Current Affairs

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June 18, 2015

Adblockers are Costing Google Billions

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According to a recent report from anti-adblock tech firm PageFair, Google lost $6.6 billion in global revenue to ad blockers in 2014. The rise of ad blocking is becoming quite problematic for digital media companies, with Google so far taking the brunt of it.  

The $6.6 billion accounts for 10 percent of Google’s total revenue for last year. PageFair used Google's own revenue numbers as well as market data from research companies eMarketer and comScore to predict Google's total potential ad revenues from YouTube, search, AdSense, and DoubleClick. AdSense and DoubleClick are Google’s display advertising properties.  

"This is a relatively small sum for a global corporation with revenues of nearly $60 billion, while being a huge cash injection for a fast-growing adblocking startup in Cologne,” PageFair wrote in a blog post. “It is not credible that these funds are simply being spent on the administration of the acceptable ads program. Instead, they are presumably being reinvested in the future development of adblocking ... Although paying Adblock Plus may recover some short-term search engine revenue, it also tightens the adblocking stranglehold on the remainder of Google’s revenue." 

Adblock Plus is one of the most popular ad blockers of the moment, and the company PageFair referred to regarding its $6.6 billion figure for Google. The adblocker provides internet companies with the chance for their ads to be whitelisted should they meet an "acceptable ads" policy. Acceptable ads include what ad blockers consider non-intrusive, such as sponsored search links. Yet according to The Financial Times, bigger digital advertising companies such as Google, Microsoft, Amazon, and Taboola must pay Adblock Plus substantial fees — up to 30 percent of additional ad revenues if their ads weren’t blocked. 

Google’s lost revenue would have been much higher if not for the digital juggernaut’s whitelisting deal with Adblock Plus, which excluded search ads from the ad blocker’s filter. Google reportedly paid Adblock Plus $25 million to exclude search ads, but subsequently “saved” $3.5 billion in 2014.

Doubleclick and AdSense got “the worst of it,” and together lost Google $2.1 billion globally in 2014. YouTube, in comparison, lost $675 million in 2014 due to pre-roll ad blocking.

“The actual global adblocking rate is probably about five per cent, while the percentage of adblocked dollars is much higher,” Pagefair CEO and co-founder Sean Blanchfield told Mobile Marketing. “There is very low adblocking among many non-western countries, where access is primarily mobile, but where the ad spend is lower.”

Neither Google nor Adblock Plus have commented on the PageFair report at this time.

May 15, 2015

The World's First SMS Referendum Took Place Last Month... in Mongolia

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For all the rapid advances in digital technology over the past decade, the business of democracy remains firmly analogue. Ever since mutterings ranging from ‘foul play’ to ‘system error’ cast a pall over the 2000 Presidential elections, electronic voting in the U.S. has been in decline, with states abandoning machines in favor of traditional pencil-and-paper voting. Voting watchdogs and analysts have major reservations about the security of a digital system if faced with committed, politically motivated hackers. Strange as it seems, electronic voting may have had it’s day.

If e-voting - which is at least supervised by election officials in a centralized venue - is on the wane, it seems unlikely that mobile voting will fare any better. For those fearful of tampering and corruption, the remoteness of casting votes via a mobile device will do nothing to reassure. 

Well, it doesn’t get any more remote than Mongolia, which last month became the world’s first country to stage a referendum in which citizens can engage with the democratic process via their mobile devices.  

Prime Minister Saikhanbileg Chimed asked three million Mongolians to air their views on the country’s dwindling economy, which, according to Bloomberg, has slowed down from a record 17.5 per cent in 2011 to around 7 per cent in 2013. The mining industry, a bedrock of the economy, is beset with legal wrangles. Foreign investment has collapsed, causing the Tugrik to fall 42% against the U.S. dollar. The government is involved in a tax dispute with Rio Tinto Group, who were slated to finance one of Mongolia’s biggest assets, the $6.6 billion Oyo Tolgoi mine. Public and political opposition to the open-cast mining industry has only fanned the flames of economic unrest.

