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All The Kids Want iPads, Almost None Want The Surface (AAPL, MSFT, GOOG, AMZN)
Source: http://www.businessinsider.com/nielsen-study-what-people-want-2012-11
Apple is going to dominate holiday shopping in the U.S., once again, according to the latest data from Nielsen.
The first table below shows what kids 6-12 are interested in “buying” in the next 6-12 months. (By “buying” we assume Nielsen means, “getting,” unless these are some industrial kids who are running killer lemonade stands.) The second table shows what consumers 13 and over want.
As you can see, the iPad is the number one product people want in the next year. That’s got to be scaring the heck out of Microsoft. Because if you’re 6-12, and your first computer is an iPad, what are the odds you buy a Windows computer down the road?
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Mobile Advertising Comes Of Age
Source: http://www.businessinsider.com/millennial-media-ipo-2012-1
Millennial Media, a mobile advertising network, filed for an IPO last week. We were waiting for this, as we’d predicted this would happen this year (though we didn’t think it would happen so soon).
How is Millennial Media’s business?
Pretty good, actually.
Here are the highlights:
- The company generated $70 million in revenue in the first nine months of 2011, from just $6.2 million in 2008;
- The company has never had a profitable quarter and is still losing money, $4 million for the first nine months of 2011.
- It’s pretty big and growing pretty fast: it processed 40 billion ad impressions in December 2011, and impressions are growing fast (see chart); Millennial Media has 16.7% marketshare according to IDC.
The Business
You’ll almost certainly see plenty of headlines about Millennial “never turning in a profit” throughout its road show. That’s correct. It’s also irrelevant.
Millennial is growing fast and into an enormous market opportunity–mobile advertising. It should not be profitable. Gartner thinks mobile advertising will be a $20.6 billion market by 2015, which may be conservative. That’s the opportunity Millennial is going after.
What’s more, Millennial Media seems to be gaining both market and operating leverage.
Millennial Media’s gross margin, which is roughly the amount it keeps after payments to publishers, improved from 34% to 39% in the first nine months of 2011 compared to the same period in 2010. This is happening as Millennial is growing both advertisers and spending per advertisers, as you can see in the chart at right.
What’s more, Millennial’s losses are narrowing, as you can see in the chart above.
All of this suggests that Millennial is gaining both market leverage–as it gets more established it can keep more of the revenue it generates for publishers–and operating leverage–gaining operational efficiencies as it scales up.
The Market
One thing people might be worried about is competition from Apple and Google. We’re not. Here’s why:
- Even though Google is much bigger than Millennial (see chart at right, using data aggregated and estimated by Business Insider Intelligence), most of that is on owned-and-operated properties. Google’s AdMob network is bigger than Millennial’s but it is not dominant.
- Apple’s online advertising format/network, iAds, has struggled in the marketplace.
- Ad networks are not a winner take all market. On the web, there are a few giants, and many profitable smaller players. There’s no reason why it couldn’t be the same on mobile, and Millennial, as the biggest independent player, is well positioned.
THE BOTTOM LINE: Millennial Media looks like a strong business scaling up nicely in an exciting, fast-growing market. It’s kind of a boring business–an ad network, but it seems to be executing well. More importantly, don’t trust the media reports that will inevitably bang on about how Millennial has never been profitable. Yes, that’s true, but it doesn’t matter.
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See Also:
- Tim Cook’s Total Compensation For 2011 Is Almost $400 Million
- How Larry Page Changed Meetings At Google After Taking Over Last Spring
- Europe Has A Much Bigger Problem Than Debt, And Nobody Has Any Clue How To Fix It
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Groupon’s Future Is Groupon Now
Source: http://www.businessinsider.com/chart-of-the-day-groupon-now-2011-10
Groupon Now is a mobile app that shows users all the deals surrounding them on a map.
Because it allows Groupon to offer more deals than one per day, Groupon Now is the future of Groupon’s business.
As Groupon’s margins compress, Groupon Now is supposed to save the company by bringing in a huge volume of sales.
Also, because the deals are offered in “real-time” Groupon Now is an important part of Groupon’s plan to become a “yield management platform for small businesses” – as one source recently described the vision to us.
Unfortunately, according to Yipit, Groupon Now isn’t growing very fast.
Go read Yipit’s whole, careful breakdown of Groupon Now’s slowing growth for more >>
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See Also:
- CHART OF THE DAY: Groupon’s Massive Losses Aren’t So Massive Anymore
- Groupon IPO Road Show Scheduled For Next Week
- CHART OF THE DAY: The Scariest Chart For Apple Investors
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‘iPhone vs Android’ report finds Apple has three times Google’s market share
Source: http://www.engadget.com/2010/06/05/iphone-vs-android-report-finds-apple-has-three-times-googles/
It’s oftentimes easy for us to get swept up in Android mania and forget that Google’s mobile platform is still in its infancy. Then we get cold hard numbers like these — showing iPhone OS owning 28 percent of the US smartphone market and closing in on RIM’s leading 35 percent — and we face up to the realization that Android handsets still account for less than one in every ten smartphones owned by Americans today. In spite of collecting 28 percent of all consumer smartphone purchases in the first quarter of 2010 (according to NPD), Google’s OS was only able to climb up a couple of percentage points in terms of total market share, showing just how long a road lies ahead of its world-conquering plans. Guess that now explains why Apple’s response to the earlier numbers was so nonchalant.
