Ziki - David H Deans's last published content

Slow Market Development for 4G Wireless Services

Tue, 20 Jul 2010 03:04:07 +0200

The market for 4G technology deployments and subscriptions will begin to develop in 2010 but only in North America and Western Europe, according to the latest market study by In-Stat.

The rest of the world won't likely begin to embrace 4G Technology, in any significant way, until 2012.

"Among today's key trends is migration in 3G towards WCDMA and HSPA technology" says Chris Kissel, Industry Analyst at In-Stat. "Continued growth in data usage and competitive pressures will push operators toward the ultimate migration to 4G."

Additional findings from the In-Stat study include:

- WDCMA, HSPA/HSPA+ subscriptions will increase by 30 percent from 2010 to 2014.

- In-Stat has tracked 11 formal LTE contracts granted in 1Q10, but sees this as the beginning of a larger global adoption.

- In 2010, CDMA-related technologies will account for 566 million global subscriptions. However, the expansion of CDMA is in doubt as many global operators, including Verizon, begin transitioning to LTE.

- By 2014 Western Europe's 3G subscriptions will reach 540 Million, all WCDMA technology.

Online Marketers Maintain a Competitive Advantage

Sat, 17 Jul 2010 18:54:35 +0200

According to the latest study by eMarketer, the online advertising market showed its resistance to the economic recession. While total media spending dropped, marketer's online ad spending increased by 2 percent to $55.2 billion.

eMarketer forecasts that 2010 will bring a return to double-digit online ad growth -- with global spending set to reach $61.8 billion. Growth will continue at rates of over 10 percent each year through 2014.

"By 2014 eMarketer forecasts that figure will leap to $96.8 billion, growing at an 11.9 percent compound annual rate, despite the slow, uneven and fragile global economic recovery," said eMarketer's Jared Jenks. "These rates will be unmatched by other media."

North America and Western Europe accounted for nearly three-quarters of the world's online ad spending in 2009, but those mature online ad markets will post slower growth rates than developing areas in Asia-Pacific, Eastern Europe and Latin America.

In terms of dollars, however, the more developed regions will still increase by many billions because of their large established bases and still largely untapped potential of the Internet.

The Internet's share of total ad spending worldwide will jump from 11.9 percent in 2009 to 17.2 percent in 2014. Continued high growth in the online space coupled with a 2009 spending decrease of 10.5 percent for total media, followed by a slower recovery, will help online get an ever-larger slice of the ad spending pie.

"The reasons for this growth in share are clear," said Jenks. "Online is more measureable, more effective and where people are increasingly spending their time."

Marketers who have moved quickly to shift their budget allocation from traditional media to online have gained a significant competitive advantage over their laggard peer group. However, it's not clear how long it will take the marketing mainstream to catch-up to the more progressive early-adopters.

Broadband Service Providers Invest in Fiber Access

Sat, 17 Jul 2010 16:57:13 +0200

Infonetics Research released excerpts from its first quarter (1Q10) Broadband CPE and Subscribers market study, which tracks DSL and cable broadband customer-premise equipment (CPE) and subscribers, voice CPE, residential gateways, and voice terminal adapters.

The first quarter of the year is usually one of the worst for the broadband customer premise equipment market, as net subscriber additions and new CPE sales slow after the much better third and fourth quarters.

This quarter was also hurt by lingering economic difficulties worldwide, which are keeping many consumers from upgrading their existing broadband CPE to support new services.

"In particular, we saw a big drop in ADSL CPE in 1Q10, as operators are focused on deploying FTTH and VDSL2 services and are spending less to market their basic broadband services. All in all, 2010 will be a difficult year for CPE vendors, as operators see fewer new subscribers and will do what they can to use their existing inventory rather than purchase new equipment," predicts Jeff Heynen, directing analyst for broadband and video at Infonetics Research.

Highlights from the Infonetics market study include:

- In 1Q10, the worldwide broadband CPE market totaled $967.3 million, down 13 percent from 4Q09.

- After moving back into first place last quarter after a difficult early 2009, Technicolor (Thomson) held on to the number one position in worldwide total broadband CPE revenue, just ahead of Huawei and of Motorola.

- Due to slowing cable subscriber growth and the fact that many cable subscribers will hold on to their DOCSIS 2.0 CPE for a long time, DOCSIS 3.0 CPE sales are expected to be negatively impacted.

- Infonetics expects VDSL CPE sales to soften as many major telcos move to direct fiber to the home (FTTH), rather than via FTTB or FTTN and VDSL2.

