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Friday, July 29, 2005

Research company sees growth ahead for Tablet PCs | InfoWorld | News | 2005-07-28 | By Paul Kallender, IDG News Service:
"Biggest hurdle to growth could actually come from Microsoft, InStat says

By Paul Kallender, IDG News Service
July 28, 2005

The Tablet PC market is set for steady growth between now and the end of the decade, research firm In-Stat said Wednesday.

However, the biggest hurdle to this growth could come from the Tablet PC's main backer, Microsoft (Profile, Products, Articles), if that company decides it is serious in promoting a new lower-priced, consumer-oriented product category, In-Stat said.

The Tablet PC market is due to grow from $1.2 billion in 2004 to $5.4 billion in 2009, with the U.S. remaining the biggest market followed by Europe then Asia, according to Brian O'Rourke, a senior analyst at the company. In-Stat classifies Tablet PCs as devices that run the Windows XP Tablet PC Edition operating system.

To date, Tablet PCs have been more expensive than notebook PCs and used mainly in vertical markets such as health care, real estate, and insurance, O'Rourke said.

But there signs that companies outside of these specialist markets are beginning to purchase the machines for use by middle managers. One of the main reasons for the growing, if still limited, popularity of these devices is falling prices. Average prices for Tablet PCs have dropped well below $2,000 this year, he said.

O'Rourke declined to reveal In-Stat's forecast for unit shipments.

In-Stat's findings come after Microsoft signaled several times that it is still committed to the Tablet PC more than three and a half years after Bill Gates, the company's chairman and chief software architect, predicted that they would become the most popular form of PCs sold in the U.S.

In January, Microsoft said it was working with PC vendors to push Tablet PC prices to within $100 to $200 of comparable notebooks and, in June, Gates reaffirmed that the company continued to invest in software improvements to help push Tablet PCs into the mainstream.

If Microsoft combines its Tablet PC operating system with the new Windows Vista operating system, formerly known as Longhorn, this could help push Tablet PCs into the mainstream, O'Rourke said. Windows Vista is due in 2006.

But Microsoft could quite easily kill off the Tablet PC market, too, he said.

In April, at the Windows Hardware Engineering Conference, Gates announced that he was considering pushing a potential rival portable computing platform into the market called Ultra Mobile 2007.

In remarks posted on Microsoft's Web site, Gates said he envisioned Ultra Mobile 2007 as a new category of device that would cost between $800 and $1,000, and weigh as near to a pound as possible. These devices would have a consumer friendly bent and would integrate a camera, a phone, a touch-screen, and offer music and video playback functions along with very long battery life.

'The Ultra Mobile 2007 adds another portable PC platform to the market. If it coexists with Tablet PCs, it could detrimentally affect sales of Tablet PCs. Microsoft may intend the Ultra Mobile 2007 to succeed or even replace the Tablet PC,' O'Rourke said.

While growth prospects for the Tablet PC look rosier, the devices remain a small slice of the overall market. Tablet PCs will not account for more than 5 percent of the notebook PC market through 2009, he said."

Microsoft boosts efforts to beat Linux | InfoWorld | News | 2005-07-28 | By Elizabeth Montalbano, IDG News Service:
"Company says it will target areas where Linux is a popular choice

By Elizabeth Montalbano, IDG News Service
July 28, 2005

REDMOND, WASHINGTON - Microsoft said Thursday it is stepping up efforts to replace Linux with Windows, highlighting a new campaign aimed at specific kinds of server workloads.

Speaking at the company's annual financial analyst meeting on Thursday, Kevin Johnson, a Microsoft (Profile, Products, Articles) group vice president, said the software giant is focused on offering specific products and services aimed at three types of workloads where Linux is now a common choice: Web servers, high-performance computing and edge servers.

'We are targeting product and technology offerings to the unique needs of running those workloads,' he said.

The plan is an extension of the Microsoft 'Get the Facts' campaign, which the vendor launched in 2003 to compare the value proposition of Windows versus Linux in an effort to show customers that Windows offers a better return on investment in most cases.

Johnson said Microsoft's plan to target areas where Linux is especially popular will help Windows displace the open source operating system.

'With our laser focus on these workloads, I would expect us to win more and more customers,' he said.

At the same time, Microsoft seems to be warming up slightly to Linux, or at least recognizing it as a necessary evil.

Over the past 18 months, the company has set up an Open Source/Linux lab on its Redmond campus to test Linux and other open source software. In the lab, which is run by Bill Hilf, Microsoft's director of platform technology strategy, proprietary Microsoft software is deployed alongside Linux and other open source technologies to ensure better interoperability among them, Hilf said in an interview earlier this week."

Windows Vista release slips to Q4 2006 | InfoWorld | News | 2005-07-28 | By Elizabeth Montalbano, IDG News Service:
"Microsoft exec says the final version will become available in 'holiday' timeframe next year

By Elizabeth Montalbano, IDG News Service
July 28, 2005

REDMOND, WASHINGTON - Windows Vista won't be available for shipment until the last quarter of 2006, a Microsoft executive let slip in a presentation on Microsoft's (Profile, Products, Articles) campus Thursday.

