Archive for the ‘Money’ Category
Thursday, February 9th, 2012
 Catherine Tabor, CEO, Sparkfly. Sparkfly is one of 60 innovative firms presenting at the upcoming Southeast Venture Conference By Allan Maurer
Merchants and manufacturers spend billions annually on offers and promotions such as coupons, daily deals, online banner ads, sweepstakes, and more, but all have shortcomings, says Sparkfly CEO Catherine Tabor.
Founded in 2001 in Atlanta, Sparkfly was an early player in the electronic offers and promotions business, initially providing employee discount platforms to large firms such as Coca Cola and SunTrust and to Emory University.
That business grew covered a million employees nationally and $3 million in annual revenue, but Tabor says merchants in the company’s program really wanted to know what employees were doing once they came into their stores to claim a discount.
“I’ll partner with someone who can take these promotions to an in-store environment,” Tabor thought, but five years ago, “it didn’t exist,” she says.
After an “exhaustive search,” the company partnered with Softcard Systems, which had built a robust platform to track millions of high speed transactions, and built its new technology on top of that platform.
Raised capital for acquisition and platform development
Previously, Softcard had been tracking sales of sugar and flour and other packaged goods at grocery stores, but, Tabor notes, “it could just as easily track movie ticket sales or anything else.”
They were on their way to the “Holy Grail” for retailers, understanding their customers at the point-of-sale.
Sparkfly bought Softcard Systems in 2010, raising an angel investment north of $10 million to fund the buy and platform development. Development of its platform is now complete.
Will present at Southeast Venture Conference
Sparkfly is among 60 innovative technology firms presenting their business plans to venture capitalists and angel investors representing billions in capital at the upcoming Southeast Venture Conference in Tysons Corner, VA, Feb. 29-March 1. The company is seeking its first institutional round.
With the world going mobile, marketers have the ability to reach many more consumers, but they need ways to tie their promotions to actual purchase data.
Sparkfly sells a cloud-based solution that enables creation and distribution of personalized offers via the web and mobile devices that will be redeemed at point-of-sale. The patented technology does not require additional in-store hardware or software.
Owning redemption at POS
The product creates a dynamic code tied to buyers redeeming offers which zips back to its servers for authentication and tracking. It then unlocks any new offers to that buyer.
“What we’re trying to own is redemption at point of sale.”
 The system also can connect online advertising to brick & mortar redemption of offers, which is often the missing link in tracking ROI for online advertising.
Retailers and manufacturers can customize promotions based on individual purchase behavior to deliver and manage offers for specific products by location, time of day, and demographic variables. Customers can receive their offers via social, mobile, or web channels. Tabor says it leverages existing infrastructure in POS environments and adapts easily to multi-lane or multi-store operations.
It has integrated with POS providers, including NCR/Radiant, MICROS, Gilbarco, REtalix, IBM, POSitouch and Verifone. The company holds 16 patents with other pending.
Sparkfly is also testing its new integrated platform in pilot runs with several large brands.
The company gets paid for performance – by transaction.
It’s continuing to integrate its software with merchants, consumer package goods manufacturers, and publishers.
Tabor points out that while daily deals and online discount offers are a big business, it’s expensive to be a Groupon or a Foursquare – businesses that required hundreds of millions in startup funding.
“We have the opportunity to make all those businesses more viable,” says Tabor, “tracking people within those networks through point of sale, which provides an opportunity to reward frequent buyers and loyalty rather than just giving someone you’ll never see again a coupon.”
Sparkfly is starting a pilot program with its first national merchant, Auntie Anne’s (the pretzel chain) in the Atlanta market during February.
Tags: Allan Maurer, analytics, Atlanta, coupon offers, online discounts, point of service tracking, POS, SEVC, Southeast Venture Conference, Sparkfly, venture fund raising
Posted in entrepreneurship, Events, Internet/New Media, IT, Money | No Comments »
Tuesday, February 7th, 2012
 Online retail spending reached $49.7 billion for the quarter, up 14 percent versus year ago, according to digital measurement firm comScore. This growth rate represented the ninth consecutive quarter of positive year-over-year growth and fifth consecutive quarter of double-digit growth rates.
For the entire 2011 year, U.S. retail e-commerce spending reached a record $161.5 billion, marking a 13-percent increase from 2010.