Europe will Continue to Dominate the IPTV Market

Fri, 16 Jul 2010 16:08:59 +0200

According to the latest market study by Multimedia Research Group (MRG), global annual growth of IPTV subscribers will reach 102 million in 2014, a 25 percent CAGR. Despite economic hardship in many countries, robust Telco broadband and IPTV investments have been driving growth as a means to meet and outperform the Cable and Satellite pay-TV competition.

IPTV operators are using fiber access in high-competition markets and advanced DSL such as channel bonding and VDSL2 in other (less competitive) markets. As a result, Telcos have been discreetly improving their IPTV bandwidth capacity to sub-markets that need upgrades -- without overspending in markets that don't require immediate upgrading.

The Eastern European IPTV market is moving quickly to early maturity, while ROW markets shows faster gains than other regions. "As late as 2007, Eastern Europe had only a few IPTV trials or start-ups. Now, there are 16 fully operating IPTV Operators and another 3-6 in trial," says Jose Alvear, IPTV Analyst with MRG.

These Operators continue to grow their service base, because they have much greater technical and creative control over their service than their Cable competition. By 2014, Europe will have 45 percent of the global market, Asia 31 percent, North America 19 percent and ROW about 5 percent.

High ARPUs still favor Europe and U.S. IPTV markets, with largest service and systems revenues also coming from these regions. Of the specific CapEx items tracked by the report, expenditures will grow from $3.1 billion in 2010 to $5.1 billion in 2014, while Service Revenue will grow from $17.5 billion to $46 billion in 2014.

Over 50 companies are profiled in the report, including many emerging markets in Eastern Europe and ROW. Despite many obstacles and competition, 23 IPTV SPs (mostly in Asia and Europe) will have exceeded the million-subscriber mark by 2014.

"For many IPTV Operators, STBs (Set-top Boxes) make up over 70 percent of CapEx expenditures," says Alvear. "Therefore we can expect greater penetration of integrated hybrid, IPTV, and over-the-top (OTT) STBs (including connected TVs with STBs embedded in TV Sets)."

In the North American markets, all eyes have recently turned to Verizon and AT&T, each adding about 1 million subscribers in 2009. Since Verizon stopped signing new franchise agreements outside its existing footprint, speculation is growing that Verizon will switch from its QAM/IPTV architecture to an all IPTV (Fiber-based) architecture for future franchises after 2010.

Meanwhile AT&T, with no such technical constraints, is free to use a discreet upgrade approach to growing bandwidth using a mix of advanced DSL or FTTX as needed.

49.1 Million People in the U.S. Own Smartphones

Fri, 16 Jul 2010 15:39:32 +0200

comScore reported key trends in the U.S. mobile phone industry during the three month average period ending May 2010 compared to the preceding three-month average. For the 3 month average period ending in May, 234 million Americans age 13 and older used mobile devices.

Device manufacturer Samsung ranked as the top OEM with 22.4 percent of U.S. mobile subscribers, up one percentage point from the preceding three month period. LG ranked second with 21.5 percent share, followed by Motorola (21.2 percent share), RIM (8.7 percent share, up 0.5 percentage point) and Nokia (8.1 percent share).

49.1 million people in the U.S. owned smartphones during the three months ending in May, up 8.1 percent from the corresponding February period. RIM was the leading mobile smartphone platform in the U.S. with 41.7 percent share of U.S. smartphone subscribers, followed by Apple with 24.4 percent share and Microsoft with 13.2 percent.

Google saw significant growth during the period, up 4.0 percentage points to capture 13.0 percent of smartphone subscribers, while Palm rounded out the top five with 4.8 percent. Despite losing share to Google Android, most smartphone platforms continue to gain subscribers as the smartphone market overall continues to grow.

65.2 percent of U.S. mobile subscribers used text messaging on their mobile device in May, up 1.4 percentage points versus the prior three month period, while browsers were used by 31.9 percent of U.S. mobile subscribers (up 2.3 percentage points).

Subscribers who used downloaded applications comprised 30.0 percent of the mobile audience, representing an increase of 2.1 percentage points from the previous period. Accessing of social networking sites or blogs also saw significant growth, increasing 2.6 percentage points to 20.8 percent of mobile subscribers.

Mobile Marketing and Advertising Market Upside

Fri, 16 Jul 2010 15:25:12 +0200

Mobile advertising is a relatively small market today, according to the latest market study by ABI Research. However, over the next five years, spending on mobile display ads in the U.S. -- estimated at just under $313 million in 2010 -- will almost quadruple to exceed $1.2 billion in 2015.