Microsoft had previously slated the release of the next client version of its Windows operating system for the second half of 2006. But at the Microsoft Financial Analyst Conference here on Thursday, Will Poole, senior vice president of the client division of Microsoft, said the OS would not be available until the 2006 'holiday' time frame in the U.S..."

Dial-Up Dries Up in Europe:
"Published: July 29, 2005
(After August 06, 2005, this article will only be available to eStat Database subscribers.)

A new report says Europe has overtaken North America as the second-largest broadband market in the world.

'What we are witnessing now is the death of dial-up Internet in Western Europe,' says Martin Olausson, senior analyst at Strategy Analytics. 'Over the next five years the leading markets in Europe will phase out dial-up Internet altogether.'

According to Strategy Analytics' new report, 'Europe Surges Ahead on Broadband,' Europe is second to only the Asia-Pacific region as the largest broadband market in the world. The report predicts that total broadband household penetration in Western Europe will reach 63% by 2010, by which time 93% of online households will use broadband to access the Internet.

By the end of the year, the Netherlands will lead all other European countries with 56% household penetration, followed by Switzerland and Denmark.

Germany will have the lowest level of broadband penetration of 14 European countries, with only 24% of German homes having broadband by the end of the year.

eMarketer senior analyst Ben Macklin explains why Germany lags its neighbors: 'Deutsche Telekom continues to completely dominate the broadband sector in Germany, and over the last two years a lack of competition or service innovation has hampered the growth of broadband in the country. Once a broadband leader, Germany now has the lowest household penetration rate of the five major European countries.'

It's not as if broadband has not been growing in Germany. According to eMarketer's estimates, the number of broadband households in Germany grew by 46.2% in 2004, leaving it the sixth-largest broadband country worldwide. However, regional rivals France and the UK grew by 90.6% and 85.7%, respectively, last year.

Like most countries in Europe, Germany's broadband market is dominated by DSL. In fact, according to eMarketer's estimates, less than 4% of Germany's broadband households will connect to the Internet through any other method besides DSL in 2005. Cable providers face a technological/monetary barrier. 'One of the significant barriers to greater broadband competition in Germany is the lack of an alternative broadband infrastructure,' says Mr. Macklin. 'While cable TV is widespread in Germany, it is largely unsuitable for high-speed Internet without massive investment to upgrade it, and this has happened in only a few areas of the country to date.'

For more information on broadband around the globe, read eMarketer's series of five broadband reports: Latin America Broadband, Asia/Pacific Broadband, Europe Broadband, North America Broadband and Broadband Usage & Demographics."

What's Needling Net Users? :
"Published: July 29, 2005
(After August 06, 2005, this article will only be available to eStat Database subscribers.)

Pop-ups, site registration, slow pages, dead links... These are just a few of the many things that Internet users don't like.

A new survey conducted by Taylor Nelson Sofres (TNS) for Hostway finds that Internet users have plenty of complaints. Some 2,500 adult consumers throughout the US were asked to identify things that annoyed them about commercial Web sites. More than one-third of respondents cited pop-up ads. Other sources of aggravation included having to register and log in (16.7%) and having to install extra software (15.7%).

If a Web page is irritating, consumers are quick to respond. Over 75% of respondents said they were "extremely" or "somewhat" likely to not visit an offending site again, and three-fourths of users expressed some degree of likelihood about unsubscribing from the offending company's promotional messages. Around 70% of users said they might refrain from making purchases at that Web site, view the company in a negative way or even refrain from making purchases in the company's offline stores. Interestingly, only 25% voiced any intention to complain to the company.

Will companies take heed? Some annoyances can be fixed — dead links, slow pages, outdated content. But pop-ups aren't likely to go away, despite user irritation. According to a recent survey of online publishers by Advertising.com, pop-ups and pop-unders are one of the top sources of expected revenues in 2005 (though expectations for them are down a bit compared to 2004). Similarly, it's unlikely that many Web sites will stop requiring users to register. In fact, registration will probably become more common as a way of gathering user information to deliver better targeted, and therefore more lucrative, advertising.

For more on aspects of Web pages that consumers find irksome, read The Cookie Report: Threats to Online Ad Measurement, available on eMarketer's Web site."


ACM News Service:
"'The Weird Web and Other Safety Concerns'
InternetNews.com (07/25/05); Needle, David

Tech visionary Bill Joy, speaking at the recent AlwaysOn Innovation conference, discussed how during his tenure at Sun Microsystems he envisioned the concept of a 'Here Web' that is always accessible through mobile devices. He also talked about the as-yet-unrealized 'Weird Web,' in which humans are connected to any number of objects via sensors. Joy said the Here Web concept is unfolding at a much slower pace than he expected, but cited manifestations of its presence in such technologies as iMode cell phones that support interactive gaming in Japan, and the Palm Treo combination Web browser/personal information manager/mobile phone. Joy discussed the Device to Device Web paradigm, in which 'All devices that have electricity will get connected in a worldwide embedded sensor net.' Technologies such a network could support include pacemakers that call doctors through cell phone links, and shoes that communicate with a PC to record the wearer's walking performance. Bill Joy's controversial opinion that technology needs strict management in order to avoid potentially disastrous consequences, which many people have criticized as alarmist, reared its head at the conference. Silicon Graphics scientist Jaron Lanier argued that society cannot advance without new technology, and pointed to the U.S. government's 'tremendous retreat' from long-term science funding as the latest sign of an anti-science trend sweeping the country.
Click Here to View Full Article"