With negotiations at a stalemate, Saikhanbileg has shrewdly recognized the only credible way out of the mess is via a public mandate. In January, just two months into his office, Saikhanbileg took to national television to offer Mongolians a stark choice to save the economy: press on with multi-billion dollar mining projects or cut spending and scale back investment in the industry. The Prime Minister invited citizens to state their preferred strategy via text message.

Four days later, the votes were in. Austerity measures received a resounding ‘no’ from the people, giving the government the go-ahead to - hopefully - revitalize the mining industry and resume negotiations with multinationals like Rio Tinto.

For the wider world, the implications of the result are perhaps less significant than the implications of the voting method. Democracy by text message had never been tried before. It seems to have worked, but only time will tell whether the Mongolian experiment is destined to be an anomaly or a historic precedent.

April 03, 2015

What Do the Israeli Elections Tell Us About the Future of Mobile Political Campaigning?

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To note that mobile and social media carry great weight in today’s world is pretty obvious. Particular events, however, offer even greater insight into the impact of mobile, such as presidential elections. Let’s take a look into how mobile affected the recent Israeli elections, as well as the influence it will likely have on the 2016 U.S. presidential race. 

 

High-Quality Targeting

Mobile media offers the possibility of high-quality targeting, as it provides advertisers with the opportunity to target very specific audiences. Political parties’ media budgets are larger than ever before, and most candidates hire dedicated agencies to run their media campaigns. New advertising platforms continue to crop up, while Facebook’s mobile-only user base recently reached the half billion mark, making it easy to reach voters during every phase of a campaign. Location-based targeting also helps considerably, as parties can look at users from specific states and determine if they should increase their advertising efforts, and if so to which audiences. 

 

Political “Gamification”

Any on-point campaign manager knows it’s important to play to voters’ increasingly-short attention spans, and are subsequently utilizing gamification techniques to harness and hold this attention. Gamification techniques have been used with success in the Israeli elections, as ads focused less on direct message transmission and instead honed in on creating an experience that featured a more subtle approach.

Entertaining mobile games that sent strong political messages were also used. For example, one Israeli election game had users engage in a “temple run” game featuring their favorite candidates. Other games were used to align opposing parties, but again in a discreet way. Gamification has made politics a more fun and engaging experience for young voters, and allows candidates to reach an audience they would otherwise have a hard time engaging. 

 

Mobile User Power 

Video content was frequently used during the Israeli elections, as videos were widely shared across social media platforms by all parties, even orthodox religious parties. U.S. mobile video ad spending has doubled over the past year, so the idea that video content will likely play a large role in the 2016 elections is imminent. Often more entertaining and less formal than the political ads traditionally seen on television, videos are dissolving the boundaries between independent political activists and official messages. Content isn’t just user-focused--it’s also user-generated. 

 

Wrap-Up

Mobile has become the favorite device of all age groups, meaning campaign managers have to scramble to create a mobile-based approach to elections if they haven’t already. Rich media, text marketing, video content, and the plethora of other mobile focused campaigns must be implemented for any candidate developing massive public outreach.

March 10, 2015

SMS Helping Sierra Leonean Become 'Citizen Reporters'

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Advances in text messaging have extended to social causes, including those fighting disease and providing assistance to third-world communities. 

International development charity Christian Aid launched “SMS Voices” in January of last year, working in partnership with ENCISS, a Sierra Leone-based governance program funded by U.K. Aid and the European Union. The program is designed to help elected officials and citizens maintain an open dialogue, and was created by Radar, a U.K. communications nongovernmental organization.

SMS Voices trained 45 volunteers from Sierra Leone’s Bo and Koinadugu districts, including farmers, traders, students, and teachers, to become “citizen reporters.” Throughout 2014 they used text messaging to report issues of concern to their local councilors via anonymous micro-reports. Issues raised included the lack of teaching materials in schools, conflict among local groups, unsafe roads and bridges, clean water access, female genital mutilation, teen pregnancy, inefficient waste management, and violence against women and children.