Retail E-Commerce (Non-Travel) Growth Rates
Excludes Auctions, Autos and Large Corporate Purchases
Total U.S. – Home & Work Locations
Source: comScore, Inc. |
| Quarter |
E-Commerce Spending ($ Millions) |
Y/Y Percent Change |
| Q1 2007 |
$27,970 |
17% |
| Q2 2007 |
$27,176 |
23% |
| Q3 2007 |
$28,441 |
23% |
| Q4 2007 |
$39,132 |
19% |
| Q1 2008 |
$31,178 |
11% |
| Q2 2008 |
$30,581 |
13% |
| Q3 2008 |
$30,274 |
6% |
| Q4 2008 |
$38,071 |
-3% |
| Q1 2009 |
$31,031 |
0% |
| Q2 2009 |
$30,169 |
-1% |
| Q3 2009 |
$29,552 |
-2% |
| Q4 2009 |
$39,045 |
3% |
| Q1 2010 |
$33,984 |
10% |
| Q2 2010 |
$32,942 |
9% |
| Q3 2010 |
$32,133 |
9% |
| Q4 2010 |
$43,432 |
11% |
| Q1 2011 |
$38,002 |
12% |
| Q2 2011 |
$37,501 |
14% |
| Q3 2011 |
$36,308 |
13% |
| Q4 2011 |
$49,698 |
14% |
“The fourth quarter of 2011 capped off what was yet another strong year for online retail, one in which every quarter achieved double-digit increases versus the prior year,” said comScore chairman Gian Fulgoni. “In the face of continuing uncertainty regarding the U.S. economy, consumers increasingly went online for their shopping needs. Price and convenience continue to be the critical value drivers for e-commerce, and unless those conditions change we can expect to see more channel-shifting to online in 2012 and perhaps even an acceleration in the current growth trend.”
Other highlights from Q4 2011 include:
- The top-performing online product categories were: Digital Content & Subscriptions, Jewelry & Watches, Consumer Electronics, Toys & Hobbies, and Computer Software. Each category grew at least 18 percent vs. year ago.
- Ten individual days in Q4 surpassed $1 billion in online spending, led by Cyber Monday (Nov. 28) at $1.251 billion. Monday, Dec. 5 ranked second at $1.178 billion, followed by Green Monday (Dec. 12) at $1.133 billion.
- 52 percent of e-commerce transactions included free shipping, representing an all-time high. The previous high was Q4 2010 at 49 percent.
- Smartphones and tablets played a growing role in online shopping, with consumers increasingly using smartphones to check prices and product features while physically in a retail store.
Tags: comScore, double digit growth in online retail, online retail spending Q4 2011
Posted in Internet/New Media, Marketing, Money | No Comments »
Monday, February 6th, 2012
 By Tracy Eden
Flash back almost three years ago, to the “technical” end of the Great Recession in June of 2009. The depth of the financial crisis was just beginning to be felt, and banks were tightening the reins on credit, which resulted in a credit crunch that made it nearly impossible for many businesses to obtain the capital they needed to grow, much less keep their operations going.
In this environment, cash conservation became the name of the game for many CFOs. To try to squeeze more cash out of their supply chains, businesses focused on tightening collection of receivables, stretching out their payables and reducing inventory.
A Different Scenario
Now, fast forward to today. According to the data revealed in the 2011 CFO/REL Working Capital Scorecard, U.S. businesses are now flush with cash. As a result, the emphasis on wringing every dollar out of working capital seems to have dissipated somewhat.
For example, the scorecard revealed a paltry 2% decrease in days working capital (DWC). Meanwhile, days sales outstanding (DSO) declined by just 0.1% and days inventory outstanding (DIO) and days payable outstanding (DPO) both rose by just 1.1%.
These modest improvements in working capital performance seem to indicate that the emphasis by U.S. businesses has shifted from working capital improvements to sales growth and profit enhancement.
“The energy and focus have now been placed much more on the profit-and-loss statement,” noted Mark Tennant, a principal with REL, which co-sponsored the research. “There isn’t a continuous focus on cash flow and working capital.”
Meanwhile, business lending activity appears to be on the rise. Data recently released by the FDIC reveals that overall commercial and industrial (C&I) lending by banks increased during each of the five quarters preceding third-quarter 2011 after declining steadily since early 2008. And the growth rate in borrowing among small businesses (as measured by the Thomson Reuters/PayNet Small Business Lending Index) increased by double digits over the previous year for the 15th consecutive month in October, rising by 20 percent after a 14 percent rise in September.
