Ok, I Talk !

"Any similarities to real life.. a mere coincidence"

Carnaval in Brasil !

Yep. Brazil is written with "s" in Portuguese, our native language.

This weekend Carnaval started in Brazil, it goes 'til Tuesday, Wednesday is the day to recharge batteries to be back to work on Thursday! The entire country stops for Carnaval party.

In this video a documentary of Brazilian Carnaval...

Pricing Strategy for Digital Music

Apple announced early January 2009 that its iTunes store will change current pricing strategy to adopt variable pricing. This decision was based on negotiations with major music labels, who believe this pricing strategy would be more profitable (to them ) and fair (to consumers). In return, iTunes will be able to sell DRM-free music.

Curious enough to know that despite the implementation of DRM, Apple increased sales through selling songs individually and at a fixed price ($0.99 USD) and became the leading online music store in the world.

The new variable pricing strategy on iTunes is a typical first-degree price discrimination where songs are valued at three price points: US $0.69, $0.99 and $1.29. Interesting that the average price point remains the same (US $0.99). So it seems to be a bet on price elasticity and higher profitability.

The major music labels say this strategy will let them sell music at a lower price. Of course, the converse is also true: selling in-demand music at a higher premium is really what the industry is after. But price differences stimulate thinking and change perceptions. Pricing definitely sends a signal. People might come to believe that "you get what you pay for". With that in mind, variable pricing would imply that the cheaper product is worse? Possibly yes.

This argument does raise another interesting point. Ultimately variable prices rely on supply and demand. It doesn't take an MBA to realize that popular tracks would increase in price and unpopular ones would decrease. But because we're not dealing in physical formats, why should higher demand mean higher cost? After all, there's no scarcity of stock for popular music sold on iTunes: in theory, it can be downloaded by an infinite number of people. Will Yield Management be the fate of digital music?

I was curious about what the financial markets thoughts were during the announcement (CEO presented the strategy around 12:30) and extracted the day trade of Apple that day. Guess what, analysts did not like the variable pricing idea. The stocks started to tumble right after Keynote speech finished.


If variable pricing is a risk, these alternatives come to my mind..

• Re-bundling: implementation of incentives for album purchases (Rhapsody does that);
• Effective Yield Management;
• Boost sales through mobile devices, such as the iPhone, via 3G networks. Mobile buyers are those that usually buy by impulse and less price sensitive, which means more profitability. The real issue in this modality is billing. People are much more comfortable with paying through a carrier, but the iTunes store provides the ideal and safe platform to buy without have a third intermediary (carrier).
  

Just to understand your view, I'd like to invite you to take the following poll..



Practical example of pricing


Did she take a Redbull before the show?!

Didn't Click ?!?!?!?

In blogs, there are a lot of sponsored links.

86.7% of visitors of blogs clicked on these links and made great business online. Don't be the last one to take advantage of it!!!

In week 6, I just remembered how I love Dilbert...

[click on the strip to zoom]

Analytics Rulez, Hammertime!

Click here and learn how to install Google Analytics..

If future is not Mad Max..

..there will be a lot of interesting stuff out there. There is a blog I use to read, wrote by Mac Funamizu, an in-house web/graphic designer working in Tokyo, Japan. He has some "disturbing" ideas about the future of search and electronic devices.

I post below some images of Mac's work so that you can reflect about what internet marketing possibilities will be in the future.






You can find more @ Petit Invention

I was wondering if the high tech developments go in this way, computer and mobiles will truly converge into one device. Are the advertising investments moving the same way?

In December 2008, Frost & Sullivan estimated that mobile subscriptions would just pass 50% worldwide in 2013.

and ad spending is going towards search and video..



...in mobiles (wow!)...


..and the ad spending split on mobile advertising...

This table does not include the ads on games, which is becoming very common now. In the last 2 weeks I have been witnessing ad banners in my free iPhone apps (including games). So now the free apps' business model makes sense financially.

Last but not least, a little bit of Mad Max!

Off-Topic: Brazil vs Italy

Amazing to watch the game live at Emirates Stadium today! ...then a good pizza to celebrate the victory over Italy :-)

Brazil 2 x 0 Italy

Does Size Matter?

Last week I took some time to explore Google Analytics in further details and learnt a lot about my blog and its readers. First I was surprised by the number of unique visitors, which exceeds the class size by far.. and 600+ page views. Guinea Pig is very grateful for its loyal readers!

Well, in one day Guinea Pig published a long post (although it's difficult for him to type as you may see in the profile picture) and put a very popular Youtube Video. The result? 24 new unique visitors, 56 page views with a record time on site of 10:27. So, the million dollar question is: Did it happen because of the video or the larger post?

A consultant would say "It depends" and actually he will be right. There is no "one-size-fits-all" for blog posts' size and from what I 've been reading online, it will depend a lot on the type of blog, content, readers expectations and so on.

