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Online ad targeting is like politics: it’s all local

Tuesday, November 8th, 2011

Brendan Morrissey

Brendan Morrissey

By Allan Maurer

Nowadays, nearly all of us do online research before buying anything of consequence. But how often do we actually buy online? Take a guess. If you guessed more than 6 percent, you missed the mark.

Brendan Morrissey, CEO of Netsertive, a Research Triangle, NC-based company selling a platform that connects national brands to local channel marketing.

Prior to founding Netsertive, he was VP of Business Development at Motricity, an interactive marketing technology company serving media, entertainment and mobile carrier clients.

Before that he was a VP at Los Angeles based startup GoldPocket Wireless, whose technology platform connected media firms and brands with mobile carriers and consumers, where he helped drive rapid growth leading to its successful acquisition by Motricity.

He is one of dozens of digital media and marketing thought-leaders participating in the Internet Summit , the largest digital marketing event in the Southeast, at the Raleigh, NC Convention Center Nov. 15-16, which still has a limited number of seats available.

Most commerce still occurs in local markets

“We’re 15 years into the consumer Internet, but lots of people don’t realize that most retail commerce still happens in local markets,” says Morrissey. He points to what he calls “the three 90s.”

While 90 percent of people use online search, online reviews and so on to research before buying a product or service, 90 percent of consumers still buy most items within 50 miles of  their homes, and 90 percent of retail sales still occur over brick and mortar retail counters.

One problem that raises for online marketers is that even when working with 100 percent of the information available, you might know that a given consumer clicks your ad, hits your site and looks at specific products. But when that same consumer finally goes to a retail store to buy, how to you attribute that sale to online marketing?

Online discovery absolutely necessary

“Only now are we seeing deep pockets of expertise on how to connect online discovery with local consumer sales offline,” Morrissey says. “Most marketers are still trying to apply the old rules of e-commerce and old measurements such as click through rates or conversion rates.”

He notes that it’s absolutely necessary for retailers to be online so consumers can find them. “People don’t use the Yellow Pages anymore,” he says. They discover merchants or services online.

“Yet,” he says, “figuring out a return on investment (for online marketing) is tricky. As soon as the consumer leaves the web site to visit the store, you can no longer connect him to what brought him there.”

But, “You have to get there,” says Morrissey, even more so now with mobile coming on like the railroads that once steamed across the nation changing commerce. “People want to be targeted based on the device they carry and the location they’re at with a message that makes sense for what they are doing there.”

Tracking digital connections to offline sales

There are ways to track those digital connections, though.

“You can try to hook people with special offers and coupons with tracking codes. You can make it easy for someone online to contact you for more information about that new washing machine – but not with 19 required fields on a form. You can connect online discovery at the product level – tell me where I can get one within 20 miles from my house.

He adds, “You can have a process in your local offline business. Ask customers where they learned about you.” That can be useful even if a business only does it by tracking 30 days at a time a couple of times a year. “That’s enough to know if your online marketing is driving any business.”

Few businesses are doing that with any rigor, he says.

Netsertive, founded in 2009, works with small to medium-sized businesses with $2 million to $20 million in annual revenues, to bring national brand advertising to local markets with dealers and retailers selling their brands.

It’s similar to the “Co-op” advertising that puts advertisements for national products in local media outlets such as magazines and newspapers.

Morrissey will elaborate on this at the Internet Summit.

Lenovo Web creative director: site optimization is a daily job

Thursday, November 3rd, 2011

Sherry Bastion

Sherry Bastion

By Allan Maurer

RALEIGH, NC – The design and usability of a major company’s web site requires ongoing, daily attention to meeting visitor expectations and then getting them where they want to go via the easiest route.

“It is a science and an art,” says Sherry Bastion, Lenovo’s Web Creative Director. “You want to create a digital experience that builds brand loyalty and sales. Your site online has to be your ambassador.”

Bastion chairs the pre-conference intensive sessions on Design & Usability at the upcoming Internet Summit at the Raleigh Convention Center Nov. 15-16.

The intensive five-session pre-conference program will examine ways to create those digital experiences that feed brand loyalty and spark sales, using web design as a strategic tool, maximizing the impact of content, and finally, designing relevant and useful mobile apps.

