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2015 International CES

01/06/2015 - 01/09/2015 Las Vegas Nevada

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Tech Marketing Guide to B2B

News, video, events, blogs about Social Media Marketing for high tech business-to-business from IDG Knowledge Hub.

Tech Marketing Guide to B2B

News, video, events, ideas and blogs about Digital Media Marketing for high tech business-to-business from IDG Knowledge Hub.

Tech Marketing Guide to B2B

News, video, events, ideas and blogs about Advertising and Marketing for high tech business-to-business from IDG Knowledge Hub.

Tech Marketing Guide to B2B

News, video, events, ideas and blogs about Lead Generation Marketing for high tech business-to-business from IDG Knowledge Hub.

Tech Marketing Guide to B2B

News, video, events, blogs about Mobile Marketing for high tech business-to-business from IDG Knowledge Hub.

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Mobile users focus on just a few apps

Warc

American smartphone owners use their favourite app for 42% of all the time they spend accessing apps, a new report into iPhone and Android behaviour has revealed.

According to the US Mobile App Report from comScore, the internet technology research firm, app usage now accounts for over half (52%) of all digital time in the US, but only a few well-known app brands dominate overall usage.

As reported by MediaPost, six big tech brands – Facebook, Google, Apple, Yahoo, Amazon and eBay – account for nine of the top 10 most-used apps, 16 of the top 25, and 24 of the top 50, with Facebook leading for both the largest base of users and the most time spent.

Nearly three-quarters of the time US smartphone users spend with apps is concentrated on just four apps, the report also found, while more than half (57%) access apps every day.

While Facebook and some other brands remain dominant, smaller apps can still achieve success, said Adam Lella, a marketing insights analyst at comScore.

“It certainly means there might be some challenges for smaller players on this medium, but success is also very possible,” he said in comments reported by AdExchanger.

He explained: “We have seen some standalone apps achieve huge audiences on mobile, for example SnapChat and Pandora, while others have found ways to monetise through non-advertising business models that don’t require competing with the larger companies on audience size, like Uber and certain gaming apps.”

The report also noted some behavioural and demographic differences between iPhone and Android users with the former being younger and wealthier.

The median iPhone user earns $85,000 a year compared to $61,000 for Android users, and 43% of iPhone users are aged 18 to 34 versus 39% of Android users.

iPhone users are more likely to use apps to consume media, such as general news and social networks, while Android users focus more on apps for search and email, which comScore attributed to the strong presence of Google Search and Gmail on the platform.

US media groups rely less on ads

Warc

A number of major US media groups have taken a strategic decision to reduce their reliance on advertising revenues, according to new analysis.

After studying the Q2 2014 results and earnings conference calls of CBS, Walt Disney and several other media conglomerates, financial analysts SNL Kagan concluded that some want to boost other sources of revenue, including subscriptions.

Among the examples highlighted in the study, CBS CEO Les Moonves told investors that the company is now “much closer to a 50/50 split of advertising and non-advertising revenue”.

Revenues in its entertainment division fell to $1.84bn in Q2 2014 from $2.01bn in Q2 2013, and CBS intends to earn more from licensing and syndication revenues.

“One of the things that clearly has changed about our businesses is that the back end of the show’s revenue is now as important, if not more important, than the front end from advertising,” Moonves said. “Ownership of content is the key to our success.”

Similarly, Walt Disney is moving to diversify its revenue streams, SNL Kagan said, pointing to recent comments from Disney CEO, Bob Iger.

“We’ve made a conscious decision as a company to essentially not be as reliant on advertising as we were in the past. So it represents probably somewhat in the neighbourhood of the low-20% range of our total revenue,” Iger said.

Disney has become less reliant on advertising partly because of increased revenues from other sources, such as its theme parks.

Despite this, Iger said Disney will continue to participate in digital advertising although he thought traditional advertising platforms would continue to come under pressure.

