Category: News (page 42 of 1505)

Editor’s note: This is the first of a rotating bi-weekly column by local chambers of commerce.

The business environment is one that is constantly evolving. Just staying up to date on current strategies and tactics can be a daunting prospect for many of the small- and medium-sized businesses that make up the majority of businesses in B.C..

To help provide knowledge and insight into latest methods of marketing and business growth strategies, the Greater Vernon Chamber of Commerce has launched a new program called Chamber U.

As a chamber we have access to many experts with current in-depth knowledge. With our extensive network of members, and with our affiliation to both the B.C. and Canadian chambers of commerce, there is a deep pool of talent we can draw from to deliver leading edge information.

The mandate to provide educational services for our members is one of the things I find most appealing about being in today’s chamber. We are very pleased to be able to offer these programs at no cost to our members in good standing.

It also gives some of our members a chance to share some of their expertise and profile their businesses as presenters in a non-promotional environment. For example, we had our first Chamber U June 2 at Lake City Casino, with Tim Houle, from V-Net Consulting, presenting on search engine optimization.

The Chamber U series will be starting with a focus on using the Internet and new media for marketing, customer service and e-commerce.

Several Chamber U topics in the planning phase include using constant contact e-mail services (June 28), Hootsuite social media dashboard (Oct. 11), and pay-per-click advertising using Google Adwords (date TBA).

Moving forward, there will more diverse subjects introduced with presentations from Kazia Mullin, from Crema Communications, on small business marketing, doing business with the City of Vernon with a city official, and goal setting with Charley Hampton, of Coach Charley.

As the series progresses, web-based seminars, dubbed webinars, will also start to be used to deliver the information.

Webinars are presented from the trainer’s computer and distributed using software, allowing participants to see a presentation much like a powerpoint on their own computer screen. The software also supplies sound using the computer’s speakers or a connection over the telephone, that participants dial up to receive.

These will allow even more of our members to participate in the events than ever before as they will not have to travel from their office to attend. People will not have to be as constrained to a single fixed place, date and time since we can easily repeat the webinars for multiple occurrences, and we can archive them for later viewing on our website.

All scheduled events offered by the Vernon chamber can be viewed at www.vernonchamber.ca. This is all part of a bigger plan to add more interactivity to the chamber website.

It is already one of the most frequently searched and used websites in the Vernon area, and the goal is to maximize service to members.

People are also welcome to call the office at 250-545-0771, or drop in at 102-2901 32 St.

George Duffy is the general manager of the Greater Vernon Chamber of Commerce.

Advertising and paywalls are typically viewed as a mutually exclusive proposition but they can successfully co-exist, according to participants at a roundtable at DPAC (Digital Publishing and Advertising Conference) this week.

“Why not dual models?” said Andrew Rutledge, vice president and general manager of publisher development at PubMatic. “Who’s paying for digital content from more than two providers? The market can only support two or three players with a paywall. I don’t think the paywall is THE solution, it’s one of many.”

However, Brian Hecht, senior vice president of publisher premium services at TheStreet.com, which offers 10 premium content products ranging from $200 to $5,000 per year, thinks the market opportunity is larger. “I don’t agree that only two to three publishers can succeed with a paywall but I do agree that it’s difficult to sell subscriptions. It’s a complex process, we have a significant marketing department, we have people with PhDs running this, but the company would not be where it is without the stable advertising side.”

Brian White, vice president of publisher solutions at Vibrant Media, a company that specializes in contextual advertising, agreed that subscriptions and advertising can co-exist online, but only with certain types of advertising [naturally]. “Behavioral and contextual advertising are becoming more valuable,” he said. “Display advertising can now target by characteristics but I’m not sure if higher CPMs can mitigate the loss of pagviews.”

Paying for Content or for Access on a Select Device?

The panelists cited News Corp.’s The Daily and The New York Times as two publishers taking different approaches to paid content-with The Daily only available on select devices, while The New York Times is charging for content across a variety of platforms. “Is the value simply that you can access it on the iPad?” said Hecht. “Or is there some functionality that makes it different? How do you keep The Daily from being just a novelty item?”

