Month: November 2007

Mobile Dominates Social Media

With all of the buzz this week about Google’s Open Social, everyone’s attention is focused on the web-based social networks and missing the impact of mobile technology on social media. Per usual, the Communities Dominate Brands blog is ahead of the game on this one.

In Tomi T Ahonen’s latest post on Communities Dominate Brands, Tomi points out that:

Informa’s latest Mobile Industry Outlook report for 2007 reveals that yes, mobile social networking services did continue their dramatic growth for the past 12 months, and are already worth over 5 billion dollars in 2007.

$5 billion dollars! This again dwarves the revenue associated with web-based social networks. Tomi’s post echoes one of his posts from a year ago where he put the then $3.45 billion in mobile social networking in perspective:

3.45 Billion dollars this year! Wow. A bit of context. All of iTunes revenues last year were about 400 million dollars. TV-interactivity (voting for Big Brother, Survivor Island, Pop Idol etc) were worth 900 million dollars. Internet gaming revenues, all multiplayer games etc, were worth 1.9 billion dollars. All internet adult site revenues were worth 2.5 billion dollars in 2005… Oh, just to be clear – that mobile digital content revenue is more than all (non-mobile phone based) online social networking revenues combined. In only two years, the mobile side of digital communities has shot ahead of the online world. Amazing!

There you go. If you weren’t previously convinced that mobile is the next big thing, it’s hard to dispute the fact that today’s big thing–social networks–is already bigger on mobile devices than on PCs.

Dangers of Context-based Advertising

Someone recently pointed me to this funny blog post entitled “15 Unfortunately Placed Ads” (Some of the content is a bit risqué).

The humor of the ad placements alone isn’t enough to warrant a blog post. Instead what interested me was the online ads were almost certainly placed by software attempting to match keywords.

One of the example is a Folgers Coffee ad placed next to an article entitled “Coffee Might Trigger Heart Attack in Some.” Folgers likely bought ads to be placed on Yahoo’s content network whenever the word “coffee” showed up. However, they probably wouldn’t chose to place their ad next to this story if given the opportunity to chose.

This is the danger of context-based advertising. The current filters are not smart enough to know whether or not the true context of the content is conducive to the advertising.

I wonder whether sites like Facebook will encounter this problem more frequently because it is just as likely that someone is going to be ranting about coffee as they are praising it. I imagine Google and the other leading advertising engines are already experimenting with ways to determine the positive or negative nature of the content.

I think we’ll see a lot more ads with unfortunate placement before the technology progresses to the point where it can be prevented automatically.