BIA/Kelsey is forecasting for local online ad revenues to reach $42.5 billion by 2015, nearly twice 2010’s $21.7 billion, for a compound annual growth rate of 14.4 percent. The researcher is projecting the total local ad market to hit $153.5 billion in 2015, up from $136.3 billion in 2010, representing a 2.1 percent CAGR.
Mobile is expected to play a major role in driving spending in the local space, as the penetration of smartphones has continued to rise. Back in December, BIA/Kelsey offered its prediction that the U.S. mobile ad revenues will grow from $491 million last year to $2.9 billion in 2014 for a staggering CAGR at 43 percent.
The numbers were based on expectations of rising mobile search ads, display on both apps and wap sites and text messaging. But the big spending will come in the form of local ads, which now makes up less than half of the mobile ad market. That will change significantly by 2014.
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March 22, 2011
Amazon Opens Android App Store
Amazon.com has entered the mobile app business with an Android app store.
The Amazon Appstore, which will be accessible at Amazon.com/appstore and through a mobile app, will sell applications for Android phones and tablets. It will also encroach on Google’s territory by providing Android users with a new way to buy apps that cuts Google out of the equation.
The store’s name has already prompted a lawsuit from Apple.
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The Amazon Appstore, which will be accessible at Amazon.com/appstore and through a mobile app, will sell applications for Android phones and tablets. It will also encroach on Google’s territory by providing Android users with a new way to buy apps that cuts Google out of the equation.
The store’s name has already prompted a lawsuit from Apple.
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March 21, 2011
AT&T to Buy T-Mobile USA for $39B
AT&T said it will buy T-Mobile USA from parent Deutsche Telekom for $39 billion in cash and stock. The deal has been approved by the board of directors of both firms, but is still subject to regulatory approvals by the FCC and Department of Justice. The companies expect the transaction to close in one year.
The merger, which would combine the No. 2 and No. 4 U.S. wireless carriers, would dramatically increase AT&T's subscriber base from 95.5 million to 129.2 million. It also will significantly broaden AT&T's current and future network footprint: The company said the transaction will allow it to deploy LTE to 95 percent of the U.S. population, or approximately 294 million people, at some point in the future.
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The merger, which would combine the No. 2 and No. 4 U.S. wireless carriers, would dramatically increase AT&T's subscriber base from 95.5 million to 129.2 million. It also will significantly broaden AT&T's current and future network footprint: The company said the transaction will allow it to deploy LTE to 95 percent of the U.S. population, or approximately 294 million people, at some point in the future.
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March 16, 2011
News Over Wireless Featured in TV NewsCheck
News Over Wireless is featured in TV NewsCheck's article "Stations' Mobile Apps Showing Promise."
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Capitol Broadcasting’s News Over Wireless (NOW) has been on the forefront of mobile platforms and has licensed technology to more than 160 stations, including those of Fox, Scripps, LIN, Meredith and Gannett.
According to GM Sam Matheny, NOW mobile solutions include apps for most mobile phones and tablets as well as SMS alerts. “You can expect the core content from the local TV newsroom products, breaking news, weather content, traffic sports, national news, world news,” says Matheny. “It’s customizable by the station and we will give you content to fit your screen.”
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March 15, 2011
Survey: Mobile News Readers Show Some Willingness To Pay
A national phone survey by the Pew Research Center shows that 30 percent of mobile news consumers would be willing to pay $5 a month to access their local newspaper online or on their phones if that was the only way to access the content. The survey also showed 38 percent of mobile users who used local apps would be willing to pay.
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March 14, 2011
NOW App Featured on Poynter.com
News Over Wireless partnered with WRAL-TV to launch a North Carolina high school sports app named High School OT. The app was featured today on Poynter.com.
Everyone does breaking news in a mobile app, but what about taking a page from msnbc.com’s Breaking News and aggregate statewide or regional news in a niche app?
WRAL.com partnered with a local radio station to provide comprehensive coverage of local high school sports.
Or for sports, consider the partnership between WRAL.com and a local ESPN affiliate. They built the High School OT app that covers nearly four dozen high schools in the Raleigh-Durham area. It includes schedules, photos, videos from WRAL-TV, and live game scores.
