Want To Reach Light TV ...

I’ve said it before, and I’ll say it again: The children are our future. You can learn a lot about the future by watching them, particularly by watching how they use technology and how they consume media, and how that will translate into future business models. Take newspapers, for instance: Somewhere along the line the younger generation stopped reading newspapers, opting instead to get there news online. (This idea seems quaint, now, for those of us who make our livings writing for web-only publications.) Or take my generation, which somewhere along the line decided that it didn’t want land lines — who wants a phone that only rings in a place you’re rarely at?!?! — and went mobile-first, and in most cases, mobile-only. I thought about this trend when I saw a study YouTube did with Nielsen, seeking more information about the elusive “light TV viewers.” So what do we know about them? They’re generally younger — under 49 years old — and they tend to be well-off, college-educated, and highly influential due to their interest in social networking. In other words, they’re a highly coveted demographic among marketers. These aren’t the people who just sit in front of a TV for five hours every day. In fact, they average only about 39 minutes of TV viewing a day, according to the study. But it’s not like they’re great outdoorsmen. Instead, they are finding their entertainment elsewhere — online, on mobile devices, on social networks, etc. YouTube’s goal was to help advertisers better understand and target messages to this strange beast. The cross-media study with Nielsen looked at how effective ads were across TV, YouTube, and the Google Display Network. (GDN) And not surprisingly, the study found that advertisers can better reach kids who don’t really watch TV by also putting their ads on YouTube and GDN. Here are the stats to back those claims up: According to YouTube (and Nielsen), campaigns that included YouTube and GDN added four percentage points of incremental reach to light TV viewers. More importantly, it cost 92 percent less to achieve those results online versus on TV. The study also found that putting ads only on TV didn’t reach some 63 percent of light TV viewers — because duh, they don’t watch TV. But for me, the most interesting thing about this research around the “light TV” segment is that it’s growing, with the number of households opting for broadband Internet over cable TV increasing 22.8 percent over the past year. Granted, that’s 22.8 percent over a very small number, but it’s a much bigger percentage than the increase in the number of people who signed up for cable last year. The point is that, just like the kids who stopped reading newspapers or paying for landlines, we can probably expect this young generation of people who aren’t really that into TV to continue to not really be that into TV. And if that happens, the $100 billion TV advertising industry will need to find other ways of reaching that audience. As seen in the study, YouTube will be one of those channels, and an important one — but frankly, not the only one. We can expect to see TV ad spend shift to multiple new outlets as time goes on and marketers seek to reach an ever-growing number of viewers who are on their mobile phones, tablets, and PCs instead of watching TV.

Here’s What The Faceboo...

Editor’s note: This is a guest post by  Chester Ng , co-founder and CMO of SweetLabs, makers of  Pokki , an HTML5 app platform for the PC. The tectonic plates in the app world have been shifting quite a bit lately, in ways that will significantly impact developers and users. One major upcoming shift is coming from our friends in Redmond–Windows 8– and yesterday, we witnessed another major shift as  Facebook announced  their new App Center. After sleeping on it and reading dozens of generic blog posts about the announcement, this is what I think the Facebook App Center REALLY means (complete with lame taglines for your entertainment): 1. Throw a cat a bone. The dog has had enough to eat. The App Center is Facebook’s response to the big dog, Zynga, who recently  launched  their own social game portal on  Zynga.com . While  Zynga.com  is Facebook-friendly for now, the threat of independence hangs heavy in the air.  15% of Facebook’s Q1 revenues  were tied to Zynga games. It doesn’t take a genius to see that the App Center is hedging and diversifying. This is, combined with weapons like Open Graph, also about trying to help other “cats” (app and game developers) surface and thrive. The first battle in the social apps/games war is over, and Zynga won. But, as we know (and love), there is a plethora of creative talent out there ready to design, develop, and bring to market the next killer app/game. Facebook wants to make sure that happens within their walls. 2. All apps = social apps. Social apps = Facebook apps. So, all apps = Facebook apps? VentureBeat fell for it, when  describing App Center  as “a place to find social web, desktop, and mobile apps — and not just Facebook apps.” Hook. Line. Sinker. The App Center  guidelines  clearly state that to be eligible, your app has to be on Facebook canvas or use Facebook login. But, it somehow doesn’t have to be “a Facebook app”? Riiiight. Let’s pull the hoodie up off our eyes. Facebook intends to turn every app into a Facebook app, an important step towards global domination. A million apps aren’t cool. You know what’s cool? A BILLION apps. Now, that said, the Facebook App Center is theoretically more “open” and “friendly” to multiple devices than other app stores (iOS, Android, Metro). But it is not universal. This, to me, is further evidence that there is a real need… for an “Application System,” one that is not biased by any particular device, OS, browser, search engine, or social network. One that is all about the apps, not the walls around them. 3. Content is King. The King protects the walls. The majority of content in my Facebook activity stream consists of random updates/links, photos, and content generated by apps (and games). Well, Facebook will always own a monopoly on random updates/links, and they  just paid $1 billion  to gain control of the photo faucet. So, apps (and games) are the next logical faucet to grab hold of. Whether you scoff at or believe in the comparisons of Facebook to the original walled garden, Aol, we all know that those trusty walls collapsed when users flocked to content on the open web. Facebook is trying to get ahead of that possibility by ensuring that users can easily access and discover great content (apps) inside their walls. While I’m not a fan of handcuffs (unless they’re furry), the  quality tilt  is encouraging, if Facebook can leverage its data to improve app discovery. 4. fPhone + fOS is otw. The day will come for the  Facebook phone rumors  to officially die. That day will be the day the Facebook phone is released. Based on yesterday’s news, I’d expect the rumor-to-release cycle will be shorter than Google Drive’s 5 years. Apps sell phones. Phones sell apps. The App Center is paving the foundation for an OS and a phone, one in which “social” is no longer a descriptor or qualifier. It just is. As Facebook charges towards the “largest technology IPO in history,” there are a number of smart, strategic reasons for them to throw down on this App Center. But let’s not kid ourselves here with talk of a new, “open” approach to apps. This is ultimately all about deploying aggressive offensive and defensive measures to bolster their walls and connect everything and everyone to Facebook. Please “like” this post on my Facebook, thanks!