ABI practice director Neil Strother says, "A survey conducted by ABI Research in February found that 28 percent of the mobile subscribers queried accessed the mobile Internet daily. This is a huge increase over the number doing so just 14 months ago, and is a powerful driver for the mobile marketing and advertising market."

Mobile display ads -- essentially similar to online banner ads -- are only one method available to aspiring mobile marketers. The others include text messaging, search advertising, Ads within applications (in-app), and video (streaming and on-demand).

While smartphone usage is a primary driver of this new and still fragmented industry (smartphone penetration in the U.S. currently stands at about 20 percent), mobile marketing's potential extends to mobile devices of all kinds.

"Marketers have increasingly been shifting budgets into mobile campaigns," Strother reports. "This became evident during our research interviews with advertising agency executives, technology vendors and mobile ad network operators, who said they have been seeing year-over-year increases of 25 to 30 percent in campaign spending."

Major high-tech firms are now getting involved, as demonstrated by Apple's acquisition of Quattro Wireless and Google's takeover of AdMob. But independent ad networks are also serving this market, companies such as Millennial Media, Jumptap, and Greystripe.

"Each of these networks is focused on a somewhat different part of the market," says Strother, "but in principal they're open to anybody with money who wants to reach a mobile audience."

U.S. Broadband Internet Access is a Growth Market

Thu, 15 Jul 2010 14:04:17 +0200

Infonetics Research released excerpts from its Residential Voice, Data, and Video Services in North America market study.The residential services market is in rapid transition. The decline of traditional fixed-line voice service and the rise of broadband access, video, and mobile data is speeding up.

PC-based mobile broadband subscribers will surpass all other types of Internet access subscribers by 2013. If telecom operators aren't able to provide competitive mobile services, they will be at a significant disadvantage.

"Now that residential voice and Internet services are no longer tied to a physical household, operators can (and should) customize services for individual members of a household and compete on a nationwide basis versus a specific fixed territory," advises Diane Myers, Infonetics Research's directing analyst for service provider VoIP and IMS.

Highlights of the Infonetics study include:

- The residential services market in North America, which comprises voice, video, and Internet access services, held steady during the economic downturn, maintaining $240 billion in 2009.

- Service provider revenue from voice services (including VoIP and mobile voice) decreased 5 percent in 2009, while broadband access and video service revenue increased 5 and 6 percent, respectively.

- Infonetics Research forecasts the North American residential voice, video and Internet access services market to grow to $271 billion by 2014.

- Broadband access is the true growth engine for residential services, with annual revenue for North American service providers expected to grow at a 13 percent compound annual growth rate (CAGR) from 2009 to 2014, driven by both fixed and mobile broadband solutions.

- In 2009, 70 percent of all North American voice subscribers were mobile; by 2014, that number will grow as an increasing number of consumers go mobile-only.

- 55 percent of all residential mobile subscribers in North America are customers of either AT&T or Verizon.

- The battle between cable operators and satellite providers for video services continues, with the dominating cable operators losing some revenue market share to satellite (DBS) and telco IPTV providers in 2009.

- Comcast leads in North American residential video service revenue share, and DirecTV and Dish Network jumped ahead of Time Warner Cable in 2009.

- Video services represent significant future revenue for service providers, but it comes at a high cost of programming and lower margins than voice services.

Mobile USB Hard Drives Aid in HD Video Storage

Tue, 13 Jul 2010 01:22:45 +0200

The ongoing shift to high-definition (HD) video content, from standard-definition (SD), has gained new momentum as the price of low-end HD camcorders continues to decline. The market development from HD video resolution professional-grade to advanced prosumer and then to mainstream consumer devices has been swift.

There are several HD Video formats, which are used for video capture and for online video streaming applications. One thing that all HD formats seem to have in common, they create significantly larger file sizes than the prior SD formats. As you capture more video in HD or acquire stock video for your multimedia projects, you'll quickly discover the need for more hard drive capacity.

As an example, it takes about 13GB of memory to store one hour of standard definition (DV) video and 40GB to store an hour of high definition (HD) video. File sizes can vary depending on the video codec and bit rate options. Also, whether you store and edit in native (uncompressed) formats or choose to transcode your video, those choices can impact the resulting file size.

That said, one of the many benefits of digital video, when compared to traditional film, is the relatively economical storage options. During the production phase of a project it is common for videographers to shoot multiple versions of a given scene, knowing that they can discard unused video in the post-production editing phase.

