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Editor’s note: Is Apple going to far with its restrictions on developers? Alistair Goodman thinks so and explains why in this guest post. He is the CEO of 1020 Placecast, a location=based mobile advertising startup.

Apple’s recent behavior bears an increasing resemblance to carriers with respect to the walled garden they are creating around the iPhone. Restricting applications, restricting the use of location on the device, blocking Flash, and now potentially taking advertising in house—these moves are taken from the carrier’s playbook with the hope of locking out meaningful competition. Ironically, Apple may very well become the barrier to open innovation in mobile in much the same way as carriers have been before the iPhone came along.

What is clear from the announcement to developers last week about plans to deny some apps that deliver location-based advertising is that Apple intends to control the flow of marketing dollars on the iPhone. Less clear are their plans for sharing the wealth with the ecosystem—but if you look closely at acquisitions like Placebase, key hires and patent filings, what emerges is a potentially more ominous view of a company that can only compete in the direct advertising business head-to-head with Google by seizing control of location-based advertising.

Location is now widely understood to be the key to successful mobile advertising because where a consumer is in the physical world and at what the time they are there is such a strong predictor of consumer behavior and intent. “If your app uses location-based information primarily to enable mobile advertisers to deliver targeted ads based on a user’s location, your app will be returned to you by the App Store Review Team for modification before it can be posted to the App Store,” says Apple. While they have yet to entirely exclude developers and ad networks from the equation, their broader strategy around location-based programs certainly has the potential to do just that.

Consider the following:

1. Apple’s acquisition of Placebase was not just about replacing Google Maps (with their Pushpin product). Placebase also is an aggregator of location-based content like neighborhood boundaries, census data and business listings, just like Navteq. These are the initial building blocks of a platform that indicates points-of-interest to a consumer when they are on their iPhone in a specific location. (Apple, like Google, has not yet cracked the problem of “location intelligence” – but this is just a starting point… more on that later in this piece)
2. Apple’s $275 million acquisition and staffing up at Quattro is a clear signal that they are ramping up mobile advertising sales to go head-to-head with Google. In Europe, for example, Apple has just hired former Microsoft sales manager Theo Theodorou to lead their sales effort, and Todd Tran, previously a senior executive at WPP’s Group M, to be general manager. Integrating Quattro into Apple gives it the ability to target audiences and deliver mobile ads, and provide the analytics to media buyers about the effectiveness of their programs.
3. Apple has filed (and widely publicized) patent applications in location-based marketing which are clearly designed to stake a claim in the space. Several patents are particularly interesting indicators of their strategic intent. This one, Location-Based Services, is like Google Goggles, which enables visual search based on a picture, and covers a host of location-based use cases such as understanding the proximity of businesses to enable the ability to trigger messages via “…information corresponding to one or more relevant businesses in a vicinity of the determined current geographic location.” A second one covers proximity-based ads, and a third is quite specific, “Graphical User Interface with Location-Specific Interface Elements,” covers the ability to monetize mobile messaging by enabling consumers to make purchases based on promoted items nearby. (Note to both Apple and Google beginning to stake out their ground in the future patent war: you will likely need this patent and others as well which were actually issued years ago.)

So what is missing from Apple’s strategy? Location intelligence —meaning the ability to return content (and advertising) on a consumer’s iPhone that is always correct, and always relevant for where they are and when they are there. As others have noted, just because a phone has a GPS on it that can locate a user does not mean that what is returned to them is meaningful. Location intelligence is the problem of returning relevant information based on place and time.  It is actually pretty complex—this is something that both Apple and Google are only discovering as they begin distributing their apps to millions of consumers. And doing it at scale—meaning always returning customized content and advertising to millions of consumers in real time—is an extraordinary challenge because it requires managing location data and content at a level of accuracy that today’s online search algorithms are just beginning to grasp.

Apple’s continued march down the path of the walled garden will become harder and harder as Google’s open Android ecosystem grows and the mobile ecosystem as a whole moves towards the more open Internet-like model. Meanwhile carriers will continue to use SMS to deliver location-based marketing across any open smartphone device or any feature phone. If Apple thinks the carriers are going to lie-down and settle for nothing from a new revenue stream in location-based advertising, they should think long and hard about the implications of this choice. Because as much as they are acting like the new carriers, they don’t actually own any wireless bandwidth or cell towers to carry all that data going to and from their phones.

Photo credit: Flickr/Paul Englefield.