When looking at some other media groups, the report said NBCUniversal Media had a weak quarter in terms of advertising revenue, which fell 2.2%.

And there was a mixed picture for 21st Century Fox, which posted both big declines in advertising revenue in its TV segment but large increases for its cable networks.

So Many Social Users, So Little Trust

eMarketer

The US social network audience is big—172.6 million people in 2014, or 54% of the population and 68.6% of internet users, eMarketer estimates. Based on June 2014 research by Harris Interactive for WP Engine, many of those users are likely worried about privacy on such platforms.

177602 So Many Social Users, So Little Trust

Among the US adult internet users polled, 66% said they were concerned about their privacy on social networks such as Facebook—the top response. That’s not even the entire social picture. The study broke out platforms that many consider social networks into their own categories. More than one-third of respondents were worried about privacy on social photo-sharing platforms such as Instagram. Around one-quarter were concerned about security on microblogging sites like Twitter, and a similar percentage said the same about disappearing photo-sharing apps such as Snapchat.

A May 2014 study by Rad CampaignLincoln Park Strategies, and craigconnects’ Craig Newmark found similar results. Among the US adult internet users polled, 57% had little or no trust at all in social media sites like Facebook or Twitter. Meanwhile, 22% of respondents had some trust in social platforms, while 7% trusted social a lot.

177620 So Many Social Users, So Little Trust

One-third of internet users ages 55 to 64 said they didn’t trust social media sites, while just 1% did, with a similar trend among the 65-and-older group. Meanwhile, 24% of 35- to 54-year-olds didn’t trust social networks, compared with 6% who said the opposite. The under-35 bracket was the only one where those who trusted social media outnumbered those who didn’t—but by a small gap of 4 points (16% vs. 12%).

Worldwide Software-Defined Networking Market Expected to Reach $8 Billion by 2018, According to IDC

IDC PMS4colorversion 1 300x99 Worldwide Software Defined Networking Market Expected to Reach $8 Billion by 2018, According to IDC

Software-defined networking (SDN) continues to gain ground within the broader enterprise and cloud service provider markets for datacenter networking. According to a new forecast from International Data Corporation (IDC), the worldwide SDN market for the enterprise and cloud service provider segments will grow from $960 million in 2014 to over $8 billion by 2018, representing a robust CAGR of 89.4%. This forecast for the SDN ecosystem includes in-use physical network infrastructure, controller and network-virtualization software, SDN network and security services and related applications, and SDN-related professional services.

Software-defined networking is an innovative architectural model that is capable of delivering automated provisioning, network virtualization, and network programmability to datacenter and enterprise networks. SDN has emerged as a key driver for innovation and change in networking as several market and technology factors converge:

  • Growth of cloud applications and services across enterprise and cloud providers
  • Focus on converged infrastructures (compute/storage/network) and on the software-defined datacenter
  • Lessons learned regarding the benefits and best practices of server virtualization have become apparent
  • Increased demand for network flexibility to support mission-critical technologies based on 3rd Platform technologies, particularly cloud, mobility, Big Data, and Internet of Things (IoT) applications

“SDN is taking center stage among innovative approaches to some of the networking challenges brought about by the rise of the 3rd Platform, particularly virtualization and cloud computing,” said Rohit Mehra, Vice President, Network Infrastructure at IDC. “With SDN’s growing traction in the datacenter for cloud deployments, enterprise IT is beginning to see the value in potentially extending SDN to the WAN and into the campus to meet the demand for more agile approaches to network architecture, provisioning, and operations.”

IDC sees significant near-term use case opportunities for SDN in both cloud service provider rollouts and enterprise deployments. Although enterprises are largely still testing the waters to see what benefits will accrue from SDN, IDC sees the enterprise market as a major driver of overall SDN growth over the next several years. “The 2014 through 2016 period will be a significant launch point for SDN in the enterprise, with significant growth opportunities for both enterprise-focused SDN infrastructure and cloud service providers,” said Brad Casemore, Research Director, Datacenter Networks.

