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DC, LA, Seattle, Chicago, Texas, closing in on venture hot spots

Tuesday, December 6th, 2011

mapOver the past few years, research from Pricewaterhouse Coopers has indicated that three areas of the US – Boston, New York, and Silicon Valley – dominate the venture capital scene, but Los Angeles, Northwest/Seattle, Midwest/Chicago, Texas, and the D.C. Metro area are closing in as new hot spots, according to new research.

Last week, Boston venture capital firm OpenView Partners released its latest research report on geographical and sector trends for technology companies in the expansion stage. The research conducted by OpenView Labs focused on identifying areas outside of the big three that have secured venture capital in the first half of 2011.

According to the team’s research Los Angeles, Northwest/Seattle, Midwest/Chicago, Texas, and D.C. Metro area are all on the verge of becoming hot spots for receiving venture capital. As young companies continue to secure funding away from the traditional hot spots, each of these areas has worked to carve their own niche in the investment landscape.

The report features commentary from venture capitalists including Howard Morgan of First Round Capital, Chris Girgenti of New World Ventures, Greg Gottesman of Madrona Venture Partners, and George Roberts of OpenView Partners.

“Recently a CEO told me he was turned down for capital because he company isn’t location in Silicon Valley. That story saddened me because OpenView would never make such a statement; we go to them, rather than telling a company to come to us,” said George Roberts.

The research revealed the following: 

  •     50 deals in the D.C Metro area totaling $189.3 million in investment
  •     75 deals in the Midwest totaling $455.3 million in venture capital (all data current through Q2 201)
  •     Investments total $479.9 million in the software sector and $376.5 million in media and entertainment sector across the 5 areas analyzed in the study

The full report.

Mid-Atlantic and DC area entrepreneurs looking for a way to connect with top venture capitalists might want to consider attending the upcoming Southeast Venture Conference at Tysons Corner, VA, Feb. 29-March 1.

Cyber security must focus on users, not just attackers

Tuesday, November 29th, 2011

David Maimon

David Maimon

Computer security experts have long pointed out that human beings are often the weak link allowing cyber attacks to succeed. Now, researchers at the Maryland Cybersecurity Center have reaffirmed that security measures must aim at users, not just attackers. ”Users expose the network to attacks,” one said.

In a unique collaboration, an engineer and a criminologist at the University of Maryland, College Park, are applying criminological concepts and research methods in the study of cybercrime, leading to recommendations for IT managers to use in the prevention of cyber attacks on their networks.

Michel Cukier, associate professor of reliability engineering at the A. James Clark School of Engineering and Institute for Systems Research, and David Maimon, assistant professor of criminology and criminal justice in the College of Behavioral and Social Sciences, are studying cyberattacks from two different angles – that of the user and that of the attacker. Both are members of the Maryland Cybersecurity Center.

Their work is the first look at the relationship between computer-network activity patterns and computer-focused crime trends.

“We believe that criminological insights in the study of cybercrime are important, since they may support the development of concrete security policies that consider not only the technical element of cybercrime but also the human component,” Maimon said.

In one study that focused on the victims of cyberattacks, the researchers analyzed data made available by the university’s Office of Information Technology, which included instances of computer exploits, illegal computer port scans and Denial of Service (DoS) attacks.

Applying criminological rationale proposed by the “Routine Activities Perspective,” Maimon and Cukier analyzed computer focused crime trends between the years 2007-2009 against the university network.

According to this perspective, which is designed to understand criminal victimization trends, successful criminal incidents are the consequence of the convergence in space and time of motivated offenders, suitable victims, and the absence of capable guardians.

The researchers hypothesized that the campus would be more likely to be cyberattacked during business hours than during down times like after midnight and on weekends. Their study of the campus data confirmed their theories.

“Our analysis demonstrates that computer-focused crimes are more frequent during times of day that computer users are using their networked computers to engage in their daily working and studying routines,” Maimon said.

“Users expose the network to attacks,” Cukier said. Simply by browsing sites on the Web, Internet users make their computers’ IP addresses and ports visible to possible attackers. So, “the users’ behavior does reflect on the entire organization’s security.”

Maimon, a sociologist, takes the study a step further.

“Your computer network’s social composition will determine where your attacks come from,” he said. In a similar vein, “the kinds of places you go influence the types of attacks you get. Our study demonstrates that, indeed, network users are clearly linked to observed network attacks and that efficient security solutions should include the human element.”

Cukier adds, “The study shows that the human aspect needs to be included in security studies, where humans are already referred as the ‘weakest link.’”

Cukier and Maimon said the results of their research point to the following potential solutions:

  1. Increased education and awareness of the risks associated with computer-assisted and computer-focused crimes among network users could prevent future attacks;
  2. Further defense strategies should rely on predictions regarding the sources of attacks, based on the network users’ social backgrounds and online routines.

“Michel and David’s research exemplifies the interdisciplinary and comprehensive approach of the Maryland Cybersecurity Center,” noted Michael Hicks, director of the Maryland Cybersecurity Center.

“Resources are not unlimited, so true solutions must consider the motivations of the actors, both attackers and defenders, as well as the technological means to thwart an attack.  Michel, an engineer, and David, a criminologist, are considering both sides of this equation, with the potential for game-changing results.”

More Information:

Maryland Cybersecurity Center: www.cyber.umd.edu

Michel Cukier Profile Page: www.enme.umd.edu/facstaff/fac-profiles/cukier.html

David Maimon Profile Page: www.ccjs.umd.edu/faculty/faculty.asp?p=209

Cyberstates report: Tech industry job losses declined in 2010

Wednesday, October 5th, 2011

Tech America FoundationThe U.S. high-tech industry lost 115,800 net jobs in 2010, for a total of 5.75 million workers. This two percent decline in tech industry employment was less than half of the 249,500 jobs lost in 2009, which followed several years of sustained growth, according to the TechAmerica Foundation’s 14th annual Cyberstates report.

Over the longer term of 2007 to 2010 – the span of the economic downturn – the tech industry fared better than the private sector as a whole, with a four percent decline in employment versus a seven percent decline in the private sector.

“Of the four high-tech sectors highlighted in our report, only software services added jobs in 2010 – 22,800, a one percent gain,” said Robert F. Bennett, chairman of TechAmerica Foundation.  “Of the jobs lost, 72,100 were in communications services, 53,600 were in tech manufacturing, and 12,900 were in engineering and tech services.  Fortunately, the initial numbers for 2011 look more promising in terms of job growth.”