Video Storage Options, When Mobile
When on location, flash memory storage is now becoming the preferred capture method for new cameras -- replacing the prior method, using magnetic tape. Transferring, or downloading, digital video files from a camcorder's flash media to a notebook PC's hard drive is common practice.

In addition to the built-in PC hard drive, another very useful storage option is the portable external hard drive -- in particular, those utilizing the USB 2.0 interface standard.

USB buss-powered external hard drives are preferable for mobile applications because they don't require a separate power supply; they're powered via the single USB cable. Purpose-built portable drives are very small, light and power-efficient devices that can range in data storage capacity from 250GB up to 1TB -- with the popular 500GB models now priced at about $100.

I've been using two ultra-portable drives for my own video applications. I highly recommend them, even if you already own an desktop external hard drive, I suggest that you consider the benefits of these sleek new ultra-portable models.

The FreeAgent Go from Seagate comes bundled with automatic back-up software and is pre-formatted for Windows PCs. My device also included a copy of muvee Reveal software, providing a convenient, all-in-one solution for creating, saving and sharing videos. This device has a standard 5-year limited warranty.

The G-Drive Mobile USD from G-Technology is a slightly larger drive that's pre-formatted for Apple MacBooks. The drive can also be initialized and formatted for Windows PC use. This storage device has a rugged aluminum case -- and yet it weighs less than 9 ounces. It's backed by a standard 3-year limited warranty.

Portable external hard disk drives have become a must-have tool for the economical real-time and archival mass storage of HD video content and various other multimedia file types.

Video Usage May Drive U.S. Broadband Revolt

Sat, 10 Jul 2010 19:25:23 +0200

eMarketer reports that while most mainstream U.S. consumers may not care much about the broadband access speed that they have at home, they are very interested in continuing to gain access to the vast array of video content that's readily available to them via the public Internet.

The number of online video viewers continues to grow, while the number of videos viewed skyrockets. Nearly 183 million U.S. internet users watched an average of 186 videos per viewer during the month of May, for a total of 34 billion videos, according to comScore.

U.S. households are also becoming more networked, as consumers buy more and more internet-enabled consumer electronics (CE) devices. A joint report from In-Stat and Capgemini predicts that by 2013, nearly 57 million U.S. households will own these devices.

All that multimedia traffic requires an adequate broadband speed -- an area where the U.S. lags behind many other countries. According to a 2009 report from the Saïd Business School at the University of Oxford, the U.S. does not make the top 10 list of broadband leaders -- when measuring household penetration and quality of connection.

However, the Federal Communications Commission (FCC) determined that most adult broadband users are "fairly satisfied" with the speed of their home internet connections -- though four out of five could not say what that speed was exactly.

The FCC offers a free test for internet users to measure their connection speed at the broadband.gov website. Men apparently professed to be more knowledgeable: Just 71 percent admitted ignorance, compared with 90 percent of women.

Another survey from the Leichtman Research Group shows these findings are not a fluke: 77 percent of adults could not say what their home broadband connection speed was, or what it was supposed to be.

Yet 71 percent of respondents agreed they were "very satisfied" with whatever speed they were getting. In contrast, the FCC survey uncovered that only 50 percent were satisfied.

Clearly, a sudden rise in over-the-top video streaming demand could shift consumer perception, from passive acceptance to active indignation. As U.S. consumers view more and more HD-quality video -- and create their own video on HD camcorders -- they may quickly discover that their Internet service provider's current access speed is totally unacceptable.

IPTV Service Providers Reach a Major Crossroads

Sat, 10 Jul 2010 18:30:57 +0200

IPTV network operators face a complex array of issues and challenges as they scale their networks to deliver services to a wider group of customers. Those challenges aren't limited solely to subscriber headcount, according to the latest market study by Heavy Reading.

"IPTV is at an exciting stage in its development, with subscriber numbers growing at a fast pace around the world," notes Simon Sherrington, research analyst with Heavy Reading.

"But even during this time of opportunity, the industry faces significant challenges related to what can broadly be described as scaling -- IPTV services and systems are scaling up in multiple ways, including not only more subscribers, but also more data, more devices, more interactivity and more content."

Demand for HD content and multi-screen delivery, the overwhelming quantity of content that must be delivered efficiently and discovered by the user, and the need to respond to competition from OTT video content -- as well as to cable operators' increasingly sophisticated services -- are all affecting telco efforts to scale IPTV services, Sherrington says.

"Vendors need to help their telco customers in many ways, pushing along multiple axes of the scaling challenge and opening up their systems to third parties to help in the development of new services in which managed IPTV is likely to become just one part of an even more complex TV and video delivery service," he adds.

