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Google is The Least Diversified Business In Tech (GOOG, AAPL, MSFT, EBAY)

Source: http://www.businessinsider.com/chart-of-the-day-google-is-the-least-diversified-business-in-tech-2012-2

We love this chart from Dan Frommer at SplatF.

He calls it the “Eggs In One Basket” index, because it charts out the largest source of revenue as a percentage for all the major tech companies. (Profits would be a different story altogether.)

Google gets over 90% of its revenue from one source: Advertising. The next closest is Amazon with product sales. But, Amazon’s product sales are a mix of goods, so it’s not exactly the same as relying on just advertising.

For now, this isn’t a big problem for Google. The online ad market is still growing, and Google can capture a lot of the market. But, if things were to change, or advertising were to slow down, then look out.

What’s incredible about this chart is how diverse Microsoft is from a sales perspective. Its most dominant business group, Office, only accounts for 30% of sales. Read more on the chart from Frommer here →

chart of the day, revenue source by percentage for tech companies, feb 13 2012

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Tuesday, February 14th, 2012 news No Comments

Most Valuable Pitchman

Source: http://blog.compete.com/2011/10/25/tom-brady-most-valuable-pitchman/

I had been eagerly awaiting the start of the Patriots season since their heartbreaking loss at the start of the year. The first Monday night game in September I got to see my favorite team back in action, along with my favorite player. What I wasn’t expecting was to see Tom Brady off the field as well, advertising footwear during one of the game’s commercial breaks.

I loved the commercial, and not just because it made walking around aimlessly look incredibly cool. It brought a new dimension to a brand that I remember seeing only on girls walking around campus in the winter. Forgetting their origin as Australian surfers’ footwear, Uggs are now so tied to their classic boot look for the female demographic that I can’t imagine them breaking into the male market significantly.

Well after a month of walking around Boston seeing Brady’s image posted on buildings (and I’ve heard they’re in other cities, as well) I wondered what kind of boost the brand is getting from the campaign.

While the trend looks the same, with the traffic starting to pick up for the holiday season, uggsaustralia.com has a whopping 237,887 more unique visitors than it did in September last year, a 48% increase. There has been an overall increase in traffic year over year, but that difference was only 23% in July before the ad campaign started.

Also, more people online seem to be going to the site. The trend has steadily been on the rise, with some significant peaks since the commercial started airing in September.

The most important question, though, is what kind of effect is Brady having on driving the male demographic to the site? There isn’t a major increase during September, but it’s up 2% year over year in the male demographic. The beauty of the campaign is it may be targeting females just as much to get the shoes for their guys as gifts during the upcoming holiday season.

After all this, it’s still hard to tell if the campaign is having a significant effect—the next few months will give us a better idea.

But I think I might get a pair. If Tom wears them they must be cool, right?


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Friday, October 28th, 2011 news No Comments

Google Quietly Invests Over $100 Million in Zynga, Readying Google Games

Source: http://gizmodo.com/5584118/google-quietly-invests-over-100-million-in-zynga-readying-google-games

Google Quietly Invests Over 0 Million in Zynga, Readying Google GamesWhoa. TechCrunch reports that Google has invested between $100 and $200 million in Zynga, the social gaming behemoth behind Farmville, Mafia Wars, and others, in preparation for the launch of Google Games later this year.

TechCrunch’s “multiple sources” say that Google itself, not its venture capital division Google Ventures, has invested between $100 and $200 million in Zynga, a huge power play presumably with the aim of eroding Facebook’s social media dominance.

It seems that Google sees Zynga as the best way to hit the ground running with Google Games, a social gaming service from the search company that’s set to launch later this year. TechCrunch points to this job opening for “Product Management Leader, Games” at their Mountain View campus as proof that we’ll be seeing a lot more about Google’s move into gaming in the near future.

With Google Me, the company’s purported Facebook killer, continuing to take shape, this major investment in Zynga is just further proof that Google is making a very serious effort to hit Facebook where it hurt, namely, the farms. [TechCrunch]

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Monday, July 12th, 2010 news No Comments

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.

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