A New Mindset?
So, do improved corporate balance sheets, a brighter business lending picture and an improving economy mean that CFOs should adopt a new mindset when it comes to working capital management?
My answer: Not necessarily. In fact, statistics like those noted here could lead CFOs to adopt a false sense of security.
In the article posted on CFO.com reporting on the results of Working Capital Scorecard, Stephen Payne, Americas leader of working capital advisory services at Ernst & Young, stated that corporate balance sheets may not be nearly as impervious as they seem.
Despite an impressive recent comeback in corporate productivity, high unemployment continues to plague the economy, Payne noted. To produce sustainable growth, companies will “have to hire people and invest via capex, and that’s going to start depleting their cash hoards,” he said.
I would add that, while there have been recent signs of improvement in the U.S. economy, we’re by no means out of the woods yet. While positive, economic growth remains anemic, especially compared to most other post-recession rebounds. And unemployment remains stubbornly high, despite some recent improvements in the employment picture.
Finally, while the Small Business Lending Index points to positive signs for business lending, more FDIC data paints a different long-term picture: The overall volume of small business loans (defined as loans of $1 million or less) has been shrinking since 2008 and was down 15 percent from its peak as of September 30, 2011. There were just 1.5 million small business loans outstanding at this time, the smallest number since 1999, according to the FDIC.
Now, contrast these figures with the latest Asset-Based Lending Index, which is published quarterly by the Commercial Finance Association. There was a 1.5% increase in total committed credit lines in the third quarter of 2011 from the previous quarter, which was the fourth consecutive quarterly increase in asset-based credit lines.
Total asset-based credit commitments grew by 5% compared to the third quarter of 2010, and new commitments were up by more than 26%. Half of asset-based lenders reported an increase in new credit commitments and 70% reported an increase in total commitments, while utilization of asset-based lenders’ credit lines increased for the third consecutive quarter, to 40.5%.
Uncertainty … and Opportunity
The presidential election this November will probably add to, rather than subtract from, the uncertainty that has plagued the economy since the financial crisis began more than three years ago. Given this, CFOs would be wise not to get too complacent about working capital management.
Meanwhile, this uncertainty could mean opportunity for asset-based lenders in 2012. If the economy continues to pick up steam, small business credit demand will certainly rise. But many small businesses still won’t qualify for bank financing, making them good candidates for non-traditional and asset-based loans.
This makes now a good time to start cultivating relationships with local bankers, who can be important referral sources for small businesses that could potentially benefit from factoring and other asset-based loans. Doing so could be one of the most important strategic moves you make in 2012.
Tracy Eden is the National Marketing Director for Commercial Finance Group (CFG), which has offices throughout the U.S. and Canada. CFG provides creative financing solutions to small and medium-sized businesses that may not qualify for traditional financing. Visit www.cfgroup.net or contact Tracy at tdeden@cfgroup.net.
Tags: The Commercial Finance Group, Tracy Eden, working capital management
Posted in Business advice, Money | No Comments »
Friday, February 3rd, 2012
 The National Institute of Standards and Technology (NIST) is offering up to $10 million in grants of about $1.5 million to $2 million each for projects that pilot new online identity credentials.
NIST is soliciting proposals to pilot on-line identity solutions that allow individuals and organizations to utilize secure, efficient, easy-to-use, and interoperable identity credentials to access online services in a manner that promotesconfidence, privacy, choice, and innovation.
This “Federal Funding Opportunity” follows upon the Obama Administrations release of the “National Strategy for Trusted Identities in Cyberspace” last year.
It’s Executive Summary says:
“A secure cyberspace is critical to our prosperity. We use the Internet and other online environments to increase our productivity, as a platform for innovation, and as a venue in which to create new businesses. Our digital infrastructure, therefore, is a strategic national asset, and protecting it—while safeguarding privacy and civil liberties—is a national security priority” and an economic necessity. By addressing threats in this environment, we will help individuals protect themselves in cyberspace and enable both the private sector and government to offer more services online.”
NIST hopes to fund five to eight projects up to two years each.
Preliminary proposals are due from eligible contractors by March 1.