Bastion will conduct the initial session focusing on how to design a web site to keep visitors engaged with your company’s products so that they come back again and again.

Eliminate outdated, boring, uninspiring content

Because the site has to act as the company ambassador, “You have to eliminate outdated, incorrect, boring and uninspiring information. “You want visitors to think, ‘What a great company.’ Part of that is understanding what people want to find on the site and making it easy to find.”

That sounds easy enough, but she adds, “You never know what people will want when they come to the site. Are they there to learn more about a product? Your company? You have to help them through all these decision trees.”

Also, she says, “There is a certain corporate tone you want to develop to give the brand a consistent look and feel and says, ‘This is a quality brand, a quality product.’ It gives you the information you need without wasting your time.”

Get visitors excited

Trying to force people down some pre-ordained path “is not good,” she says. “They should be in charge. Try to give them the experience they are seeking. If they’re coming to learn about a specific product and the only thing they get is a photo and a list of specs, it doesn’t help them understand why they should buy your product over a competitor’s. It’s bland. It doesn’t get them excited.”

And getting visitors exciting and engaged is what works.

Lenovo uses a variety of content to achieve that. “We show them 360 degree views of products so that they get a sense of what it looks like virtually. We give them customer reviews, because they like to know what others think of it.”

Even negative reviews, we asked. “We don’t filter anything,” Bastion says. “We also provide forums for any kind of social interaction and for people to engage, whether they are bad mouthing or praising us. There are no secrets and we don’t try to hide anything. It is important for visitors to see third party quotes and reviews.”

All of this is a daily, ongoing effort. “We look at the metrics,” Bastion notes. “We look at what people are clickin gon, what they do on the side. We ask them to do surveys. We try to constantly improve the experience, bringing in what they want and getting rid of what they don’t.”

She asks, “Are you putting things where people are apt to look?” Eye-tracking and usability studies may help there, she suggests.

Everyone has to work together

One of the challenges in a large company in particular is that “You have people focused on usability, on design, on content, and they can’t exist in a vacuum. They all have to work together.”

Even with assiduous attention to details, Bastion says keeping a site optimized is a full time job with surprises.

“You have to check your ego at the door. People change. What worked yesterday may not work tomorrow. You have to constantly let customer interactions tell you what’s working and what’s not.”

Renowned thought-leaders headed to Southeast’s largest Digital Media event

Wednesday, November 2nd, 2011

Internet Summit 2011Nearly 2,000 interactive marketers, IT executives, entrepreneurs, digital/new media strategists, venture capitalists and technology professionals will connect at the Raleigh Convention Center for the 2011 Internet Summit Nov. 15-16 to hear more than 120 speakers delivering over 80 presentations and panel discussions about today’s hottest business trends.

Topics include social media, mobile applications, e-commerce, SEO/paid search, Internet usability, analytics & measurement, streaming/interactive video, cloud computing/virtualization and online advertising/branding.

New York Times best-selling author, brains behind the Wine Library, Internet celebrity and social media king Gary Vaynerchuck will deliver the keynote presentation that promises to be enlightening, inspiring and engaging.

A strong business case for for social media

Gary Vaynerchuk

Gary Vaynerchuk

“I want to come at you practical, not theory or buzzwords,” says Vaynerchuck.  “I guarantee, if you come in skeptical about social media, I will bring a strong B2B and B2C (business case) to the table.”

The conference and exhibits opens Tuesday, Nov. 15 at 1 p.m, with a keynote panel discussion: “The Future of Digital Media & Marketing” with executives from Google, Gannet Company, Inc., FormSpring, and Discovery Communications.

Participants will choose from over 25 80-minute sessions featuring more than 75 presentations tailored to their interests and needs, as well as get a glimpse into some of the industry’s newest Internet entrepreneurial products and tools in the Demo Showcase and Startup Lounge.

To wrap up day one, award-winning video DJ Mike Relm performs at the opening reception from 6-8 p.m.

Doors open day two at 7 a.m. for a networking breakfast, followed by presentations from featured thought leaders Marc Cendella, CEO, TheLadders.com, and Marshall Brain, founder of HowStuffWorks.

Register for what is sure to be a sold out event and get the latest about the Internet Summit 2011.

