Newer posts are loading.
You are at the newest post.
Click here to check if anything new just came in.

April 19 2012

Commerce Weekly: Facebook's shopping spree continues

You might have noticed I'm not David Sims, who has been writing this weekly payments column since its inception. David's talents now are required elsewhere, and I am delighted to have the honor of highlighting news from the payment space for you going forward. And now, onto the commerce stories that caught my eye this week.

Facebook buys into e-commerce

Tagtile.pngContinuing its startup shopping spree, Facebook late last week acquired Tagtile, a customer loyalty and direct marketing startup that blends social engagement for the consumer with custom direct marketing for the retailer. In a recent post for ZDNet, Eileen Brown noted that with its pending IPO, Facebook will need to look beyond ad revenues to satisfy shareholders:

"Ad revenue brings in over 83 per cent of the $3.71 billion total revenue reported. The potential for this revenue stream to fail is just too great ... After IPO, Facebook must diversify its revenue streams. And the only way it can currently do this is through online games and e-commerce."

This latest acquisition is a clear move in the e-commerce direction. Emil Protalinski at ZDNet described how Tagtile works:

"You walk into a store, tap your phone against the Tagtile Cube ... and you get discounts or rewards. Customers have to first download the Tagtile app ... which pushes targeted marketing material to their smartphone based on stores they visit. The Cube meanwhile provides data to help businesses pinpoint marketing efforts that work."

"Data" is the key word there — if Facebook has anything to sell, it's data, and if Tagtile has an organized system to manage and analyze consumer data, there's no need to reinvent the wheel. Brown pointed out in a later post that "[Facebook] needs to be able to mine its data stores to identify trends in customer spending to sell on to its business partners ... [It] needs to be able to bundle a solution to sell to brands who want to tap into Facebook's store of data for closer customer connections."

X.commerce harnesses the technologies of eBay, PayPal and Magento to create the first end-to-end multi-channel commerce technology platform. Our vision is to enable merchants of every size, service providers and developers to thrive in a marketplace where in-store, online, mobile and social selling are all mission critical to business success. Learn more at x.com.


Apple is ripe to disrupt the payment space

Jason Calacanis (@jason) argued over at Launch that "Apple will become a trillion-dollar company based not on iPads and Apple TV, but payments." His argument follows the line of why Apple (and Amazon, for that matter) are so successful: convenience and ease of use. Not to mention, Apple likely already has the data:

"Buying apps is easy and we do it all day long — on iOS at least — because our credit card number is already in the device ... Buying on Amazon is easy and we do it all month long — because our credit card number is already stored ... The person with hundreds of millions of stored credit cards wins big. There are only two people on the planet who have stored over a hundred million active credit card numbers that I can think of: Apple and Amazon.

One is in commerce and one isn't — yet."

There has been much speculation (going back a couple of years) about when and how Apple will enter the mobile payment space, but many agree the disruption that will occur in the payments space when it does happen will be profound. Likening Apple in the payments space to a "PayPal on steroids," an analyst told Computerworld in January that "[Apple has] 160 million users with digital wallets in iTunes accounts. They don't have to do anything other than to NFC-enable their phones."

Calacanis points out the flipside to that — Apple not only could corner the payments market, but also further secure its place in the smartphone market:

"Start doing the math and it gets scary: Apple would have massive margin, and vendors who didn't accept iPhone payments would be at a massive disadvantage the same way folks who didn't take credit cards were in the 70s and 80s."

His piece is well worth the read.

The future of money is mobile

Two surveys and a study this week shed some light on the current state of mobile money and what the future may look like. E-commerce company RichRelevance conducted a study of 4.4 billion mobile shopping sessions that took place between April 2011 and March 2012. As pointed out on Payments.com, the study found that "shoppers on their iPads account for 89 percent of all dollars spent through mobile shopping sessions." You can view the study infographic here.

RichRelevance screenshot
Click here to see the entire infographic.

And though, based on the graphic above, it seems people are becoming more comfortable purchasing TVs with their iPads, a survey (PDF) conducted by the Federal Reserve showed they're a bit more reluctant to conduct their banking via mobile devices. Ann Carrns at the New York Times took a look at the study and reported that "many consumers still don't see the need for mobile banking, and many also are skeptical of the level of security around banking with their phone." She also noted a statement made by Sandra F. Braunstein, director of the Fed's division of consumer and community affairs, to the Senate banking committee in March: "Specifically, consumers expressed concerns about hackers gaining access to their phones and exposing their personal financial information." You can view the full Federal Reserve survey report here (PDF).