Job growth occurred in all four tech industry sectors

TechAmerica Foundation also today released a midyear jobs report for 2011 based on a different monthly data set from the U.S. Bureau of Labor Statistics.  This report shows that between January and June 2011, the tech industry added a net 115,000 jobs, a two percent gain, not adjusted for seasonality.

During this time period, job growth occurred in all four technology industry sectors, with the fastest growth in engineering and tech services.  A 12 month review of June 2010 in comparison with June 2011 also shows growth in three of the four tech industry sectors, with job losses occurring in communication services.

“Tech jobs were down in 2010, trending with the rest of the economy, but we have fared better than the private sector as a whole over the course of the economic downturn and there are some positive signs for 2011, said Dan Varroney, acting President and CEO of TechAmerica.  “We are poised not only to grow our own industry but to support the growth of the economy as a whole.  The key to growth is to support what we call the Four T’s: technology, talent, tax, and trade.”

“Technology: We need robust federal investment in basic research to create the scientific base that companies can use to produce new products and innovations.

“Talent: We need to invest in STEM education to provide our children with the foundation in math and science that will prepare them for high paying careers while allowing highly skilled foreign nationals educated at our universities to remain in the United States and join American companies instead of returning to their home countries and competing against us.”

Tax system needs reform

“Tax: We need to reform our tax system to make capital welcome.  We are competing against countries that are aggressively implementing tax policies that lower the cost of business.  We need comprehensive tax reform that attracts investments in technology and creates a framework that encourages repatriation of profits made by foreign operations of U.S.-based corporations.

“Trade: We need to open new markets to U.S. products and services by finishing the pending Free Trade Agreements with Panama, Colombia, and South Korea and continue to pursue other opportunities to expand trade.”

Eight states added tech jobs in 2010

The state-by-state data reveal that eight states added tech jobs in 2010.  The largest gains occurred in Michigan (+2,700), the District of Columbia (+1,400), West Virginia (+400), Utah (+400), and South Carolina (+300).  On a percentage basis, the District of Columbia saw the fastest job growth in 2010 at 4.3 percent, albeit at a small base.

For the sixth straight year, Virginia led the nation with the highest concentration of tech workers – 98 of every 1,000 private sector workers in the state were employed in the tech industry.  Massachusetts and Colorado ranked second and third, respectively.

Cyberstates 2011 relies on data from the U.S. Bureau of Labor Statistics. The report provides 2010 national and state-by-state data on high-tech employment, wages, establishments, payroll, wage differential, and employment concentration. All data are the most recent available at the time of publication.

Cyberstates 2011 may be purchased for $150.  The 2011 midyear report may be freely downloaded. Both reports can be accessed at: www.techamericafoundation.org/cyberstates.

Jobson to demo new video job interview tech at Digital East

Monday, September 26th, 2011

Digital East 2011Traditional job searching, interviewing and hiring is a backwards process that is undergoing a transformation, a certainty that will be demonstrated at the Digital East 2011 conference September 28-29 at the Sheraton Premiere Tysons Corner hotel. It is one of a dozen innovative firms to demonstrate new tech at the conference, which includes dozens of top digital media experts offering the latest tips, techniques and best practices at the event Wednesday and Thursday.

JobOn co-founder and CEO Jody Presti will show how his company’s technology is changing the way that retailers, restaurants and food service companies hire hourly employment.

One of a dozen DEMO firms

JobOn is one of only a dozen selected to present at the conference’s DEMO Showcase, which will be heard by 800-plus attendees including interactive marketers, senior Internet executives, online strategists, web entrepreneurs, bloggers, designers, usability experts and other new media professionals. (See links below for interviews with participants on SEO, Killer Facebook ads, phone apps for low income groups, web analytics tricks, deploying company video successfully, and creating excitement around a brand.)

JobOn combines employment listings with the ability for applicants to submit a recorded video interview. They answer a few common interview questions via a webcam or smart phone, and then click to send the responses to employers with jobs to fill.

For job seekers, this saves the time and cost of going to each employer to fill out a paper application and then scheduling an interview. At the same time, for less than the cost of a classified ad, employers get to pre-screen applicants before calling them for a second, face-to-face interview. JobOn hosts the videos, which are free for job seekers.

Says Presti, “Employers know within a few seconds if someone is a good fit, so we put the interview first to prevent employers from wasting time on paper applications and inappropriate interviews.”

The market for this technology is significant: there are 80 million employees and nine million workplaces that hire for retail, restaurant and other food services. Turnover ranges from 70 to 200 percent each year, which often leads managers to make “panic hires” that don’t last.

For a look at what some of the other digital media experts will be discussing at Digital East see:

Are you missing these web analytics tricks?

The right marketing mix creates search demand

Want to monetize social media? Hook users on achievement

Should app developers put more focus on low income groups?

Get the most from deploying video in a company

Four tips on search engine optimization from AOL’s SEO director

Killer Facebook ads: target more than the bullseye

Create a halo effect of excitement around your brand

Are you missing these tricks in Web analytics?

Friday, September 23rd, 2011

By Allan Maurer

Ted McDonald

Ted McDonald - Web Analyst, Verisign

One of the things Ted McDonald, Web Analyst for Verisign noticed at both his current and his last position, was the amount of junk traffic cluttering up reports with misinformation.

McDonald, who managed the web analytics program at Carfax before joining Verisign and managed web analytics at National Geograpic before that, will be discussing a few unusual tricks of the web analytics trade at the Digital East conference in Tysons Corner, VA, next Wednesday and Thursday (Sept. 28-29).

He is an expert at using Omniture products, like Discover and TestandTarget, and assessing the ROI of SEM and social media marketing efforts McDonald will be joined by dozens of experts, executives, and entrepreneurs in digital media, e-commerce, and the web world at the event.

Traffic that mucks up your data

One of the things he’ll discuss is how to detect that junk traffic and what to do about it.

At Verisign, he says, he has to deal with “A large number of people trying to hack us.” Seeing a lot of Eastern European traffic might be one clue that is happening, he notes.

Another problem he deals with is that of registrars hitting the site dozens of times a day. So to solve that and filter other traffic that isn’t relevant to the company’s consumer report, he looks at IP addresses and domain names.