Here’s what some said on Twitter about the 2010 Internet Summit:

blairgraham: Congrats to @Internet_Summit founders @EricGregg and @Scott_Hedrick of @TJ_South! I hear you are crushing it again! Well played.

Cybersig55: @Internet_Summit great job #isum10!! This has been an informative and well organized event. I look forward to attending again next year!

Huddy: Super excited to have been at the #iSum10. Great people, great sessions, great lessons… everything you want from a great conference.

invitecottage: Great 2 days @Internet_Summit #isum10. Lots of ideas for the new year!

DH_David: Not sure if there is enough coffee to get me through the day as I recover from two great days at Internet Summit 2010 in Raleigh. #isum10.

Tech jobs under the Big Top 2: running away with the startup circus

Monday, October 17th, 2011

By Joe Procopio

Joe Procopio

Joe Procopio

Did you read the piece I wrote back in May about Tech Jobs Under the Big Top?  Click on it so I get the credit and I’ll boil it down for you here.

  1. The brainchild of former Launchbox Executive Director Chris Heivly, Big Top purported to create a job fair strictly for startups and, in doing so, turn the concept of a job fair completely on its head.
  2. Underwear joke.
  3. It succeeded, and the event drew 15 companies pitching over 85 jobs to over 250 job-seekers in an atmosphere that resembled an actual circus, down to the clowns, jugglers, and free peanuts and cotton candy.

No wait, I know I just blew your mind, so you might have missed where I said 15 companies pitched 250+ job seekers — not screened, but pitched – with each company giving a three-minute presentation on why their startup was the place you wanted to work.

We’re Changing the World Plus We Have a Ping Pong Table

I loved that concept. A lot. I was there with one of the companies doing the pitching. So I sat down with Heivly as he was gearing up for Big Top 2.0, which is taking place Thursday, October 20th at Bay 7 in the American Tobacco Campus. You can find out more at BigTop.IT or just go register at: bigtop.eventbrite.com.

If you’re looking for a job and/or have ever thought about working for a startup, there is no better way to amplify your job search. Even if you’re gainfully employed, as about half of the job-seekers at Big Top are, you may want to drop by (although if you’re unprepared to be swayed by the magic and the majesty and the long hours and the low pay of Startup Nation, save the ticket for someone who needs it).

In my own view, the concept was a smash hit for a lot of reasons. As I pointed out in my last column, the Big Top event succeeded at removing the stigma of unemployment by turning the tables and having the potential employers sell themselves. Finding a job is hard enough. Finding a job at a job fair is like getting a root canal. Finding a job at a job fair during a recession is like getting a root canal from someone who works in Human Resources.

This is why Heivly had us pitch the job seekers, and I can tell you firsthand that each company got on board and produced presentations that ranged from gut-bustingly funny to eye-opening inspirational. You couldn’t help but have a smile on your face by the second or third pitch.

Do You Have Any Idea Who I Am?

BitTop event

The Big Top jobs event

But this is not the kind of endeavor you undertake a second time just because you made people feel better. Believe me, if I had a nickel for every time something I wrote made someone laugh, I’d make even less money writing than I do now.

You’re welcome.

One thing Heivly pointed out that I wouldn’t have put together is that Big Top and the resultant hype also dropped the names and identities of many local, working, hiring startups into the lexicon of 250 potential employees.

A lot of feedback from the first event centered around the fact that the job seekers just didn’t know there were this many of this kind of company in the area. You may not think this possible, I sure didn’t, but those of us who are immersed in the ecosystem, especially those of us shouting from the rooftops about how awesome this ecosystem is, can easily forget that the vast number of people out there have never heard of any of us.

But most importantly, Big Top succeeded as a job fair, resulting in a vast amount of connections, many useful relationships, and of course, several filled positions.

So What’s New?

Here we are just under half-a-year later and the outlook really hasn’t changed all that much. The silver lining on the cloud is that there are still at least a dozen smart, passionate startups who need smart, passionate technologists.

This time around, Heivly tells me, there will be more focus on the networking. One easy solution is that there are three fewer companies, so they still get the three minute pitch, but it won’t take as much time.

Heivly is also sending out an email to all registrants with all 60+ jobs that the startups need filling, so both sides can get right to the point.

