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Original author: 
Kara Swisher

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Earlier today, Yahoo said it had acquired the trendy and decidedly stylish news reading app Summly, along with its telegenic and very young entrepreneur Nick D’Aloisio.

Yahoo said it plans to close down the actual app and use the algorithmic summation technology that the 17-year-old D’Aloisio built with a small team of five, along with a major assist from Silicon Valley research institute SRI International, throughout its products.

While Yahoo did not disclose the price, several sources told me that the company paid $30 million — 90 percent in cash and 10 percent in stock — to buy the London-based Apple smartphone app.

And despite its elegant delivery, that’s a very high price, especially since Summly has been downloaded slightly less than one million times since launch — after a quick start amid much publicity over its founder — with about 90 million “summaries” read. Of course, like many such apps, it also had no monetization plan as yet.

What Yahoo is getting, though, is perhaps more valuable — the ability to put the fresh-faced D’Aloisio front and center of its noisy efforts to make consumers see Yahoo as a mobile-first company. That has been the goal of CEO Marissa Mayer, who has bought up a range of small mobile startups since she took over nine months ago and who has talked about the need for Yahoo to focus on the mobile arena above all.

Mayer met with D’Aloisio, said sources, although the deal was struck by voluble M&A head Jackie Reses.

Said one person close to the deal, about the founder: “Nick will be a great person to put in front of the media and consumers with Mayer to make Yahoo seem like it is a place that loves both entrepreneurs and mobile experiences, which in turn will presumably attract others like him.”

Having met the young man in question, who was in San Francisco in the fall on a fundraising trip, I can see the appeal. He’s both well-spoken and adorkable, as well as very adept at charming cranky media types like me by radiating with the kinetic energy of someone born in the mobile world (you can see that in full force in the video below with actor and Summly investor Stephen Fry).

Still, D’Aloisio is very young and presumably has a lot of other entrepreneurial goals and that’s why he agreed as part of the deal to only officially stay 18 months at Yahoo, multiple sources told me. In many cases, startup founders strike such short-term employment deals with big companies, agreeing to stay for a certain determined time period.

He will also remain in England, where he lives with his parents, said sources. In addition, only two of Summly’s employees will go to Yahoo with D’Aloisio.

That’s $10 million each, along with a nifty app Yahoo will not be using as is (too bad, as it would up the hip and fun factor of Yahoo’s apps by a factor of a gazillion if it were maintained).

“It works out on a lot of levels,” said another person close to the situation. “Nick is a founder that will make Mayer and Yahoo look cutting edge.”

Cue the parade of PR profiles of the young genius made millionaire, helping Yahoo become relevant again.

I have an email for comment into the always friendly D’Aloisio. But I don’t expect a reply, since he has apparently been specifically instructed by the martinets of Yahoo PR not to talk to me any longer — well, for 18 months at least! (Don’t worry, Nick, I don’t blame you and will still listen to whatever you are pitching next, since you are so dang compelling and I enjoyed using Summly!)

Until then, here’s the faboo Summly video, with the best chairs ever:

Summly Launch from Summly on Vimeo.

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datum380

Image copyright kentoh

In a series of articles last year, executives from the ad-data firms BlueKai, eXelate and Rocket Fuel debated whether the future of online advertising lies with “More Data” or “Better Algorithms.” Omar Tawakol of BlueKai argues that more data wins because you can drive more effective marketing by layering additional data onto an audience. While we agree with this, we can’t help feeling like we’re being presented with a false choice.

Maybe we should think about a solution that involves smaller amounts of higher quality data instead of more data or better algorithms.

First, it’s important to understand what data is feeding the marketing ecosystem and how it’s getting there. Most third-party profiles consist of data points inferred from the content you consume, forms you fill out and stuff you engage with online. Some companies match data from offline databases with your online identity, and others link your activity across devices. Lots of energy is spent putting trackers on every single touchpoint. And yet the result isn’t very accurate — we like to make jokes around the office about whether one of our colleagues’ profiles says they’re a man or a woman that day. Truth be told, on most days BlueKai thinks they are both.

One way to increase the quality of data would be to change where we get it from.

Instead of scraping as many touchpoints as possible, we could go straight to the source: The individual. Imagine the power of data from across an individual’s entire digital experience — from search to social to purchase, across devices. This kind of data will make all aspects of online advertising more efficient: True attribution, retargeting-type performance for audience targeting, purchase data, customized experiences.