Thursday, July 28, 2005

ACM News Service: "'Co-opting the Creative Revolution'
BBC News (07/15/05); Twist, Jo

Digital thinkers say organizations will have to get used to distributed groups of people working together to innovate on content now that more powerful and easy-to-use computing tools are in their hands. At the Technology, Entertainment and Design (TED) conference in Oxford, U.K., digital futurists cited as an example the emergence of the mountain bike in the United States, and how a few northern Californian consumers collaborated to create something that specifically met their need. Similarly, people are taking advantage of blogging, services, peer-to-peer distribution of content, grid computing, and open source software to produce and share content. For example, people are using tag-based applications, and the keywords make it easier to classify content usefully and for others to find it. The people who are using tagging tools may have no idea how a real library is organized. Digital authority Clay Shirky says these people may not be credentialed librarians, but they are likely to determine how content is classified online in the years to come. Over the next 50 years, companies and other organizations will struggle with the creative contributions of Internet users due to patent and copyright concerns, digital experts say.
Click Here to View Full Article"

More on Cyberslackers...: "More on Cyberslackers...
Published: July 28, 2005
(After August 05, 2005, this article will only be available to eStat Database subscribers.)

A new report estimates $178 billion in employee productivity is lost every year in the US - much of it due to personal use of the Internet.

Earlier this month, an America Online survey reported that the average American worker frittered away two hours a day on the job, resulting in a $759 billion yearly productivity loss in the US. (eStat Database subscribers can access an article on the study here.)
The survey found the number one reason for slacking was the Internet.

Now a second report on employee productivity has been released. Compared to AOL's numbers, it's good news.

The Web@Work Survey, sponsored by Websense and conducted by Harris Interactive, estimates that US corporations lose $5,000 per employee per year due to internet misuse in the workplace � totalling only $178 billion annually in lost productivity.

Overall, Internet usage at work is increasing, becoming an integral part of most employees work day. In fact, 93% of the Web@Work respondents said they spend at least some time accessing the Internet at work, up from 86% in 2004. The average time spent per week accessing the Internet is 10.5 hours, also up from last year's 8.9 hours.

But how much time is spent on non-work activities? Well, for many of us, the answer is quite a lot.

As Internet access in the workplace continues to increase, and as the Web becomes increasingly engaging and interactive, workers may well spend more time surfing for personal reasons.

The most popular form of cyberslacking is checking the news, followed by e-mailing and banking.

In the Web@Work survey, 50% of employees who access the Internet at work admitted they use it for both work and personal reasons.

"The Web can be a critical business tool," said Leo Cole of Websense. "In some cases, however, its misuse can offset the productivity benefits of Internet access."

The survey found that surfing the Web can become even more addictive than coffee. When asked if they would rather give up their morning coffee or the Web, 52% of employees who use the Internet for personal reasons would skip the java.

For more information on this subject, browse the over 300 records under "employees online" in the eStat Database.

"

Monday, July 25, 2005

Fujitsu software tackles enterprise information | InfoWorld | News | 2005-07-21 | By Martyn Williams, IDG News Service: "Fujitsu readies search tool, RSS client/server to help enterprises make better use of their data

By Martyn Williams, IDG News Service
July 21, 2005

Fujitsu is developing two applications that could help enterprises make better use of their data and better handle information flowing into the company.

The first is a search tool for the 'semantic Web,' which refers to a web of interconnected servers filled with information that is tagged so it can be easily understood by machines. Called the Business Information Navigator, Fujitsu's (Profile, Products, Articles) tool seeks to use this metadata to spot relationships between documents spread throughout an organization and deliver search results that are more focused than is currently possible with a simple text search.

The idea is that with better tagging and more metadata, such as XML (extensible markup language) and RDF (resource description framework), an enterprise could derive much more value from its data. Fujitsu's Navigator will both run through the documents and attempt to automatically tag them and works as a search engine for this tagged data.

The software was demonstrated at the Fujitsu Forum 2005, a company technology showcase that took place last week in Tokyo. Working on a sample database, a search was performed for 'XML.' This brought up a number of hits that were displayed as a spider map, a graphical representation of the results in which their position and size on the graph signifies their importance. Lines between the results showed the strength of the relationships between them. Further clicks allowed the data to be explored by author or division so a user could quickly see who are the leading authorities on XML within the company and in which divisions they work.

Fujitsu is already testing the system with a domestic financial institution, which it wouldn't name.

The company's second piece of software is aimed at helping manage the flow of information coming from outside a company and uses the RSS (really simple syndication) format. It's a combination of an RSS reader client and a corporate RSS server, and is already on trial within Fujitsu.

The client can monitor RSS feeds just like any other reader but has several additional features, all of which are enabled by the server. The first is the ability to tag an item that's appeared in an RSS feed as being of interest to other people in the same workgroup. When a user does this their client communicates this to the server and the information is sent to other RSS clients in the workgroup.

The server can also make an RSS feed from any Web page and so enable tracking of changes made to a Web site via RSS. To do this the system examines the Web page and tries to decide, based on things like position on the page and presence of times or dates, what items are likely to change and what parts of the page can be ignored.