Among the use cases for SDN are the following:

  • Web scaling for hosting/public cloud providers
  • Private/hybrid cloud deployments
  • Network programmability/customization
  • Security applications

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World Tech Update- August 22, 2014

IDG News Service

Coming up on WTU hackers steal data on 4.5 million U.S. hospital patients, Sprint launches a bezel-free smartphone and a Silicon Valley hotel tries out a robot bellhop.

IDC Retail Insights Presents Big Data and Analytics Foundation for Next Generation Revenue Management

IDC PMS4colorversion 1 300x99 IDC Retail Insights Presents Big Data and Analytics Foundation for Next Generation Revenue Management

IDC Retail Insights  today announced the availability of a new report, “Business Strategy: Big Data and Analytics Lay the Foundation for Revenue Growth,” (Document # RI250177) which describes the Big data and analytics (BDA) foundation for revenue growth and charts the likely rapid evolution of new capabilities. The report presents a framework for understanding successive generations of product intelligence, leading to a new paradigm — participatory commerce. This paradigm trains evolved market intelligence on a much larger opportunity — the triple win of merchandise economics, promotional spend, and customer satisfaction.

  • ClicktoTweet, “@IDCInsights #IDCRetailInsights Presents #BigData&Analytics Foundation for #NextGeneration #RevenueManagement – will propel #BDA”

BDA will increase revenue growth through optimized pricing, and create new opportunities to improve assortments, new products, marketing, and other demand generators. Product intelligence creates new facets of market and competitive insight through price discovery in the near term, with broader reach into assortments, private labels, and management of private label and national brands. Within five years in the context of “give-to-get” shoppers, combined with forces like supply chain collaboration among retailers and brands, self-learning intelligent agents, and autonomous event-processing, product intelligence will lead to participatory commerce.

Key highlights of the report include:

  • In 2013, approximately 50% of retailers were aiming BDA at pricing strategies, market intelligence, and customer acquisition. More retailers will join their ranks over the next two to three years.
  • Price intelligence, a subset of product intelligence, is emerging as the initial set of capabilities aligned to support these BDA initiatives. Beyond discovering prices and supporting better pricing decisions, product intelligence sheds light on competitors’ pricing strategies and tactics, assortments, localization, and channel strategies as well as on consumer decision making when combined with psychological techniques.
  • Price discovery gives retailers a countermeasure in the “spy versus spy” world of price transparency, providing them an analytical advantage but leaving consumers with the edge when comparing prices online in the context of their purchase journeys. Next-best-action analytics remain a seller’s key tool against the consumer’s contextual advantage.
  • As already evident in the 2013 holiday shopping season — supported by price discovery, predictive analytics, and real-time ecommerce price management — high-speed algorithmic pricing will break constraints on price change cadences and create breakneck “channel chess” competition.
  • In the context of supply chain collaboration, give-to-get consumers, self-learning intelligent agents, and autonomous event-processing product intelligence will create opportunities for participatory commerce — marketplaces wherein transactions based on the buying, selling, and buying intentions of participating retailers, brands, and consumers will improve merchandise economics, returns on promotional spending, and customer satisfaction.

“In particular, one application of product intelligence, price discovery, gives retailers a countermeasure versus the ‘spy versus spy’ price transparency of retail today,” said Greg Girard, program director at IDC Retail Insights. “Next-generation product intelligence in consumer decision making, competitor tactics, and market conditions will propel BDA-based revenue initiatives beyond pricing further into marketing, assortments, buying, and product development.”

For additional information about this report or to arrange a one-on-one briefing with Greg Girard, please contact Sarah Murray at 781-378-2674 orsarah@attunecommunications.com. Reports are available to qualified members of the media. For information on purchasing reports, contact insights@idc.com; reporters should email sarah@attunecommunications.com.