IPTV service providers have reached a significant crossroads. Will they choose to open their closed walled-garden platforms to independent TV app developers, or will they stay on their current course?

Key findings of the market study include:

- Vendors are evolving their systems in several ways, from handling IPTV and video traffic at lower layers in the network to opening up middleware to innovative third-party apps.

- The IPTV service layer can cope with HD and 3DTV content, although 3D is two years away from being significant.

- Efficient technical and commercial models for multi-screen TV services have not yet emerged.

- The processing power of set-top boxes will soon approach that of PCs, and will handle hybrid managed and OTT content in an integrated way.

- Intelligent content discovery and recommendation engines are increasingly important to enhance the user experience.

Sky-High Price Limits In-Flight Broadband Service

Sat, 10 Jul 2010 18:12:45 +0200

Wi-Fi connectivity deployments in airplanes have grown rapidly from a couple dozen in 2008 to an expected 2,000 planes by end of year 2010. While Internet access availability is progressing, paid usage generated from in-flight broadband service has been extremely low, according to the latest market study by In-Stat.

In-Stat believes that in-flight broadband is now at the stage of market development where it must prove its sustainability through the ability to generate meaningful revenues. However, the current high price of services has limited the prospects of further adoption. That scenario may be subject to change.

"Revenues from in-flight broadband will reach $95 million in 2010, up from just under $7 million in 2009," according to Frank Dickson, VP Research at In-Stat. "However, the fee per connect is expected to deteriorate as lower connect fees are negotiated for roaming and billing partner subscribers."

Data points that impact revenue include:

- Connect fees are projected to decline 24 percent from 2010 to 2014.
- In-Flight broadband connects will exceed 76 million in 2012.

In an effort to bolster Internet revenues, providers are beginning to explore the opportunity to provide video, Direct Broadcast Satellite (DBS) and Internet-based video. DBS revenues promise to be over 3x the size of Internet video in 2014.

Aircell is currently the in-flight broadband provider market leader with announced airline partners including Air Canada, Air Tran, Alaska Airways, American Airlines, Continental Airways, Delta Airway, Frontier Airways, United Airlines, US Airways, and Virgin America.

Africa is the Fastest Growing Mobile Phone Market

Wed, 07 Jul 2010 12:18:06 +0200

ABI Research forecasts over five billion mobile subscriptions by the end of 2010, with an approximate 4.8 billion connections having already been reached by the end of the year's first quarter.

Much of this growth will be registered in developing markets in Africa and the Asia-Pacific region. Africa remains the fastest growing mobile market with a YoY growth of over 22 percent. Mobile penetration in Asia-Pacific will rise significantly to 65 percent by the end of 2010.

“This unprecedented growth is driven by India and Indonesia, which have together added over 150 million subscriptions in the past four quarters,” comments ABI Research analyst Bhavya Khanna.

Falling monthly tariffs and ultra-low-cost mobile handsets have democratized the reach and use of the mobile phone, and aggressive roll-outs by mobile operators in these countries will see the current rate of subscriber addition maintained for some time to come.

At the other end of the spectrum, developed countries in North America and Europe continue to add subscriptions despite already having crossed the 100 percent penetration threshold.

Driving this growth in subscriptions are new mobile devices and the third screen -- including netbook PCs, tablet computers, USB dongles and e-book readers.

"The success of Apple's iPad 3G shows that even mobile operators in saturated markets can add subscriptions by introducing innovative and user-friendly devices," says vice president of forecasting Jake Saunders.

In addition, the introduction of 4G data networks such as WiMAX and LTE will see more consumers ditch their cables and access the Internet through mobile broadband connections.

Operators such as Clearwire in the United States and Yota in Russia have seen consumers turn to their networks as fast and mobile alternatives to fixed-line broadband services.

U.S. OTT Video Revenue to Quadruple by 2014

Wed, 07 Jul 2010 12:02:24 +0200

Innovative leaders in the over-the-top (OTT) video market are positioning themselves for what is anticipated to be a high-growth market with multi-billion dollar revenue streams, according to the latest market study by In-Stat.

As an example, companies such as Netflix, Blockbuster, Wal-Mart, Best Buy, YouTube, and Hulu are all vying for market share growth in the U.S. marketplace. While these American companies may be leading the field today, it's clear that the ongoing transition in video entertainment distribution is a global phenomenon.

"OTT video is happening now, with over 37 million broadband households in the U.S. downloading online video content," says Keith Nissen, In-Stat analyst. "The growing adoption of both OTT video consumption and web-enabled consumer electronics promises to further expand the opportunity content producers and OTT retailers."