Fujitsu expects both pieces of software to be available within the current fiscal year, which ends on the last day of March 2006."

EBay developing new search, fraud protection services | InfoWorld | News | 2005-07-21 | By Juan Carlos Perez, IDG News Service:
"Company testing next generation search capability, PayPal fraud protection program

By Juan Carlos Perez, IDG News Service
July 21, 2005

EBay is developing a new search system to help users find products on its online marketplace and a new fraud protection program for its PayPal online payment unit, company President and Chief Executive Officer Meg Whitman said Wednesday.

The new product search system, called Magellan, is being tested now and is the company's 'next generation search capability,' Whitman said during a conference call for eBay's second-quarter financial results.

'Finding is incredibly important on eBay. The more effective we can make finding, the higher the [sales] conversion rates and the more robust the marketplace is for buyers and sellers,' she said.

The company is developing Magellan because the number of products listed on eBay continues to grow and the company wants to make it easier for buyers to find what they are looking for, eBay spokesman Hani Durzy said in an interview after the conference call.

'It's a new way of shopping and finding on eBay,' he said, adding that the company will probably launch Magellan 'sometime within the next few quarters.'

Users can find out more about Magellan and test it by going to http://pages.ebay.com/Magellan/welcome.html.

Meanwhile, in August eBay will launch a new fraud protection program in its PayPal unit in Germany to test its effectiveness. Based on the results, the company will decide when and where else it offers the program, Whitman said.

It's 'a significant step up in PayPal buyer protection,' she said.

A call to PayPal seeking additional comment on this program wasn't immediately returned."

Behind-the-Scenes Battle on Tracking Data Mining - New York Times:
"By ERIC LICHTBLAU
Published: July 24, 2005

WASHINGTON, July 23 - Bush administration officials are opposing an effort in Congress under the antiterrorism law known as the USA Patriot Act to force the government to disclose its use of data-mining techniques in tracking suspects in terrorism cases..."

Jon Udell: Tags, social networks, and email:
"When the novelty wears off, though, I think that tagging will have altered the information landscape in a fundamental way.
...
Of course, the twin enablers of this phenomenon -- open sharing and large scale -- don't normally apply in the enterprise. How tagging will fare on intranets, where smaller groups are further subdivided into security zones, remains to be seen..."

Gigablast Rolls Out A Blog Search:
"Search engine Gigablast ( http://www.gigablast.com ) is now offering a 'blog search, which according to its home page searches something over 11 million pages. You can try it at http://blogs.gigablast.com/ .

11 million pages doesn't seem like much, not when Feedster, for example, claims to index over 10 million RSS feeds, but blogspace is still underserved and underindexed in my opinion, especially when it's growing so rapidly.

I didn't like the results. I can't quite put my finger on why, but I didn't. Your results are initially sorted by relevance, but you can also sort them by date. Unfortunately I got better results by relevance than for date -- that date search doesn't do a lot for me. (Looks like the engine is indexing entire pages instead of RSS feeds.)

There are the obvious good things of Gigablast here; the cached pages and links to older versions, the stripped pages, the dates of indexing on the result pages. But perhaps I'm spoiled by Feedster and searching other RSS feeds. I expect more precision in results when searching blogs now; the Gigablast search seems a little messy. And 11 million pages is only the tip of the iceberg in blogland.

I'm not going to give up on this one. I can think of scenarios where full-page blog searching would be more useful than RSS feed searching, and full HTML searching may be something I'll just have to get re-used to. "

Friday, July 22, 2005

:
"Accenture To Invest $100 Million In Info Management Services

By Business Intelligence Pipeline Staff Business Intelligence Pipeline
Consulting giant Accenture said Tuesday that it will invest $100 million over the next three years to build out the information management services it offers clients, and named a new CEO to its Accenture Information Management Services unit.

The $13.7 billion firm defines information management as the processes by which companies manage structured and unstructured data. Accenture anticipates the market for these types of services to grow by roughly 9 percent annually and surpass $27 billion by 2007..."

Thursday, July 21, 2005

MediaPost Publications - News Corp. To Buy Intermix For $580 Million - 07/19/2005:
"by Gavin O'Malley, Tuesday, Jul 19, 2005 6:01 AM EST
IN ANOTHER EXAMPLE OF A traditional media company snapping up an Internet player, Rupert Murdoch's News Corp. on Monday agreed to buy Intermix Media Inc., which controls the wildly popular social networking Web site MySpace, for $580 million in cash. MySpace, along with Intermix's other 30-odd Web destinations, has made inroads in drawing both the precious youth market and advertisers. Nielsen//NetRatings' AdRelevance unit reported last week that MySpace beat out heavyweights MSN Hotmail and Yahoo! Mail as the leading site for advertisers to promote their wares in June, with a 7.9 percent share of ad impressions. Advertisers include Procter & Gamble and Sony Pictures.

Additionally, MySpace.com currently dominates other social-networking sites on the Web, with 84.46 percent of the market for the week ending May 21, according to research firm Hitwise.