In an additional effort to make the discussions more efficient, Big Top 2.0 will feature 12 tables, one for each company, instead of three tables, one for each discipline (technology, marketing, general business).

You Have To Be Crazy To Work Here

Overall, Heivly admits he’s done a little better job talking about the companies. Correspondence with the registered job-seekers is about making sure that the right people are there – because these are early-stage tech companies, and the jobs are more than 50 percent software development.

Last time, he says, about 20 percent of the crowd realized they didn’t belong there. Why? They just weren’t the special kind of crazy you need to be to work at a startup. Again, it’s high risk, long hours, low pay, and so glamorous that the vast majority of people out there will never have heard of you.

But it’s the other 80 percent that the startups need to reach. As Heivly jokes, and I agree, every developer we get from IBM is a win for the ecosystem.

One thing that won’t change, thankfully and rightly so, is the tone. There will still be jugglers and acrobats and the tent and the straw and the free beer and carnival snacks. All of this lends to a very comfortable networking environment.

At some point, Heivly wants to see this expand out of software and into life science and other startup disciplines. I told him I think gaming would be huge, and he agreed. But regardless of whether we’re talking about a BigTop 3.0 for web, mobile, biotech, gaming, clean & green, or craft brewing, as long as we’re talking about the RTP startup ecosystem, we’ll reach more people who have never heard of companies like Adzerk, EvoApp, Shoeboxed, HEALTHeME, ReverbNation, Argyle Social, and so on.

Mort importantly however, the more those companies keep finding smart, passionate technologists (like you), the less we’ll need to talk about it, because it will speak for itself.

Joe Procopio heads up product engineering for tech media startup Automated Insights (formerly StatSheet). He also owns consulting firm Intrepid Company and creative network Intrepid Media and runs the startup social ExitEvent. Joe can be reached via Twitter @jproco and read at joeprocopio.com.

 

Early registration for the Internet Summit ends today

Friday, October 14th, 2011
Internet SummitTechMedia’s Internet Summit is bringing 120 digital media, marketing and business thought leaders to the Raleigh, NC, Convention Center Nov. 15-16, but discounted early registration for the event, which is shaping up as the largest ever, ends today, Friday, Oct. 14.
 
With more than 75 individual presentations, 5 forward looking panels, and keynotes by NY Times best-selling author & ‘Social Media King’ Gary Vaynerchuk andGowalla co-founder Josh Williams the event promises to give your business savvy a boost.
 
Over 120 industry innovators and thought leaders from prime brands like Google, Microsoft, ESPN, StumbleUpon and many more, will be on hand to share their insight, spark new ideas, and expand your understanding on issues and topics that matter to you.
 
The Internet Summit expects nearly 2,000 attendees at Internet Summit 2011 making it the largest Digital, Media & Tech Conference in the Southeast — offering you unparalleled opportunities to connect and network with your peers and business colleagues.
 

Discounted early registration for Internet Summit ends Friday

Tuesday, October 11th, 2011
Internet SummitTechMedia’s Internet Summit is bringing 120 digital media, marketing and business mavens to the Raleigh, NC, Convention Center Nov. 15-16, but discounted early registration for the event, which is shaping up as the largest ever, ends this Friday, Oct. 14.
 
With more than 75 individual presentations, 5 forward looking panels, and keynotes by NY Times best-selling author & ‘Social Media King’ Gary Vaynerchuk and Gowalla co-founder Josh Williams the event promises to give your business savvy a boost.
 
Over 120 industry innovators and thought leaders from prime brands like Google, Microsoft, ESPN, StumbleUpon and many more, will be on hand to share their insight, spark new ideas, and expand your understanding on issues and topics that matter to you.
 
The Internet Summit expects nearly 2,000 attendees at Internet Summit 2011 making it the largest Digital, Media & Tech Conference in the Southeast — offering you unparalleled opportunities to connect and network with your peers and business colleagues.
 

Internet Summit bringing 120 digital gurus to Raleigh Nov. 15-16

Thursday, October 6th, 2011
Interent Summit 2011TechMedia’s Internet Summit 2011 at the Raleigh, NC Convention Center Nov. 15-16  is jam-packed with top level content focused on the latest digital trends, online marketing techniques and IT best practices at the largest digital event in the Southeast.
 