In-Stat says that they define "Over-the-top" as any video content delivered via a broadband connection from a source other than the network service provider. Not to be confused with telco IPTV, which is typically a service clone of traditional pay-TV offerings from cable and satellite providers.

In-Stat's market study found the following:

- U.S. broadband households that view OTT video will grow from 38 million in 2009 to 81 million by 2014.

- Revenue from OTT video will more than quadruple by 2014 as it approaches $20 billion.

- A primary success criteria for OTT video services is access to unique, first-run TV and movie content.

- Over one-third of the 18–24 year old adult households stream full-length OTT video on a regular basis, compared to less than 10 percent of adult households in the over 45 year-old age brackets.

81 Million USB Wireless Modems to Ship in 2010

Mon, 05 Jul 2010 16:26:35 +0200

Wireless modem devices come in a variety of form factors -- including USB modems, PC cards, embedded modules, and wireless routers. Among the external devices, USB modems have become one of the most popular wireless communication products.

So popular, in fact, that ABI Research forecasts shipments of nearly 81 million this year.

Today, the majority of wireless broadband subscribers enjoying portable connectivity use USB ports. The alternative, the PC Card slot, has rapidly been displaced since the introduction of USB in 2006.

"The main reason for USB modem popularity is versatility at a low price," says Jeff Orr, principal analyst, mobile devices at ABI Research.

According to the latest ABI Research market study, more than 50 percent of the modem models now available in the market utilize the ubiquitous USB interface.

Adds Orr, "USB dongles connect the subscriber to a specific network rapidly and without installing drivers. As new networks using the latest 3G or 4G protocols emerge, the USB modem is ready to update the installed base of portable and mobile computers."

The question remains whether embedded modem modules in new computers or the recent interest in personal hotspot routers connecting multiple Wi-Fi devices to a single wireless WAN connection can overtake the popularity of USB dongles.

ABI research associate Khin Sandi Lynn points out that, "In the long run, more devices are looking for a network to connect to. The wireless modem market can solve this in many ways -- different form-factors, air interface protocols, and increased attention to style and cultural interests."

The mobile broadband modems available in the market today support a variety of air interface technologies. According to the ABI Research database, approximately 50 percent of the wireless modems in the market support GSM, GPRS, EDGE or HSDPA standards.

Social Media Marketing: Lead with Talent, not Policies

Mon, 05 Jul 2010 15:29:28 +0200

Who should lead our social media marketing activity? It's a question being asked frequently, but the answer can vary greatly from one organization to another. Initially, it's wise to focus on the skilled people within your qualified talent pool -- or, talent puddle, as the case may be -- rather than choosing a functional group.

Meaning, the possession of proven experience should be a key deciding factor in leader selection.

eMarketer reports that it's quickly becoming common wisdom among marketers that a meaningful strategy is required to apply social media tools effectively. That doesn't mean a majority of those involved in the space have created a well-thought-out approach.

According to a May 2010 market study by Digital Brand Expressions, 52 percent of marketers using social media are operating "without a game plan" -- similar to the 50 percent found in April 2010 by R2integrated.

Many marketers that do have a strategy find it doesn't address all their concerns or fit their most pressing needs. The most common key elements in a social media communications plan were resource-allocation guidelines for ongoing activities, registration of branded usernames on social sites and research into competitor's use of social media.

Does that mean finding staff qualified to complete those tasks are their top priority? Actually, no it doesn't.

When survey respondents were asked about their plan implementation, their answers had a somewhat different focus. While resource allocation was still top of mind, 71 percent were consumed with preparing and distributing the organization's guiding "policies" for ongoing communications.

Regardless, just 45 percent of companies had the completed policies in place. Perhaps they formed a "task force" to debate the topic and were stuck in a perpetual review process -- essentially distracted by the concerns of traditional command and control-centric managers who have no prior social media experience.

Respondents were equally concerned with the ongoing monitoring of brand reputation. At 71 percent, it's yet another common distraction from the more pressing needs. However, only 52 percent had a substantive plan for those custodian brand manager activities.

The greatest policy need disparity was defining how social sites should be used by sales, human resources, customer service and other groups within the company. But, while more than two-thirds of respondents saw a need for these policies, 29 percent were actually prepared.

The common desire to contain social media activity with policy creation stalling tactics highlights how social media has spread throughout many organizations and is not limited to marketing or PR departments. Regaining control -- via the threat of punitive policies -- tends to become the focal point of legacy business managers.