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Foursquare continues to sign interesting deals with major players in a wide range of fields. Following the service’s Bravo deal a couple weeks ago, they’ve reached a deal with restaurant rating guide Zagat, according to The New York Times. And AdAge has some details about deals with even more partners, including HBO, Warner Brothers, and the History Channel.

The service has been on a roll lately. They’re now seeing over a million check-ins a week, with that rate doubling in the last month alone. And these new deals can only help them as they bring the type of mainstream appeal that it took services like Twitter so long to find.

While Zagat is an obvious partner thanks to its restaurante recommendations, the entertainment partnership appeal may not be immediately apparent. But as you can see on the Foursquare page for the movie Valentine’s Day, those promoting the movie have added 50 “Romantic Tips” around the cities that the movie takes place in, New York City, San Francisco, Chicago, Los Angeles, and Boston. Any Foursquare user that checks-in at one of these places will unlock a special badge for the movie.

The new HBO show, How To Make It In America, meanwhile, has four special badges that you can unlock: Culture, Living, Cocktails, and Nightlife. Each of these is obtained by visiting venues from the show.

And the Zagat deal is interesting in that it goes beyond simply offering food and restaurant recommendations. The service plans to have a weekly web video series entitled “Meet The Mayor” in which they interview the Foursquare “mayor” of a restaurant in their guide.

Another deal that Foursquare recently signed was with Harvard.

These types of deals are crucial to Foursquare not only because they point to an eventual money-making opportunity, but also because they give the service a way to fend off attacks from Yelp (which just launched a check-in feature on its own iPhone app), and soon Facebook. Meanwhile, these deals give brands a fun way to interact with the public. It’s advertising, but it’s interactive.

Now Foursquare just has to solve that douchebag problem…

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YouTube might be streaming more than 13 billion videos a month, or nearly 40 percent of total individual streams, but when you measure by time spent YouTube only accounted for 26 percent of all viewing minutes on the Web last year.  It is not surprising that it commands a smaller share of time spent watching videos than number of streams watched, since most YouTube videos are so short.  But what is surprising is how fragmented the Web video landscape remains once you go out past the top 25 sites.

According to comScore’s 2009 U.S. Digital Year in Review, more than half of all time spent watching videos on the Web (52 percent) last year was on Long Tail video sites beyond the top 25.  What you see is a real barbell distribution, with Youtube on one end and the Long Tail sites on the other.  Total video views more than doubled between December, 2008 and December, 2009, from 14 billion to 33 billion streams. So there is hope yet for niche video producers.

The Nos. 2 through 25 sites account for the remaining 22 percent of video minutes.  This group includes No. 2 video site Hulu, which just hit 1 billion monthly video streams in December, and fast-rising Netflix (no. 19).  Hulu’s 1 billion streams accounted for 5.8 billion minutes of viewing time, up 140 percent from a year before.

For  more from comScore’s report, see my earlier post on Ten Biggest Advertising Publishers On The Web or download the entire report here.

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Google leaps language barrier with translator phone from The Times Online reports Google is working on a new tool that would bring instant translation to people.
It appears that Google is a couple years away from this coming but they would build on their existing Google Translate and Google Voice features to create an instant translator. [...]



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With the continued success of Twitter and other social networking tools, any criticism (or praise) of products and companies is becoming increasingly public. Finding a way to manage these external communications in the internal decision-making process is an ongoing challenge for many businesses. Today, in an effort to help marketers and community managers better deal with such outside correspondence, blueKiwi, an Europas shortlist finalist, has announced the introduction of a free version of its Social Business Platform aimed at integrating outside conversations into daily internal communications to improve the decision making process.

Instead of community managers simply engaging with outside audiences via social networking tools, blueWiki pulls outside conversations into internal discussions in order to leverage the thoughts and ideas of its user base, much like Salesforce aims to do with Chatter or Bantam Live. It is social CRM. Bluekiwi combines a slew of web 2.0 capabilities: such as collaboration, document sharing, blogging, event posting, and polling, into a single, unified solution. The use of social analytics tools ensures that the most pertinent conversations reach the eyes of the community managers.

The blueKiwi dashboard allows the community manager to integrate outside feeds—be they RSS feeds, Twitter, or Facebook—in order to stay on top of external chatter. The “Notebook” shows anything and everything in the blueKiwi community which involves the user. Any chatter which involves the user is threaded in a Facebook status-esque interface, making it simple for users to stay up-to-date on conversations in which they are directly involved.