Tags: National Institute of Standards and Technology, National Stategy for Trusted Identities in Cyberspace, NIST, proposals for creating trusted online identities
Posted in Government/Defense, Internet/New Media, IT, Money | No Comments »
Wednesday, February 1st, 2012
 Nearly three-fourths of of chief financial officers at U.S. technology companies – 73 percent – expect revenue to increase in 2012, though less than last year, says BDO USA. It also says M&A activity is expected to stay high in tech sectors this year and there will be an uptick in IPO activity.
Although the outlook is positive, CFOs foresee overall revenue increases of just 2.6 percent – significantly lower than the forecasted growth in last year’s survey (10.4 percent) and the first time since 2009 that revenue projections have not exceeded the previous years.
Despite lower revenue expectations, the vast majority of technology CFOs (75 percent) expect M&A activity in the sector to rise in 2012, down just slightly from 2011 (78 percent) and 2010 (81 percent). CFOs predict acquisitions will remain primarily offensive (77 percent), and with high-levels of competition among cloud and SaaS providers, the software industry is expected to see the most M&A activity by 39 percent of CFOs, followed closely by media/telecom (33 percent).
“Based on recent economic and marketplace volatility, technology executives are cautious in their revenue projections,” said Aftab Jamil, partner and director of the Technology and Life Sciences practice at BDO USA, LLP.
“That being said, M&A remains an attractive opportunity. The fiercely competitive environment is pushing companies to aggressively target the best and brightest technologies. Among middle-market tech companies, there’s an ‘acquire or be acquired’ mentality.”
These findings are from the fifth-annual BDO Technology Outlook Survey, which examined the opinions of 100 chief financial officers at leading technology companies throughout the U.S. The survey was conducted from December 2011 to January 2012.
Other major findings from the 2012 BDO Technology Outlook Survey include:
M&A Activity to Remain High Across Tech Sectors in 2012. In addition to heavy M&A activity in the software and media/telecom sectors, CFOs also point to the biotech and life sciences (12 percent), hardware (11 percent) and cleantech (6 percent) sub-industries as top areas for deal flow. Revenue and profitability remains the most commonly cited primary driver for mergers and acquisitions in the technology industry, as cited by 38 percent of CFOs. Market share (29 percent), technology assets and intellectual property (13 percent), and distribution channels (11 percent) were also noted as influencers of M&A.
Confidence in Access to Capital Remains High. While 76 percent of CFOs say they feel better about the ability to access capital in 2012, the findings showed a 9 percent drop from 2011 levels (83 percent). Despite a high level of confidence in access to capital, the survey reported only 38 percent of CFOs plan to seek additional capital, compared to 43 percent last year. “Most technology companies have been very strategic in preserving cash and liquidity to sustain their business activities through cash generated from operations. This is leading fewer CFOs to look for capital externally,” said Jamil.
Debt to be Primary Source of Funding in 2012. In a change from 2011, among CFOs who are planning to seek additional capital this year, 55 percent will focus on debt to do so, a significant increase over 2011(31 percent). Of those CFOs, the vast majority (91 percent) will focus on private debt, with the remaining 9 percent looking to public debt. Fewer CFOs (35 percent versus 43 percent in 2011) say private equity will be their main tool to raising capital. Interest in public equity also dropped, with 9 percent of CFOs citing it as their primary source of funding, down from 19 percent in 2011.
CFOs Forecast Uptick in IPO Activity. With some recently completed IPOs, as well a number of greatly anticipated, future stock market launches pending for 2012, 63 percent of technology CFOs forecast an increase in IPO activity this year. This expectation is consistent with BDO’s recent IPO Outlook Survey, which found that 73 percent of capital markets executives expect an increase in IPO activity in the technology sector.
Tags: access to capital, BDO, M&A activity, tech CFOs forecast 2012, uptick in IPO activity
Posted in Internet/New Media, IPOs, IT, Money, Studies, surveys, reports | No Comments »
Tuesday, January 31st, 2012
 Ben Horowitz Andreessen-Horowitz, which backed Groupon, Skype, Zynga and Facebook, has raised $1.5 billion for its third fund, bringing its total amount under management to $2.7 billion.
Facebook is widely expected to file for an intial offering of public stock this week – in what is likely to be the biggest IPO event of the entire year.
Ben Horowitz, co-founder and general partner of Andreessen-Horowitz said in a statement that, “We’re remaking the modern venture capital firm and entrepreneurs are responding to our unique approach.”