(The Daily may have other issues as well. In a March earnings call, News Corp. said the app was still a “work in progress” and generated a $10 million loss in the last quarter. When the DIGIDAY panel polled the audience on how many attendees downloaded The Daily the first week it came out, maybe 20 out of at least 100 raised their hands. When asked how many read it this week, just one raised a hand, at least that I saw.)

As of April, The New York Times said it had 100,000 subscribers with its new plan (which is roughly equal in revenue as this point to what The New York Times generated from its previous paywall attempt, Time Select, which generated 227,000 subscribers and about $10 million per year).

Creating content that others are willing to pay for also requires significant investment, something that can be at least partially addressed by sticking to an advertising model. Content aggregation and licensing deals are part of any smart content strategy but they are also a symptom of the fact that most publishers (particularly those serving the mass market) just don’t make enough money online to cover the costs of creating digital content.

Specialized information providers (particularly those in the financial services space) invest in unique content and have an audience willing to pay for it (The Daily invests heavily in content but again, is it the right model and the right content?). Paywalls are the new hope for some smaller b-to-b publishers seeking an answer to eroding ad dollars, but many of those same publishers still look at content creation as simply a cost center.

Is The Billing Process An Even Bigger Factor?

Beyond content quality itself, publishers have to consider how they draw readers in and perhaps even more importantly, how readers actually pay for that content. (Look at reviews of publisher apps in iTunes–even the ones doing well with app functionality got knocked for the billing process, at least in the pre-Apple subscription days).

The Financial Times has experimented with online content going back 15 years–its current iteration follows a metered model of offering select number of stories before requiring payment. In 2010, FT saw paid circulation growth of 50 percent.

“Publishers have to think long and hard about what they are,” said Hecht. “iTunes used to offer 30-second samples of songs, now they offer 90 second samples. Does that make you more or less likely to buy today? The lesson there is, don’t do market research in your head.”

Some publishers charge different fees for access on different digital devices. “The biggest factor for the paywall is the back-end,” said Rutledge. “If you have to go to different publications or different devices and key in your information each time, the fall-off is huge. Part of the reason iTunes is so successful is that’s a turnkey process but publishers don’t want to slice and dice revenue with Apple.”

However, if it builds TheStreet’s paid audience, Hecht would gladly team with Apple. “I’m happy to give Apple 30 percent and I’ll take it from there and figure out how to make up that money on my own,” he said.

By Matt Kinsman

—

<!–

COMMENTS/DISCUSS:

–>

Post Comment / Discuss This Blog – Info/Rules

View the discussion thread.

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter…

Your own personalized stock watchlist!

It’s a 100% FREE Motley Fool service…

Click Here Now

Seeking out the 10 mid caps to rule them all is the only logical follow-up to seeking the 10 small caps to rule them all. Unlike small-cap companies that offer investors the potential for high-risk, high-reward returns, mid-cap companies usually have significantly less risk built in because of their proven business track records. These companies offer either distinctive products or exceptional value to investors — or possibly both.

For reference, here are the choices for the previous three weeks:

• Jazz Pharmaceuticals
• Thompson Creek Metals
• American Water Works

This week, I want to highlight a Chinese Internet company that’s growing by leaps and bounds and has only government regulations standing in the way of its becoming a powerhouse: Sohu (Nasdaq: SOHU  ) .

What it does
Here’s an easy way to think about what Sohu does: Think about Yahoo! (Nasdaq: YHOO  ) . Now strip out the stagnant growth, the countless management gaffes, and its stale image, and you’ll have Sohu.

The company operates as a basket of Internet destination portals in China that provide news, information, video content, and communication services. Like other popular Internet destinations, including AOL, Yahoo!, Google, and SINA (Nasdaq: SINA  ) , Sohu earns its keep by selling advertising space on its Web pages, by offering pay-per-click ad services, and through the sale of online games and downloadable content.