The deal represents one of many recent buyouts of Internet companies by traditional media players. For instance, earlier this year, Dow Jones & Co. purchased MarketWatch for $519 million, and New York Times Co. bought About.com from Primedia for $410 million..."

Wednesday, July 20, 2005

New search engine to help thwart terrorists :: Contractor UK:
"With news that the London bombers were British citizens, radicalised on the streets of England and with squeaky-clean police records, comes the realisation that new mechanisms for hunting terrorists before they strike must be developed.

Researchers at the University of Buffalo, US, believe they have discovered a technique that will reveal information on public web sites that was not intended to be published..."

Time A-Wastin'…:
"Published: July 19, 2005
(After July 27, 2005, this article will only be available to eStat Database subscribers.)

A new survey finds that the average American worker wastes over two hours a day — much of it online — costing industry billions a year.

Employers expect workers to waste time every day, but only about an hour. They may be paying for more waste than they bargained for.

According to a survey of over 10,000 employees conducted by America Online (AOL) and Salary.com, the average worker admits to frittering away 2.09 hours a day, not counting lunch. Over the course of a year (and even after accounting for time employers expect to be wasted), that adds up to a $759 billion productivity loss.

'A certain amount of slacking off is already built into the salary structure,' said Bill Coleman of Salary.com. 'But our survey results show that workers on average are wasting more than twice what their employers expect. That's a startling figure.'

The number one culprit is the Internet. Including e-mail, IM, online polls, interactive games, message boards and chat rooms, personal Internet use was cited by 44.7% of respondents as their primary time-wasting activity at work. Socializing with co-workers, at 23.4%, was the second highest time-wasting activity at work.

Of course, workers had reasons for not working all the time.

It seems strange that the Internet, which makes workers more efficient by enabling them to accomplish multiple tasks in a shorter amount of time, should be the biggest thief of time. But, as Samara Jaffe of AOL noted, 'It's interesting that the Internet was cited as the leading time-wasting activity. It goes to show how integrated it has become to the daily functions of our personal and professional lives.'

As far as who is wasting time, the survey found little difference between men and women. The survey did find differences in the amount of time wasted on the job by industry. Insurance workers seem to be the biggest slackers.

For more information on this subject, browse the eStat Database, with hundreds of charts, articles and reports focusing on Internet use at work."

Monday, July 18, 2005

Wired News: Technorati: A New Public Utility:
"...David Sifry, founder of Technorati, a real-time search engine for blog content, reports that traffic to the site in the hours after the attacks was so heavy that its servers had trouble handling the load, causing performance problems.

The number of posts on blogs tracked by Technorati increased 30 percent, from about 850,000 a day in July to 1.2 million on the day of the attacks. Nine of the 10 most popular search requests involved the unfolding tragedy in London.

If you think about it, Technorati has become a public utility on a global scale.

While Google didn't invent the internet, it made it easier to navigate by organizing billions of web pages. Today there are about 12 million blogs, with 10 new ones created every second. Since March, the number of posts has increased 40 percent a month, from about 350,000 a day to 850,000 a day...."

MediaPost Publications Home of MediaDailyNews, MEDIA and OMMA Magazines:
"Claria Tests Meta-Search Engine
by Shankar Gupta, Thursday, Jul 14, 2005 6:00 AM EST
ADWARE COMPANY CLARIA ANNOUNCED WEDNESDAY that it's developing a meta-search engine that collects results from search pages around the Web and orders them according to visitor interaction, using metrics such as click-through rates, time spent on a page, and page views. The idea, according to Claria Chief Marketing Officer Scott Eagle, is to deliver the Web results that are the most relevant, as 'voted by the people.' Search engines like Google, by contrast, use algorithms to rank pages according to link structures and other factors.

The search engine, dubbed VistaLabs Search--currently is in the alpha phase of development, and not available to the public--indexes the million most popular keywords it has tracked. The tracking data comes from users who have Claria adware installed on their computers.

So far, the method yields some idiosyncratic results. For instance, the top listing for 'George Bush' is a site dedicated to political cartoons mocking the President, while his biographical page at Whitehouse.gov comes further down in the results.

According to Eagle, the relatively small number of Web users that have Claria adware on their computers--around 40 million--is preventing the site from gathering metrics on less popular keywords. In order to get the volume of data necessary, Claria must establish partnerships with companies that are 'ubiquitous,' said Eagle, such as creators of widely distributed toolbar or instant messenger applications.

Claria, which recently terminated its distribution deal with Kazaa, is in talks with 'marquee companies,' Eagle said. By the first quarter of 2006, Claria will announce new adware distribution partners, he said.

Separately, both Eagle declined to comment on rumors that a possible deal to be acquired by Microsoft had fallen through; Microsoft also declined to comment."

MediaPost Publications Home of MediaDailyNews, MEDIA and OMMA Magazines:
"Nielsen: Display Ads Grew 4.2 Percent In June
by Gavin O'Malley, Thursday, Jul 14, 2005 6:00 AM EST
THE OVERALL NUMBER OF ONLINE display impressions grew by 4.2 percent to 97.1 billion in June, from 93.1 billion and 91.4 billion in May and April respectively, according to new data from Nielsen//NetRatings' AdRelevance unit. Display impressions last reached 97.1 billion in March. Social networking site MySpace beat out heavyweights MSN Hotmail and Yahoo! Mail as the leading site for advertisers to promote their wares in June, with a 7.9 percent share of ad impressions. In May, MSN Hotmail led with 7.4 percent of ad impressions, compared with MySpace's 6.3 percent.