Horowitz also wrote about why the firm has raised $2.7 billion in two years in a blog post, where he clearly identifies that different approach.
“We set out to design a venture capital firm that would enable founders to run their own companies,” he explains. That meant the firm’s general partners had to “be an effective mentor for a founder striving to be a CEO. This is why so many of our General Partners are former founders or CEOs or both, and they are all highly focused on helping founders become outstanding CEOs.”
The firm also backs well-known startups Foursquare, Fab, AirBnB, and Pinterest, which has been rapidly growing its footprint and gaining increasing attention in recent months and weeks.
Tags: Andreessen Horowitz, Ben Horowitz, Fab, facebook, Foursquare, Groupon, Pinterest, third fund, venture capital firms, Zynga
Posted in Internet/New Media, IPOs, Money | 1 Comment »
Monday, January 30th, 2012
Google makes all but 4 percent of its earnings – $37.9 billion in 2011 – from advertising. Who’s spending all that money with the search giant?
The finance and insurance industry racked up $4 billion with Google, with State Farm alone spending $43.7 million.
Search terms in those industries can carry a hefty price tag. The phrase “self-employed health insurance,” for instance, which has the highest cost-per-click, goes for about $43 a click.
No wonder health insurance is so expensive.
Retail and general merchandise industry is number two among the big spenders with Amazon alone spending $55.2 million.
Travel & Tourism ranked third in money spent with Google at $2.4 billion.
Here’s an infographic created by WordStream outlining who spent what with Google in 2010.
Tags: Amazon, booking.com, DeVry, financial industry, Good Adsense, ITT, KAYAK, marketing dollars, Marriott, Priceline.com, refinance mortgage, retail and general merchandise, self employed health insurance, State Farm insurance, travel & tourism, University of Phoenix, Zumba dance dvd
Posted in Amazon, Google, Hardware, infographic, Internet/New Media, Marketing, Money | 1 Comment »
Monday, January 30th, 2012
 Growing optimism and greater anticipation of increased IT investments among IT decision-makers has propelled the Six-Month Growth Outlook composite score to 71, jumping three points to reach its highest reading since its inception in late 2007, says the latest CDW IT Monitor.
A key finding? “Organizations that fail to address new security risks are flirting with disaster, and could face threats ranging from business continuity disruptions to data theft.”
That’s a message we’ve repeated here at the TechJournal many times as we reported the considerable costs and loss of customer loyalty and trust that serious data breaches cause.
While overall anticipated IT spending grew two percentage points to reach 42 percent, most sectors saw significant increases in spending optimism.
The number of state and federal government IT decision-makers expecting an increase jumped 11 and 10 percentage points respectively, with local government reporting decreased anticipated IT spending, slipping five percentage points since October.
Within the private sector, IT decision-makers at medium-size businesses anticipating an IT budget increase soared seven percentage points since October, while small and large-size businesses each grew one percentage point.
The survey findings also indicated that more than a third (36 percent) of IT decision-makers plan to spend on mostly new assets, up eight percentage points overall, with medium and large-size businesses seeing a 14 and eight percentage point increase, respectively.
Those planning large investments climbed three percentage points overall, led by double-digit growth among decision-makers at medium-size businesses and within state government.
Despite overall anticipated IT hiring dropping two percentage points since October, IT decision-makers at medium-size businesses and within federal government are expecting hiring increases of three and two percentage points, respectively, over the next six months.
Record-High Anticipated Hardware, Software Investment Fuels Growth
Overall anticipated demand for hardware and software investments reached a record high in both public and private sectors. Anticipated hardware spending climbed four percentage points to 80 percent overall, led by significant increases among small business (nine percentage points), local government (five percentage points) and state government IT decision-makers (eight percentage points).
Anticipated software spending increased seven percentage points to 82 percent, driven by 10, eight and six percentage point jumps among IT decision-makers at small, medium and large-size businesses respectively. In addition, expected software spend increased 10 percentage points among local government IT decision-makers.
Outlook reaches significant milestone
“The data indicates that the IT spending outlook has reached a significant milestone. More IT decision-makers are feeling optimistic about the prospects of their IT budgets increasing, and they are anticipating significant IT investments in the next six months, especially on the hardware and software fronts,” said Neal Campbell, senior vice president and chief marketing officer, CDW.
“We believe that organizations will continue to look at technology investments as ways to boost efficiencies, increase productivity and gain new competitive advantages in 2012.”