How it stacks up
Sohu’s greatest current risk is being lumped in with the recent IPO craze coming out of China. New issues Renren (NYSE: RENN  ) and Youku.com (NYSE : YOKU) have traders in a mad frenzy over their potential, which has caused near-bubble conditions in the Chinese Internet sector.

Baidu (Nasdaq: BIDU  )

60.1

30.2

0.84

Youku.com

N/A

13.6

N/A

Renren

275.9

N/A

N/A

Yahoo!

15.5

1.57

1.59

Sources: Yahoo! Finance and Morningstar. Ratios as of June 7.

I want to know what Sohu ever did to the investment community to deserve the complete disregard it’s being shown. Youku.com and Renren’s valuations are enough to scare even a day trader away, while more seasoned plays Baidu and SINA trade at ludicrous prices relative to their operating cash flow. For kicks I threw Yahoo! in there as well. Even though it’s inexpensive on a book basis, it leaves a lot to be desired on the growth front.

How it could make you money
Before being so careless as to lump Sohu in with these new IPOs, take a hard look at Sohu’s balance sheet and growth prospects. The company boasts $21 in cash per share with zero debt, meaning you’re essentially paying $50 per share after backing out cash for a company expected to produce more than $5 in EPS in 2012 while maintaining revenue growth in excess of 20%. That all equates to a forward P/E of 13, which, in some circles out there, makes Sohu a value play.

No one gives the company’s online gaming division enough credit, yet this should be the main growth driver for the next few years. Changyou.com (Nasdaq: CYOU  ) , the former gaming wing of Sohu that was spun off in 2009, continues to be owned in large part by Sohu (66% of outstanding shares) — so Changyou’s gain is also Sohu’s gain. Analysts expect Changyou to grow 15.4% per year over the next five years, a rate that should bode well for Sohu and its shareholders.

It’s tough, if not impossible, to find value in the Internet information sector, but Sohu looks to offer investors the right amount of risk versus reward while providing the safety of a debt-free balance sheet. For that reason, it deserves a spot among the 10 Mid Caps to Rule Them All.

Do you Sohu? Let the community know your thoughts in the comments section below, and consider adding Sohu to your watchlist to keep up on the latest news stories out of China.

(Credit:
Screenshot from CNET TV)

Wireless carriers could face some serious trouble if emerging trends in text messaging continue, a new report from the Wall Street Journal contends.

Citing a recent study from the
CTIA, the Journal pointed out that 1 trillion text messages were sent in the U.S. during the second half of 2010. That number, while impressive, was up just 8.7 percent compared to the first half of 2010, representing the smallest gain ever in SMS use.

For the top two carriers in the U.S., Verizon and ATT, things are even more disconcerting. According to Journal, the average Verizon customer sent out 2,068 text messages in the fourth quarter of 2010. During the third quarter of last year, that figure was at 2,110. Citing a report from analysts at UBS, the Journal pointed out that text messaging was down 21 percent in the first quarter for ATT, compared to the same period a year prior.

The importance of text messaging on a carrier’s bottom line cannot be underestimated. Referencing the UBS report once again, the Journal said that the average carrier makes an 80-cent profit on every single dollar it generates in text-messaging revenue.

SMS-related issues became even more troubling for carriers this week when Apple announced a new feature in the upcoming iOS 5, called iMessage. With that feature,
iPhone, iPad, and
iPod Touch users will be able to message each other over Wi-Fi and 3G, and outside of the carriers’ grasps. Users will be able to send text messages, as well as photos, videos, locations, and contacts, Apple said.

Apple’s iMessage is somewhat similar to Research In Motion’s own messaging alternative, BlackBerry Messenger. That app allows users to sent text messages, as well as share photos and videos with other BlackBerry owners. The service is also available on RIM’s BlackBerry PlayBook tablet.