Web media ads held onto about 20 percent of all impressions in June, more than any other industry, while the percentage of retail goods and services related ads rose from 14 to 16 percent; telecom related ads dropped from 13 to 10 percent month-over-month.

Orbitz led all travel advertisers in June, accounting for 23 percent of travel ad impressions, a considerable increase from its 16 percent share in June of last year, AdRelevance reported. Barry Diller's InterActiveCorp's share of travel ad impressions jumped from 11.3 to 15.6 percent year-over-year, while newcomer Travelot went from no presence in 2004 to 6.2 percent of travel impressions this year."

My Way or the Web Way: "My Way or the Web Way

Published: July 11, 2005
(After July 19, 2005, this article will only be available to eStat Database subscribers.)

Internet searches are overtaking personal recommendations as the preferred means of obtaining travel information.

Word-of-mouth advertising has long been considered the benchmark of a product or service recommendation. But in the travel business, at least, the Internet may be changing that.

According to GMI, consumers all around the world are turning to the Internet first for travel information. In Australia, Canada, China, Denmark, France, Germany, Italy, Japan, South Korea, the Netherlands, Poland, Spain, the UK and US, more people did Web searches than sought personal recommendations from friends and acquaintances.

The online searches are leading to online bookings, too.

GMI polled 18,000 online consumers in 18 countries about their holiday plans and how they use the Internet for booking travel and accommodation and found that in the main users are satisfied with online travel services. Britons, Australians and Americans are among the world's most satisfied online travelers, while Japanese and Polish consumers are the least. One in five Russians say online travel services are 'not worth it.'

Overwhelmingly, the poll found that usage of online travel sites is holding steady or increasing. Many Russians, however, said they had decreased their use of online travel services.

Looking behind the numbers, youth favors use of online travel, too. Among British respondents, a larger percentage of 18-29 year olds, 60%, said their use of online travel had increased. Only 37% of older British age groups said the same.

For more information on the Internet travel business, book a passage on eMarketer's Travel Agencies Online report."

FCC Reports Broadband Growth:
"Published: July 14, 2005
(After July 22, 2005, this article will only be available to eStat Database subscribers.)

The Federal Communications Commission released its latest report on US high-speed Internet connections last week, showing broadband subscriptions continuing to rise and cable continuing to be the most popular broadband service.

The total number of broadband lines, at home and work locations, increased to almost 38 million in 2004 from about 28.2 million. The tally includes all lines faster than 200 kbps in at least one direction. Advanced high-speed lines—those with speeds above 200 kbps in both directions—increased to 28.9 million from 20.3 million.

Cable increased its lead over DSL. The number of cable lines grew by about 5 million compared to 4.3 million for DSL. The number of advanced cable lines grew over twice as fast as advanced DSL lines. Fiber, satellite, fixed wireless and other wireline lines accounted for under 3 million, or about 7%, of all residential and business connections.

The number of just residential and small business broadband lines increased from about 26 million at the end of 2003 to 35.3 million by the end of 2004, with the number of advanced lines growing from 18 million to 26.4 million.

Broadband service is essentially available in every part of the country — 95% of the zip codes in the US have at least one broadband subscriber, and the FCC's analysis indicates that these zip codes account for 99% of the US population. At least 83% of the zip codes in the US have more than one high-speed service provider.

Although the number of broadband lines continues to grow, the US trails many other nations in the speed of its broadband. The FCC's use of 200 kbps as a cutoff for broadband service means that 'broadband' subscribers in the US are surfing high-speed connections slower than their counterparts in Japan and South Korea, where speeds can reach over 8,000 kbps.

High speed bandwidth is not merely a convenience, argues Ben Macklin, the senior analyst who covers broadband trends for eMarketer. 'Since an increasing percentage of the world's developed economies rely on information and knowledge products and services for economic growth,' he notes, 'it only makes sense to ensure the infrastructure on which these goods and services flow are as efficient as possible—and that means fat broadband pipes.'"

MediaPost Publications Home of MediaDailyNews, MEDIA and OMMA Magazines:
"AOL Poised To Break Online Branding Campaign
by Wendy Davis, Monday, Jul 18, 2005 6:00 AM EST

AMERICA ONLINE WILL NEXT MONTH launch an online branding effort as part of an estimated $50 million initiative to promote its portal, AOL.com, which offers free content and features that were previously available only to subscribers. The campaign also will include paid search advertising, optimizing AOL properties for search engine crawlers and TV and print ads.

In a shift from prior ad strategies, the largest proportion of the total media spend will be online, instead of TV or other traditional media, said Kevin Conroy, executive vice president, AOL Media Networks. 'As our business model is evolving, so is our marketing strategy,' said Conroy, who is heading AOL's effort to launch its portal. 'We're really leaning into online because we believe in this medium to ... reach the audience we want to reach,' he said, adding: 'TV is really the smallest element of this and we'll be very selective about television.'