Nokia Adds Apps To The ...

Windows Phone is way behind Android and iOS when it comes to apps — only about 80,000 apps compared to 500,000-600,000 each at the other two — too far behind to possibly ever catch up in actual numbers any time soon. So it makes sense that Windows Phone players cherry pick to ensure the best and most popular apps out there are on their platform. Today Nokia did just that:  it announced deals with a raft of companies, including Box, Groupon, EA, ESPN, Rovio and more to add their apps exclusively to Windows Phone for Nokia’s new range of Lumia devices. Announced at the CTIA event , the deals are an instance of Nokia leveraging the Windows Phone platform to offer content exclusive to users of its devices: services like Nokia Maps get rolled out to the rest of the Windows Phone footprint. “We are focused on delivering great, locally relevant apps, and importantly, those which offer unique, exclusive and original experiences,” Marco Argenti, SVP, Nokia Developer Experience, said in a statement. The move is a significant one for Nokia to take, as it looks to grow the number of sales of the device and demonstrate that it is not just another OEM on the platform but bringing its own unique value to the proposition. Apps, of course, are a huge part of what drives consumers to use one smartphone over another. Just yesterday, we revealed that Google had passed the 15 billion download mark for apps on its Android platform; Apple has now seen downloads of 25 billion. Among the apps that are included in today’s announcement, made at CTIA, are several under exclusive terms. They include several in the sport category, such as the PGA Tour app (12 month exclusive) and a variety of ESPN apps (exclusive to May 2013). Additionally, there is a Groupon app (exclusive for six months); the Tripdots travel app (three month exclusive); and the AOL Entertainment Hub (six month exclusive). In addition, Nokia notes that Rovio has assembled a dedicated team of developers who will be making apps for Lumia devices specifically and the WP platform more generally — a quick recovery after the debacle the other month when an executive dismissed the Windows Phone platform for future games, Angry Birds or otherwise. It sounds from Nokia’s press release that it is actually investing money in Rovio’s developer effort. Some of that will be for exclusive content as well: “Nokia and Rovio will partner to develop innovative new consumer products and content exclusively for Nokia Lumia smartphones, alongside cross platform multi-channel integrated marketing initiatives,” the company notes in its statement. It looks like there may be a similar arrangement in place with EA as well, covering a variety of games. Other apps announced today include apps for Time, Newsweek, PayPal and Box — all of these with no Lumia exclusivity, it appears. What we will still have to see is how and if the Barnes & Noble deal that Microsoft announced last week will play out for other players in its mobile ecosystem: will it mean more content — more exclusive content? We asked Nokia for its take on that and it declined to comment. The Lumia devices are now on sale in 48 different markets; up to now Nokia has sold some two million Lumia handsets, according to its latest quarterly earnings .

Rovio’s Big Year: Angry...