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Are Businesses Prepared for the Internet of Things?

eMarketer

The “internet of things” (IoT) is coming. But are businesses ready for a completely connected future?

177221 Are Businesses Prepared for the Internet of Things?

According to a May 2014 study by Edelman Berland for GE, the majority of business executives worldwide had at least heard of the IoT; however, familiarity was low, with more than half of respondents who had heard of the IoT saying they weren’t sure what it meant. Meanwhile, 44% had never even heard of the concept.

Edelman Berland/GE defined the internet of things as “the next generation of internet, integrating complex physical machinery with networked sensors and software.”

177222 Are Businesses Prepared for the Internet of Things?

Looking at a breakdown by industry, the survey found that preparation and planning for the IoT varied greatly across sectors. Unsurprisingly, high-tech/IT sector business execs were the most prepared to optimize the IoT, with 34% of respondents from that industry saying so. Nearly one-quarter of professionals in that group were planning to prep for this new world—the highest percentage out of sectors once again. Telecoms execs were the second most prepared (31% of respondents), but interestingly, those who weren’t set to take advantage of the IoT were the least likely to say they were planning to—and the most likely to report that they had no intention to do so.

Meanwhile, both healthcare and manufacturing landed at the bottom in terms of preparedness, with just 21% of respondents from each of these industries saying they were ready to optimize the IoT—and nearly half never having even heard of it.

Majority of Latin America’s Smartphone Users Buy via Mobile

eMarketer

Where are smartphone users most likely to report purchasing products or services on their handsets? The answers may surprise you—especially the answer to the question, “Where aren’t they?”

176331 Majority of Latin Americas Smartphone Users Buy via Mobile

May 2014 polling by IDG Global Solutions found that 78% of smartphone users in Asia-Pacific had made a mobile commerce purchase, compared with 70% in North America. It makes some sense that a relatively less developed ecommerce market would place high according to this metric, however: Overall, smartphone penetration in Asia-Pacific is relatively low, meaning the share of such users who have made a purchase is likely to be high. Across a broader swathe of the population, mcommerce penetration would look lower.

Latin America is another standout by this metric—an outright majority of smartphone users reported making a purchase. That compares with significantly lower penetration rates across the population of consumers and internet users who make ecommerce purchases at all (including on the desktop).

And while Latin America is behind the Middle East and Africa—another region where smartphone penetration reaches a fairly small share of the overall population, and smartphone users are therefore a select and advanced portion of the market—it placed ahead of both Eastern and Western Europe, places where smartphone penetration is higher, according to eMarketer’s estimates.

Tablet boom helps digital magazines boost sales share

Marketing Week

Total digital sales increased 26 per cent year on year to 369,040, a slowdown on the 59 per cent growth seen in the same period last year. This was in part due to a slowdown in the number of magazines reporting digital sales, which only increased by 10 per cent to 95 magazines, compared to a 43 per cent increase in 2013.

That sales growth was enough to outpace the market, meaning digital publications now make up 2.9 per cent of magazines’ total circulation, up from 2.3 per cent a year ago. That is still just a tiny proportion of overall sales, with print circulation at 12.22m, a 3.8 per cent fall year on year and an acceleration of the 1.9 per cent drop seen in the same period a year ago.

However, a number of publishers have questioned the veracity of the ABC figures given that many now have a wide-ranging audience across the internet and mobile devices, not just through digital editions.

Barry McIlheney, CEO of the Professional Publishers’ Association, says the growth of digital editions is “encouraging” for the sector and highlights the growing demand for digital content.

He adds: “The figures in this report reiterate how shifting consumer media habits continue to impact upon today’s modern, multi-platform magazine brands. The growth of digital editions is encouraging for the sector, and it should also be remembered that this ABC report does not include the increasing number of other ways – websites, live events, social media, etc. – in which the magazine brands of today engage directly with their consumers.”