Piper Jaffray: iPad 2 Totally Sold Out, 70% to New Buyers
Gene Munster's team at Piper Jaffray walked the iPad 2 lines in New York City and Minneapolis and interviewed 236 would-be buyers. They also called various retailers (Apple stores, Target, Best Buy, etc.) looking for product. The results of their survey were released Sunday night. Their findings:
>Munster is sticking with his estimate of 400,000 to 500,000 iPad 2s sold, compared with 300,000 iPad 1s in its first weekend last year.
>The difference is that nearly all those iPad 2s were sold in one day; stocks were essentially depleted by Saturday and not replenished. In its calls to retailers over the weekend, his team was unable to find a single iPad 2.
>70% of iPad 2 buyers were new to the iPad, compared with 23% of iPhone 4 buyers who were new to the iPhone at launch.
>Buyers were split almost evenly between Mac and PC users (51%/49%). By contrast, the split for the original iPad was 74%/26%.
>47% of buyers were purchasing a 3G model, which carries a $130 premium.
>41% purchased the 32GB iPad 2, up from 32% who bought the 32GB version of the original iPad. The 64GB models also gained a slight share. This means that the iPad 2's average selling price (ASP) at launch was considerably higher than original iPad's.
>65% of buyers owned an iPhone, 24% owned a Kindle (up from 13% of original iPad buyers), but only 6% plan to read with their iPad (down from 19% in Piper Jaffray's first iPad survey).
>17% expect to use apps and play games, up from 9%, which suggests that the App Store ecosystem is growing.
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>Munster is sticking with his estimate of 400,000 to 500,000 iPad 2s sold, compared with 300,000 iPad 1s in its first weekend last year.
>The difference is that nearly all those iPad 2s were sold in one day; stocks were essentially depleted by Saturday and not replenished. In its calls to retailers over the weekend, his team was unable to find a single iPad 2.
>70% of iPad 2 buyers were new to the iPad, compared with 23% of iPhone 4 buyers who were new to the iPhone at launch.
>Buyers were split almost evenly between Mac and PC users (51%/49%). By contrast, the split for the original iPad was 74%/26%.
>47% of buyers were purchasing a 3G model, which carries a $130 premium.
>41% purchased the 32GB iPad 2, up from 32% who bought the 32GB version of the original iPad. The 64GB models also gained a slight share. This means that the iPad 2's average selling price (ASP) at launch was considerably higher than original iPad's.
>65% of buyers owned an iPhone, 24% owned a Kindle (up from 13% of original iPad buyers), but only 6% plan to read with their iPad (down from 19% in Piper Jaffray's first iPad survey).
>17% expect to use apps and play games, up from 9%, which suggests that the App Store ecosystem is growing.
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March 11, 2011
comScore: 42.7 M Own Smartphones
According to comScore, 42.7 million people in the U.S. owned smartphones in an average month during the November 2010 to January 2011 period, up 18 percent from the August through October period.
RIM was the leading mobile smartphone platform in the U.S. with 43.0 percent share of U.S. smartphone subscribers, rising 1.7 percentage points versus three months earlier.
Apple ranked second with 25.1 percent share (up 0.3 percentage points), followed by Microsoft at 15.7 percent, Google at 7.1 percent (up 4.3 percentage points), and Palm at 5.7 percent. Google’s Android platform continues to see rapid gains in market share.
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RIM was the leading mobile smartphone platform in the U.S. with 43.0 percent share of U.S. smartphone subscribers, rising 1.7 percentage points versus three months earlier.
Apple ranked second with 25.1 percent share (up 0.3 percentage points), followed by Microsoft at 15.7 percent, Google at 7.1 percent (up 4.3 percentage points), and Palm at 5.7 percent. Google’s Android platform continues to see rapid gains in market share.
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March 7, 2011
iPad 2 Announced
Fifteen million iPads have sold since the device shipped less than a year ago, said Apple CEO Steve Jobs at the iPad 2 press conference on March 2. We can expect at least another 20 million iPads to be sold, representing 80% of all tablet sales in the U.S. in 2011, according to Forrester analyst Sarah Rotman Epps.
