Twitter Study Shows Its Mobile-First Users Are Younger, More Engaged And Easier To Market To
Tech Crunch: Twitter released the details of a new study about its “primary mobile users,” or those who engage with Twitter more on mobile devices and on the mobile web than on the desktop.
The study, commissioned by Twitter from Kantar Media’s Compete, revealed that Twitter’s mobile-first users are more engaged than mobile users in more ways than one, skew younger, and tend to be more receptive to branded content than their desktop counterparts.
Microsoft’s New Social Strategy: Buy Yammer - $1.2 Billion
Tech Crunch: Microsoft just announced it has indeed acquired Yammer, the four-year-old social networking company for enterprises, for $1.2 billion in cash.
The announcement confirms weeks of very credibly-sourced rumors that have been floating for weeks around the tech blogosphere (and San Francisco’s popular cafes, as first overheard by Business Insider’s Owen Thomas.) The actual price tag is exactly what had been reported by the Wall Street Journal more than a week ago. According to Microsoft, the Yammer team will be folded into its Microsoft Office division while continuing to report to Yammer’s CEO and co-founder David Sacks.
What is Yammer?
Yammer, Inc. is an enterprise social network service that was launched in 2008. Yammer is used for private communication within organizations or between organizational members and pre-designated groups, making it an example of enterprise social software. Yammer originally launched as an enterprise microblogging service and is now known as a private enterprise social networking service, also with applications on several different operating systems and devices. - Wikipedia
Tumblr’s Revenue Model Tells Stories
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.
TECH Week: May Calendar - RSVP now
In last week’s Get Rich or Die Trying article, I mentioned that “tech is a zero-sum, winner takes all game”. A reader objected, arguing: “I think that may be an inappropriate use of the term ‘zero-sum’ – one company’s increase in profits (or revenue) does not mean a competitor must see declining profits (or revenue)”.
History suggests that Jack Welch’s philosophy that “a company should be #1 or #2 in a particular industry or else leave it completely” is even more applicable to the tech industry, where the top player can build a sustainable and ever-growing business but everyone else is practically better off getting out.
Examples of market dominance by the #1 that come to mind include:
- Google in search,
- Facebook in social networking,
- Groupon in daily deals, and
- Amazon in e-Commerce.
This doesn’t mean that the:
- #1 player isn’t susceptible to the Innovator’s Dilemma, or
- #2 competitor can’t build a massive business.
Indeed, Microsoft’s Bing or Living Social are meaningful #2’s in search and daily deals respectively, but clearly the network effects and economies of scale that come with market share dominance make it nearly impossible for challengers to remain relevant over-time. Monopolies are nothing new and come and go: Google is the evolution of Standard Oil, AT&T and Microsoft in search, you can argue that Apple is next in line in mobile.