systems are cash strapped and cannot buy a $499 device to read a $14.95 textbook.  Before the end of this year, if Apple is smart, that will change. We all know all is smart – ask Sony, Microsoft, Dell, Amazon, etc…

Best regards,

Dr. Dan-o

 

Apple, Google, Amazon, and Facebook: “The Four Horsemen of the Tech World.”

Hola Todos!

Ever since I watched that incredible video two weeks ago on This Week in Social Media (for full post, click here), I have been calling Apple, Google, Amazon, and Facebook “the Four Horsemen of the Tech World.”

NPR (click here), via a good article from Fast Company (click here), also believes these are four leaders and each are increasingly battling for the same turf. Could this be one of the early story-lines to follow for 2012?

Enjoy!

Dr. Dan-o

 

 

 

Topic Talk Tuesday – How Do You Listen To Music?

Hola Todos!

Today’s topic talk is from Matt Kirsch, Owner/Artist Manager at Collateral Artist Group, LLC.  Matt has extensive experience in the music industry (click here for a Rolling Stone article on the new economics of the music industry).  In his topic talk, Matt asks us is the MP3 player dead and we’re moving to an all-streaming model?

Matt, the floor is yours…

 

Hello everyone,

Here’s a question I have been thinking about for awhile – - Would you rather have a song in your possession, whether on CD or as an MP3, or just be able access a stream of it whenever you wanted?

Throughout the past decade, the music industry has been in an almost constant state of adaptation, which, for better or for worse, has made a significant impact on how we view and listen to music today. With the advent of music based social media sites like Rdio, Last.fm, and most recently Spotify, the concept of how we listen to music on a daily basis has changed dramatically.

Leaving out the proverbial ‘elephant in the room’ of illegally downloading music, the debate becomes one of convenience. Why own an MP3 player or buy a CD when your phone can stream music anywhere? The obviousness of carrying around one less gadget, or emptying a glove-box full of disks is clear, at least to me.

MP3 players became dominant in the market because they could hold and store more music than a Walk-Man or portable CD player, and now it makes sense that they be replaced by the unlimited storage potential of internet streaming. While MP3 players are by no means outdated, in the ever-evolving world of music, online music streaming can go beyond simple playback to actually assisting listeners with the discovery of new music.

New technology is designed to make our lives easier, and while it is certainly possible to take advantage of all these resources for music listening, I like to support innovation wherever possible. The bottom line is that streaming services give the listener one more avenue to explore in the world of listening to, and most importantly, discovering new music.

Something to think about today…

Matt Kirsch

Owner/Artist Manager at Collateral Artist Group, LLC

Topic Talk Thursday – Google Analytics

Hola Todos!

Here’s something different folks – a VIDEO topic talk courtesy of Donato Dandreo, President/Founder of Compete Now (click here).  Donato’s Boston-based firm specializes in all aspects of web design, graphic design, and e-marketing strategies for small businesses.  In this video, Donato gives us multiple nuggets on the ins and outs of the Google Analytics tool (something I check a number of times a week).

Donato, the floor is yours……(click here).