The Internet Summit features two full days of learning mixed with awesome parties, great networking and entertaining keynotes.  Here’s a sampling of topics that will be addressed:

  • Online Video
  • Cloud Panel
  • Ecommerce Trends
  • Reputation Management
  • Security/Risk Management
  • Startup Strategies
  • Enterprise 3.0 Panel
  • Email Marketing
  • Mobile Analytics
  • Advanced SEO
  • Big Data
  • Measuring Social
  • Design
  • Paid Search
  • CIO/CTO Panel
  • Online Advertising
  • Location Marketing
  • Marketing Through Facebook & Twitter
  • Virtualization
  • Social Media Marketing
  • Internet Entrepreneurship Panel
  • and much more.

Hear from the founders of companies like Gowalla, TheLadders, Twitpic & HowStuffWorks!  Not enough?  How about a Keynote from Top rated SXSW keynote and ‘Social Media King’ Gary Vaynerchuk? That’s just a sampling of the over 120 speakers and presenters that will be on hand.

Early confirmed presenters include:
  • Gary Vaynerchuk, Co-Founder, VaynerMedia 
  • Josh Williams, Co-founder & CEO, Gowalla 
  • Mac Cendella, Founder & CEO, The Ladders 
  • Marshall Brain, Founder, How Stuff Works 
  • David Perry, Business Development Executive, Google
  • Liz Strauss, Co-founder, SOBcon & LizStrauss.com 
  • Noah Everett, Founder, TwitPic and Heello 
  • Jack Krawczyk, Sr Product Marketing Mgr, StumbleUpon 
  • Traug Keller, Sr VP of Production, ESPN
  • Jeff Ragovin, Chief Revenue Officer, Buddy Media 
  • Peggy Fry, Chief Revenue Officer, Clearspring Technologies
  • Mike Relm, Founder, Relmvision 
  • Bob Young, Founder & CEO, LuLu.com
  • Donna DeMarco, Co-Founder & VP, Viddler 
  • Ryan Mannion, Chief Technology Officer, Politico 
  • Fran Maier, President & Executive Chair, TRUSTe
  • Jerry Cuomo, CTO WebSphere, IBM
  • Prerna Gupta, CEO, Khush
  • Kevin Dando, Dir Digital & Education Communication, PBS
  • Clint Smith, Co-Founder & CEO, Emma
  • Matt Crenshaw, VP of Marketing, Discovery Communications
  • Scott Gunter, VP of User Experience, Usability Sciences 
  • Lindsay Wassell, Partner & Consultant, KeyphraSEOlogy 
  • Steve Ashley, VP Internet Marketing, Market America 
  • Gerard Bush, Chief Creative Dir, The brpr Group 
  • Rob Ousbey, VP Operations Seattle, Distilled 
  • David Gudai, VP of Marketing, Storkie 
  • Glenn Mersereau, Dir of Internet Marketing, PHE
  • Jim Tobin, President, Ignite Social Media
  • Kevin Pomplun, CEO, SkyGrid 
  • Sherry Bastion, Web Creative Director, Lenovo 
  • John Lovett, Sr Partner, Web Analytics Demystified
  • Drew Diskin, Dir of Interactive & Web Strategy, Penn Medicine 
  • Lynette Montgomery, VP Ecommerce, Burt’s Bees 
  • Noah Dinkin, Co-Founder & President, FanBridge 
  • Jessica Bowman, SEOinhouse.com
  • David Gudai, VP of Marketing, Storkie
  • Todd Moy, Sr User Experience Designer, Viget Labs
  • Donna Bedford, Global SEO Lead, Lenovo
  • Francis Shepherd, Media Evangelist
  • Dallas Lawrence, Chief Digital Strategist, Burson-Marsteller
  • Thuy LeDihn, Senior Marketing Manager, .ORG
  • Adam Covati, Co-founder & CTO, Argyle Social
  • Chris Condayan, American Society for Microbiology
  • Kyle Scott Richardson, Social Media, NC National Guard
  • Cara Rousseau, Social Media Manager, Duke University
  • Loren Baker, VP of Marketing, Blueglass
  • Matthew Munoz, Partner & Chief Design Officer, New Kind
  • Jill Whalen, CEO, HighRankings
Register today to secure your seat!