He has triggers set up in the company’s web analytics program, Omniture, to alert him if a certain IP address is looking at the site’s Whois information a number of times a day and so on.

An allied problem to be on the watch for, says McDonald, is that for some reason, a number of site cruising bots – whatever they are – start visits on a site’s order confirmation page. That can seriously distort results if hits to the confirmation page are being used to count transactions. “It mucks up your data,” McDonald says.How

How many visits result in a transaction?

We asked if there are any metrics people should be looking at they might not be aware of. Mostly not, he says, but added, “There is one metric I like to look at that most analysts don’t: the impact of your pageviews on transactions. What you don’t know from a lot of standard reports – the top pages report, bounce rate, all of that – is of how many of the say 1,000 visits to a page resulted in a transaction five or six steps down?”

That is information that’s not readily apparent and “It’s something I look at that most folks don’t even know is an option,” he says.

McDonald says he’ll elaborate on these topics and others at the conference next week.

Want to monetize social media: hook users on achievement

Wednesday, September 21st, 2011

Rogelio Choy

Rogelio (Ro) Choy - COO, Formspring

By Allan Maurer

A few years ago, the idea of paying for virtual goods online with real currency seemed outlandish to some. “It blew people’s minds,” says Rogelio (Ro) Choy, COO of the question & answer social site Formspring. But game companies such as Zynga, creator of Farmville, among other popular Facebook games, are successfully using that model.

Choy is one of dozens of Internet mavens, social media experts, marketing gurus, venture capitalists and entrepreneurs participating in the upcoming Digital East conference in Tysons Corner, VA, Sept. 28-29.

He’ll be discussing how to monetize social media efforts. He’ll address display advertising, brand advertising, performance advertising, social currency, mobile advertising and virtual currency. He’ll discuss each in some detail based on what he’s learned in a career packed with social media experience.

Choy was previously the CEO of Peerpong, a Q&A service using NLP/semantics for identifying interests and knowledge from social streams. Prior to Peerpong, Ro was Chief Revenue Officer for RockYou and responsible for leading all the business efforts for the company and Director at eBay Motors, leading the online parts business. Prior to eBay, Ro co-founded Cima Systems, a leading VOIP software provider for auto dealers.

Advisor on social media

Choy serves as an advisor to a number of social media focused startups including Applifer, Nanigans, Wildfire Interactive, Project Slice, Adnectar, 500 Friends, Guestmob, Facepad, Replybuy, J2Play, GamesthatGive and Groupcard.

We asked Choy to elaborate on using virtual currency to monetize social media.

“It’s a completely different way of imagining how people can make money on the web,” Choy says. It works because making social media platforms such as Facebook an intrinsic part of the game dramatically reduces the cost of acquiring customers.

In 2011, according to eMarketer, Choy notes, “27 percent of all Internet users were social gamers of some sort and 42 percent of all social networkers play games. In all 62 million people are playing social games of some sort. So a lot of people are playing games in a social network and buying certain types of virtual products.

Those virtual products are consumables tied to achievement in the games, not permanent objects, usually, Choy says.

Hooking people on achievement

“It’s the concept of hooking people on achievement within the broader concept of gamification. You get people used to making short goals,” Choy says. Then you present them with a longer, more difficult goal they may wish to attain, but they may lack the time to complete and want to speed up the process. “That’s where you monetize.Once they’re hooked on achievement, then you charge.”

The concept can be applied to anything, content, e-commerce, any experience that’s social in nature and involves friends, Choy adds.  “Where people want to surpass time or material constraints, that’s where you monetize. Build achievement into how you think about offering your products or services on social media platforms.”

Choy says there are compelling opportunities in brand and performance advertising, social commerce and mobile marketing as well. Social commerce, for instance, “Is probably the least developed, but potentially the most compelling,” he says. We could tell from our interview that you’ll be hearing practical ideas that will get the gears of your mind cranking.

 

GoSteals offers businesses free daily deals, Tremor Video, Apsalar funded

Tuesday, September 13th, 2011

Tremor VideoNew York-based Tremor Video, the largest independent online video technology company, has successfully raised a $37 million round of financing. New York City-based W Capital Partners led the round, which also includes the participation from Keating Capital, Canaan Partners, Draper Fisher Jurvetson Growth, General Catalyst Partners, Meritech Capital Partners, Singapore’s EDBI, Time Warner and SAP Ventures.

Having acquired ScanScout and Transpera in the past year, Tremor Video has extended its market leadership in the interactive video space and reaches more consumers than any other online video advertising company (according to comScore).

“We invest in companies that are leaders in rapidly growing markets, and this is no exception,” said Bob Migliorino, Managing Director of W Capital Partners. “Tremor Video’s performance in the fastest growing segment in online media, combined with Video Hub’s game-changing technology, makes us extremely happy to be working with them.”

Monitor realtime key factors

With the launch of Video Hub in May of this year, Tremor Video has radically changed the network model by enabling brand advertisers and their agencies to monitor in real time the key factors that are driving their campaign performance. VideoHub analyzes numerous video signals and determines which factors are the most important in delivering campaign success, with particular emphasis on the criteria that drive engagement and brand lift.

Based on Tremor Video’s SE2 technology, Video Hub provides marketers with insight into which environments enhance their brands, what provokes viewer engagement, and why a campaign is successful. Tremor Video plans to continue investing in the continued development and market adoption of Video Hub. It will also use these funds to explore additional acquisitions and expand into fast growing markets internationally.

Apsalar nabs $5M for mobile analytics & behaviorial targeting

San Francisco-based Apsalar, a mobile analytics and behavioral targeting platform for iOS and Android apps, today announced it has closed a $5 million round of funding led by Thomvest Ventures. Apsalar plans to use the new funding to grow the development team, expand its product portfolio and ramp up sales and marketing efforts.

The funding includes participation by Thomvest Ventures, Battery Ventures, DN Capital and existing investors. The new round of funding comes on the heels of Apsalar’s $800,000 seed funding in late 2010 from 500 Startups, Mark Goines, Morado Venture Partners, Founder’s Co-op and Seraph Group. Don Butler, managing director at Thomvest Ventures joins Apsalar’s board of directors.