A majority of companies with a social strategy included marketing, PR and sales in their plans -- but most survey respondents also thought that human resources and customer service should be added. Respondents agreed that, in general, responsibility for creating strategies should fall to marketing departments.

"Companies that have held back on adopting social media throughout their organizations would benefit from starting with a cohesive plan that involves all of the key groups within the organization," said the findings in the report. Clearly, the problem with these "group think" approaches is that the few people with demonstrated social media marketing experience are often overruled by the uninformed majority.

1.9 Billion Installed CE Devices in U.S. by 2013

Sun, 04 Jul 2010 02:02:32 +0200

Creating 3D video content is gaining momentum in Hollywood. The excitement over 3D has also found its way to the U.S. consumer electronics market. By 2013, one in five new televisions sold in America will be 3D, according to the latest market study by In-Stat.

Year-over-year shipment growth will be 231 percent between 2010 and 2011 -- resulting in a doubling of the U.S. installed base of units for 3D TVs from 2010 to 2011.

"High definition (HD) did create a wave of activity in the U.S. market, not seen since the introduction of color," says Stephanie Ethier, In-Stat analyst. "3DTV promises to be the next significant innovation wave for living room entertainment."

Despite many bright spots in the U.S. consumer electronics (CE) market, there will be losers in the market. Maturing segments like MP3 audio players, handheld video games and desktop PCs will show declining growth rates in 2012 and 2013.

According to the In-Stat assessment, products with broader feature sets -- such as smartphones, tablet PCs and e-readers -- will become more integral in U.S consumers lifestyles.

In-Stat's market study found the following:

- Shipments of affordable e-Readers, such as the Amazon Kindle, will more than double in 2010 versus 2009.

- The installed base of MIDs or Tablet PCs will surge to nearly 20 million devices by 2013.

- By 2013, there will be 1.9 billion installed CE devices in the U.S. market.

U.S. Mobile Map Application Users Reach 33.5 million

Sun, 04 Jul 2010 01:40:50 +0200

According to the latest study by comScore, 14 percent of mobile users in the U.S. accessed maps on their devices in April 2010 -- as the mobile map audience reached 33.5 million users, up 44 percent from the previous year.

The market study also found that more mobile users now access maps via applications than via Web browser, demonstrating the success of applications in penetrating the mobile map market.

"People are increasingly turning to their mobile phone for maps and directions when on the go," said Mark Donovan, comScore senior vice president of mobile.

For the three month period ending April 2010, 26 percent of smartphone users accessed maps via applications, while 19 percent accessed maps via browser in a month. In comparison, just 2 percent of feature phone users accessed maps via applications, with 4 percent doing so via browser.

Smartphone users drove growth in both application and browser map usage with app access nearly tripling to 12.7 million smartphone users, while browser map access surged 93 percent to nearly 9 million smartphone users. The number of mobile map app users first surpassed mobile map browser users in February 2010.

For the three month period ending April 2010, 33.5 million mobile users accessed maps at least once during a month, an increase of 44 percent from the previous year.

Visitors accessing maps 1-3 times per month increased 47 percent to 17.1 million users, while those accessing once a week increased 60 percent to 11.6 million users. The most frequent users, those accessing maps on a near daily basis, climbed 9 percent to reach 4.8 million users.

Among those who accessed maps on their mobile devices, 87.2 percent did so from a car or other vehicle, with 17.2 percent doing so while walking, running or biking, and 16.7 percent while using public transit.

The most utilized types of maps were graphical maps with turn-by-turn directions (60.3 percent of mobile maps users), followed by 50.6 percent using a graphical map without turn-by-turn directions and 46.8 percent using turn-by-turn directions without a graphical map.

"87 percent of mobile navigation users are accessing maps and directions while driving," noted Donovan, "Clearly indicating that the rising sophistication of smartphones poses a challenge to dedicated GPS systems."

138 Million People Watching OTT Video in the U.S.

Thu, 01 Jul 2010 16:03:02 +0200

Technologies such as high definition television (HDTV), digital video recorders (DVR) and the Internet are creating higher quality convenient experiences for U.S. consumers.

As a result, the amount of video Americans consume continues to rise, according to the latest market study by The Nielsen Company. Over the last two years, ownership of HDTVs, DVRs and smartphones have increased at double- and triple-digit rates.

"Consumers are driven by the convenience and quality that today's technology now enables," said Matt O'Grady, Executive Vice President, Audience Measurement at Nielsen. "New mobile devices and enhanced TV quality allow viewers to engage in more content than ever before."