Messages were received by nine participating elected officials, who were instructed to respond to micro-reports through text messaging and explain to reporters their plans to rectify these issues in their respective communities. Some said they would investigate, while others claimed they would bring the issues up at council meetings or alert the relevant police officer or mayor. Whatever the decision and outcome of the reports, an effective dialogue was indeed created between officials and citizens. 

Over 300 reports were sent during the 12-month period, and towards the end of the year some two-thirds concerned the Ebola crisis. Volunteers discussed how households were affected by quarantine regulations, reported regulation breaches, and shared concerns about infection.

“During the rebel war there were no mobile phones; now with Ebola, communication is possible,” remarked Martin M B Goba, deputy chairman of the Bo District Council. “During my time in quarantine, I was able to communicate with my ward development committee with an immediate response.” Goba lost several family members to the disease.

“It’s been challenging, but it’s helping me to improve on my job and to know the problems in my community, so that I can find solutions to them,” he added. “It has improved my interaction with civil society and shown me how to act immediately and promptly to community concerns.” 

The project has demonstrated the possibility of running low-cost, innovative programs in low-resource environments, such as within Sierra Leone, where less than 10 percent of the population have access to electricity, and a mere 2 percent use the Internet. 

“I have seen change,” remarks volunteer Evelyn Turay. “I have now seen council officials in the community raising awareness on issues around teenage pregnancy and early sexual activities [of young people] which I have been reporting on.” 

As the program progresses, it’s increasingly obvious that text messaging provides a powerful tool for helping third-world communities stay engaged and empowered.

 

March 06, 2015

Ignorance of the Difference Between SMS and MMS Could Cost You Big

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The Samsung Galaxy S4 is less than two years old, but it’s not equipped to send emojis without first converting them into picture messages - costing unwitting senders hundreds on their phone bills. Older handsets - including the Galaxy S, S2 and S3 - are also thought to be affected. 

Picture messages are also known as MMS messages, and can cost up to three times more than an SMS. Once upon a time, the high cost was somewhat justified, as MMS was the only way for people to exchange rich content between phones. Now, with a slew of apps designed to send and receive rich data (often, as with WhatsApp, for free) the MMS is anachronistic. 

A recent article in the Daily Record reported the case of a woman from Airdrie, Scotland, who ran up a £1,200 bill in just four months after sending emoticons that automatically converted to emojis which, in turn, were sent as MMS messages.  

Similar reports have appeared on internet forums, with many claiming their iPhones are affected by the problem. HTC phones are also affected, but they at least send a warning message to users that the SMS they think they’re about to send is in fact an MMS.  

UK mobile phone network provider O2 have been quick to point the finger at manufacturers, saying the issue is ‘down to the handset and not as a result of the O2 network or the settings used for the O2 service.’

O2 also said that some apps - including Facebook - that integrate a contact list from the handset may result in MMS charges as well. People are advised to disable integration between such apps and their contact list. 

There’s still no complete picture regarding which handsets are affected, but Samsung told moneysavingexpert.com that every device launched since April 2014 has a default setting classifying emojis as SMS and not MMS. For the Galaxy S4 and earlier devices, emojis will continue to be converted from SMS into MMS. Apple has declined to comment on the susceptibility of their handsets to the problem. 

The problem is one of transparancy. Are operators doing enough to inform their customers how their pricing structures work? That remains to be seen. According to Ofcom, the UK’s communications watchdog, 4% of people said they had received a high bill caused by unexpected charges for emojis, but it’s likely to have affected significantly more. Like the SMS-MMS conversion itself, not everyone will have noticed. Take a careful look at your next bill to see if you’re being charged for a service you didn’t know you were using. If it was not made clear to you when you sent the message that it was converting it to an MMS, it’s well worth complaining.

