Sometimes, something is so big that you don’t notice it for a long time. You suddenly realize you’re in a massive crater, say, or that a building is towering overheard. Or, in this case, a gaping security void in the internet. And someone’s been siphoning massive amounts of data out of it.
Each time Spotify plays a song, your favorite singer or band gets as little as 0.6 cents, the company said.
At that rate, a song would need to be played 166 times for the artist to earn $1 in royalties (100 cents divided by 0.6 = 166).
The info comes from a fascinating — and hugely welcome — article Spotify published on its revenue model. In a single post, Spotify has done more to demystify artist royalties in streaming music than Pandora and Apple have ever done, combined.
But before you get angry at the fantastically tiny amount of cash that bands get for each song, remember that those fractions of pennies add up.
This is Spotify’s revenue picture (below). The company says it has 6 million users paying $9.99 (or £9.99 or €9.99) in 2013: That would imply its gross revenues from users are somewhere north of $720 million annually:
The company also said it will pay out $500 million in royalties this year:
Spotify says it pays 70% of its gross revenue in royalties to artists. Again, that would put Spotify’s annual revenue from users at around $720 million. (Spotify didn’t talk about advertising revenue, which it generates on top of that.)
In terms of per-song fees, Spotify said: “Recently, these variables have led to an average ‘per stream’ payout to rights holders of between $0.006 and $0.0084.”
The Daily Value Of Bitcoin Transactions Has Passed Western Union’s And It’s Catching Up To Paypal’s (EBAY)
The value of all daily Bitcoin transactions is now just about one-third less than transactions on online pay service giant PayPal.
That’s according to Coinometrics, a site that tracks digital currency data.
Around 80,000 transactions occur in Bitcoin daily. The dollar value of those transactions total around $257 million.
Compare that with $397 million for Paypal.
And that’s already greater than $216 million worth of transactions conducted by Western Union, the company that Bank of America’s David Woo compared Bitcoin to in his forecast for the digital currency’s potential.
However, those 80,000 overall daily transactions still pale in comparison to more mainstream American companies, including Western Union, which does 633,000 exchanges a day, Coinometrics says.
Here’s the chart:
And here’s the data in table form:
And here’s the fun graphic:
Amazon is far from the only company building drones for same-day delivery services.
Google has been toying with the idea since late last year, too, as part of its secret Google X lab that works out on all of Google’s far-out projects, Seth Weintraub of the 9to5 Google blog reported back in February.
Google hopes to one day use drones and self-driving cars to deliver purchases made through its new experimental services, sources told Weintraub.
For instance, in March, Google launched a same-day delivery service in the Bay Area. Users can shop at a variety of retailers including Target, Walgreens, Staples, American Eagle, Toys“R”Us, or Nob Hill grocery stores, and Google will deliver the items. Google envisions one day making those deliveries via drones and self driving cars.
As we previously written, UPS is looking into drone delivery vehicles too.
All of this is years away. The technology has to mature enough to be safe so that all these drones flying around the sky don’t crash into each other, get tangled in telephone poles, interfere with air travel, or otherwise cause trouble. In fact, automated drone delivery is currently outlawed by the FAA.
Still, as we reported in November, workplace experts predict that consumer drones will become an everyday tool for a lot of businesses, not! just fo r same-day delivery but for other tasks, like running around warehouses.
While B2B marketers are having some trouble measuring the ROI of their content marketing efforts, they’re fairly clear on which capabilities can best improve the revenue contributions of those efforts. The recently-released 2013 Lenskold Group/Pedowitz Group Lead Gen Marketing Effectiveness Study separated respondents into two groups: those who describe themselves as highly effective and efficient (13% of the sample) and the rest. Both groups were most likely to say that marketing automation systems are responsible for improving content marketing-derived revenues.
Among the highly effective and efficient marketers, 78% pointed to marketing automation systems’ effectiveness in this regard, while 68% said that lead scoring based on content and engagement was responsible for improving content marketing’s revenue contribution. Among the rest of the respondents, those 2 capabilities also ranked atop the list, cited by 54% and 43%, respectively.
This year, 58% of respondents said they use “full-featured marketing automation that is integrated with sales/CRM automation,” a significant uptick from 50% last year. Another 19% use full-featured marketing automation that is not integrated (fairly unchanged from 18% last year), while only 23% aren’t using marketing automation (down from 32% last year).
