Archive for the ‘Microsoft’ Category

Microsoft vs. Yahoo: And the winner is…Flickr!

Thursday, February 7th, 2008

By now, everyone has heard about Microsoft’s unsolicited (and unwanted) bid to take over Yahoo. You’ve read Google’s evil(ish) response. And Microsoft’s counter. Perhaps you’ve even followed the commentary for, for, for, for, for and against, against, against, against, against the deal. And the analysis about whether it would be bad or not bad for start-ups.

My opinion: either way, everything’s going to be alright. If Yahoo is absorbed by Microsoft, the world will continue. If there are services that Yahoo offers that Microsoft eliminates, another company will build products and services to take their place. If Yahoo and Google make a deal and Microsoft is left hanging, and Google turns from the good guy to the bad guy and Microsoft starts being seen as the underdog, well, that will be weird, but it will be OK. If some third-party comes and bails out Yahoo (which is not likely at this point), things are going to be fine.

Either way, some people are going to be happy. Some people are going to be unhappy. But business will continue. Something similar happened when Adobe bought Macromedia, a deal that was bemoaned by many as the demise of good creative software. But the deal went through and there is still good creative software. There will be tough times, there will be struggles, but change sometimes fosters creativity and innovation – and both of those can be better than a company withering away on the vine, which may have been Yahoo’s fate if no one stepped in and did something.

But all of that aside, I think that the real winner in all of this hubbub is Flickr. Not Yahoo, even though they own Flickr, but Flickr itself.

I noticed early on in all the discussion about the possible Microsoft/Yahoo deal that various pundants would write an analysis of the situation and then would say something like, “No matter what happens, don’t you dare hurt my Flickr.” I commented on it, and thought it was interesting.

Then a whole movement erupted.

Currently, 2,672 Flickr users have banded together to fight Microsoft’s acquisition of Yahoo because they are afraid that it might hurt their Flickr. This is just one of the thousands of protest photos that have been uploaded:

Microsoft Yahoo Flickr
Photo by robsv

You don’t see users of Yahoo e-mail worrying. Yahoo Small Business services, which are popular and have a lot of users, aren’t protesting. It’s just the Flickr users.

So in my scorebook, Flickr is the winner. They built a brand that people love, and not only do they love the brand, but they are willing to fight for the company. Flickr did this by creating a service that’s easy to use, allows interaction, fosters community, and is free.

Or do you think that these Flickr users really just hate Microsoft that much?

Americas about to fall behind in information industry

Tuesday, November 13th, 2007

Outsell LogoIf you haven’t caught the hint yet, there is more news today that the global market is gaining in importance. According to a press release from Outsell, the information industry revenue that is generated in Asia, Europe, Middle East and Africa (EMEA) is ready to overtake North, South and Central American revenues within one to two years. And things are already heading that way. Currently, American information industry revenues are 53% of the worldwide total, with EMEA and Asia at 47%.

The other bit of information, which was buried in the middle of the release, is that during a presentation today on “The Global Industry Outlook” at Outsell’s Signature Event, Chief Analyst Leigh Watson Healy offered up Outsell’s 10 predictions for the information industry in 2008. One of note: the firm expects the next evolution of the Internet experience to be Web 3D.

Whenever a company makes a prediction, I like to see how they did with their past prophesies. If you’re interested, Outsell’s 2007 predictions are available in a free report. Some of what they suggested would happen this year has happened, but one item in particular seems to be a false reading on the market: “Google, Yahoo, MSN, publishers, advertisers and auditors will establish standardized third-party audit and certification processes to validate clicks and battle click fraud.”

So far, this hasn’t happened – but there is still a little more than a month to go before we ring in 2008.

Facebook is now valued at $15 billion

Wednesday, October 24th, 2007

Facebook logoI was talking to some 30-something, non-tech-industry friends last week, and the topic turned to Facebook. What’s the deal with Facebook? they asked. None of them had profiles, none of them had ever even visited the site, all of them thought I was nuts for having set up a profile. “You mean you put it online that you live in Massachusetts?!” they asked. I tried to explain that Facebook is huge (as is the state of Massachusetts). They didn’t buy it.

“Today Microsoft agreed to invest $240 million for a 1.6% stake in Facebook that values the social-networking site at $15 billion, beating Google in a closely watched contest.”Friends, Facebook is worth $15 BILLION dollars. I am not the only one who uses the site.

A summary of Internet advertising statistics

Friday, October 12th, 2007


statisticsThis week while writing about Internet advertising I came across quite a few statistics – it seems like many of the market research firms may have been timing the release of their data to coincide with the Association of National Advertisers (ANA) Annual Conference being held in Arizona. Here’s a roundup and links to the highlights:

IAB Internet Advertising Revenue Report: Internet advertising revenues in the U.S. totaled nearly $10 billion for the first six months of 2007, with Q1 accounting for approximately $4.9 billion and Q2 totaling approximately $5.1 billion; Internet advertising revenues for the first six months of 2007 increased 26.4% from the same period in 2006; Search revenue accounted for 40% of 2007 second-quarter revenues; 2007 revenues for Internet advertising estimated to hit $20-21 billion.

Marketing & Media Ecosystem 2010 study by ANA & Booz Allen Hamilton: 90% percent of marketers plan to increase their digital marketing spending by 2010; only 24% of the 250 survey respondents think their organizations are digitally savvy; barriers to making bigger digital investments are insufficient metrics (62%), lack of organization support (51%) and lack of experience in new media (59%).

Forrester Research’s U.S. Interactive Marketing Forecast 2007-2012: marketing spend will grow to $61 billion by 2012, an increase driven by marketers who will leverage a distribution of channels rather than pour new spends into a single place; Interactive marketing will top $61 billion By 2012; Search marketing will triple in five years; Social media will drive emerging channels to $10.6 billion by 2012.

eMarketer: Online advertising will hit $21.7 billion in 2007, surpassing radio for the first time ever; $44 billion for Internet advertising by 2011.

Data Centre of China Internet: China’s internet advertising sector is expected to increase by 53.07% in 2007.

And this isn’t a statistic, but Steve Ballmer, president of Microsoft had this to say at the ANA Conference, as reported by CNET: “In world search and advertising, Google is the leader; we’re an aspirant. We have a lot of work to do in search and advertising.”

~ Stairs & Railing ~