DRM Promotes Pirating
March 1, 2009
(Sorry for the cheesy image. I just figured this blog could use a little Johnny Depp.)
Pirate software is a huge problem for software developers. The Internet is a beast that cannot be regulated. Those who wish to steal software, will. So how can companies fight against this? Restrictive Digital Rights Management (DRM) has been their answer, however, it doesn’t work. Punishing paying customers with crippling DRM, which pirates simply bypass, only leads to a frustrating experience.
Although many pirates will never pay for software that they don’t have to, there is a portion that choose to illegally download their wares in order to bypass DRM. More importantly, DRM’s limitations and annoyances may persuade legitimate users to become pirates.
Companies need to quit treating their customers like criminals and embrace the reality of the digital age.
Nothing Says, “Don’t Hire Me” Like sexybeast69@aol.com
February 23, 2009
Once more, courtesy of Guy Kawasaki’s blog, are some excellent resume writing tips. The advice comes directly from veteran CEO, Glenn Kelman. While I’m sure many of his points may seem redundant, especially for those in the LCB, there are a few greatly underutilized tips to help YOU stick out of the crowd:
“LinkedIn endorsements: persuasive, even from your friends; excerpted & linked.”
LinkedIn is your professional identity on the web. It’s a tool that all students and professionals should utilize to network and establish/build identity. It is an online extension of your resume. Although I don’t completely agree with Kelman’s recommendation to include endorsements within your resume, linking to your LinkedIn page is a must. Not only will this encourage employers to learn more about you and therefore give you more opportunity to “sell yourself” but it also shows that you are highly motivated and accustomed to technology of the continually changing business world.
“A link to your blog: a blog gives you online street cred. For some, it is your resume.”
This is one of the reasons I started this blog. I don’t expect people to actually read this stuff. I should really rename it to something more fitting, like EULA. I primarily began blogging to practice my writing “skills” and help brand myself with a portfolio of my interests. Who knows, this blog may give me a competitive advantage in the job hunt.
“Gmail address: or your own domain. Nothing says ‘totally out of it’ like an AOL address.”
I’m hoping this is the most obvious. Employers don’t want to hire CougarHunter123@aol.com or babychick86@juno.com.
For those of you like me who are about to start the job hunt, take a look at the rest of Kelman’s tips before brushing up your resume. Unfortunately, your resume may be the single most important piece of paper written throughout your life.
Must Know Presentation Tips
February 19, 2009
Check out these great presentation tips. Some may sound very familiar, especially to business students, but I bet you’ve never been told to eat protein before speaking.
It’s Time to Monetize Twitter
February 15, 2009
I wrote this paper last term for MKTG 445, proposing a solution to Twitter’s monetization problems. I figured I would throw it online in light of my recent comparison of Google and Twitter.
The web is all about social networks now days. They have helped launch us into a Web 2.0 environment where consumers are empowered to create their own content. Multi-billion dollar startup Facebook has propelled its creator, Mark Zuckerburg, to become the youngest billionaire of all time since its launch less than five years ago. Myspace is another widely popular social network and has attracted more than 110 million users.[1] YouTube is another fairly recent start up that has revolutionized online video and altered many viewers’ entertainment habits. Although relatively new in comparison, Twitter.com has accumulated millions of “addicts” to become today’s fastest growing social network with 343% growth since September 2007.[2]
(Source: Compete: <http://siteanalytics.compete.com/twitter.com/?metric=uv>)
What is Twitter?
Twitter has estimated valuation of $80 million[3] and like all social networks, it relies on its users to create its content. The site itself is essentially a blank slate for its visitors to interact. Each registered user has the ability to post an infinite number of short, 140 character messages to their own personal feed. Twitter has created such a large, active user base which analysts have estimated send 35 messages every second![4] Each message has been coined a “tweet”. Users can then “follow” other’s tweets which then get aggregated to a single page. Twitter, at its essence, is a micro-blogging community. Users can access their customizable feed on their computer or cell phone. They even have the ability to receive SMS text messages of tweets from those that they follow. Since SMS messages are limited to 160 characters, each 140 character tweet will be fully delivered without parsing.