A survey conducted by Elon University's Imagining the Internet Center and the Pew Research Center's Internet & American Life Project found that, regardless of any current fears or hesitations, the future of money is definitely mobile. In answering "What is the future of money?" the survey found that 65% of 1,021 "Internet experts and other Internet users" agreed with this statement:

"By 2020, most people will have embraced and fully adopted the use of smart-device swiping for purchases they make, nearly eliminating the need for cash or credit cards. People will come to trust and rely on personal hardware and software for handling monetary transactions over the Internet and in stores. Cash and credit cards will have mostly disappeared from many of the transactions that occur in advanced countries."

You can view the full survey report here.

Tip us off

News tips and suggestions are always welcome, so please send them along.

Related:

September 09 2011

Publishing News: Google gets local with Zagat

Here are some highlights from this week's publishing news.

Google looks to corner local content market with Zagat acquisition

GoogleLogoGoogle officially entered the business of distributing content written by real, live human beings this week with its acquisition of Zagat. This opens up a whole new world of competition for Google — some think to the extent of possibly raising conflict-of-interest questions. Regardless of the possible dangers of the acquisition and arguments that it should be "blocked, reversed, annulled, undone, or whatever the right word is, to protect consumers, to protect restaurant owners, and to protect competitors," this is big news on the local content and mobile search fronts.

Tim Carmody points out at Wired that "much like Yahoo or Microsoft, Google increasingly owns outright some of the media content it serves up for searches, rather than simply indexing and influencing it" (this is probably among the "dangers" of the acquisition, but a very smart move on Google's part). The best part for me was highlighted in a Business Insider look at the ins and outs of the deal: "Imagine pulling out your Android phone, looking up local restaurants on Google Maps, seeing Zagat reviews for restaurants around you, and perhaps a coupon for some of them." Now, that is a service I would use.

TOC Frankfurt 2011 — Being held on Tuesday, Oct. 11, 2011, TOC Frankfurt will feature a full day of cutting-edge keynotes and panel discussions by key figures in the worlds of publishing and technology.

Save 100€ off the regular admission price with code TOC2011OR

Publish an ebook without writing a word

InstebooksIcon.pngIt seems content publishing platforms are popping up everywhere, allowing anyone with Internet access to publish, well, whatever they want. Just in the past two weeks, Dymocks announced a new "end-to-end" self-publishing service for authors, and Uncram launched a publishing platform that allows people to publish status updates, tweets and other social media fodder to a "diary" page. But the one that really caught my eye was Instebooks, which launched 50 mobile phone apps that will allow users to publish ebooks from their phones.

The mobile part isn't the most interesting bit, however. As explained on Good E-Reader:

The basic format of creating a mobile phone ebook is to allow users [to]click on an image in Instebooks' gallery then simply speak their stories. The file is then automatically converted to a text file from the speech and uploaded as an ebook ...

OK. Wait. Anyone can speak his or her story into a smartphone, then publish for the world to read? (We'll leave whole the speech-to-text accuracy problem alone for now.) Yes, I can see the actual value in this — writers brainstorming, lecturers planning class sessions, etc. — but seriously, this will add a ton of potential to the 2 a.m. post-bar philosopher discussions, and it could well put the whole drunk-dialing of the '80s and '90s to shame. The press release notes that upon publication, if the user opts to make the ebook public (yes, there thankfully is a choice), Instebooks not only will publish it to a web page , but will also "update a user's Facebook wall with a summary and a link to keep a user's fan base informed."

Reuters percolates new aggregation site

CounterpartiesLogo.PNGSome might argue that we need another content aggregation site like we need a hole in the head, but Reuters might actually be onto something with its launch of Counterparties.com this week. Reuters teamed up with Percolate to launch a site that focuses on usability and content value. Felix Salmon, a major force behind the site's creation, explained how Percolate works on his Reuters blog:

Percolate is a fantastic engine for this kind of thing — a pared-down, ultra-simple website which just tries to link to the best and most relevant information we can find. You show it your RSS feeds and the people you follow on Twitter; it will generate a dynamic list of stories generated by your own personal tastes.

Using the Percolate engine, Reuters pulls the top 30 or so financial stories each day and links to them directly, only rewriting the headlines — as Jason Del Rey pointed out on AdAge, it's a bit like Drudge Report. In that same post, Del Rey also noted that monetization wasn't the first and foremost concern, quoting Chrystia Freeland, digital editor at Reuters: "We want to see who's using it, and how they're using it, before figuring that out." This is an interesting take on aggregation — instead of aggregating content based on my preferences — thus ultimately limiting discovery and my exposure to interesting content I might not otherwise find — it's aggregated based on a news service's tastes.