Apsalar’s comprehensive mobile analytics and behavioral targeting platform gives developers and publishers the tools to understand how their apps are used and to identify and deliver personalized content and offers to their most valuable users.

GoSteals offers free daily deals marketplace for businesses

GoStealsLaunching this week at DEMO Fall 2011, GoSteals is a 100% free platform for every business and consumer worldwide to make daily deals. Built on top of the world’s largest mission-critical web services platform from Mediaspectrum, GoSteals is a self-service business model for the daily deal marketplace.

GoSteals empowers small businesses with a fully automated, self-service portal for managing the entire daily deal lifecycle. Within five minutes, merchants can log-on and structure their deals to advertise. That’s five minutes, to gain free exposure and new customers while keeping all the revenue generated in the process.

Merchants create and schedule their deal, maintaining complete and instant control throughout the entire deal life cycle. GoSteals provides them with real-time information on how many customers have reserved the deal. It even automates customer tracking by providing a unique 2-D bar code on every deal voucher

It’s not just local businesses that benefit. GoSteals is free for consumers as well. They can reserve — or “steal” — any deal they want at no cost. No upfront payment is required. They pay only when they actually cash it in at the participating business. If they don’t use it, they lose nothing. There is no risk involved, only the opportunity for extreme savings.

One of the primary drawbacks of daily deals for businesses is that the daily deal firms take significant cuts of every transaction on top of whatever usually significant discount is offered. Some researchers have questioned the sustainability of the daily deals model.

GoSteals launches this week in 15 core markets globally, with plans for universal reach within 60 days.

What’s the deal with Daily Deals? (Infographic )

Monday, September 12th, 2011

It seems as if a new daily deal site pops up just about as often as their persistent emails pop into our email boxes. While the major players such as Chicago-based Groupon and DC’s LivingSocial have raised more than a billion in venture backing, literally hundreds of smaller regional and niche firms are also fighting for portions of the daily deal meal.

(See: Daily Deal sites grabbed more than $1.69B in funding, 22 financed the last 6 months).

Venture interest in digital daily deal firms may be high, but some researchers have questioned whether or not the business is sustainable over the long term. See: Daily Deal Sites May not have a Sustainable Business, research suggests).

Lab42 asked 500 daily deal users which sites they use much, how often they look, and how much money they spend to produce this “What’s The Deal” infographic:

daily deals infographic

CRE petitions FTC to establish “trade regulation” for Twitter, Facebook, and Google

Tuesday, September 6th, 2011

Capitol BuildingWASHINGTON, DC  – The Center for Regulatory Effectiveness (CRE), a regulatory watchdog, has petitioned the Federal Trade Commission to initiate a public process establishing a “trade regulation” for web-based services.  Through the rulemaking, the FTC would clearly define acts or practices which they consider unacceptable.

Google, Facebook and Twitter have much in common.  All three web-based service firms have pioneered or reinvented their primary area of expertise.  All three companies are American businesses that have changed how the world uses the internet.  All three companies act as platforms bringing together different sets of users. Of particular note, all three companies provide their primary services to consumers for free.

Also of note, all three firms are reported to be either under FTC investigation (Google and Twitter) or the subject of a petition to the FTC to be investigated (Facebook).

Any regulation by the FTC would need to comply with the statutory limitation on the Commission’s authority.  By law, the FTC has authority to ban only acts or practices that cause or are likely to cause “substantial injury to consumers which is not reasonably avoidable by consumers themselves and not outweighed by countervailing benefits to consumers or to competition.”

In the absence of a rule for web-based services, the agency would lack a sound intellectual and legal framework for its work, creating the perception that the agency was interpreting ambiguous rules to obtain a preconceived solution.

A copy of the CRE petition is available at thecre.com/pdf/CRE-FTC%20Petition.pdf

DOJ attempting to block AT&T merger with T-Mobile

Wednesday, August 31st, 2011

TmobileWASHINGTON, DC – The U.S. Department of Justice has sued to block AT&T’s merger with T-Mobile, the $39 billion deal that would create the largest U.S. wireless carrier. The move comes after AT&T stated today it would bring 5,000 call center jobs back to the U.S. if the merger closed.

“The department filed its lawsuit because we believe the combination of AT&T and T-Mobile would result in tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for their mobile wireless services,” said James M. Cole, the deputy attorney general.

AT&T says it will “vigorously contest this matter in court.”

The DOJ complaint, filed in U.S. District Court in Washington, maintains that the merger “places important competitive pressure on its three larger rivals, particularly in terms of pricing, a critically important aspect of competition.”

Here’s AT&T’s statement on the suit:

 Wayne Watts, AT&T Senior Executive Vice President and General Counsel:

We are surprised and disappointed by today’s action, particularly since we have met repeatedly with the Department of Justice and there was no indication from the DOJ that this action was being contemplated.

We plan to ask for an expedited hearing so the enormous benefits of this merger can be fully reviewed. The DOJ has the burden of proving alleged anti-competitive effects and we intend to vigorously contest this matter in court.

At the end of the day, we believe facts will guide any final decision and the facts are clear. This merger will:

  • Help solve our nation’s spectrum exhaust situation and improve wireless service for millions.
  • Allow AT&T to expand 4G LTE mobile broadband to another 55 million Americans, or 97% of the population;
  • Result in billions of additional investment and tens of thousands of jobs, at a time when our nation needs them most.

We remain confident that this merger is in the best interest of consumers and our country, and the facts will prevail in court.

The Communications Workers of America had this to say:

The decision by the U.S. Department of Justice to seek to block the merger of AT&T and T-Mobile USA is simply wrong.

 

In today’s sinking economy, where millions of Americans are looking for work, the DOJ has filed suit to block a merger that will create as many as 96,000 quality jobs.  In the U.S., where too many Americans, especially in rural areas, don’t have access to the tools of Internet technology, the DOJ is looking to block a plan to build out high speed wireless access to 97 percent of the country should be opposed.

In a nation where workers’ rights are routinely violated, as occurs everyday at T-Mobile, the DOJ apparently believes that workers should be on their own instead of having a fair choice about union representation.

The DOJ’s action would put good jobs and workers’ rights at the bottom of the government’s priorities.  Just yesterday, AT&T announced that it would return a net 5,000 jobs to the U.S. on completion of the merger. That is the kind of corporate responsibility that more employers in the U.S. should demonstrate if we are ever to have an economic recovery.