Paid search will represent the single biggest chunk of media spend, followed by online branding efforts. Online impressions are expected to run on more than 200 news, entertainment, sports, and lifestyle sites, such as E! Online, CNN.com, Maxim, Oprah, and WebMD.

The online branding campaign, developed by Atmosphere BBDO, will emphasize experiencing AOL's content in real time, Conroy said. OMD is handling media buying and planning.

Carat Interactive is leading AOL's paid search and search optimization efforts, while The Martin Agency is developing the offline campaign. Hill Holliday, AOL's trade agency, is also involved in promoting the portal launch."

MediaPost Publications Home of MediaDailyNews, MEDIA and OMMA Magazines:
"Google Refines AdWords Bidding System
by Gavin O'Malley, Monday, Jul 18, 2005 6:00 AM EST
GIVING ADVERTISERS A LARGER CANVAS on which to craft their AdWords campaigns, Google late last week streamlined its keyword status system and introduced minimum bids based on the ads' relevance. Some representatives from search engine marketing firms said the changes should have the effect of making more inventory available. Google now will determine minimum bids based on a quality score that combines historical keyword performance among all advertisers with the performance of an ad from an individual advertiser, and the relevance of the creative, or ad text...

...And what is Sardou's explanation for the latest changes to AdWords? "Google's problem is that the search world is flattening out, and the number of clicks available times the cost is leveling off, plus the rate at which people are getting onto the Web is slowing," said Sardou. "Inventory is really the issue now.""

MediaPost Publications Home of MediaDailyNews, MEDIA and OMMA Magazines:
"Deutsche Bank: Online Ad Spending Up 11 Percent in Q2
by Wendy Davis, Monday, Jul 18, 2005 6:00 AM EST

ONLINE AD SPENDING CONTINUED TO surge in the second quarter, according to a new study conducted by Deutsche Bank in conjunction with MediaPost. The strong growth appears to be the result of a combination of growth in marketers entering online advertising with a scarcity of premium inventory.

The report, released today, shows that marketers spent more on Web advertising in the second quarter of this year than the first three months--when they spent more than in the last quarter of 2004..."

Ad Spending in 2006 Forcasted Up, Topped by Automotive at $33.5 Billion

The recent release of the 29th annual "Advertising Ratios & Budgets" study by Schonfeld & Associates lists forecasted 2005 advertising-to-sales ratios, ad spending in 2005 and 2006 and ad growth for each of more than 5,000 companies in over 300 industries. A few of the industries covered include:

Large, diversified food companies, expected to spend $28.3 billion in 2006, up 8.1 percent in ad growth
The pharmaceutical industry will increase spending over 10 percent in 2006 and exceed $21 billion
The industries of biotech and electromedical apparatus show a growth in advertising spending of over 10 percent
Advertising growth by telecommunication service companies will be 5.9 percent in 2006 with estimated spending of over $22.2 billion worldwide
Ad spending for wireless communications services will grow by 9.1 percent to $12.8 billion
Cable and satellite TV services will spend $2.4 billion in 2006 for advertising, up 15.9 percent
PC manufacturers will increase ad spending by 11.7% while advertising for software will rise only 2.1%. Advertising for semiconductors will be up over 14 percent in 2006, and spending by computer communication equipment manufacturers will increase by over 9 percent.

Retail department stores will spend $4.4 billion in 2006, up slightly from 2005.

Variety stores will increase their ad budgets 5.9 percent for a total of $4.1 billion.

Advertising by direct mail catalog houses will increase to $1.3 billion.

The automotive industry is expected to be the top spending industry with an outlay of $33.5 billion, a 7.6 percent increase.

Use this link for more information about the complete report.

Thursday, July 14, 2005

Yahoo's Search Reinvention:
"This week, Yahoo and Google both unveiled new approaches to Web searching, with each emphasizing personalization.

Google's personalized search uses an individual's search history to help tweak search results. For instance, if a person has looked for cars extensively in the past, a search for 'Jaguar' will return car sites rather than ones featuring large wild cats.

While Google's new tack is admirable, Yahoo's soft-launch is more startling, since it moves away from the company's traditional search methods. Instead of using search algorithms, as in the past, Yahoo is tapping into its community of users (80.5 million people visited Yahoo in May, according to NetRatings) to assist in setting the ranking and relevance of search results.

First introduced in April and significantly updated this week, Yahoo's MyWeb allows users to designate sites as share-worthy and to search what others in their Yahoo-based communities or the larger Yahoo user base find relevant. When a user logs into MyWeb, she can search through what others in her communities have saved, through what the MyWeb community at large has saved, or search the Web without the MyWeb interface. If the user finds a site she likes, she can select 'Save,' which calls up a separate window. A user then titles the page, adds some keywords (to aid others in their own searching), and then designates if she wants to save the site for herself alone or to share with others in her community or the rest of Yahoo's visitors..."

Search Engine Journal - Ask Jeeves Search Advertising Network To Compete with Google?:
"Yesterday there was a very interesting AP (Michael Liedtke) interview with IAC's Barry Diller. From the interview: Diller ultimately wants to transform Ask.com from a second-tier search engine to a serious threat to Google. He is mulling the possibility of breaking away from Google's highly profitable online advertising network after Ask Jeeves' current contract expires in 2007 to launch a rival marketing system, building upon his years of media experience..."