Though both of those platforms have limitations that standard text messaging doesn’t–namely, that users can only send messages to those who own a device running the same operating system–it could be cause for concern among carriers. iPhone carriers Verizon and ATT should be especially concerned with iMessage. At WWDC earlier this week, Apple said that it has sold over 200 million iOS-based devices since the iPhone’s launch in 2007. Though all of those products are not currently in use, a large portion of them are. And if owners opt for iMessage, rather than SMS, ATT and Verizon might see their texting numbers decline.

But that’s not all. Citing an anonymous source, the Wall Street Journal reported yesterday that Google is also working on delivering a messaging platform of its own for Android-based devices. That operating system is easily outselling all others in the mobile market, and its importance to carriers, and thus carrier texting revenue, is huge.

In April, research firm Gartner said that it expects nearly 468 million smartphones to be shipped worldwide in 2011. More importantly, the research firm said that Android could own 38.5 percent of the mobile OS market by the end of 2011.

But before the the panic sets in too deep, it’s worth remembering that text messaging still occurs in huge volumes.

In October, the International Telecommunication Union released a study that estimated 6.1 trillion text messages would be sent in 2010 alone, indicating 200,000 text messages were sent every second last year. In 2008, 2.8 trillion SMS messages were sent globally, while in 2009, that figure jumped to 4.3 trillion.

Though the ITU didn’t share full-year estimates for text messages in 2011, the organization said that it believes over 1,000 SMS messages will be sent for every person on the planet this year. In 2009, the world’s population was estimated at nearly 6.8 billion people.

Even better for carriers, teens–a major revenue-generator for SMS–continue to text message friends. In fact, last year, a study from Pew Internet and American Life Project found that 33 percent of U.S. teens send out over 100 text messages a day. Moreover, it found that over 75 percent of U.S. teens have cell phones, and 72 percent of them use text messaging to communicate with others, making it the overwhelming favorite over social networks, e-mail, and phone conversations.

But whether that will continue remains to be seen. According to the Journal, Eelco Blok, the head of Royal KPN, a Dutch telecommunications company, had a rather interesting perspective on SMS and its cultural impact.

“It’s not cool anymore to SMS,” he reportedly said.

Neither ATT nor Verizon immediately respond to request for comment on the state of text messaging at their companies.

Social Gaming panelists at the OMMA Social conference in New York on Thursday said the power of games to get people to engage with brands is driven by the addictive nature of the games, and if they are at the right place, they can have captive audiences who are also willing to share what they learn.

“Thirty percent of viewers of prime time TV are watching with another screen open,” said Jay Samit, CEO of SocialVibe. “It’s a great medium for storytelling, but why spend money on a Super Bowl ad and then ask people to go find it on YouTube?” He said SocialVibe worked with Kia to drive engagement within Zynga’s social games during the last Bowl Game. “We saw three-minute average engagement because they were still playing FarmVille.”

Samit said that social gaming is valuable because brands become a gateway to virtual goods or the chance for consumers to engage with a game on a different level. “We call it value exchange,” he said. “It used to be that 100% of all advertising was interruptive. Here, it’s the opposite. A person has reached a point in the game where they can’t progress, so they say, ‘Yes, I’ll engage with brand.'”

Richard Muncaster, vice president of corporate strategy for KlickNation, which sells virtual goods for virtual currency, said brand engagement is the rule, not the exception. “Ninety-seven percent of players don’t pay.”

Samit added that the average engagement time is 63 seconds, and that as many as 40% of consumers then share the experience via social media. “Forty-one percent will ‘like’ or become fans.” He said there are 350 million people playing Zynga and two-thirds of the time spent on Facebook is gaming. “I would go so far as to say that FarmVille and games like that have replaced the soap opera for the working woman who is busy and does not have time to have her own space.”

Muncaster, whose company focuses on role-playing games targeting men 25 to 45 years old, says that on average, players engage with games three times per day, for 17 minutes each time.

Samit says brand integration in social games is particularly effective with entertainment properties. “It is eight times better at putting butts in movie seats than any other kind of ad. We found that 40% of those consumers who engaged with a movie in social games went on to buy online tickets. There is also a 30 times better response on social gaming to get people to file taxes.”