Instead of acting to block this merger, our government should be looking to support companies that create, keep and return good jobs to the United States.

 

Here’s the New York Times report

Survey shows age & gender affect Facebook click-through-rates

Tuesday, August 30th, 2011

FacebookWASHINGTON, DC – Results from a survey by Facebook-focused Social Code, show that for ads with a ‘Like’ button, older Facebook users have a higher click-through-rate while younger Facebook users will tend to click ‘Like’ directly within the Facebook ad.

SocialCode, a DC-based full-service Facebook agency working with global brands and agencies to translate their marketing goals on to Facebook, disclosed the results from a new Facebook advertising research study. The research examined over four million data points across over 50 clients from a wide variety of industries to get a better understanding of how age and gender affect click-through rates (CTR) and ‘Like’ rates on Facebook.

“In general, younger Facebook users are more comfortable using the ‘Like’ button than older users at this point,” said Laura O’Shaughnessy, CEO, SocialCode. “With inline fan ads on Facebook, older users have a high level of interaction and curiosity about the ads as evidenced by their high CTRs, whereas younger users have a higher propensity to click the ‘Like’ button right in an ad on Facebook.”

He added, “We assume that while older users are adopting Facebook at a high rate, they are also the newest subset to join the social network, meaning they may not have high friend numbers so ads are less likely to have social context in advertisements.”

AGE FINDINGS

The SocialCode study found that while age has a strong positive effect on whether a user will click; it oftentimes has the opposite effect on the likelihood of the user becoming a fan of a page.

  • 50+ year-old users, the oldest segment in the study, are 28.2 percent more likely to click through and 9 percent less likely to ‘Like’ than 18-29 year-old users, the youngest group observed
  • Versus the rest of the younger population on Facebook, 50+ users see a 22.6 percent higher CTR and 8.4 percent lower ‘Like’ rate

GENDER FINDINGS

When broken down by gender, age has a much more pronounced effect on CTR for women than it does for men, whereas for men there is a stronger effect on ‘Like’ rate than women.

  • Overall, women are 11 percent more likely to click on an ad
  • ‘Like’ rates are almost even for men and women; men are actually 2.2 percent more likely to ‘Like’ an ad than women
  • For women, CTR is 31.2 percent higher for the 50+ age group versus 18-29 year olds, men only see a 16.2 percent difference between the age groups
  • Versus all age groups, 50+ women’s CTR is 22 percent higher versus a 16.4 percent difference for males
  • The oldest male segment has an 11.7 percent lower ‘Like’ rate than the youngest segment, and 9.5 percent lower ‘Like’ rate versus all age groups. Women only see a 7.2 percent and 7.9 percent difference respectively

The age and gender research study conducted by SocialCode examined over four million data points for ads containing a ‘Like’ button across over 50 clients in different verticals for the past ten months. While performance varies greatly based on multiple variables, this study looks at the aggregate trends for

Time Warner Cable preparing for Irene to hit the East Coast

Friday, August 26th, 2011

Hurricane Irene

Hurricane Irene bearing down on the East Coast

With Hurricane Irene bearing down on the East Coast, Time Warner Cable is taking steps to prepare for the impact of the storm.  Time Warner Cable has more than 5.9 million residential and business customers from the Carolinas to New England.

Time Warner Cable has Business Recovery Unit trailers in place in key locations along the East Coast so restoration efforts can begin as soon as it is safe to enter potentially impacted areas.  The trailers hold everything from fiber, generators and chainsaws to emergency supplies for crews, such as tents, flashlights and water.

“By positioning equipment in strategic areas before the storm, Time Warner Cable is able to quickly respond to those communities that sustain the most damage,” says Mike Munley, president of residential services, Time Warner Cable East.  “We know our residential and business customers rely on our digital phone, Internet and cable services to stay connected to information and each other, particularly during severe weather and we are committed to getting customers back on line as soon as it is safe to do so.”

With more than 17,000 employees throughout the East, Time Warner Cable takes the following proactive measures to ensure that we are ready to help customers in the event of severe weather:

•       Technicians have extra equipment and fuel on hand
•       Generators have been tested and backup power equipment is prepared for deployment
•       Additional technicians, maintenance, construction and customer service representatives are scheduled around the clock
•       Call center employees up and down the East Coast are ready to answer customer calls, online chat and Tweets from impacted areas
•       Work-from-home representatives will take customer calls from their living rooms
•       Technicians across the East can be quickly mobilized to provide support to the impacted areas that need the most help.  In addition, Time Warner Cable can call in employees from other states to help if needed.

Time Warner Cable’s 24/7 robust automated phone system tells customers if we know about an outage in their area.  If the customer hears information about the outage, customers don’t need to take any action. If they don’t hear about the outage impacting their neighborhood, they can report it by telling the system their services are out.  They can also follow the steps to talk to a customer service representative.  The number for residential customers to call is 1-866-4-TWCNOW.

In addition, outage information is available at www.yourtwc.com/storm.   You can also follow the latest developments on Twitter, @TWCCarolinas.

For customers of Time Warner Cable Business Class, the 24/7 support team is available to assist by calling 1-877-892-2220.

Use social media to create a “halo effect” of excitement around your brand

Thursday, August 18th, 2011

Jamie Grove

Jamie Grove of Thinkgeek.com

By Allan Maurer

WASHINGTON, DC – While tracking social media related to your business and participating in discussions is important, “You shouldn’t obsess over either,” says Jamie Grove, vice president of Evil Schemes and Nefarious Plans (aka Marketing) at ThinkGeek.com, the site where you can satisfy your geek lust with such things as pizza slicers shaped like Star Trek’s Enterprise.

Instead, when done right, social media create a “halo effect” around a brand in which customers create excitement around your brand.

Grove, who has worked online at places such as CompuServe before the Internet boom and as VP of e-commerce at Highlights for Children, has also been architect of several eCommerce websites and created iPhone apps, will talk about how retailers can use social media at the upcoming Digital East Conference at Tysons Corner, VA, Sept. 28.

Thinkgeek does things differently

“We do things a little differently at Thinkgeek,” Grove tells us. Once marketers “get hold of something, they tend to ruin it,” he says. “Most brands are trying to control the social media conversation. Many firms have poured resources into social media and now they’re scratching their heads trying to figure out how to make money from it. Our approach is more about participating in the community and celebrating it.”