Online shoppers increasingly rely on product reviews, social media

Monday, October 3rd, 2011

Scot Wingo

Scot Wingo, CEO, ChannelAdvisor

“If you build it, they will come” no longer works for online retailers:  heading into the holiday shopping season, a new survey reveals that active online shoppers increasingly rely on online product reviews as a key element in their buying decisions.

The survey also found they’re increasingly interacting directly with vendors through social media sites like Facebook and Google+, and shows that deal sites such as Groupon and LivingSocial soared in popularity.

The fourth annual Global Consumer Shopping Habits Survey was conducted by ChannelAdvisor, a global e-commerce platform provider that enables retailers to sell more across online channels. The survey included responses from participants throughout North America, Europe and Australia.

With the global economy in a continued weakened state, the company noted that consumer preferences are more important than ever for retailers to take into account as they work to stay profitable during the all-important holiday season and beyond.

Peer-based product reviews are one of the most important factors in the buying decisions of online shoppers, according to the ChannelAdvisor survey.  Ninety percent of shoppers around the world who answered the survey said they read product reviews from other shoppers before buying, with 83 percent saying the reviews affect whether they actually purchase an item.  In the United States alone, almost half of the respondents (48 percent) said they have posted an online review as well.

“Consumers are increasingly diversifying the places they shop online, which is reflected within this survey and further highlights the need for retailers to expand their reach on every e-commerce channel, including mobile and social,” said Scot Wingo, ChannelAdvisor’s chief executive officer.

“The development of emerging channels within the past year is staggering, supporting our belief that these channels are more than just passing trends. The survey reveals how influential social networks have become, as well as their potential to drive e-commerce moving forward.”

Customer sentiment has increasingly migrated as well to social media sites in the last year, with more than half (53 percent) of those responding to the survey saying that product comments posted to retailers’ Facebook and Twitter pages play a role in their buying decisions.

Increasingly, those retailers are aware of the sites’ growing importance in their efforts, and are seeking to engage potential and existing customers online; the survey indicates their efforts are taking hold.  More than one-third of the respondents (34 percent) said they have become “fans” of retailers on Facebook; that number is much higher in the United States, where 46 percent said they have done so.

In addition, 83 percent said they are likely to visit a retailer’s website if it’s been recommended by a Facebook friend.

Other findings from the ChannelAdvisor survey include:

  • Google continues as the clear number-one choice globally among online shoppers as a starting point for product searches;
  • Purchases made via mobile phone have more than tripled in the past year, to 31% of those responding to the survey (but online shoppers say using tablet computers, like the iPad, is far easier);
  •  Thirty percent of shoppers worldwide say they are using barcode scanning applications (like eBay’s RedLaser) as an element in their buying decision; and
  •  “Deal of the day” sites, like Groupon and LivingSocial, have leaped in popularity, with about half of all respondents in the United States saying they use both sites frequently.

A copy of the survey results is available for review at go.channeladvisor.com/US-eBook-2011-Consumer-Survey.html.

Increasing broadband speed boosts national GDPs, Ericsson says

Tuesday, September 27th, 2011

Johan Wibergh

Johan Wibergh, Sony Ericsson EVP, head of business unit networks

A new report  shows that doubling the broadband speed for an economy increases GDP by 0.3 percent.

The report was conducted jointly by Ericsson (NASDAQ: ERIC), Arthur D. Little and Chalmers University of Technology in 33 OECD countries,  and quantifies the isolated impact of broadband speed.

A 0.3 percent GDP growth in the OECD region is equivalent to USD 126 billion. This corresponds to more than one seventh of the average annual OECD growth rate in the last decade.

Only one U.S. city makes the list of the top ten globally in broadband download speeds, according to a recent study.

This Ericsson study also shows that additional doublings of speed can yield growth in excess of 0.3 percent (e.g. quadrupling of speed equals 0.6 percent GDP growth stimulus)

Both broadband availability and speed are strong drivers in an economy. Last year Ericsson and Arthur D. Little concluded that for every 10 percentage point increase in broadband penetration GDP increases by 1 percent.

Growth stems from direct and indirect effects

This growth stems from a combination of direct, indirect and induced effects. Direct and indirect effects provide a short to medium term stimulus to the economy. The induced effect, which includes the creation of new services and businesses, is the most sustainable dimension and could represent as much as one third of the mentioned GDP growth.