 

March 05, 2015

SMS Alert System for Pregnant Cows is Up for Design of the Year

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There are some weird and wonderful uses for SMS messaging out there, but one of the innovations up for this year’s Design of the Year award is milking the technology for all its worth.

The 76 nominees were announced last week by London’s Design Museum; they will go on display from March 25 to August 23, with the winner announced in June. Designs range from new Norwegian banknotes to high-profile projects like Google’s self-driving car.

But the gadget that’s got us most excited is a new SMS-based monitoring system that tells farmers when their cows are going into labor. If you’ve never had any experience of dairy farming you’ve probably never even realized such a gizmo was necessary, but the brilliantly-named Moocall is a promising solution to a problem that’s largely invisible to the general public.

The gadget hooks onto the tail of a pregnant cow and sends a text message to the farmer when the animal is within an hour of giving birth. It uses 3-D motion sensors and a roaming M2M SIM card to ascertain when a cow is going into labor. Other birthing monitors exist, but they are notoriously invasive and uncomfortable for the cow. Most farmers simply opt to keep vigil over pregnant cows in order to maximize the chances of a live birth. Moocall promises a reliable alert system that causes minimal discomfort and frees up vital resources that would otherwise be spent on watching and waiting. 

Designer Niall Austin first conceived the device for use on his own farm in County Offaly, Ireland, and hopes to break into cattle markets in North and South America. He told Irish Tech News: “Losing a cow and calf during birthing process is heart-breaking and very often completely preventable.” 

Created with the help of Irish tech firms Motech Engineering and Dolmen, Austin’s innovation went through a long development process, with a series of prototypes - tried ‘in the field’ so to speak - helping them shape the design to withstand the elements and the animal’s clumsy heft (sorry, cows - no offence).

Moocall is another example of the diversity of SMS messaging. If it didn’t send a text message it would require some other pieces of hardware for farmers to receive the alerts. That would drive the cost up and give farmers more hassle. It would also make the gadget a much less marketable product. By combining sophisticated birthing monitor technology with the simplicity and near-universal availability of text messaging, Moocall seems to provide a solution to a major setback facing dairy farmers worldwide.

March 02, 2015

Mobile Marketing is 'Next Big Thing' Says Mediacom Boss

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The fundamental differences between mobile marketing automation and web marketing automation must be thoroughly understood by marketers so they can provide a great user experience “across all touchpoints.” This is according to Ben Phillips, Medicom’s head of mobile.

While advertisers have pushed automated content on mobile devices for awhile now, an ambiguous view of how people switch between platforms has marred efforts. A form of mobile automated marketing that “goes beyond” the standard mobile app is set to become more ubiquitous as proximity triggers and push notifications increase in use.  

Phillips emphasizes the idea that mobile is no longer limited to phones, and that brands must take this into consideration. He notes the most successful advertisers are those who have designed creative mobile strategies first and “appreciate how their audience chooses to engage with them and provides the correct response.” In retail, for example, it’s a good idea to connect the experience with CRM, and personalize ads with relevant context rather than pushing random ads to shoppers as they browse aisles.  

The Mediacom boss also notes the role creativity will play in automated mobile marketing, “as many brands start to build 'mobile first' content that is relevant to the consumer regardless of point of engagement. Automated mobile marketing will enable deeper CRM learnings and processes that lead brands to a more personal one-to-one dialogue with their consumers.”

Audience data is essential to craft personalized dialogue with customers, and Phillips predicts “the race this year will be to obtain a persistent tracking identifier for an individual across platforms. By this I don’t just mean mobile and desktop, we need to be able to verify individuals against wearable devices, a smart TV a connected car and internet of things.”

Brands must step up their automated mobile marketing game and fully understand the wide spectrum that is mobile. Medicom is arguably ahead of the game, as the company is working on partnerships similar to its relationship with advertising technology platform Celtra. This means Medicom can create rich media ad units for both desktop and mobile.