That is a direction we’ll see more companies taking, he predicts, noting that it’s based on a really simple idea: treat your customers the way they want to be treated.

Slashdotted

A top 200 online retailer, Thinkgeek focuses on fun gifts and toys. The 12-year-old firm has revenue of about $100 million annually. The company describes its genesis this way on its website:

“ThinkGeek started as an idea. ThinkGeek started as a way to serve a market that was passionate about technology, from programmers, engineers, students, lovers of open source, to the masses that helped create the behind-the-scenes Internet culture.

“Three out of the four founding ThinkGeek members started an ISP in the Northern Virginia area way way back in 1995. We couldn’t afford Solaris, learned about a free UNIX-like OS, and spent almost an entire day downloading it onto over 50 floppies for installation on an old 486 laptop with no cd-rom (thanks Slackware!). After a few years with the ISP gig, the ThinkGeek idea popped into our heads, and, operating out of a spare room at the ISP office we setup shop and launched the site on Friday the 13th, 1999.

“A month or so later we were Slashdotted. Promptly thereafter, ThinkGeek was acquired by the good folks at Andover.Net who through an acquisition and a bunch of name changes, is now known as Geeknet. So we’re part of a cool gaggle of sites including slashdot.org, sourceforge.net, linux.com, and freshmeat.net.”

Grove says the first thing a retailer getting into social media needs to consider is “what are you going to talk about?” A lot of companies come out “blabbing about themselves all the time basically,” and that’s the wrong way to go. “People like to associate themselves with brands,” Grove says, “But they don’t want to hear about them all the time.

“Stop trying to use social media as an acquisition channel.” In fact, he says, company’s would be better off putting their social media into the hands of staff responsible for customer satisfaction rather than acquisition. “Put it in retention, not acquisition,” he says.

What brought the customer to you in the first place?

Be careful before you outsource your social media functions, he warns. “A lot of large firms outsource to PR companies or corporate communications. Those folks are not always in touch with your brand, so that may not be the best strategy. Find someone in your company who uses social media and is passionate about your brand. That’s the type of person you want handling your social media.

He suggests, “Think about what draws that customer to you in the first place.” In Thinkgeek’s case, he notes, “We’re a geeky company and we celebrate the geeky product line we sell. We share our geekiness with others. So, conversations revolve around topics such as “Star Wars,” or “Star Trek,” gadgets, computer stuff, or other things that bring its customers to the site. “Get into it,” he says. “Interact with followers. Point out other people in the community.”

Thinkgeek has done that with a variety of approaches. “We’re the granddaddy of Internet pranksters,” he says. “We create fake products. Last year it was a Playmobile Apple computer store.” Sometimes the company will actually makes and sells them if they’re popular enough, such as the iCade, a retro game arcade cabinet for the iPad it launched this year.

Grove says you should do as much tracking as you can, but don’t obsess over it. “We’re very heavily into paid search and affiliate marketing so it’s in my nature to collect a lot of data and analyze it. But don’t obsess. Build tracking in where ever you can.”

It’s probably a mistake to look at social media just for ROI, he notes. “When you’re really good at social media, you get a halo effect,” he says. “Social media sharing creates deep interest in a brand. People get excited about what you’re doing and share it, creating excitement around your brand.”

 

 

 

Virginia’s ePals chalks up fat $47.2M round for online learning network

Monday, August 8th, 2011

ePalsHERNDON, VA – ePals, which has developed an online learning network, has raised $47.2 million in new funding, according to a filing with the U.S. Securities and Exchange Commission. The SEC filing says the round attracted more than 100 investors.

Principals listed in the filing with the U.S. Securities and Exchange Commission include  Phil Bronner of Novak Biddle Partners, Jean Case, Mitchell Kapor, and Miles Gilburne.

The company merged with In2Books in January 2007 to create what is says is the “world’s largest K-12 e-learning network.”

It offers primary and secondary schools, teachers, students and parents worldwide a safe and secure platform for building educational communities, providing quality digital content and facilitating collaboration for effective 21st century learning. ePals is used by more than 600,000 educators and reaches more than 25 million students and parents in 200 counties and territories.

The company’s Web site lists the following investors:

Miles Gilburne and Nina Zolt; Steve and Jean Case; Mitchell Kapor, Founder, Lotus; chair, Mozilla Foundation; chair, Second Life; National Geographic Ventures; Microsoft Corporation; Ted Leonsis; Yossi Vardi, Int’l Technologies Ventures; fomer chairman, ICQ; John Kao, Fellow, Royal Society of Arts; entrepreneur;  author, Innovation Nation & Jamming; Nancy Peretsman, EVP, managing director, Allen & Co. Jesselson Capital; Sandy Lange, Partner, Hilan Capital; former chairman & CEO Pictorial William Raduchel, Former CTO, Time Warner; CSO, Sun Microsystems; Steve Arnold. Lucas Foundation.
That’s a formidable list of venture capitalists to have backing your company. Many of these folks, including Steve and Jean Case, Miles Gilburne, and Ted Leonsis, for instance, tend to invest in projects together.

Mobile Digital TV on track to reach two-thirds of American homes by 2012

Thursday, August 4th, 2011

OMVCMobile Digital Television is on track to reach two-thirds of U.S. households by early 2012, as dozens of TV broadcast stations are now installing new transmission equipment that will allow live, local TV signals to reach viewers wherever they go in a local market.

Based on a new survey of member plans, the Open Mobile Video Coalition of America’s (OMVC) broadcasters says that 96 stations are now on-the-air with Mobile DTV and that the total number of Mobile DTV stations is expected to grow to 126 in 48 markets by the end of the year.

In addition, OMVC announced today that its Mobile DTV Trust Authority, managed by Neustar, is now operational and in discussions with several companies developing new Mobile DTV products operating with conditional access. Manufacturers of Mobile DTV capable devices are entering into agreements directly with Neustar to obtain the digital certificates and keys necessary for secure use of Mobile DTV service by these devices.

Dyle mobile TV brand established

Recently, the Mobile Content Venture (MCV), a joint venture of 12 national television station groups, including Belo Corp., Cox Media Group, E.W. Scripps Co., Gannett Broadcasting, Hearst Television Inc., Media General Inc., Meredith Corp., Post-Newsweek Stations Inc. and Raycom Media, all of which are part of the standalone entity known as Pearl Mobile DTV, as well as Fox, ION Television, and NBC, announced Dyle mobile TV, its new consumer brand for services delivered through MCV member stations.