So maybe the solution to “More Data” vs. “Better Algorithms” isn’t incremental improvements to either, but rather to invite consumers to the conversation and capture a fundamentally better data set. Getting this new type of data to the market won’t be easy. Four main hurdles need to be cleared for the market to reach scale.

Control and Comfort

When consumers say they want “privacy,” they don’t normally desire the insular nature of total anonymity. Rather, they want control over what is shared and with whom. Any solution will need to give consumers complete transparent control over their profiles. Comfort is gained when consumers become aware of the information that advertisers are interested in — in most cases, the data is extremely innocuous. A Recent PWC survey found that 80 percent of people are willing to share “information if a company asks up front and clearly states use.”

Remuneration

Control and Comfort are both necessary, but people really want to share in the value created by their data. Smart businesses will offer things like access to content, free shipping, coupons, interest rate discounts or even loyalty points to incentivize consumers to transact using data. It’s not much of a stretch to think that consumers who feel fairly compensated will upload even more data into the marketing cloud.

Trust and Transparency

True transparency around what data is gathered and what happens to it engenders trust. Individuals should have the final say about which of their data is sold. Businesses will need to adopt best practices and tools that allow the individual to see and understand what is happening with their data. A simple dashboard with delete functionality should do, for a start.

Ease of Use

This will all be moot if we make it hard for consumers to participate. Whatever system we ask them to adopt needs to be dead simple to use, and offer enough benefits for them to take the time and effort to switch. Here we can apply one of my favorite principles from Ruby on Rails — convention over configuration. There is so much value in data collected directly from individuals that we can build a system whose convention is to protect even the least sensitive of data points and still respect privacy, without requiring the complexity needed for configuration.

The companies who engage individuals around how their data is used and collected will have an unfair advantage over those who don’t. Their advertising will be more relevant, they’ll be able to customize experiences and measure impact to a level of precision impossible via third-party data. To top it off, by being open and honest with their consumers about data, they’ll have impacted that intangible quality that every brand strives for: Authenticity.

In the bigger picture, the advertising industry faces an exciting opportunity. By treating people and their data with respect and involving them in the conversation around how their data is used, we help other industries gain access to data by helping individuals feel good about transacting with it. From healthcare to education to transportation, society stands to gain if people see data as an opportunity and not a threat.

Marc is the co-founder and CEO of Enliken, a startup focused on helping businesses and consumers transact with data. Currently, it offers tools for publishers and readers to exchange data for access to content. Prior to Enliken, Marc was the founding CEO of Spongecell, an interactive advertising platform that produced one of the first ad units to run on biddable media.

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Venture investors still have a healthy appetite for early-stage consumer Internet companies, but those startups are having a harder time raising follow-on financing.

Overall the amount invested in consumer information services was off 42% in the first nine months as the difficulties of newly public Internet companies such as Facebook and Zynga cast doubt on the business models and valuations of social media companies.

Read the rest of this post on the original site

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Many mobile phone owners use their devices for non-urgent purposes like gaming (an addiction to Draw Something doesn’t qualify as urgent). But a huge chunk of U.S. consumers are using their cellphones and smartphones for more pressing needs — something Pew Internet Research is calling the “just-in-time” phenomenon.

A new Pew survey of more than 2,200 U.S. adults shows that 70 percent of all cellphone owners and 86 percent of smartphone owners say they’ve used their phones in the past 30 days to access immediate information, solve a problem or get help in an emergency.

The fact that cellphones and smartphones are being used as need-it-now devices really isn’t that surprising, since they put the world’s trove of information in our pockets. What’s more interesting is how those situations are categorized — something the mobile ad industry might want to pay heed to.

The majority of those surveyed — 41 percent — say they’ve used their phones for the basic task of coordinating meetings or get-togethers.

That outweighs the number of people who say they’ve used their phones to look up a restaurant (30 percent), check sports scores (23 percent) and get transit information (20 percent).

Less than one-fifth of those surveyed said they’ve used their phone in an emergency situation in the past 30 days, which is probably a good thing.

Another interesting tidbit: Despite the fact that slightly more women than men now own smartphones, as my AllThingsD colleague Ina Fried reports, men who own mobile phones are more likely than women to look up information during an argument. Some 31 percent of men admit to doing this, compared with 22 percent of women.

Could this be because women are less likely to experience memory loss? Just saying …

(Image courtesy of Flickr/Brenderous)

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