Internet Marketing Weekly News Update #073 November 10, 2010

Groupon has a longer-term strategy behind its short-term buzz.
The success--and sometimes failure--of Groupon campaigns to drive immediate business to retailers has generated high-profile coverage, but more quietly Groupon is doing something which should pay off for the company in the long run--acquiring e-mail addresses. Groupon reportedly has 15 million e-mail addresses, most of which have been acquired within the past year and thus are likely to still be active.

AOL eyes advertising turnaround in 2011, amid sharp drops in revenues.
AOL's year-over-year ad revenue was down 27% in the third quarter of this year, in part because the company discontinued some operations. For example, domestic revenue was down only 8%, while international revenue fell 54% in large part because of discontinued operations in Europe. Despite that, CEO Tim Armstrong expressed hopes of getting back to industry growth rates next year.

GOP victory in House may spell trouble for Facebook.
With the Republican party taking control of the House of Representatives, Congressman Joe Barton of Texas is considered a strong candidate to head the House Energy and Commerce Committee. Barton, in a statement which specifically addressed Facebook's recent privacy violations, vowed to "put Internet privacy policies in the crosshairs."

Mobile data usage provides numbers to back the buzz.
Accessing data via mobile devices continues to rise steadily. While text messaging continues to be the most common type of content mobile devices are used for, with 67% of mobile subscribers sending a text message in the third quarter of 2010, mobile browser usage and downloading of apps each rose by more than 2% in the quarter. Roughly a third of all mobile subscribers now engage in those activities.
Marketing Pilgrim

Adoption of location-based services still in the very early days.
Location-based services are seen by heavyweights such as Facebook as the next frontier of Internet activity, but adoption rates remain low, according to a new study by the Pew Research Center. Just 4% of Americans online use location-based services, and only 1% are likely to be using them on any given day.
Marketing Pilgrim

Figures show men lead women in mobile shopping and content access.
Among mobile device users, men are more likely than women to access most forms of content, and are also more likely to shop via a mobile device in most item categories. Women do have a significant lead over men in accessing one type of content via mobile devices--social media.

Social media and email each lead in different measures of online activity.
According to a global survey of Internet users by market research firm TNS, email is the online activity most people engage in daily. 72% of respondents reported spending time on email every day. Only 46% reported spending time on social media every day, but social media leads email, 4.6 hours per week vs. 4.4 hours, as the number one way people spend time online.

Despite strong growth, online video advertising faces questions.
eMarketer forecasts that spending on online video in the US will grow 48.1% to exceed $1.5 billion this year, and will grow a further 43% over the next two years. Despite that, online publishers still have a number of concerns about video advertising, most notably the lack of a standardized format across ad networks.

Nielsen turns to nonprofit to help correct data errors.
Nielsen figures on website traffic are considered authoritative, but they recently incorrectly reported a 22% decline in consumer time spent on some websites. Apparently, the problem involved websites which had long URLs, and Nielsen is working with the nonprofit Media Rating Council to improve its methodology.

Google Instant goes mobile.
Google has officially launched the mobile version of its Instant search function, which attempts to anticipate user search terms and update results as the anticipated terms change. While the jury is still out on Instant's impact on users, the quick follow-up with a mobile version indicates Google's commitment to it.

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