We look at comScore video data for Google’s YouTube and Facebook, and also review who is winning the neck-and-neck race for the title of top online video ad platform. Video monetization remains a key theme for the Facebook and Google. Given the growing importance of video content to each company’s monetization model, we thought we would review Facebook and YouTube’s video metrics.
According to video ad solutions firm Mixpo, Facebook will overtake YouTube as the go-to video platform for advertisers in 2015. Given Facebook’s summer push Read the Full Article
Device Acceleration is a significant underlying positive driver for Apple as wireless carrier behavior has been changing to allow consumers to upgrade their cell phones. This change in behavior is to help keep customers from switching carriers thereby giving existing paying wireless customers similar treatment like new customers with attractive promotions to stay at current wireless provides yet obtain an upgraded phone early than normal. This makes it easier for consumers to upgrade their iPhone to the newest iPhone rather than waiting Read the Full Article
Mobile Data revenues, primarily 3G account for c15% of revenues for incumbent telcos and likely to be 20% of revenues over the next few quarters in India. However, despite this, voice minutes have been growing at the sector level at c7% pa. This, however, varies across operators (FY15 YTD Idea voice minutes growth has been c16% and Airtel c5% and Idea voice revenue growth has been c13% and Airtel c8%).
Indian telcos have benefited from Read the Full Article
Valley based Apple Inc’s services primary role is to bolster the ecosystem and drive device sales. Put another way, iOS is a multi-sided platform that connects users and developers. Quite often one side is monetized and the other subsidized. In Apple’s case, users are monetized through device sales and software and services are subsidized. For example, iTunes has not been very profitable and many Mac apps are now free. However, other offerings, such as Apple Care, the App Store, and Apple Pay are more profitable and could turn Services into a more important financial contributor. Here we take a deeper dive into services.
With the company enjoying a mega-product cycle Read the Full Article
At the F8 conference, Facebook announced several new products: 1) Messenger platform for developers to create apps that integrate with Messenger; 2) Enhanced Audience Network capabilities that will soon be available on the ad exchange powered by LiveRail; 3) A new SDK (software development kit) for the Internet of Things; 4) support for spherical videos in News Feed and Oculus; and 5) an embedded video player that allows users to share videos to other sites.
Facebook Messenger Platform for Commercial Use
Instant messaging (Facebook owns WhatsApp with 700mn MAUs) can be monetized in Western markets, and it appears that Messenger with 600mm users could lead the way. FB launched the Messenger platform for developers to enable apps development in Messenger. Developers can build apps that improve Messenger content (ie stickers, emojis, sound clips, and photo collage maker, etc). Importantly, FB also launched Messaging for Business that enables eCommerce companies to send messages like order confirmations, delivery time updates and receipts. If the platform takes off Read the Full Article
Alibaba continues to focus on the health of ecosystem which could result in less optimal near-term monetization. We believe there’s upside in the medium term, given it has yet to fully monetize mobile business. Alibaba is on track to reach its target of US$500bn GMV by 2016. Active buyer growth is critical to achieve this target.
Alibaba is seeing higher wallet share of lower-tier cities’ consumers, given undeveloped offline infrastructure in the lower-tier cities of China. Despite a sizeable gap in income levels between higher tier and lower-tier cities, the gap of online spending as a percentage of disposable income is actually relatively small. The mature buyers have much higher level of spending relative to younger customers; though the inexperienced customers’ spending growth is Read the Full Article