NME, which saw its average print circulation drop under 15,000 for the first time, claims to reach more than 3.6 million people across the UK.

Marcus Rich, CEO at NME’s owner IPC Media, says: “Our core focus is on expanding the overall reach of our powerful, market-leading brands. We continue to look for even more ways to satisfy and engage our consumers’ passions and in the past 12 months have launched new events and experiences, products and apps in a variety of sectors. We also look for new and exciting ways to leverage our portfolio of brands for the benefit of our advertising partners.”

The Economist’s digital edition saw the biggest increase in sales, up 72 per cent to 21,780, helping it overtake Private Eye as the most popular news magazine overall with average sales of 223,730. Total Film had the second highest average circulation at 14,091, an increase of 16 per cent, followed by BBC Top Gear magazine with 13,553.

TV choice remains the most popular paid-for magazine with total sales of 1.3 million, although its circulation dropped slightly, by 5.2 per cent. Northern & Shell’s magazine suffered a tough quarter, with OK!, New and Star all reporting double-digit declines.

With Year-on-Year Growth of 84% in the Second Quarter, India Smartphone Market Still Has Immense Potential, Says IDC

IDC PMS4colorversion 1 300x99 With Year on Year Growth of 84% in the Second Quarter, India Smartphone Market Still Has Immense Potential, Says IDC

The smartphone market in India has maintained its growth impetus with smartphone shipments achieving year-on-year growth of 84% in Q2 2014 and a quarter-over-quarter growth of 11%. The potential for future growth in the smartphone market remains quite high as 71% of the market continues to be on feature phones.

According to International Data Corporation (IDC), the overall India mobile phone market stood at 63.21 million units in Q2 2014, a 5% increase over Q1 2014. The quarter-over-quarter growth can be attributed to both product categories (i.e. smartphones and feature phones).  Back-to-back volume growth in the smartphone market is also being noted due to the re-defined, low-price smartphone models and continuous migration from feature phones to smartphones.

The Indian smartphone market grew by 84% year-on-year in Q2 2014. According to IDC Asia Pacific Quarterly Mobile Phone Tracker (excluding Japan),vendors shipped a total of 18.42 million Smartphones in Q2 2014 compared to 10.02 million in the same period of 2013. The sub-$200 category of the smartphone market is increasing in terms of new shipment share as the contribution from this category stood at 81% in Q2 2014. With the influx of Chinese vendors and Mozilla’s plans to enter the smartphone category at the $50 price level, the low-end segment of the smartphone market will become crucial in the coming quarters.

The shipment of “Phablets” (5.5 inch – 6.99 inch screen size Smartphone) in Q2 2014 was noted to be 5.4% of the overall smartphone segment. The phablet category grew by 20% quarter-on-quarter (QoQ) in terms of sheer volume. More than half of the phablets shipped were in the under-$250 price band and Indian vendors are dominant in the noted price segment.

Jaideep Mehta, Vice President and General Manager – South Asia, IDC says, “While Samsung has held on to its leadership position in the market, it is noteworthy that Micromax is growing faster. Samsung needs to continue to address the low-end of the market aggressively, and also needs a blockbuster product at the high end to regain momentum. Given the current growth rates, there is a real possibility of seeing vendor positions change in the remaining quarters this year.”

“IDC observes that a new entry level price point is being breached by the Indian home grown vendors every quarter. These devices are not equipped with high end specifications and RAM is typically 256 MB. This ultra low cost segment may not sound a viable option to the repeat buyers, but it works well on the targeted segment,” says Karan Thakkar Senior Market Analyst at IDC India.

Q2 2014 has been an exciting quarter for the players in the mobile phone market.  Among the top five vendors, Micromax and Lava were the only ones to have outstripped the market growth. The former grew by 18% and the latter by 54% in the overall phone business.  Micromax not only toppled Nokia to clinch the number 2 spot, but also created a gap between the second and third spot.

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