“Broadband has the power to spur economic growth by creating efficiency for society, businesses and consumers,” says Johan Wibergh, head of Business Unit Networks, Ericsson. “It opens up possibilities for more advanced online services, smarter utility services, telecommuting and telepresence. In health care, for instance, we expect that mobile applications will be used by 500 million people.”

During a keynote speech at Broadband World Forum 2011 in Paris, Wibergh said: “We expect a huge increase from the current estimate of around 1 billion people with broadband access to about 5 billion in 2016, most of whom will have mobile broadband. Connectivity and broadband are just a starting point for new ways of innovating, collaborating and socializing.”

Erik Almqvist, director at Arthur D. Little, says: “Until now there has been an absence of hard facts investigating the effects of broadband speed on the economy. This unique empirical study may help governments and other decisions makers in society make more correct tradeoffs and policy choices.”

Results support polices that recognize broadband importance

“These results have been derived using rigorous scientific methods where the direction of causality, data quality and significance levels have been appropriately tested,” says Erik Bohlin, Professor at Chalmers University of Technology.

“The results of this study support governmental policies that recognize and promote the importance of broadband.”

Unfortunately, many states have restricted the efforts of municipalities to create their own, higher-speed broadband networks due to lobbying by commercial providers, which make substantial contributions to state legislature political campaigns that seem to have paid off.  It paid off most recently in North Carolina, where the Republican controlled state legislature passed such a bill restricting municipal broadband efforts despite the fact that seven NC cities had the lowest download speeds vs. price nationally.)

This study is the first of its kind in that it quantifies the economic impact of increases in broadband speed in a comprehensive scientific method using publicly available data.

Corporate execs see Texas, NC, SC as best for business

Monday, September 19th, 2011

texas mapTexas, North Carolina and South Carolina are viewed as having the best business climates among the 50 states, according to a new survey of U.S. corporate executives.

The poll pinpointed California, New York and Illinois as the U.S. states with the least favorable business climates.

Conducted by Development Counsellors International (DCI) every three years, the “Winning Strategies in Economic Development Marketing” survey has tracked trends in economic development since its inception in 1996.

“With the battle for business more intense than ever, states and their economic development organizations need to pay close attention to the results of this survey,” said DCI President Andrew T. Levine. “Whether accurate or misguided, perceptions about a location’s business climate often play a crucial role in site selection decisions and where companies invest money and create jobs.”

Half the firms to make relocation decisions

Nearly half (46%) of the 322 corporate executive who responded to the survey indicated that their firm would make a location decision in the next 24 months – whether a move, expansion or consolidation of a manufacturing plant, offices, distribution center or other facilities. More than half (51%) said that they would outsource a portion of the site selection process to a real estate broker or site selection consultant.

Texas was the clear-cut favorite among the respondents to the survey, with 49.4% naming the Lone Star state as having one of the most favorable business climates in the nation. North Carolina ranked second with 27.8%; South Carolina has 14.3% of the votes.

Texas and North Carolina have consistently landed in the top spots since the survey began more than a decade ago.Texas has held the #1 ranking since 1999, while North Carolina has been #2 since 2002. South Carolina, Tennessee andFlorida have frequently traded top positions in the survey and 2011 marks the return of South Carolina to the #3 slot.

Low operating costs a top concern

When asked why they selected the states they did as being best for business, the corporate executives frequently cited low operating costs and a pro-business climate. In the 2008 survey, more executives pointed to the availability of a strong workforce than they did in 2011.

For the fourth consecutive time, California was deemed as having the least favorable business climate, with 70.5% of the responses. New York was named second most frequently with 46.5%, followed by Illinois (24.4%) Taxes, high costs and “anti-business climate/regulation” spurred most of the negative opinions.

The comprehensive survey also asked a series of questions to divine the most effective economic development marketing tools, the leading sources of information that influence executive perceptions of a community’s business climate and the most important factors in business location decisions.

DCI conducted the survey online, polling a random selection of C-level executives at U.S. companies with annual revenues of$25 million or more. The survey was augmented by 250 location advisors/consultants.

For a free copy of the full “Winning Strategies” survey report or an executive summary, see: www.aboutdci.com/winning-strategies.