“I believe [brands] aren’t doing enough because they aren’t being directed, taught or educated in the right way,” remarked Phillips. “Our industry will begin to consolidate and roll up into digital within the next year. The 'systems' lead thinking approach will win out as it becomes ever more apparent that mobile sits in every marketing and advertising discipline and not as a siloed specialist function.”

The consumer is at the heart of any mobile strategy, so focusing on a well-rounded marketing ploy that includes multiple platform and advertising options is key. Phillips is correct in recommending brands determine how their audience opts to engage them, and to build a mobile marketing strategy from there. The companies that take advantage of this idea are the ones who will figuratively blow competition out of the water in the next few years. 

 

February 25, 2015

DEA Accepting Tip Offs Via SMS

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The McAllen, TX branch of the U.S. Drug Enforcement Agency has turned to text messaging to simplify citizen reporting of potential drug trafficking. DEA Assistant Special Agent Steve Jenkins in the branch office remarked that text messaging is another way to help residents feel safe in their community. 

"We're trying to get the message out to the community that hey this is available and it’s a way for them to help keep the streets safe," Jenkins said. 

Entitled ‘TIP 411,’ the anonymous program makes it possible to text a tip after witnessing possible drug activity. Tipsters can simply type TIP 411 into the “To” line, then use the message box to type RGV with either an image or a description of the crime. Jenkins says the tip will be passed to the DEA office, who will act accordingly. The number of anyone who sends a tip will not be viewed by the DEA agent.  

Jenkins also noted the new system allows the office to keep in anonymous contact with tipsters, as opposed to phone call where the information flow ends once the person hangs up. Texting is also much less personal, and therefore makes it easy for someone to provide information without feeling uncomfortable.  

The DEA hopes younger people will use the program, as it was designed for youth interested in keeping the community safe.  

Other cities, such as New Orleans, El Paso, and Albuquerque, have enjoyed success implementing the program. Anyone who uses the program must be connected with a cell phone provider. 

“This is a way for (the public) to anonymously provide the information to us and communicate back and forth with a DEA agent, via text message,” Jenkins added. “Then, if at some point they no longer want to communicate with us, they can send the word STOP in the message and all communication will be cut off with the agent.” 

Once the tipster texts the word “Stop,” the DEA has no way of getting back in contact with the person. 

Reports of the program have been met with somewhat mixed responses from the public, with some in favor of the idea, and others very much against it, saying the program isn’t particularly safe and is yet another wasted effort in “the war on drugs.” 

Is the program a good idea? Time will certainly tell...

 

January 27, 2015

Net Neutrality Vote Happening on February 26th

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During a discussion at the recent Consumer Electronics Show in Las Vegas, Federal Communications Commission chairman Tom Wheeler announced that the commission will vote on a proposal to reinstate Net neutrality rules. The vote will take place at an open commission meeting on February 26th. 

Wheeler also said the proposal will circulate among commissioners beginning February 5th, and while he didn’t delve into specifics, Wheeler alluded the new proposal will “reclassify broadband traffic” as part of Title II utility. Some supporters believe this reclassification will put new neutrality rules on “stronger legal footing.”  

In November 2014 President Obama encouraged the FCC to reclassify Internet traffic under Title II of the Communications Act, though Wheeler has not said whether he supports the president’s suggestion. 

Net neutrality is defined as the idea that all online traffic is subject to fair treatment by broadband providers, meaning no restrictions or preferential treatment is bestowed on certain types of traffic. The FCC is working on new rules that will replace those adopted in 2010.

The issue of broadband traffic reclassification has been one of the hotter issues regarding the net neutrality debate, with large broadband providers such as Verizon and AT&T noting reclassification will “stifle innovation” via imposed, antiquated telecommunications regulation for an industry they believe has evolved positively despite no government regulation. However, other consumer advocates and Internet companies such as Netflix say broadband service reclassification is the only option for ensuring new Net neutrality rules hold up in future court challenges.  