Expectations for IT solutions spending increased two percentage points to 45 percent, a 2011 high. This was led by a nine percentage point spike in anticipated spending from medium-size businesses, and two percentage point increases from both large-size businesses and within federal government.
Of those anticipating increased solutions investment, the greatest priorities in the next six months are networking (58 percent), security (57 percent), virtualization (56 percent) and cloud computing (47 percent). Security investments quickly moved up IT decision-makers’ priority lists, increasing seven percentage points since October.
IT Investments Slated to Surge in Key Industries, Led by Professional Services
Optimism over increased IT spending remained strong and steady among IT decision-makers in the healthcare, manufacturing and IT industries, while anticipated budget increases in the professional services industry jumped 10 percentage points since October.
Confidence among IT decision-makers in the professional services industry translated to a jump in anticipated hardware investments (14 percentage points), software investments (17 percentage points) and in IT solutions (10 percentage points) over the next six months.
The retail industry continued to increase its investment optimism, with IT decision-makers anticipating three and nine percentage point increases in hardware and software purchases respectively since October. In addition, anticipated hardware spending in the manufacturing industry grew seven percentage points, while solutions spending in the healthcare industry is slated to increase six percentage points in the next six months.
Many Organizations Not Prepared to Manage Risks Associated with Personal Mobile Devices in the Workplace
The latest CDW IT Monitor indicates that three quarters (76 percent) of IT decision-makers report their organizations allow employees to use personal mobile devices for work-related tasks. Among IT decision-makers in the public and private sectors, security protocol implementation, employee adherence, cost and lack of IT resources top the list of challenges for integrating personal mobile devices into organizations.
Of the companies currently allowing the use of personal mobile devices for work-related tasks, one third (33 percent) said they were either not confident or only somewhat confident that their protocols and security measures are effectively managing risks.
Personal mobile devices pose a challenge
While more than half of IT decision-makers surveyed are using both IT security measures and protocols, 19 percent reported that they are not managing the new risks introduced by personal mobile devices being used within their organizations.
“While it should come as no shock that organizations are increasingly allowing their employees to use their personal mobile devices for work-related tasks, many will be surprised to find that nearly one in five organizations are not managing new security risks at all,” Campbell said. “Organizations that fail to address new security risks are flirting with disaster, and could face threats ranging from business continuity disruptions to data theft.”
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| How is your organization managing the inherent security risks that come with personal mobile device use for work-related tasks? |
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IT Security |
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Security Protocols |
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Measures |
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Both |
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Not Managing |
| All IT Decision-makers (n=1,058) |
|
10% |
|
16% |
|
56% |
|
19% |
| All corporate (n=769) |
|
10% |
|
16% |
|
55% |
|
19% |
| Small (n=257) |
|
13% |
|
8% |
|
43% |
|
37% |
| Medium (n=257) |
|
8% |
|
21% |
|
61% |
|
10% |
| Large (n=255) |
|
8% |
|
21% |
|
62% |
|
9% |
| All govt. (n=289) |
|
10% |
|
12% |
|
60% |
|
18% |
| Local (n=78) |
|
10% |
|
12% |
|
60% |
|
18% |
| State (n=105) |
|
10% |
|
12% |
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59% |
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18% |
| Federal (n=106) |
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10% |
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12% |
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59% |
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18% |
| |
| (Due to rounding, totals in the table above may not add to 100 percent.) |
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For more information about the sentiment of IT decision-makers, please visit www.cdwitmonitor.com.
Posted in Hardware, Internet/New Media, IT, Money, Security, Studies, surveys, reports | No Comments »
Monday, January 30th, 2012
 Total U.S. mobile & social media revenue – including consumer and business access, content, advertising and marketing – increased 30.2% to $45.38 billion in 2011, and us poised for a similar surge this year, according to new data released today by PQ Media (www.pqmedia.com), a provider of media econometrics.
Mobile & social media revenue rose at a compound annual growth rate of 28.7% from 2006-2011, and is expected to grow at an accelerating 30.8% annual rate in 2012, according to the PQ Media U.S. Mobile & Social Media Forecast 2012-16.
“The mobile media sector alone reached the $1 billion revenue mark faster than any communications industry in history in 2008, taking only five years compared with 16 for the internet”
PQ Media for the first time collected, analyzed, defined, segmented and forecast the entire mobile & social media landscape, providing the most comprehensive and detailed perspective on the fastest-growing communications industry segment.
