Impact of Internet Advertising on Agencies / Other Industries

Impact of Digital Advertising on Other IndustriesWe previously discussed on How Internet Advertising has Disrupted Traditional Marketing channels such as Paper / TV / Radio. Today, we’ll highlight the impact of Digital A&M on Agencies and other industries.

Impact on Media Owners
The move to online significantly lowers the barriers of entry for new potential competitors. Clearly, the most famous examples involve exciting tech-based start-ups — the Google’s, Facebook’s, Netflix’s of this world. We would also argue that the move by selected larger media conglomerates to own media channels in international markets (e.g. Discovery with Eurosport/SBS) is also perhaps a symptom of the same trend.

This is not a challenge for 100% ad funded media companies, but it is for those media companies that enjoy a dual stream of monetization in an analogue world, (e.g. print newspapers/magazines). For example, a regional newspaper may be able to defend a regional classified model online – this has (more…)

How Digital Advertising & Marketing Disrupted Print / TV & Set to Overtake Offline Budgets ?

Digital Marketing Advertising Distupting Older ModelsAs the Internet goes mainstream and customers spend more and more time online, marketing dollars continue to migrate to digital channels. This trend is not new and from the earliest days of the commercial Internet, unsophisticated banner ads and then search advertising gained traction and turned into large markets. Over time, Internet Advertising began to cannibalize offline marketing spend in areas such as print, radio, TV and other mediums, although offline marketing continues to dominate the marketing budget and digital channels make up well less than 50% of marketing and advertising spend.

As we look forward, we see a landscape that will ultimately drive digital marketing to be the primary channel, indeed in some countries in Europe and Asia, this is already the case where various (more…)

Why Apple Wants to BUY Beats Electronics / Music ?

Why Apple wants to BUy BeatsSilicon Valley Innovator Apple Inc is reportedly in talks to acquire Beats Electronics LLC for a potential price of $3.2 billion. Beats is a leading provider of high-end headphones, portable speakers, and subscription-based digital music services. If this deal were to occur at the price reported in the press, it would represent Apple’s largest acquisition to date.

In July 2012 Beats bought MOG, which is viewed in the industry as very valuable, and introduced Beats Music streaming in Jan. While we estimate that current subs are only ~500K, the service reviews have been pretty good. We think if it is preloaded on iPhones that it can solve the low subscriber part of (more…)

Where has SaaS Succeeded ? Where Saas Needs Effort to Move to Cloud?

SaaS on Cloud SuccessToday, every company is a software company (recent Forbes article) and software is eating the world (entrepreneur Mark Andreessen). The demand for software applications is being driven by the business owners [BO], who historically relied on their internal IT departments who have often failed to deliver on software development projects in a timely or satisfactory manner. These Business owners were first to latch onto SaaS. SaaS not only takes advantage of the ubiquitous web-based client, but is run as a service by the vendor, enabling customers to immediately have access to new capabilities with little up-front investment . These benefits, among others, have enabled SaaS as a category to take share from traditional on-premise software. This ability of SaaS applications to keep up with the requirements of faster-moving business owners have parallels to drivers of cloud infrastructure adoption including agile development.

The ownership of software development is driving (more…)

What is Korea’s Mobile Handset Distribution Act ?

Kora Handset Distribution ActIN Korea, the Handset Distribution Act is scheduled to be implemented from Oct 1. Basically, the Act aims to prevent discrepancies in handset prices for end-users. Same handsets could have different pricing largely due to the subsidies provided by telcos and handset makers. With this Act, telcos and handset makers will have to provide the regulators with the handset subsidy amount, which will prevent telcos and handset makers providing illegal subsidies.

We view the Act will be a positive for the overall telco sector in that the telcos will not be able to engage in cut-throat subsidy competition. However, in relative terms, we expect SKT to have more to (more…)

« Older Entries Next Entries »