Media Converged

Tech Crunch: Internet music service Pandora just announced its financial results for the first quarter of its fiscal 2013. The company had a total revenue of $80.8 million, a 58% increase year-over-year. Out of these $80.8 million, $70.6 million came from advertising revenue and $10.2 million from subscription revenue. Advertising revenue increased 62% year-over-year and subscription revenue increased 38%. Despite its increased revenue, Pandora still reported a net loss per share of $0.12 and Non-GAAP net loss of $0.09 per share.

Pandora currently has $80.6 million in cash, cash equivalents and short-term investments. That’s down $10 million from the last quarter. The company’s cash used for its operating activities increased significantly from $2.8 million in the year-ago quarter to $10.6 million.

Looking ahead, Pandora is raising its expectations for the full fiscal year. The company now expects to make between $420-427 million in revenue for its fiscal 2013, resulting in a net loss per-share of between $0.07 and $0.11.

Forbes: The list of the world’s CEOs regularly includes celebrities, billionaires, big egos, risk takers, and failures. What it does not include are social media experts; but that’s about to change. When IBM (NYSE: IBM) conducted its study of 1709 CEOs around the world, they found only 16% of them participating in social media. But their analysis shows that the percentage will likely grow to 57% within 5 years.

Why? because CEOs are beginning to recognize that using email and the phone to get the message out isn’t sufficient anymore.

The big takeaway: That using social technologies to engage with customers, suppliers and employees will enable the organization to be more adaptive and agile.

“As CEOs ratchet up the level of openness within their organizations, they are developing collaborative environments where employees are
encouraged to speak up, exercise personal initiative, connect with fellow
collaborators, and innovate,” the IBM study concluded.

Simply put, CEOs and their executives set the cultural tone for an organization. Through participation, they implicitly promote the use of social technologies.  That will make their organizations more competitive and better able to adapt to sudden market changes.

Tech Crunch: “The new revenue model we recently put in place is built around creative brand advertising, which is something that Facebook and Google don’t support,” Karp said. Rather than a/b testing a blue link to try to find the most effective direct response ad, Karp wants brands to use Tumblr to tell stories that create intent on the part of consumers — which is the type of advertising that they want to see anyway.

Also, while much of the available ad space being sold by other Internet companies goes to big brands, Karp sees an opportunity to make inventory available to individual users, who could use the space more effectively, and who might not annoy their friends in the way that brand advertising might.

“We want to make some real estate available not just to big brands, but to carve it out for people that are already a part of the network,” Karp said. “It’s problematic when that American Express post shows up in your feed, but it’s different when it’s one of your friends.”

In addition to talking about the new revenue products, Karp described the organizational transition which recently took place and enabled long-time Tumblr president John Maloney to resign. Tumblr has grown from 15 employees to more than 105 since the beginning of last year. A lot of those hires were made to add senior executives to the staff who could oversee various different parts of the organization. Not only did that allow Maloney to step down, but it also meant that Karp hasn’t really written any code over the last six months.

Ad Age: Google+ launched brand pages six months ago, introducing new social lingo, including “hangouts,” “circles” and “+1s.” But strike up a conversation with a digital marketer these days, and talk of “+1s” has been replaced by that of “pins.”

Rather than challenge Facebook and Twitter for mindshare, Google is a distant fourth to Pinterest, with its “pin it” button now appearing alongside Facebook, Twitter and email buttons on prime web real-estate such as eBay and Amazon product pages.

Even the platform’s “best” brands haven’t put a ton of effort into building out the pages. Nissan, for example, was lauded late last year for having one of the best new Google+ brand pages, even down to the animated GIF in its header image that gives the illusion of a car speeding by. Nearly 424,000 users have added the page to their “circles” (Google+ lingo for following a person or brand) and yet Nissan’s agency decided early on not to invest in developing content specifically for the page, which mostly contains repurposed content from Facebook.

“The bottom line was that it was pretty bleak in its traffic,” said Brandon Kleinman, director of social media and strategy at TBWA/Chiat/Day.

The broad consensus is that Google+ is an empty city where the masses go to set up a profile but then seldom return.