Twitter’s Problem
Despite Twitter’s growth and success in creating a unique platform for those to communicate with one another, the company has yet to make a dime. In fact, it has been hemorrhaging money since its launch in October of 2006. They received multiple rounds of venture funding. While the dollar amount has not been released, it’s safe to say millions have been poured into the site. Naturally this would draw concern for the venture capitalists who have taken a risk to invest in Twitter. CEO Jack Dorsey and others behind the initiative, have yet to announce their monetization plans.
3rd Party Monetization of Twitter
Although Twitter itself has not made money, others have benefited from the service by developing tools and profiting from them. Many have successfully sold Twitter applications for cell phones. Twitterrific by IconFactory is an example of this success as they have sold to thousands for $14.95 each. Many businesses have used Twitter to promote their products and services or to exercise good will amongst its customers through public relations. Comcast has taken advantage of this by posting and replying to customers through Twitter (www.twitter.com/comcastcares). Individuals have also used the platform to socially advertise. Barack Obama’s campaign has seen the benefit of promotion through Twitter.
Monetization Proposition
Twitter has built a loyal fan base and attracted millions of viewers and active participants; however, they have yet to create revenue. As with the majority of other social networks, Twitter should begin to sell advertising. Part of its success and the beauty of its design come from its simplicity. Implementing linking ads within tweets themselves will not distract from its clean design. Advertisers can then purchase words from twitter which will automatically be linked to that company’s desired promotional website. This allows Twitter to stealthily insert ads within its user generated content as well as allow advertisers to target distinct customers from the vocabulary they use. For example, imagine Warner Bros.’ marketing campaign attempting to promote their upcoming movie, The Dark Knight. They could purchase words which would directly link to the movie’s trailer such as “batman” or “Heath Ledger”. By doing so, users who mention either one of these words, will have embedded links within their tweet:
Since those that follow others generally share similar interests, this allows for more targeted ads. Many users may click on the link out of curiosity or genuine interest in the topic.
Pricing Strategy
There are a variety of ways to charge advertisers; however, the most practical method would be a cost-per-click model. This is how the majority of banner ads operate as well as Google’s popular ad-sense program. Each click could generate 1 to 10 cents of revenue for Twitter depending upon the company and the targeted word they want linked. Returns for these advertising models require heavy traffic. Although Twitter has not announced any specific numbers, analysts have estimated 1.3 million registered users.[5] This clearly shows their potential to target a large audience which continues to grow. If 1 out of every 10 tweets, which is broadcast to numerous individuals depending upon how many are following that user, containing an advertisers link is clicked by one person, this would generate $15,000 per day of revenue based on a 5 cent profit per click. Expanding this throughout an entire year would return over $5 million in advertising revenue. This estimation is calculated on today’s number of users and activity level. If Twitter continues to grow at its current pace, tripling each year, these revenues will multiply.
Potential Downsides
The biggest drawback from implementing a word targeted advertising initiative could be the backlash from loyal Twitter users. They may feel their tweets are being manipulated by advertisers. Unlike banner ads that you see on Facebook or Myspace, these ads directly affect the content created by its users. However, as YouTube has shown, viewers and publishers alike have shown little criticism for similar advertising strategies. Shortly after Google purchased YouTube, they began to place short, non-intrusive ads during video streams. Consumers are accustomed to numerous advertisements throughout their daily lives. Some do not mind such non-intrusive ads since they are enjoying the delivered content for free.
Conclusion
Twitter has been a social success but an investor’s nightmare. Two years have passed and it still has not generated revenue. Instead it has lost millions in development and operational expenditures. CEO Jack Dorsey and co-founder Evan Williams have announced the upcoming release of a revenue model sometime in the first half of 2009.[6] Like Google and the majority of other successful online start-ups, Twitter may not begin to make money until years after its release.
[1] Web Strategy by Jeremiah <http://www.web-strategist.com/blog/2008/01/09/social-network-stats-facebook-myspace-reunion-jan-2008/>
[2] Nielson Online <http://www.nielsen-online.com/pr/pr_081022.pdf>
[4] Tech Crunch <http://www.techcrunch.com/2008/04/29/end-of-speculation-the-real-twitter-usage-numbers/>
Keys to Buzz Marketing
February 11, 2009
Guy Kawasaki posted a great interview with Emanuel Rosen, author of The Anatomy of Buzz Revisited (2009). He breaks down the basics of buzz marketing and makes a lot of points that mirror my studies in Marketing Communications (MKGT 420) which I am currently taking. This is definitely a must read for those interested in marketing.