More than half of U.S. TV households now have HDTV, up 189 percent from the first quarter of 2008, and more than one-third now have DVRs, up 51 percent. High-speed broadband Internet access, now in 63.5 percent of homes, has created a better user experience for watching online videos and nearly a quarter of households have smartphones, enabling consumers to place-shift and watch video wherever they are.

Despite the common perception that viewers of videos on mobile phones are predominantly teens, more than half (55 percent) are adults aged 25-49. While mobile online video viewing is still fairly limited, year over year growth is notable at 51.2 percent.

Television viewers watched 2 more hours of TV per month in the first quarter of 2010 compared to the same period a year prior (158:25 vs. 156:24). They are also continuing to simultaneously use the Internet while watching TV, with the average time spent doing both activities up 9.8 percent to 3 hours and 41 minutes.

As of Q1 2010 the 292 million people in the U.S. with TVs spend on average 158 hours, 25 minutes each month tuning into television. Q1 2010 data shows that 138 million people watching video on the Internet spent on average 3 hours, 10 minutes during the month doing so.

As of 1Q10 the 20.3 million people who watch mobile video in the U.S. spend on average 3 hrs, 37 minutes each month watching video on a mobile phone.

55 Million Smartphones Ship in First Quarter 2010

Thu, 01 Jul 2010 03:08:59 +0200

The smartphone markets around the globe continue to build upon their strong 4Q-2009 performance in the first three months of 2010. According to the latest market study by ABI Research, a little more than 55 million smartphones shipped during the quarter.

In fact that represents a drop of about one million compared to 4Q-2009, but seasonal sales cycles always produce lower results in the first quarter of any year compared to the previous quarter.

According to ABI senior analyst Michael Morgan, "Normally we would see a much greater decline in shipments in the first quarter; the fact that the drop was so relatively small highlights the continuing dynamic growth of the smartphone market."

Much of the fastest growth is being seen in markets that previously had little penetration by expensive, cutting-edge smartphones. With new less expensive models becoming available, the global smartphone market is becoming much more diverse.

An example is provided by Nokia. Its shipments rose QoQ from 20.8 million to 21.5 million despite the usual quarterly decline, building on an explosive last quarter of 2009 which saw the firm's smartphone shipments expand 25 percent.

Growth came largely on the strength of its new models -- such as the “C” and “X” lines which are really experience-focused, lower-cost smartphones that directly address those newer markets.

Nokia has a history of success in lower-cost feature phone markets, but until recently their smartphone lineup was exclusively high-end.

"These are not iPhone-killers," notes Morgan. "They're simpler, lower-end devices, not bleeding-edge top-of-the-line technologies, but they can still deliver satisfying social networking and other basic smartphone experiences."

Apple iPhone shipments also rose slightly, from 8.7 to 8.8 million, partly on the back of strong performance in markets such as Japan and China. The smartphone market as a whole was probably buoyed by improving first quarter holiday season demand from the Asia-Pacific region.

Hybrid Broadcast-Broadband Set-Top Box Upside

Tue, 29 Jun 2010 13:49:23 +0200

Global demand for digital set-top boxes reached a record high in 2009, with worldwide set top box (STB) unit shipments increasing 11 percent, according the the latest market study by In-Stat. Increased demand for both satellite and terrestrial pay-TV STBs fueled the market growth, with market share fragmented across many vendors.

Even after a record year, the market likely faces numerous challenges. "The set top box market will be solid for the next few years. However, there are some emerging threats that will test the market's long-term viability," says Mike Paxton, an analyst at In-Stat.

According to In-Stat's assessment, the foremost threats are:

- Over-the-top (OTT) video offerings could permit consumers to downgrade or disconnect their current pay-TV service.

- Software platforms that enable consumer electronic (CE) devices to function like, or even replace, a traditional set top box.

- Other consumer electronic devices, such as video game consoles and TV sets, can increasingly replicate the capabilities of a digital set top box.

In-Stat's market study found the following:

- STB unit shipments in 2010 are projected to decrease slightly, returning to 2008 levels.

- Hybrid set top boxes that integrate IP video with an existing broadcast TV platform will ship in significant numbers in 2011, particularly in Europe.

- Sustained demand for advanced set top box products like HD-capable set top boxes and PVR-enabled products, coupled with the continuing analog-to-digital television transition, will keep the set top box market vibrant through at least 2012.

- Satellite set top boxes, the largest market segment, accounted for 48 percent of 2009 global set top box unit shipments.

- Competition in the set top box market is increasing. In 2009, seventeen STB manufacturers shipped over one million units.