We all know what a wild success the Angry Birds franchise has been for Rovio , with the best-selling mobile games spawning cookbooks, toys and much more besides. Today the company revealed just what kind of an impact that has had on its bottom line for its really Big Year . The company today issued a statement that noted that the company made $106.3 million (€75.4m) in revenue in 2011, with earnings before tax at $67.6 million (€48m) — with 30 percent of that coming from its merchandising and licensing activities. Monthly active users of the app are now at 200 million, with 648 million games downloaded in total. I’m not totally sure — I’m still hunting — but it looks like this might be the first time ever that Rovio has put out annual results like this. It might be because it is looking for some more transparency in the lead up to an IPO. It’s something that has been informally discussed in the press before, with the Mighty Eagle, Peter Vesterbacka, in December telling Reuters that an IPO could come in 2013 on the Hong Kong exchange. Today, Vesterbacka formally told me that there are “no further comments” on IPO plans. The $106.2 million revenue figure/200M MAUs are nothing short of an enormous leap for Rovio. In 2010, it reported  revenues of $7 million from the period from July to December. GiordanoContestabile from PopCap estimates that Rovio made $10 million in total in 2010. The company announced in March 2011 a Series A investment of $42 million from Accel and Atomico, and at that time it had “only” 40 million monthly active users. Angry Birds first went live on iOS in December 2009. Of $106.3 million in revenue, $32 million is coming from what Rovio calls Consumer Products, which includes both merchandising and licensing. Rovio says that it now has 200 licensing partners developing new products and services. The company looks like it will be putting the gas on doing more of that in the future, even as it launches new games, perhaps beyond the Angry Birds brand: “The strong growth in revenue clearly demonstrates the popularity of the Angry Birds brand.” Mikael Hed, Rovio CEO said in a statement. “The heavy investments made in 2011 to all business areas will be seen in future products. To ensure continuous success we need to be creative and stay focused on entertaining our millions of fans by continuously developing new and innovative products and services.” The company also ramped up its headcount about tenfold: it now has 224 employees compared to just 28 at the start of 2011. Release below ROVIO ENTERTAINMENT REPORTS 2011 FINANCIAL RESULTS 07.05.2012 Helsinki, Finland  –  Rovio Entertainment Ltd , the world’s leading provider of mobile entertainment and creator of the Angry Birds franchise, today had the pleasure of announcing the financial results for the full calendar year of 2011. Total revenue amounted to €75.4 million ($106,3 million) driven by strong growth in game download activity and consumer product sales. Earnings before tax were €48,0 million ($67.6 million) or 64% of total revenue in 2011. “The strong growth in revenue clearly demonstrates the popularity of the Angry Birds brand.” Mikael Hed, Rovio CEO said. “The heavy investments made in 2011 to all business areas will be seen in future products. To ensure continuous success we need to be creative and stay focused on entertaining our millions of fans by continuously developing new and innovative products and services.” The Angry Birds franchise fuels Rovio’s performance The financial outcome of 2011 is very positive for Rovio.  Rovio’s different business areas, Games, Advertising, and Consumer Products, are fully rolled out and generated both revenue and profit. The Consumer Products business area, which includes both Merchandising and Licensing income, generated revenues that represent a about 30% of total revenue in 2011. The company was working together with more than 200 licensing partners on developing new products and services within the Angry Birds franchise. Rovio’s game offerings in 2011 consisted of three games, all based on the Angry Birds characters: Angry Birds, Angry Birds Seasons, and Angry Birds Rio. The games are available as both free and paid versions on all popular mobile and connected devices. The total number of game downloads reached 648 million by the end of year 2011 and the total number of active monthly users, across all platforms, reached 200 million. The number of employees grew from 28 to 224 during the year 2011. Market and business development expectations Future sales will to a large extent depend on the launch schedules and success of new games and initiatives in 2012. As sales of new devices remain the main driver for mobile game downloads, Rovio expects business to continue to grow accordingly. “We are very optimistic about 2012 due to significant investments in product development, cutting-edge branding, brand protection and corporate infrastructure,“ Mikael Hed said. Notes: - Currency exchange rates EUR/USD is based on 2011 median of 1,41. - Rovio Entertainment Oy´s financial figures have been prepared in accordance with Finnish Accounting Standards (FAS).

American Icons Top Bran...

An icon is a symbol that evokes a visceral feeling when you see it. They’re well-known images that nearly everyone can relate to and generally they represent the very best a category has to offer. All that may sound very grandiose when talking about advertising, but there are handful of brands that truly are American icons. You’ll find most of them at the top of CoreBrand’s 2011 PowerRanking Report. To build the list, CoreBrands surveyed 10,000 consumers asking them to rank brand names based on familiarity, reputation, and favorability over other brands. The usual suspects landed on top without too much shuffling in the rankings over the past few years. Harley-Davidson jumped up after a decline but I don’t get why they’re listed in the Hotel & Entertainment industry. Looking specifically at retail, CoreBrands notes that the report shows a shift toward “value-based purchasing.” Kohl’s, Wal-Mart, and J.C. Penney all showed growth. MasterCard and Visa both rose up in the ranks, too, but not a single bank or insurance companies made the top 100. That shows quite clearly how we feel about those industries. In technology, Apple jumped from 53rd in 2010 to 33rd on the current list. Microsoft and Dell both rose 14 spaces but old-school leader IBM fell to 66th on the list. Back in 2008, they were in the top 20. Oh, how the mighty have fallen. In spite of their troubles, Yahoo rose 46 points since 2008 and not surprisingly Google and eBay have soared to grand heights. Looking strictly at growth over last year, the New York Stock Exchange came out on top (ironically) rising 29 points. that put them barely inside the Top 100 for the first time in years. The biggest losers? TV networks. All three took big hits this year but at least they’re equally disliked: NBC (-26), CBS (-28) and ABC (-24). If you were to pick the top brand in the US, what would you pick? Would Coca-Cola reign supreme, or do you think some other icon should top the BrandPower list?