To ensure the product is being utilized most efficiently, the product has an automated personal assistant, Alice, programmed to make recommendations to community managers in order to keep them on top of important tasks. If part of an online community seems to be slacking in a certain department, Alice will make recommendations to try and increase efficiency. The homepage of blueKiwi also gives suggestions based on analytics to further this goal.

The free version of blueKiwi supports one external community, which can range from customer forums, to channel programs, to developer groups—basically anything where the majority of the users are outside the internal network—but allows unlimited internal groups and external members. Within the community, admins can vary the access privileges of individual members. Internal and External members can see everything which goes on in these groups, or admins can restrict access to only internal members. As conversations continue to grow, admins can change access privileges as well.

blueKiwi was founded in 2006 by Carlos Diaz and Christophe Routhieau. They have raised a total of $12.3 million in funding from Sofinnova Partners and Dassault Systemes.

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Last year, Yahoo still dominated display advertising on the Web in terms of sheer number of ad impressions on its properties, but social networking sites MySpace and Facebook came on strong. Some new data from comScore in its just-released 2009 U.S. Digital Year in Review ranks the top Web properties by the number of display ad impressions.

Yahoo served up an estimated 521 billion impressions last year, according to the report, followed by Fox Interactive Media (i.e. MySpace) with 368 billion, and Facebook with 330 billion. Microsoft sites (No.4) only served up 218 billion display ads, whereas Google (No. 6) served up only 70 billion. (These numbers do not include paid search text ads)

Here’s the full ranking:

Top Ten Publishers Of Display Ads
in billions of impressions (comScore)
1. Yahoo! Sites: 521 billion
2. Fox Interactive Media (MySPace): 368 billion
3. Facebook: 330 billion
4. Microsoft Sites: 218 billion
5. AOL: 192 billion
6. Google Sites: 7o billion
7. eBay: 36 billion
8. Glam Media: 25 billion
9. Amazon Sites: 22 billion
10. United Online: 20 billion

Obviously, the biggest sites with the most visitors serve up the most display ads. This year, Facebook doubled in size to the point where it is well past MySpace and catching up to Yahoo in audience size. It is already bigger than Yahoo in terms of pageviews.

Facebook has more advertising inventory than it knows what to do with, although not all of it is desirable. But Facebook is now selling all of its display ad inventory itself after it renegotiated its ad deal with Microsoft.

Biggest doesn’t mean most profitable. Facebook might be serving up more ads than almost anyone else, but they are still selling at very low ad rates because they perform poorly for the most part. If Facebook can figure out a way to make the ads on its site become more relevant and useful, it has a lot of room to boost its ad rates.

You can download the entire comScore report at this 2009 U.S. Digital Year in Reviewlink.

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Probably the most controversial thing about the blogging service Tumblr is that it doesn’t have a built-in way to comment on posts. You sort of can do it now if you reblog an item and add your own note (which then shows up under the original post), but it’s not the same. And while they still haven’t added comments, tonight they’ve temporarily turned on a new feature: Photo Replies.

While it doesn’t appear the feature is working just yet, Tumblr notes that they’re going to turn it on for the next 48 hours as an experiment. When it is on, you will presumably see a new photo icon in your dashboard which will allow you to upload a picture in response to a Tumblr post. So yes, basically it’s a photo comment.

To enable it on any post, simply check the box that reads “Let people photo reply” in the Tumblr backend for your blog.

While Tumblr itself doesn’t have a native commenting system, many users choose a third-party commenting option. The Tumblr Staff Blog, for example, uses Disqus.

[top photo via]

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Last month SecondMarket published data on private company stock sales that they helped complete in 2009. They’ve now released last month’s data as well.

A total of a little more than $13 million in sales occurred, with the average transaction size of around $2 million. There continues to be very strong demand for consumer products and services startups (which includes companies like Facebook, Twitter, LinkedIn, Digg, etc.). But the sellers are spread out more evenly across all categories, particularly consumer, IT, Healthcare, energy and cleantech.

36% of the transactions were sales of Facebook stock, and we’ve heard from independent sources that sales are being completed for as high as $40 per share (or a $17.6 billion valuation). That’s a substantial price increase from less than a month ago. Tesla took 29% of the transactions, and sales of Solyndra stock were 28% of the total. Gridpoint rounded the group out with 7% of the total.

The complete report is below, and you can download the pdf here.

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