Why Did Facebook Buy WhatsApp? Dwindling Supply Of Options To Grab Hundreds Of Millions Of Users ... That Are For Sale

Julie Ask

That's one reason ... but here are a few more .... 

1. 450M active users (Source: NY Times)

2. Adding 1M users daily

3. 70% of MAU use the service daily (Source: TechCrunch)

4. WhatsApp offers users in Europe, Brazil and other emerging markets (= net new audience) (Source: Gravity/Techcrunch)

5. Nearly 200 minutes of usage each week (Source: Mobidia)

6. Facebook gets how to monetize mobile through paid advertising without wrecking the user experience. (In Q4 2013 they crossed over from 49% of revenue from mobile to 53% from a base of 945M mobile monthly active users) Source: Facebook, TechCrunch

 

Why $16B to $19B? I am not a financial analyst, but here are a few thoughts:

- Facebook generated $1.37B in mobile revenue in Q4 2013 on a base of 945M users ... annualized that is $5.80/MAU (monthly active user)

- WhatsApp already generates $1/user for a chunk of their users through a subscription fee (less fee to app store?)

- If WhatsApp users can be monetized at the same value, that adds another 50% approximately in mobile ad revenue

- Facebook reported 914 minutes of use on mobile per month in 2013 (Source: allthingsd.com)

- According to Mobidia, only Kakao Talk has more

- WhatsApp is already located in Si Valley

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Is Aereo About TV Or The Cloud?

Jim Nail

Julianne Pepitone's review of the upcoming US Supreme Court case American Broadcasting Companies, Inc. versus Aereo nicely covers the case's implications on two big industries, old and new: television and cloud computing. (P.S. Thanks for the shout-out to me, Julianne!) The potential impact on the TV industry is pretty clear, but the cloud? I'm not a lawyer, but the issue is likely to turn on the difference between the copy being in the cloud or in your home.

In 1984, the Supreme Court upheld the right of individuals to make a recording of a television program for their private viewing in what has become known as the Betamax case. So far, lower courts have used this precedent, in combination with Aereo's clever technical design, to say Aereo is legal. For the Supreme Court to rule against Aereo, it will have to find that some aspect of their model is different from a VCR. 

And there it is: The VCR sits in your living room, while Aereo is in the cloud. No doubt ABC and the broadcast industry will make the case that this is a crucial difference and since Aereo is the entity sitting on these copies of their programming, Aereo is infringing on their copyright. It will be fascinating to see the arguments in detail and see how the Court views them.

Julianne notes in her article:

If the court rules against Aereo, the startup and its supporters warn the ramifications could put other services that use remote, or cloud-based, storage -- Google Drive, Dropbox, remote DVRs and many more -- at risk. Any of those outcomes depend on the scope of the Supreme Court’s decision.

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Intel Bumps up High-End Servers with New Xeon E7 V2 - A Long Awaited and Timely Leap

Richard Fichera

The long draught at the high-end

It’s been a long wait, about four years if memory serves me well, since Intel introduced the Xeon E7, a high-end server CPU targeted at the highest performance per-socket x86, from high-end two socket servers to 8-socket servers with tons of memory and lots of I/O. In the ensuing four years (an eternity in a world where annual product cycles are considered the norm), subsequent generations of lesser Xeons, most recently culminating in the latest generation 22 nm Xeon E5 V2 Ivy Bridge server CPUs, have somewhat diluted the value proposition of the original E7.

So what is the poor high-end server user with really demanding single-image workloads to do? The answer was to wait for the Xeon E7 V2, and at first glance, it appears that the wait was worth it. High-end CPUs take longer to develop than lower-end products, and in my opinion Intel made the right decision to skip the previous generation 22nm Sandy Bridge architecture and go to Ivy Bridge, it’s architectural successor in the Intel “Tick-Tock” cycle of new process, then new architecture.

What was announced?

The announcement was the formal unveiling of the Xeon E7 V2 CPU, available in multiple performance bins with anywhere from 8 to 15 cores per socket. Critical specifications include:

  • Up to 15 cores per socket
  • 24 DIMM slots, allowing up to 1.5 TB of memory with 64 GB DIMMs
  • Approximately 4X I/O bandwidth improvement
  • New RAS features, including low-level memory controller modes optimized for either high-availability or performance mode (BIOS option), enhanced error recovery and soft-error reporting
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Show Us Your Social Marketing Prowess: Submit An Entry To The 2014 Forrester Groundswell Awards!

Kim Celestre

The 2014 Forrester Groundswell Awards entry deadline is February 28, which is only 10 days away! There are many benefits to winning a Forrester Groundswell Award — but you must submit your entry by the deadline if want an opportunity to show the world your social marketing prowess! Below are some links to details so you can get started on your entry today:

2014 Forrester Groundwell Awards Announcement

How to win A Social Reach award

How to win A Social Depth award

How To win A Social Relationship award

Forrester Groundswell entry form

Nate's last call for submissions

How to Build the Perfect Smartwatch

JP Gownder

It’s time for vendors to step up and build the perfect smartwatch. It’s not really about the device at all, but the ecosystem around the device. Infrastructure & operations professionals have an opportunity here: to work with their business partners and vendors to construct next generation experiences around smartwatches.