Some hugely popular blogs post 1500 words less often while equally popular blogs post several 200-300 word posts in a day. It’s about matching the content/reader/writer in a way that works. In fact some blogs are wildly successful with 150-word posts [negotiable?]. Again, sometimes, less is more.

Conversely, long posts (over 1000 words) should be used sparingly and formatted carefully. It’s proven fact that it’s hard on the human eye to read long articles online. Contrast on a computer screen is lower than for print pages. Your eyes get tired faster. It’s harder to concentrate. Long expanses of text should be broken up with short paragraphs, bullet points and images

In the end, some blogs' size will not matter at all! Value in these blogs comes in all shapes and sizes, but only in 3 flavors:

• Massively informative
• Hugely entertaining
• Deeply insightful/inspirational or provocative

Week 5 notes soon available.

Should I finish the post with a question to boost comments or a video? The video answers our question....

Two Rabbits With One Shot

1) An example of Overlay Video Ad sponsored by Amazon.com. It starts at 00:10.

Overlay Ad – an ad that appears in the bottom 20% of the video window. Click action generally initiates a linear video ad spot or takes the user to a website; also commonly referred to as an Invitation Unit.

2) A response to the comment "virtually" accusing me of click FRAUD!

click here

So, You Prefer to Be a Musician?

It takes only 4 chords to become a musician (plus one singer to have your own band).

I think I will apply for a position on "No Donuts for Hilda!"



If you like this blog, look at my sponsors' offers...

Damn It Feels Good to be.. Blogger

Since I became Guinea Pig, I started reading more about the internet business, marketing opportunities and online tools. And AdSense was one of them. I installed it in this blog and made $15.70 in three weeks! Is it attractive to be a professional blogger after the MBA? Let's see:

My base case:
Simple blog, 320 page views from UK, US, Canada and Brazil. Three AdSense components: content, search and feed. Implemented: 1 super search, 3 content ads and 1 feed ad. And the results are:



So, let's say that as a professional blogger I would, write interesting topics with a goal of a $200,000 salary. Assuming that the number of clicks on ads will raise linearly with number of unique visitors, and that ads' content will be more accurate as I post more content, the back of envelope calculation tells me that I would need 10,043 page impressions and 100,057 queries on my super search (per day!).

Do you think it's a good idea to be a professional blogger?

Some week 3 notes...

Web Chain – is the sequence of steps taken as the result of an online contact. It can be as short as a single click.

NNR – No Notice Rate

CTR – Click Through Rate

(1-NNR)(1-CTR) = User notices Ad but doesn’t click (In practice, difficult to measure/identify) Google made a study on eye-tracking. Find more details on Internet Marcoting.

PCR – Prospect Conversion Rate

OIB – Offline Induced Buy Rate

RR – Repeat Buyer Rate

OBR – Offline Buying Rate

LTV (or CLV) – Customer Lifetime Value. It’s the present value of the potential cash flow generated by the customer relationship.

Customer Equity = LTV + First Purchase Contribution – Acquisition Cost
Web benefits to firms can come in two different flavors: Improved Processes and Revenue Benefits.

They way an engineer summaries it:

It’s important that the Brand Strategy is connected to Online Presence. To do so, we can work on Customer-based brand equity. Refer to Keller’s framework.

Domain Name – Hierarchical naming structure that provides a symbolic representation of hosts on Internet. (Example: London.edu). It’s part of the organization’s brand on Internet. One domain name can be linked to different IP addresses. One IP address can have several alias or domain names. A good domain name will boost Memorability. Are you confused? get to know why here.

IP – Internet Protocol

IP address – example 192.168.0.1

“Lean back” media consumption - prospective consumers are in a passive entertainment mode (TV ad).

“Lean-forward” media – online users are more in a problem-solving mode
Internet is the natural glue for integrated marketing: Advertising, Sponsorships, Promotions, PR and e-mail.

Now have fun..

New Cadbury's Ad ! Eyebrow

It was mentioned today in class, and I just saw the latest version on TV. It was launched 3 days ago - already in YouTube. Several versions uploaded to YouTube, sums +100,000 visits in 3 days !!!

Best so far.

I wonder how Cadbury's online marketing team is capitalizing on it...


Week 3 notes coming soon...

YouTube Addicted

As you might know by now, I am addicted to YouTube.

Here I post a very interesting video produced by a large Brazilian advertising company, DM9.

This video was produced and sent to DM9's clients in the end of year (holidays).

It's in English with Portuguese subtitles. Worth seeing it! Very inspirational.

Most Searched Words...