PQ Media identified 3 broad sectors of mobile & social media – mobile advertising & marketing, mobile content & access, and online social media. Within the three sectors, there are seven segments – mobile advertising, mobile marketing, consumer mobile content & access, business mobile content & access, social networks, blogs, and podcasts.
Further, PQ Media identified 44 distinct revenue streams, such as mobile search advertising, mobile coupon marketing, paid mobile video downloads, business data access fees, social network advertising, blog marketing, and podcast business content, among many others.
Mobile content & access was by far the largest industry sector in 2011 with revenue of $39.17 billion, up 27.8%, as the business segment accounted for 58% of the total and the consumer segment, 42%.
Mobile advertising & marketing was fastest growing sector in 2011, expanding 53.7% to $3.39 billion, as the advertising segment soared 60.9% and marketing surged 46.2%. Among the fastest growing mobile ad revenue streams were in-game, search and video.
The marketing segment will grow faster than advertising from 2012-16, fueled by the location-based, coupons and marketing apps revenue streams, according to the PQ Media U.S. Mobile & Social Media Forecast 2012-16.
“The mobile media sector alone reached the $1 billion revenue mark faster than any communications industry in history in 2008, taking only five years compared with 16 for the internet,” said PQ Media’s Quinn. “Mobile will also reach the $100 billion mark in 2015 faster than any other communications industry, driven by several key growth drivers, including strong growth in overall mobile device penetration, the transition to smartphones and tablets, the torrent of new mobile content launches and the continued growth of consumer and business time spent with mobile media.”
Meanwhile, online social media was the smallest sector of mobile & social media in 2011, with $2.83 billion in revenues, but grew at a very strong 42.1%. Social networks was the largest and fastest growing segment by far, increasing 45.9% to $2.28 billion in 2011, according to PQ Media.
Together, mobile & social media accounted for 4.1% of overall communications industry revenue in 2011, up from only 1.3% in 2006. Eleven of the 44 mobile & social media revenue streams exceeded $1 billion in 2011, and 23 will do so by the end of 2016, according to the PQ Media U.S. Mobile & Social Media Forecast 2012-16.
Tags: mobile advertising & marketing, mobile content & access, PQ Media, total U.S. social & media revenue, US. Mobile & Social Media Forecast 2012
Posted in Internet/New Media, Marketing, Mobile, mobile games, Money, smartphones, social media, Studies, surveys, reports, Tech Culture, Telecommunications | No Comments »
Thursday, January 26th, 2012
 Nearly half (41 percent) of companies plan to deploy cash reserves in the new year, according to a recent Deloitte poll of business professionals from a cross section of industries.
Respondents also suggest that their companies are likely to execute acquisitions (28.2 percent), increase capital budgets (20.6 percent), repurchase shares (11.8 percent) or issue one-time dividends or increase dividends (6.1 percent) in 2012.
“The good news is that cash balances have risen to historic levels, balance sheets are strong and companies have options,” says Justin Silber, principal, Deloitte Financial Advisory Services.
“The bad news is that literally trillions of dollars in corporate cash reserves aren’t earning much – if any – return as interest rates remain at historic lows. In the meantime, investors want immediate cash return while looking for boards to defend against market volatility.”
Still, the growing cash coffers firms are holding onto have diminishing returns sitting under-used. If firms are ready to start putting all that money to work, it could give the U.S. economy a real boost.
Silber continues, “The C-suite thinks growth through acquisition is ideal but division heads believe R&D investments are key. Each internal corporate group can add value, but first shared criteria should be reached so that strategies to retain, return or deploy cash are more likely to succeed.”
Poll participants cite lack of attractive alternatives for deploying cash (34.3 percent), no common framework, tools and metrics to evaluate alternatives (13.6 percent), and siloed decision making (12.1 percent) as the biggest challenges in executing cash deployment strategies at their organizations.
“We keep hearing from companies that they’re struggling to develop a shared framework and level playing field through which multiple teams can work together to determine the best use for cash reserves in the new year,” says Silber.
“Getting your strategic house in order for cash reserve deployment should be the top resolution for corporate leadership teams in 2012.”
Tags: company cash reserves, Deloitte
Posted in Economic Development, Money, Studies, surveys, reports | Comments Off
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