For example, retail marketers, always on the hunt for the perfect in-store experiences, and are increasingly turning to mobile technologies to create customized interactions. By opting in to a relationship with a store, a patron can be recognized by name by a sales associate, see the images on digital displays change as she walks by them (tailored to her), receive in-store targeted promotions as she picks up particular products, and even leave the store without handing over any overt form of payment. All of these things are possible with today's technologies.

Scenarios like this one are inherently mobile, but smartphones aren't actually the best vehicle for these experiences. Smartphones can be easily stolen, for one thing, making the retail scenario challenging. And retailers don't want the eyes of patrons who walk into their stores glued to a smartphone; they want those eyes looking around the store.

Smartwatches, on the other hand, can be the perfect enabler of scenarios like this one (and like others in healthcare and other verticals), so long as they have all the necessary components. There are in fact eight strategic pillars for smartwatches:

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Lenovo Has Started To Benefit From The Mobile Mind Shift

Gene Cao

Lenovo recently announced record results for the third quarter of the 2013/14 fiscal year: the first time that the firm has exceeded US$10 billion in revenue in a single quarter. Lenovo has continued to prioritize maintaining or increasing its share of the PC market — the majority of its business. This strategy has paid off: Lenovo’s PC business (laptops plus desktops) grew by 8% year on year — in stark contrast to its slumping rivals. Lenovo can attribute its success to a strategy that sacrifices profit to keep prices competitive, maintains a direct local sales team, and retains channel partners after acquisitions.

Forrester believes that the mobile mind shift is one of four key market imperatives that enterprises can use to win in the age of customer. Lenovo has gotten a good start on this journey with its effort to enhance its mobile-related capabilities. Although the coming Motorola deal may have a negative impact on Lenovo’s performance over the next three to five quarters, the firm believes that mobile can change its business — and not just its digital business. In the next two to three years, Lenovo’s key strategy will be to provide customers with mobile devices and related infrastructure that will address their mobile mind shift. In particular:

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Wearables Helping People With Disabilities – A SXSW Talk

JP Gownder

Readers of this blog and of my syndicated reports know that I’ve spent a great deal of time lately researching and analyzing the market for wearable devices and the emerging wearables ecosystem. I’m excited to announce that I’ll be co-presenting a talk at SXSW with Jen Quinlan (Twitter: @QuirkyInsider) about a specific sub-segment of the wearables market – how wearable devices, in concert with the Internet of Things, can help people overcome various sorts of disabilities.

Jen conceived of this talk, and was kind enough to invite me to collaborate with her. And I was thrilled, particularly when I heard about the topic she had proposed. Why? I’m interested – and hope you will be too – because:

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Help! The Computer Ate My TV Buy!

Jim Nail

How Software Is Eating Video Ads And, Soon, TVMy new report, “How Software Is Eating Video Ads And, Soon, TV” just went live. In it, I document how automation has gained traction in digital media buying and why it’s only a matter of time before we see it jump to assets such as online video. Read the report now and join me for a Webinar on Tuesday, February 25, at 11:00 a.m. Eastern standard time.

Sure, the scarcity of inventory and the premium associated with professional video content drive caution and reluctance among sellers. But in a few years, short- and long-form video content, both user-generated and broadcast-native, will be bought programmatically in an inevitable takeover of automated trading that has already started today – and will work all the way up to TV buying. Two forces make programmatic buying unavoidable:

  • Traditional buying cannot cope with audience fragmentation across devices. The explosion of new platforms and ways of viewing videos will continue dispersing audiences, making it increasingly difficult to reach the desired number of viewers through linear TV alone. And many of these new platforms are digital, enabling a break from broad age/gender ratings buys and a move to addressing ads to individuals. Traditional manual buying approaches simply can’t cope with this volume of video sources and the shift to addressable advertising.
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Plan The Best Routes To Guide You On Your Mobile Insurance Journey

Ellen Carney

It’s one thing to say where you want to go, but you still have to know how to get there.  If it’s a physical journey like a quick trip to the local store, a meandering trek across Europe, or a digital or business technology initiative that your company is after, getting to the destination or end state demands a road map.    Maps show all the options to get a traveler to the destination; routes are a subset of options to get the mobile traveler there In a hurry?  You’ll take the efficient and direct interstate.  Want to explore and learn?  Your route will take you on back and scenic roads. 

We wanted to learn just how mobile insurance executives took to the mobile road after their strategic plans were approved.  Throughout Q4 2013,   we talked to insurance executives in the US, UK, France, Italy, Israel, the Netherlands, and Turkey who were responsible for turning that mobile strategy into solutions that engaged with consumers and agents.   Crafting a roadmap to guide the mobile journey, stood out as especially key because mobile initiatives are hampered if the execution teams fail to consider the myriad internal and external factors that impact delivery time lines. 

One European carrier we spoke with put it best:  “There’s lack of vision, a lack of focus, and too many people are playing around the edges. That’s giving mobile a bad name in terms of costing money and not giving any benefit for it. List out and create a road map, so you’re clear about what you’re focused on and why.”

Effective Road Maps Embody Three Elements

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Forrester Groundswell Award Entries Are Due February 28

Nate Elliott

You have ten days left to enter the 2014 Forrester Groundswell Awards  and to receive recognition for your successful social programs. Winners receive a nice shiny trophy, a winner’s badge for your website, a free pass to the Forrester Marketing Leadership Forum in San Francisco, a chance to accept the award on stage, and lots of recognition in Forrester speeches and reports.

Not sure which category to enter? Check out this video, which explains all our categories.

Remember: The deadline is February 28, 2014  and you can enter here