Other intriguing figures include a high rate of loyalty among iPhone OS and Android users, with 80 percent of the former and 70 percent of the latter expressing a preference for the same OS in their next phone — both rather shaming Microsoft and RIM’s numbers, which were a mediocre 34 and 47 percent, respectively. Funnily enough, despite its inflammatory title, this report finds Android and iPhone users are more similar to each other than anyone else — an uncomfortable fact for both parties to deal with, we’re sure. The source link contains some more demographic comparisons, so why not go check them out and drop some sage analysis for us in the comments?
‘iPhone vs Android’ report finds Apple has three times Google’s market share originally appeared on Engadget on Sat, 05 Jun 2010 15:34:00 EDT. Please see our terms for use of feeds.
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40 percent of iPhone sales are enterprise, Android ‘built with a very specific focus to consumers’
Source: http://www.engadget.com/2010/05/27/atandt-40-percent-of-iphones-are-enterprise-android-built-with/
It isn’t just Verizon’s Lowell McAdam with fascinating commentary at this Barclays Capital tech conference going down in New York this week. Ron Spears, who leads up AT&T’s Business Solutions division, had some notable things to say about enterprise mobility — specifically, the iPhone’s role in taking businesses to the road, a magic trick typically associated almost exclusively with BlackBerry over the past ten years. Basically, Spears says that he’s seeing extraordinary uptake on the business side with the iPhone since 2008 and the introduction of the platform’s first enterprise-focused features; in fact, he claims that “four out of every 10 sales” are to enterprise users these days and that it has all but caught up to BlackBerry for the kind of modern, tight, full-featured security that your average IT department needs. On a related note, Spears says that he hasn’t “seen the Android platform yet in the enterprise space,” but that he figures it’ll evolve over time to become “hard to ignore” to the enterprise segment. Of course, considering that AT&T has virtually no presence in the Android market at the moment, we’re not surprised that he’d take a lukewarm tack — so here’s hoping that changes fast. Follow the break for more highlights of Spears’ comments.
AT&T: 40 percent of iPhon! e sales are enterprise, Android ‘built with a very specific focus to consumers’ originally appeared on Engadget on Thu, 27 May 2010 17:42:00 EDT. Please see our terms for use of feeds.
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Would the iPad Take Over Casual Home Gaming?
Source: http://gizmodo.com/5497379/would-the-ipad-take-over-casual-home-gaming
Get ready, because this one may get big: 44% of all iPad applications being tested on the actual device are games. Hey Nintendo, Sony, and Microsoft, the iPhone/iPod titan is getting its tentacles all over the living room.
The iPhone/iPod monster has positioned itself as the preferred mobile gaming platform for developers and is quickly becoming one of the largest game platforms in the planet, with 75 million iPhone OS devices sold in just 2.5 years. The current king of all game platforms sold 125 million units of the much cheaper Nintendo DS in five years and two months.
Now Apple is moving the action into the living room. Would gaming be one of main purposes of the iPad? Would the iPad become the next casual home gaming juggernaut, like the Wii? The market will tell in time, but apparently developers think that the possibility is there. Their reasoning seems solid: The iPhone/iPod demonstrated that you don’t need buttons and a d-pad to offer a good gaming experience to most people (not only hardcore gamers). It’s the same road first taken by the Nintendo DS and then the Wii. Both have a big amount of incredibly successful games that don’t use buttons at all and require little involvement and time. In fact, it seems like consumers—not hardcore gamers—favor that kind of interaction, along with games that can be easily shared and enjoyed by a few people at the same time.
The iPad Sharing Factor
Like the iPhone/iPod Touch, the iPad is a continuation of this road. Unlike its handheld brothers, however, the bigger screen of the iPad is good to share the game experience with other people. I can easily picture two or three people sitting together on a sofa, playing with one iPad, passing it around in turns. I can also imagine multiple iPads in the same household, and people playing networked games in separate screens. Or people around a table, playing a board game touching the iPad and using their iPhones. Except this board game would have spectacular graphics and be fully animated. And perhaps have remote players connected too.
Given the general direction of the market and the possibilities of the platform, it’s not surprising that game developers are pushing so hard for the iPad. It’s yet to be seen if the Apple device would be a success or not, but having such a developer support is going to play a big role. The fact is that developers are betting that it will be a success in the gaming department. 44% is a huge figure, especially considering that the next category—entertainment—only grabs 14%. And especially considering that this is a completely unknown device. They don’t have too much to lose, since the games can target both the iPad and the iPhone/iPod Touch.
I don’t know about you, but I can’t wait for a fully-networked Tron light cycle game for the iPad, with each device being a bike cockpit. [Business Week]
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Olympic Fans Asked to Stop Tweeting So Much
Source: http://gizmodo.com/5929971/olympics-fans-asked-to-kindly-stop-tweeting-so-damn-much
That’s the basic message from the International Olympic Committee, which Reuters reports has asked viewers of outdoor races to cool it a little with with social media. The reason? A surge of tweets during yesterday’s cycling road race made competent television coverage nearly impossible:
Organizers fear the same fate awaits the men’s and women’s marathon and the triathlon, unless live viewers refrain themselves from tweeting unless it’s “urgent,” which honestly there’s no such thing as an urgent tweet, right? That’s silly.
Anyways! The most likely outcome is that people will continue to tweet, and signals will continue to take a hit, and we’ll all continue to have a good laugh about how far behind our infrastructure is from where we need it to be in an age of real-time everything. [Reuters]
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