During his discussion with Consumer Electronics Association head Gary Shapiro, Wheeler made it quite clear that the FCC’s approach to the proposal will not include “all of the restrictions under Title II meant for traditional telephony networks to broadband.” Rather, the proposed rules would “forbear or exclude” broadband from clinging to Communications Act provisions that don’t apply to broadband service. 

He said the idea is to make certain that the agency can “provide a legal standing” for rules prohibiting broadband providers from “blocking content, throttling traffic, or offering a paid prioritization service.” The other idea is to ensure Internet service providers manage their wares in a way that is transparent to customers.

"The wireless industry has been wildly successful as a Title II regulated industry," he said. "So there is a way to do it right."

Wireless industry reps disagree with Wheeler in terms of Title II restrictions on broadband. 

"Comparisons to the regulatory framework for mobile voice are misplaced and irrelevant," Meredith Attwell Baker, president and CEO,CTIA-The Wireless Association, said in a statement. "Congress created a regulatory regime for mobile voice under Section 332 and Title II. Congress also created a separate regulatory regime - -explicitly outside Title II -- for other services like mobile broadband. The FCC cannot now rewrite Congress's intent to rewrite the Act or rewrite history."

Wheeler has also remarked that he has “no intention of allowing broadband providers to create a two-tiered Internet of haves and have nots." The vote later this month will hopefully settle some much debated issues around this topic. 

January 09, 2015

The World’s Most Valuable Startup

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As of Monday, December 29th, 2014, the Chinese smartphone maker Xiaomi has become the world’s most valuable startup. Late in 2014, the company closed its last round of funding, topping off its latest run at $1.1 billion dollars. With that, Xiaomi’s valuation has skyrocketed to $45 billion – past even the controversial pseudo-taxi startup Uber (valued at $40 billion).

If you haven’t heard of Xiaomi before, you are not alone. The company is a giant in China, however, with brick and mortar locations throughout the country. After taking advantage of a void in the Chinese smartphone market, Xiaomi has managed to increase their manufacturing output, and they are now the third largest smartphone manufacturer in the world. In their third quarter report of 2014, Xiaomi sold over 16 million units, an increase above last years’ report by over 3.5 million.

Many people throughout China prefer to purchase Xiaomi phones due to their low-cost. Samsung and Apple are still the power players throughout the world, and they have retained a good deal of the Chinese smartphone market. In the past year, though, sales by these juggernauts have been chipped away by Xiaomi – Samsung’s sales in particular, which has declined by 29 percent in the region. Surprisingly, Xiaomi’s gross sales in China has not come as close to defeating iPhone sales. Apple still retained $25.4 billion in sales in China alone, while Xiaomi only garnered $56 million in sales. 

Some of the controversy surrounding the startup includes a breach of international patents, but these claims have yet to be proven. Though Xiaomi publicly claims to operate under thousands of patents, most cell phone manufacturers own patents in the tens of thousands. And with their tight margins, it is unlikely that they are manufacturing under a series of licensing deals. In any case, the success of their business model is evident: build it cheap, run it with Android-based software, and sell it everywhere (in China). 

Xiaomi has announced that their next step will be to branch out into similar foreign markets, like Brazil and India. While Brazil fits all of the criteria of their business model, India is a bit less likely to embrace it. Historically, India has been wary of Chinese technology, and many consumers fear that the Chinese government will use the devices to spy on Indian citizens. Xiamoi has these and other roadblocks to get past as they expand into the rest of the Asian and potentially the South American market…but ambitions are obviously high.

The upshot for mobile marketing campaign managers is an increased need to cater their strategy to a variety of devices. Mobile marketing tactics that are effective at reaching iPhone users may not have the same impact on Android-based devices. Flexibility and adaptability are the watchwords for 2015, and if Xiamoi's explosive success is anything to go by, the world of mobile marketing and the wider world of tech should expect the unexpected.