As expected given the continuing growth of e-commerce, this year’s Cyber Monday set new records, with numerous researchers proclaiming it to be the biggest e-commerce spending day in US history. Data from comScore indicates that retail e-commerce spending from desktop computers alone totaled $1.735 billion, representing a strong 18% increase from last year’s figure, and the biggest single-day total yet by comScore’s tabulations. Meanwhile, Adobe reports that total online sales grew 16% to hit a new high of $2.29 bill! ion.
What’s interesting to note – and what’s sometimes lost in the coverage – is that mobiles, which played such a big role on Thanksgiving weekend, were not as prevalent on Cyber Monday.
According to Adobe, mobile’s 18.3% share of total e-commerce sales on Cyber Monday was a step down from the previous few days, particularly from the 24% average across Thanksgiving Day and Black Friday. Even so, that 18.3% share of a growing pie means that smartphones ($129 million) and tablets ($290 million) together accounted for $419 million in sales.
Adobe notes that consumers seemed more comfortable shopping from their computers on Cyber Monday, and data from IBM supports that conclusion. IBM’s data demonstrates that mobile shopping did grow significantly from last year – with traffic increasing by 45% to 31.7% share of all online traffic, and total sales growing by 55.4% year-over-year to surpass 17% share. But, mobile’s share of traffic was down 20% from Black Friday while its share of sales was down 21%.
Finally, ChannelAdvisor data indicates that mobile’s share of traffic on Cyber Monday (32.4%) was down from Black Friday (39.6%), as was mobile’s share of orders (21% vs. 27%).
Recent data from comScore has shown that online video ad viewers are seeing a growing frequency of ads this year. New research from FreeWheel confirms that the same trend is occurring when looking specifically at multichannel video programming distributors’ videos, as publishers try to replicate TV ad loads online without turning off viewers. During Q3, FreeWheel says that the typical long-form (20+ minutes) video view carried 11.6 ads, up from 9.1 on average during the corresponding period last year. Ad completion rates haven’t suffered.
At 91%, the video ad completion rate for long-form content is essentially unchanged from Q3 2012′s 90%, despite viewers seeing 30% more ads this year. Concurrent with these trends is a continuing move towards TV-length ads during long-form content, a shift first explored in FreeWheel’s Q2 report. According to this latest quarterly offering, 65% of ads during long-form content are now 30-second creative. Interestingly, 30-second ads now comprise 49% of ad views for short-form content, too. Separately, the research indicates that viewers are now seeing a pre-roll ad roughly for every other short-form video they watch.
Given the increase in ad loads, it’s not surprising that long-form ad views have grown the most on a year-over-year basis, up 56% in Q3, compared to 30% growth for video ad views during short-form content. With more TV Everywhere deployments occurring, the researchers note that authentication rates – the p! ercentage! of total ad views coming through MVPD video players or applications – are rising quickly. These authenticated ad views now represent 14.2% of total ad views during long-form content, up from 5% during Q4 2012.
There’s a growing body of research analyzing social’s influence on TV viewing behavior, with the general consensus being that social’s impact is small, but growing. A new study [download page] from Digitalsmiths supports that general trend, finding that more viewers are not only posting about their viewing habits on social networks, but also choosing to watch particular programs on account of the buzz they’re getting on social networks.
Specifically, during Q3, 15.4% of adult respondents in the US and Canada claimed to post about what they’re watching, up from 12.8% in Q2 and 11.5% in Q1. Those are still fairly small figures, to be sure, but they’re on the rise. While the Digitalsmiths survey doesn’t break the responses down into age brackets, a recent study from Horowitz Associates demonstrates that – as one might expect – this behavior is far more prevalent among younger age groups.
Social’s influence on program choices appears to be more extensive. During Q3, 30.8% of Digitalsmiths survey respondents said they had at some point chosen to watch a TV show or movie because of all the buzz it was getting on Facebook, Twitter and other social networks. That represents a significant uptick from 22.2% of respondents in Q2 and 18.6% in Q1. Nielsen has measured this phenomenon on Twitter, finding that tweets in! fluenced ! ratings in 29% of TV episodes sampled. That’s led Nielsen to begin tracking the top TV programs on Twitter (charted weekly on MarketingCharts.com); as an example, during the week of November 25-December 1, almost 6 million Twitter accounts accrued at least a single impression of one or more tweets related to that week’s episode of “The Walking Dead.”
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
Collaborators – Digital Profs
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