... in the UK (source: google)

Fastest Rising

1. iplayer
2. facebook
3. iphone
4. youtube
5. yahoo mail
6. large hadron collider
7. obama
8. friv
9. jogos
10. wiki

Most Popular

1. facebook
2. bbc
3. youtube
4. ebay
5. games
6. news
7. hotmail
8. bebo
9. yahoo
10. jobs

Politicians (Most Popular)

1. gordon brown
2. david cameron
3. barack obama
4. tony blair
5. sarah palin
6. john mccain
7. george osborne
8. alistair darling
9. boris johnson
10. nicolas sarkozy

Recipes (Fastest Rising)

1. cupcake
2. meatballs
3. rocky road
4. crumble topping
5. eaton mess
6. pork belly
7. rhubarb fool
8. lemon posset
9. honey comb
10. beer batter

Finance terms (Fastest Rising)

1. icesave
2. hot uk deals
3. natwest
4. hmrc
5. hbos
6. money saving expert
7. halifax
8. barclays
9. rbs
10. lloyds tsb

Hottest tickets (Fastest Rising)

1. oasis
2. leonard cohen
3. ac/dc
4. the ashes
5. steve coogan
6. sos
7. oliver
8. gladiators
9. tina turner
10. nickleback

Video killed The Radio Star, So What Comes Next?

Today, we’ve got some interesting insights from the guest speaker… and some abbreviations. So, week 2 list is…

ARPU – Average Revenue per User.

SEO – Search Engine Optimization.

WiFi - Usually referred as wireless internet, but.. is a trademark of the Wi-Fi Alliance, founded in 1999 as WECA (Wireless Ethernet Compatibility Alliance). The organization comprises more than 300 companies, whose products are certified by the Wi-Fi Alliance, based on the IEEE 802.11 standards (also called WLAN (Wireless LAN) and Wi-Fi). This certification warrants interoperability between different wireless devices.

SMS (or Text) – Short message service, via mobile phone.

RSS – Really Simple Syndication.

HTML – Hyper text Markup Language.

Metcalf’s Law – Translates the number of connections in a network into value for the network. With everyone connected we have: n(n-1)/2 conversations and a value of n(n-1)*$. The community value is the sum of individual values in the network.

Opt-In – the user must give permission before any use of personalized info.

Opt-Out – the user can choose not to receive any solicitation. Otherwise, his/her information (incl. e-mail) can be used or sold.

Spam – rubbish e-mails one receives.
Interesting that “Spam is a popular Monty Python sketch, first televised in 1970. In the sketch, two customers are trying to order a breakfast from a menu that includes the processed meat product in almost every dish. The term spam (in electronic communication, and general slang) is derived from this sketch”

Why I receive so much spams?

There are several reasons. One common reason is that your e-mail address was sold by a website you registered to (Opt-Out or No Restrictions), the other one is by accessing “unethical” websites (warez, crack, MP3 downloads or porn) that reads your e-mail inside local cookie files… latest browsers might protect you against it.

RFID – Radio Frequency Identification. Works by embedding a small; electronic circuit into the labeling of a package. Allows for tracking just as a FEDEX package.

Individualization allows the online world to? Be more adaptative, secure and intelligent.

Useful category breakdown of online user activity is: commerce, communications, content and search.

Do you remember those traveler reviews on Expedia website? They are an example of “Quality Cues”.

The Hidden Pixel – A method of multi-site cookie. It hides an image file in the same color of the background. Invisible to the user. Used to outsource website tracking to a firm specializing in online metrics.

Video killed the radio star, so what comes next?



If you care to help Guinea Pig fund his MBA, please visit my sponsor's website (link on the right)
:-)

INTELECTOL for the Cold Call !

Although I use to read lots of blogs, I’ve never imagined myself writing one. Yes, we all will have to; I mean the Internet Marketing class.

Internet Marketing is a new elective course at London Business School by Prof Dan Goldstein, also new are the teaching tools and method. First of all, there is no course binder, but a book / no info in the school’s portal, but in the blogs / I wonder it hadn’t a final quiz too.. Nobody knows how it’s going to be or end, that’s why I consider myself a Guinea Pig in this course.

Ok, so lets get down to what I am planning to write in my blog. I’ve heard today in class that we will have to understand, and remember, all terminologies abbreviations, technologies and etc. Time for MEMORIZATION! For this reason I will mostly write about those terminologies so that you don’t need to get any INTELECTOL® tablets.

For Week 1 they are:

Virtuous Cycle for Net Growth
Web sites/content > Consumer and Business internet access > Popular fascination.. and back again

Re-check the Production, Selling and Brand Management concepts

GPT
General Purpose Technologies: Fundamental breakthroughs, causing numerous spin-offs and associated inventions

The three GPT
Digital Revolution, Networking and Individualization

DNI
Digital Network Individualization

Moore Law
The number of transistors that can be placed inexpensively on an integrated circuit has increased exponentially, doubling approximately every 18 months (applies to other contexts)

Digital Convergence
Merging of industries, technologies and content that used to be separated (ie. iPhone).

Steps in Digitizing Marketing
Archive > Substitute > Redesign

Surround Picture Technology IPX
Used to perform a 3D scan of something

IMDB
Internet Movie Database

CPC
Cost per Click

CPA
Cost per Action (corrected - thx to Davexpc)

ah, a video to kickstart Internet Marketing mindset....

The 1st Post...

1-2-3 testing...