Related:

August 19 2011

Publishing News: Amazon lands "4-Hour" author Timothy Ferriss

Here's a few highlights from this week's publishing news. (Note: Some of these stories were previously published on Radar.)

Timothy Ferriss signs with Amazon Publishing to "redefine what is possible"

AmazonLarry Kirshbaum is not sitting on his hands. Amazon hired Kirshbaum in May to head its New York operations and this week he signed his first best-selling author, Timothy Ferriss, and acquired rights to Ferriss' new book "The 4-Hour Chef."

In Amazon's press release, Ferriss made it clear that he feels Amazon, as a publisher, has a better hold on digital publishing than its competitors:

My decision to collaborate with Amazon Publishing wasn't just a question of which publisher to work with. It was a question of what future of publishing I want to embrace. My readers are migrating irreversibly into digital, and it made perfect sense to work with Amazon to try and redefine what is possible.

A few feathers were ruffled by the announcement. As noted by The Guardian, Victoria Barnsley, chief executive at HarperCollins UK, voiced concerns over Amazon's aggressive moves into the publishing sector:

Amazon's foray into book publishing ... is obviously a concern. They have very deep pockets and they are now a very, very powerful global competitor of ours ... They are very, very powerful now — in fact they are getting close to being in a sort of a monopolistic situation. They control over 90% of physical online market in UK and over 70% of the ebook market so that's a very, very powerful position to be in. So yes, it is a concern.

Amazon will publish "The 4-Hour Chef" in April 2012.

TOC Frankfurt 2011 — Being held on Tuesday, Oct. 11, 2011, TOC Frankfurt will feature a full day of cutting-edge keynotes and panel discussions by key figures in the worlds of publishing and technology.

Save 100€ off the regular admission price with code TOC2011OR

RR Donnelley's latest acquisitions position it for digital success

This week, publisher RR Donnelley acquired both LibreDigital and Sequence Personal. With these moves, RR Donnelley is doing something about the digital situation that so many bemoan — it's repositioning to give its customers what they want, how they want it. That's the root of what the publishing business is all about, after all.

In a post at The Bookseller, novelist Kate Pullinger said, "I think the big publishers have got themselves into a difficult situation with the stranglehold that Amazon, Apple and Google have on bookselling currently." One could argue the situation is more disruptive than difficult. Instead of fighting against the stranglehold, perhaps it's better to focus on the unlimited potential the disruption brings. Embracing change might be more work than staying the course on a sinking ship, but the publishers who do — like RR Donnelley — will be the ones who remain in a position to succeed.

The roles of advertising and sponsorship in the future of book publishing

This segment was written by Joe Wikert

Felix Salmon recently wrote an article talking about how the New York Times paywall is working because it's porous. He contrasts that to other paywalled sites that haven't enjoyed the same success as the Times. As I read Salmon's article I was thinking less about porous vs. rigid paywalls and more about DRM'd vs. DRM-free books.

There are definitely some similarities here. At O'Reilly we believe in a DRM-free world because we trust our customers and we believe they value our content enough to pay for it rather than steal it. It would be naive of us to think this philosophy totally eliminates the illegal sharing of content though. We just happen to believe those situations shouldn't cause you to penalize all your customers. Shoplifting happens from time to time at your local grocery store but that doesn't mean the store manager should put everything under lock and key.

But it was only when I read Fred Wilson's follow-up post to Salmon's article that I realized what other connection this has to book publishing: advertising, sponsorship and other revenue streams. As Fred points out, the Times doesn't necessarily have to charge for each online page view since they run ads on every page served.

I'm not suggesting we can suddenly give away book content and make the exact same amount of revenue with advertisements. But what I am saying is that advertising and its close cousin, sponsorship (e.g., "This book brought to you in part by..."), can and will play a role in the future of book publishing. Every publisher won't necessarily experiment with that model, but many will.

This story continues here.



Related:


  • What investors are looking for in publishing companies
  • Books as a service: How and why it works
  • A premium layer for web-based content
  • More Publishing Week in Review coverage

  • Older posts are this way If this message doesn't go away, click anywhere on the page to continue loading posts.
    Could not load more posts
    Maybe Soup is currently being updated? I'll try again automatically in a few seconds...
    Just a second, loading more posts...
    You've reached the end.

    Don't be the product, buy the product!

    Schweinderl