Tuesday, July 12, 2005

Scareware!:
"Published: July 12, 2005
(After July 20, 2005, this article will only be available to eStat Database subscribers.)

A new survey finds that US Internet users are so fearful of spyware and adware that they are changing their online behavior — avoiding certain Web sites and even switching browsers.

According to a Pew Internet and American Life Project study, 48% of adult Internet US users have stopped visiting specific Web sites that they fear might deposit unwanted programs on their computers. Some 25% have stopped downloading music or video files from P2P networks, and 18% have started using a different Web browser. And 81% have stopped opening e-mail attachments unless they are sure these documents are safe.

Fully 91% of those surveyed reported that they have made at least one behavioral change in response to the security and operational threats posed by spyware and its cousin adware.

Internet users who reported having had spyware on their home computers made a variety of changes to avoid unwanted software.

Internet users who said they have had adware on their home computers made similar changes.

The survey found widespread signs of problems. Some 52% of home internet users said their computer has slowed down or is not running as fast as it used to, 51% said their computer started freezing up or crashing, requiring them to shut down or reset, and 25% said a new program appeared on their computer that they didn't install or new icons suddenly appeared on their desktop. Some 18% of home internet users say their internet home page changed without them resetting it.

In all, the report estimates that 68% of home internet users, or about 93 million American adults, have experienced at least one of these problems in the past year. As to the source of the problem, 60% of Internet users who report computer problems simply do not know how or from where the problem arose.

If you need more information about online threats, and what consumers are doing to avoid them, read eMarketer's Privacy and Security report."

Adware's second act | CNET News.com:
"By Stefanie Olsen - Staff Writer, CNET News.com

About nine months ago, newly hired WhenU CEO Bill Day decided he was going to clean up his company's reputation.

WhenU, a 5-year-old, so-called adware company that makes its money by selling targeted advertising delivered to PCs via software that's sometimes unknowingly downloaded by Web surfers, was becoming persona non grata with people tired of unsolicited pop-up ads...

Besides avoiding legal entanglements, there's huge potential upside to going legit. Large adware makers are jockeying for a bigger piece of online advertising, which has rebounded in recent years and is expected to net sales between $10 billion and $12 billion this year. Right now researchers estimate that the adware business is worth $500 million annually.

Thanks to their close ties to consumer desktops, some adware execs believe they've cultivated expertise in behavioral advertising, or the practice of watching an individual's surfing patterns and serving them related ads in real time. For example, if a user has visited several car sites in the last two days, the software might display a promotion for Cars.com or the Kelley Blue Book.

That's got the attention of major Internet outfits such as Google, Microsoft and Yahoo. The Net giants are laying the foundation for desktop and behavioral advertising, introducing downloadable software for PC and Web search, as well as personalized search engines. Microsoft has been in talks to buy Claria, according to sources, but the software giant reportedly has reservations about an acquisition because of the company's reputation..."

Views from the smartest people in Sun's orbit by ZDNet's Dan Farber -- A JavaOne panel with some of the smartest people orbiting Sun provided some insight into where Java, porgramming models, Google and man-machine relationships are heading. Guy Steele, a Sun Fellow and a key participant in Java's creation, talked about his latest language project, Fortress, which he described as "doing for Fortran what Java did for C." Steele said that [...]



Trackback URL for this post: http://blogs.zdnet.com/BTL/wp-trackback.php?p=1568



MediaPost Publications Home of MediaDailyNews, MEDIA and OMMA Magazines:
"DoubleClick: Web Sites Influence Buying Decisions
by Shankar Gupta, Tuesday, Jul 12, 2005 6:00 AM EST

WHEN IT COMES TO INFLUENCING consumers, shopping sites, company Web pages, search engines and the like, stack up well against television ads, according to a report released Monday by DoubleClick.

The report, DoubleClick's third annual Touchpoints study, examined how consumers rely on different media channels when making purchase decisions. For the report, researchers surveyed 2,110 adult Internet users in the United States last December, questioning them on the media channels that influence their buying decisions in 10 categories: travel, automotive, telecommunications, banks and credit cards, mortgage and investment, movies, consumer electronics, home products, personal and home care, and prescription drugs.

The study found that online sites are among the top four influencers in most of the categories surveyed. 'The Internet really holds its own fairly well compared to some traditional advertising media,' said Rick Bruner, DoubleClick's research director. 'When we ask people what most influenced their decision to purchase this product or service, Web sites outranked television ads in eight out of those 10 categories.'

Company Web sites specifically provided a resource for consumers in the "further learning" phase of purchase, when a buyer has heard of a product but wants to learn more. "Although company Web sites are not often cited as sources of initial awareness," the study states, "the Web sites of manufacturers and service providers are a critical resource when it comes to consumers seeking to learn more about the products they have heard about."

The category that Web sites were the most dominant in was travel, where 46 percent of respondents were most influenced by travel Web sites, compared to roughly 10 percent most influenced by online marketing and 3 percent influenced by television ads.

Bruner said the results of this year's study are consistent with the previous two years' reports, and all three send the message that Internet ads and Web sites are an effective means of influencing consumers to buy products or services. "It's strong validation from the words of the consumers themselves," he said. "

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