Dyle mobile TV will feature content from NBC, FOX, Telemundo and ION, as well as local news, weather and other local content, across 32 markets, reaching 50 percent of the U.S. population in 2011.

“Our stations throughout the country are now deploying the equipment needed to bring Dyle mobile TV to millions of viewers,” said Erik Moreno and Salil Dalvi, co-GM’s of MCV. “We’re very excited about the rollout of the Dyle service to consumers,” they added.

“OMVC members are making the investments needed to make Mobile DTV available to millions of viewers,” said Colleen Brown, CEO of Fisher Communications and chair of the Mobile 500 Alliance. The Mobile500 Alliance represents more than 400 local TV broadcasters who are planning to add Mobile DTV capability to their digital broadcasts.

“Mobile DTV channels now being transmitted are providing viewers with the latest news, emergency weather information, traffic updates, and their favorite programs,” Brown continued.

The OMVC’s Mobile DTV Forum is working to complete Consumer Electronics Device Profiles for new programming services later this summer. The profiles are baseline technical guidelines that will give CE manufacturers details about how broadcasters will implement new services and the inputs needed to build consumer electronics products that receive Mobile DTV. The Mobile DTV Forum is comprised of TV technology companies, consumer electronics firms, and broadcasters.

In the fall, the OMVC will initiate a model Conditional Access System in the Washington, D.C. market, a move designed to help CE companies test gear that receives, decodes, and displays mobile broadcast signals. Conditional Access is an essential element in Mobile DTV, to facilitate both robust audience measurement and the eventual deployment of subscription programming.

Some states enjoy Internet connections 10X faster than others

Wednesday, July 27th, 2011

PandoTracking downloads by 4 millions users across the country from January through June 2011, a Pando Networks’ study revealed that some states are averaging connectivity speeds as much as ten times faster than those in other cities (see interactive maps at bottom).

The most striking findings were the core differences between the average speeds on a state-by-state basis. The data indicates that the fastest state was Rhode Island at an average of 894 KBps, which was almost three times faster than the slowest, Idaho, which had a dismal 318KBps. Rhode Island and Idaho may stand out as the extremities, but the disparities they highlight reflect more expansive, regional trends. The Northeast and Mid-Atlantic region contained eight of the ten fastest states.

With California, Oregon, and Washington in the top 15, the West coast was also a remarkably a speedy region. On the other hand, the rural Midwest and Mountain-West states of which Idaho is a member comprise nine of the ten slowest states. Middle America’s slow connectivity could be representative of its more widespread populations and a lower demand for high-speed data infrastructure.

Generally, the slower downloading, rural states were also the least likely to complete a download once begun, with some notable exceptions. Users in Hawaii, dealing with a fairly sluggish average of 432KBps, still managed to complete 87% of their downloads. Colorado residents averaged a relatively slow 474KBps, but managed to complete 86% of their downloads.

Bucking the trend in the opposite direction, the District of Columbia enjoys an average of 759KBps but only completes 80% of downloads. Such findings suggest high-speed internet users may not necessarily hold the most stable connections (or be the most patient internet users). Culver City, CA, the headquarters of Pando Networks client Riot Games, had the highest average completion rate at 98%.

More interesting findings are visible when the data is broken down to the city level. The fastest download averages tend to be concentrated in fairly affluent, metropolitan suburbs. Topping the list is Andover, a suburb of Boston with a median income of $114,000 and average download speeds of 2,801KBps.

Other notable, high-average suburbs include Burke, VA (an average of 1,674 KBps) outside of DC and Santa Monica, CA outside of Los Angeles (1,428KBps, with an average completion rate of 96%).

Keeping with the statewide trends, the slowest downloading towns tend to be in rural areas with low incomes. Taking the bottom spot is Pocatello, a small community in Idaho with a median income of $34,000. Other notably slow communities include Yuma, AZ (290KBps) in the Mojave desert and Mission, TX (270KBps) near the Mexican border.

Also notable are the wide margins between the various major ISPs. Excluding business and private networks, the data puts Comcast Cable at the top spot, averaging download speeds of 890KBps. Other notables near the top of the list included Verizon (788KBps) and Cox (757KBps). At 673KBps, Road Runner was the slowest of the major broadband providers.

Such wide gaps also exist amongst the providers of wireless 3G and 4G data plans. Topping the list are AT&T with an average of 416KBps and Sprint with a respectable 391KBps. T-Mobile turned in an average of 364KBps, Verizon Wireless had an average of 216KBps and ALLTEL was the slowest with an average of 155KBps.

More specific city and ISP-related data can be requested from pando@triplepointpr.com.

Average Completion Rate by State (%)

Average Download Speed By State (Kilobytes Per Second)

Funded: Reston’s Razorsight, $7.3M; Virginia’s Pong, $5M; Nimble Storage, $25M

Friday, July 15th, 2011

RazorsightReston, VA-based Razorsight, a firm developing web-based financial business intelligence and analytics software for communications service companies, has raised $7.3 million of an equity round targeted at $10 million, according to a filing with the U.S. Securities and Exchange Commission.

The company’s tools audit and analyze more than $50 billion in spending and revenue data from its partners.

Pong Research raises $5M for smartphone cases

Middleburg, VA-based Pong Research, which makes cases for cell phones intended to protect users from their radiation, has raised $5 million in equity funding, according to an SEC filing. Pong makes caes for HTC EVO, Droid, iPhone, and Blackberry phones.

Nible Storage lands $25M

Nimble Storage, developer of the first converged storage and backup solution, today announced that it has received $25 million in an over-subscribed Series D round of funding led by Artis Capital Management.

Artis Capital Management was the largest shareholder of Data Domain, which was purchased by EMC for $2.1 billion. Nimble Storage’s existing investors Accel Partners, Lightspeed Venture Partners and Sequoia Capital also contributed to the round. The investment will be used to support the company’s rapid growth by expanding sales internationally and is expected to bring it to profitability.

Based on the company’s patent-pending Cache Accelerated Sequential Layout (CASL™) architecture, the CS-Series enables fast inline data compression, intelligent data optimization leveraging flash memory and high-capacity disk, instant optimized backups, and WAN-efficient replication in a single device. This approach dramatically lowers equipment costs, reduces backup and restore time from hours to seconds, and streamlines storage management.