As expected, iPad 2 will be faster, lighter and thinner than its predecessor. It has front- and back-facing cameras, as well as the gyroscope movement sensor we've seen on iPhones.
While the iPhone has had a camera for some time, its unlikely apps on the less portable and bigger iPad will use cameras in the exact same ways.
"I don't see it being used heavily for barcode or QR scanning, which is one of the more common uses of the iPhone cameras, but there's some interesting potential for things like augmented reality," said Jeremy Lockhorn, VP-emerging media for Razorfish. Some marketers may also test "click to call" features from ads or apps to video chat, Mr. Lockhorn said.
Matthew Szymczyk, CEO of interactive agency Zugara, said the front-facing camera will mean more people video chatting, making yet another way for consumers to get used to that type of interaction. Users can now use FaceTime, Apple's brand of video chat. But for brands the camera could also mean live, one-on-one customer service via video chat.
With faster processing, the iPad 2 will likely open doors for bigger, badder browser-based apps. While browser-based apps are popular because they can be viewed on multiple devices, what's been possible on iPad has been limited because of built-in restrictions on its browser. But iPad 2's new horsepower will likely allow more speed on browsers, thus more powerful web apps.
The device's new HDMI output -- a way to pipe what's on iPad off to to a larger flat-screen -- will also mean app experiences can become bigger and more shareable, said Sapient's Mr. Singh. "The output changes how sharing around the device can really happen," he said. "Web surfing or apps can now be shared on a 59-inch monitor." With one cord, the iPad goes from personal device to fixture in the living room.
The iPad's new speed makes media multitasking possible, said Mr. Lockhorn. "Nearly 40% of time spent on the mobile internet happens at home, and a lot of that is driven by using mobile and tablets in front of the TV," he said, which means more apps such as Nielsen's Media Sync that syncs content on the iPad with what's on the tube.
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As expected, iPad 2 will be faster, lighter and thinner than its predecessor. It has front- and back-facing cameras, as well as the gyroscope movement sensor we've seen on iPhones.
While the iPhone has had a camera for some time, its unlikely apps on the less portable and bigger iPad will use cameras in the exact same ways.
"I don't see it being used heavily for barcode or QR scanning, which is one of the more common uses of the iPhone cameras, but there's some interesting potential for things like augmented reality," said Jeremy Lockhorn, VP-emerging media for Razorfish. Some marketers may also test "click to call" features from ads or apps to video chat, Mr. Lockhorn said.
Matthew Szymczyk, CEO of interactive agency Zugara, said the front-facing camera will mean more people video chatting, making yet another way for consumers to get used to that type of interaction. Users can now use FaceTime, Apple's brand of video chat. But for brands the camera could also mean live, one-on-one customer service via video chat.
With faster processing, the iPad 2 will likely open doors for bigger, badder browser-based apps. While browser-based apps are popular because they can be viewed on multiple devices, what's been possible on iPad has been limited because of built-in restrictions on its browser. But iPad 2's new horsepower will likely allow more speed on browsers, thus more powerful web apps.
The device's new HDMI output -- a way to pipe what's on iPad off to to a larger flat-screen -- will also mean app experiences can become bigger and more shareable, said Sapient's Mr. Singh. "The output changes how sharing around the device can really happen," he said. "Web surfing or apps can now be shared on a 59-inch monitor." With one cord, the iPad goes from personal device to fixture in the living room.
The iPad's new speed makes media multitasking possible, said Mr. Lockhorn. "Nearly 40% of time spent on the mobile internet happens at home, and a lot of that is driven by using mobile and tablets in front of the TV," he said, which means more apps such as Nielsen's Media Sync that syncs content on the iPad with what's on the tube.
Read more
March 1, 2011
Mobile App Revenue to Reach $38 Billion by 2015, Report Predicts
There are over 350,000 applications available for download on the iOS platform, and after the success of that app platform, downloadable applications spread to almost every other mobile platform too.
But a report released Monday by Forrester Research, the market research company, said the business opportunities associated with apps were just beginning. Forrester estimates that the revenue created from customers buying and downloading apps to smartphones and tablets will reach $38 billion by 2015.
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