Men Buy Things Too!
February 10, 2009
Abigail Posner wrote an interesting article highlighting the changing trend in consumer buying behavior. Traditionally, woman are the caretakers of the home and purchase life’s necessities such as food, toiletries, and appliances. In turn, companies have primarily marketed their products toward female homemakers. However, more men are encompassing this role, creating an opportunity to appeal to a different demographic.
Posner references Nintedo’s success in filling an unmet need. The Wii has appealed to a large mainstream audience untapped by previous video game generations. Packaged good providers may want to take a clue from Nintendo and expand their perspective beyond conventional approaches.
Invasive In-Text Ads Apparently Work
February 10, 2009
CNN recently published an article about in-text advertising. We’ve all encountered this advertising technique, whether you notice it or not. For those that do not know, in-text ads allow advertisers to target specific key words such as “video games” or “marketing” in order to attract users to their site. They are charged per click, similarly to the majority of banner and text ads. These links are usually double-underlined and sometimes provide an embedded pop-up preview of the site, when hovered over.
As traditional banner ads have declined in effectiveness, in-text ads have approximately doubled in use. While this is great for the Internet advertising industry, this sucks for consumers. When I first became exposed to this, I thought my computer was infected with spy-ware. Today’s culture already has an aversion to advertisements. We have grown accustom to ignoring ads that frequently surround site’s content. Embedding ads directly within the content, is quite simply annoying.
I understand publishers financial reasoning behind using such techniques, however, at what cost does this hurt their credibility and user’s enjoyment of the content? I feel that in-text ads deflate a sites most valuable resource: image and brand. New advertising mechanisms will eventually coincide and/or replace today’s methods. Animated flash animations is another obtrusive adverstising trend. Hopefully this movement toward invasive advertising will die out.
Is Google the Next Dinosaur?
February 10, 2009
Picture taken by flickr user, Pravin-kumar at the Googleplex
John Borthwick wrote a very interesting article about the nature of disruptive technologies and how Google may eventually follow AOL’s lead in becoming a dying brand. He points out the scrappy nature of small, innovative companies and how their technologies and/or qualities eventually surpass the market leaders. His article focuses on Twitter as he argues that its search will further take market share and possibly even dominate.
Google isn’t designed for real time search like Twitter. Real time search allows consumers to receive immediate results based on the “now”. Google has been around for quite a while and its search really hasn’t changed all that much with the exception to its recent wiki search feature.
Its engine is primarly built around an arcaic model, developed since the internet’s inception. I’m not saying arcaic is bad, it’s just not new. I will still continue to use Google search and I don’t expect Twitter search to replace it since they are so different. However, Twitter has significantly changed the internet whilst still in its infant stages. New innovations will continue to threaten the dominate players and some day Google will be overshadowed. I don’t full agree with Borthwick’s arguments (After all, he is a shareholder of Twitter), however, he introduces an interesting topic of creative destruction – one that is motivating for creative startups. It’s inspiring to know that small players have the ability to rise to the top. It’s the American dream! (Sorry, I couldn’t help myself)
Omnipresent Google
February 8, 2009
The recent announcement of Google Latitude has further cemented Google’s quest for God-like knowledge. It’s amazing how much information (aka power) they control. We all give Google access to our personal searches, email, and now physical location. Once Latitude is installed and enabled, GPS and wireless cell tower positioning track users’ phone location. Of course, there are thorough privacy control settings.
It will be very interesting to see how Google uses this technology for location based advertising. Targeting consumers directly near businesses (the point of sale) could be very effective. Imagine being marketed a fresh, cold smoothie as you walk nearby a Jamba Juice on a hot summer day. Google’s biggest hurdle will be implementing these ads without being too invasive and maintaining a positive image
.
Words to Live By
February 4, 2009
I love Gary Vaynerchuk. His direct, high energy approach is motivating and quite entertaining.
I posted this on facebook a while back and figured I would introduce Gary to my new little blog. His words are very inspirational and extremely relative to my search for a career. I’ll let him do the talking.