Just plugging in 1M electric cars would boost energy costs significantly

Tuesday, July 12th, 2011

Elettrica

Elettrica, an electric car with lithium ion battery tech

Simply “plugging in” one million electric cars could add $750 million in annual wholesale energy costs unless “smart charging” is adopted, according to a joint study conducted by PJM and Better Place, released by Better Place today.

Similarly, consumers who choose to leverage time-of-use pricing can see some price relief – less than 10 percent annually – however; the wholesale energy business would still feel the impact of ad hoc charging.

Conversely, “smart charging” one million electric cars via a central network operator can cut in half the increase in wholesale energy costs compared to simply plugging in or time-of-use pricing while reducing driving costs by one-fifth.

The joint study conducted by PJM and Better Place analyzed the impact of one million electric cars on the MidAtlantic States’ grid. The study modelled the market and pricing impact of one million electric cars and related charging infrastructure.

The greater Washington – Baltimore area was selected for modelling because it already experiences transmission congestion issues and is a targeted area for electric vehicle adoption.

“Because of the ad hoc nature and unpredictability of when each electric car would be plugged in, the extra $750 million in annual costs would be borne unequally by market participants and consumers,” said Hugh McDermott, Vice President of Utility and Smart Grid Alliances for Better Place.

“With smart charging, a central network operator is able to leverage dynamic wholesale energy prices to optimize the entire fleet’s charging at the lowest possible cost and impact to the grid and the consumer. Our customers and utility partners around the world stand to benefit from smart charging.”

Smart-charging possible via centrally dispatched grid

“Smart charging is possible when there’s real-time coordination through a centrally dispatched grid, which will facilitate prioritization and varying charging rates,” said Chantal Hendrzak, PJM’s General Manager Applied Solutions. “Flexible load benefits of EV charging are captured more easily by RTO, ISO and Utility operations through integration more directly into existing operations and practices.”

Sam Jaffe, Research Manager at IDC Energy Insights, commented: “Most electric vehicle drivers will want to be able to plug in according to their own needs, but unmanaged charging on a large scale will be costly for everyone—the driver, the utility and the grid operator. A centrally managed model can result in significant cost savings and improved grid stability, without impairing the fueling needs of the EV owners.”

“While many of the advantages of electrification of transport are well known, such as the diversity of domestically available fuels, price stability and spare capacity, the Better Place – PJM study reveals that managed charging can optimize the relationship between EVs and the grid, minimizing capital expenses and maximizing grid reliability,” said Robbie Diamond, President and CEO of the Electrification Coalition (EC). “The US should work to maximize these benefits to make EVs a true asset to our economic and national security.”

Full study

Federal agencies joining Tumblr blogging platform

Thursday, July 7th, 2011

TumblrMore U.S. Federal agencies are joining Tumblr, the free blogging and social networking service, according to Federal Computer Week. It says the General Services Administration was the first to tumble. Now, the Peace Corp., the State Department and the National Archives have also joined the increasingly popular blogging platform.

Tumblr, founded in 2007 by David Karp, has raised funding from  Union Square Ventures, Spark Capital, Martin Varsavsky, John Borthwick (Betaworks), Fred Seibert, and Sequoia Capital and other investors. It has about 21 million users, up from 15 million in March.

We recently tried it out ourselves. Tumblr is extremely easy to use, share posts by others you follow or post photos, videos, audio or text. It’s also a lot of fun for casual browsing. It or its users may eventually face some copyright violation problems similar to those YouTube deals with, but since almost everything comes from the Web and sources are generally acknowledged, much of it may be deemed fair use.

The GSA jumped aboard in March with its USA.gov blog on the Tumblr platform. It offers news and tips from various federal agencies.

The National Archives is using the Tumblr blog to present images from its collections, such as old maps, photos and illustrations. Most of the Tumblr blogs are visually oriented.

Going by our own experience with the Tumblr platform, we suspect it will just continue to gain popularity. Businesses that use it properly may also find it effective, but as one Tumblr exec has pointed out, agencies or businesses or organizations will need to monitor and respond to feedback, not just post their own items. Social media experts who attend TechMedia’s annual Internet focused conferences (next is Digital East in Tysons Corner, VA in September) say again and again that listening is essential and as important as pushing out fresh content.

Some agencies may be wary of the Tumblr platform because of the ease of commenting and interacting. The FCW article notes that many agencies are using another blogging platform, WordPress, which is what TechJournal South uses.

 

 

 

 

DC venture capitalist launches million dollar idea competition

Tuesday, July 5th, 2011

Michael C. Hill

Michael C. Hill

Venture capitalist Michael C. Hill thinks our plummeting economy can be turned around and this July, he’s doing something about it. And it could make you the next Mark Zuckerberg or Steve Jobs.

Hill is a venture capitalist in Washington DC, and founder of a dozen businesses ranging from construction to medical services and technology.

On July 1, Hill’s Million Dollar Idea Competition opened for submissions.

Participants submit their best business plans or ideas, and one million dollars in seed money will be awarded to the best one. Runners up will receive thousands in grants to start or grow their own businesses.

“We are proactively seeking the “idea people” who do not yet have a business plan to shape their ideas into salable businesses, says Hill.  “We are not only looking for the next Apple or Facebook. We are looking to help the next neighborhood retailer, carpenter, plumber, or accountant.”

The Million Dollar Idea Competition, which is funded by Hill’s company NLS Venture Capital, awards those with innovative business plans in addition to raising awareness about how small businesses create jobs. Hill emphasizes that he is hoping people without formal business education or prior experience will submit proposals because extraordinary ideas can come from ordinary people.

“It can be a loosely formed business idea, or a well-thought, highly detailed business plan,” Hill says in regards to what can be submitted. “I am expecting to see a wide range of submissions.”

It’s a win-win for all involved:  the entrepreneur wins because he or she is now in the game. NLS Venture Capital wins because they now own another piece of success. The country wins because new businesses mean new jobs.

As the head of NLS Venture Capital, a firm focused on seed and early stage venture capital investment, Hill is determined to support small business ventures across the country in order to create more jobs and boost the economy.

For more information see:  www.youreinbusiness.com.