Tag Archives: social media

How Do Consumers Feel About “Native Advertising”?

18 May

What is “native advertising” and why are some people upset about it?

Consider this commentary from eMarketer:

“Social networks, news sites, digital content aggregators, and streaming media services are rife with ads that are integrated into the content experience. According to a new eMarketer report, Native Advertising: An Emerging Consensus for a New Kind of Ad, these so-called ‘native ads’ are providing new ways for marketers to reach target audiences and new avenues of monetization for content sites that are under intense revenue pressure.”

“Although business prospects for native advertising are positive, the medium has its detractors. Some media executives and marketers are wary of the blurring of lines between content and advertising that occurs with native ads, particularly in the context of news sites. Others question the return on investment of these ads, arguing that native ads cannot scale for multiple placements.”

Take a look at the chart below and click on it for more from eMarketer.

 

Crowdfunding: A New Source of Capital That Keeps on Giving

15 May

As we have noted before, crowdfunding has become a major online investment source for entrepreneurs and start-up companies.

Reporting for Fortune, Michal Lev-Ram and Kurt Wagner note that: “Welcome to the new world of fundraising, in which so-called crowdfunding Web sites like Indiegogo and Kickstarter let just about anyone with an idea try his or her hand at bankrolling a dream. Proponents of crowdfunding believe it has the potential to upend traditional financing models, such as loans and venture capital, and unleash a tidal wave of capital for entrepreneurs, creative types, and, yes, cheesemongers. Reliable estimates of the industry’s size are hard to come by, but one research outlet, Massolution, predicts some $5 billion will be raised through crowdfunding this year, up from $2.7 billion in 2012.”

Click the image to read a lot more from Lev-Ram and Wagner. And click here for a video.

 

Illustration by Alex Nabaum

 

Netflix Is Streaming Ahead

11 May

In late 2011, Netflix CEO Reed Hastings was widely criticized for the way in which he decided to separate the Netflix DVD-rental business from its Web streaming service. Some customers were confused by the new pricing strategy; others were angry. But, in this era, things sure turnaround quickly.

In the most recent issue of Businessweek, Reed Hastings is on the cover, with the caption: “The Man Who Ate the Internet” (a title bestowed because of the amount of bandwidth consumed by Netflix and it customers).

As Ashlee Vance writes: “On a normal weeknight, Netflix accounts for almost a third of all Internet traffic entering North American homes. That’s more than YouTube, Hulu, Amazon.com, HBO Go, iTunes, and BitTorrent combined. Traffic to Netflix usually peaks at around 10 P.M. in each time zone, at which point a chart of Internet consumption looks like a python that swallowed a cow. By midnight Pacific time, streaming volume falls off dramatically.”

Click Hastings’ photo to read more.
 

Photo by Bryce Duffy

 

Social Advertising Growth: An Infographic

5 May

Although still a small proportion of total advertising, social media advertising is experiencing tremendous growth.


Check out this infographic.
 

The Social Advertising Landscape
 
Post suggested by KCJ

 

Want to Launch an App? How Much Money Do You Have?

4 May

In the good old days (think two years ago), it was relatively inexpensive to launch a new app for a smartphone. While this is still possible, some app firms are finding that the cost of a launch is much higher than they were anticipating.

For example, as Jessica E. Lessin reports for the Wall Street Journal: “Mobile-game maker ZeptoLab UK recently released ‘Cut the Rope: Time Travel,’ its first major title in the popular ‘Cut the Rope’ series since 2011. The launch won’t be a quiet one. The company has been building buzz for the game through a six-week promotion with Burger King Worldwide, which began featuring the game in its kids’ meals in March. Overall, ZeptoLab says it will spend around $1 million launching “Cut the Rope: Time Travel,” which traces the adventures of the green monster Om Nom as he meets versions of himself in time periods like the Renaissance and the Middle Ages. On top of that sum, which includes the costs of animation, the company is counting on some free help by promoting the game inside its other titles. By contrast, the company spent almost nothing to promote the first ‘Cut the Rope’ game when it was released in 2010. It gave the title to a third-party publisher to distribute, then sat and waited.”

Click the image to read more and then watch the video clip.

Image source: ZeptoLab

 

 

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