Google Ventures announced recently that it is investing inAstrid, a task management app, and Crittercism, an SDK that helps provide customer support for mobile.

Google Ventures’ partner Rich Miner made the announcement during VentureBeat’s fourth annual MobileBeat conference. (We have a separate story withmore details on the Astrid investment.) We’ll be posting more on those companies throughout the day.

After the announcement, Miner answered the question on everyone’s mind: Where’s the Android fund? Kleiner Perkins has its Apple-focused iFund, but neither Google nor venture firms have anything similar for Android startups.

“I think the time has gone by,” said Miner. “It’s now all about mobile.”

The proof is in the pudding, er, funding: Astrid and Crittercism are both mobile companies.

Miner has a front seat to watch mobile phone market growth. He became a partner of Google Ventures after Android, the mobile platforms company he co-founded, was acquired six years ago. He has over 25 years of experience growing businesses with innovative communications and interface-intensive applications. During his early years at Google, he helped lead the development of the Android platform and ecosystem. Prior to Android, Rich was a Vice President at Orange, where he led R&D activities in North America and was an original principal at Orange Ventures when it was founded.

Miner recalled his early days at Google six years ago, when Android was “treated as a separate startup.” The company was self-funded when Google picked it up.

“It was Larry [Page, Google co-founder] who latched on first. He was our champion. He shared our strategic view,” said Miner. He says he was impressed that Page, his co-founder Sergey Brin and then-CEO-now-chairman Eric Schmidt understood the mobile industry. It was important for Android to have support and flexibility right from the start, and those ingredients are necessary today.

“There were skeptics about Android all the way through last year,” said Miner. “There has been a tipping point.”

That tipping point happened in the last six months, he explains. As a VC, Miner’s goal has always been to make money, and Apple’s App Store makes money. Up until last year he was recommending companies focus on iOS. Now, he says, Android is “on a rocket ship.”

Another hot topic: Where is Google going with Chrome?

Miner believes the line between Android and Chrome has been drawn: Android is for mobile, while Chrome is for desktop and laptop environments. The theme is that Google understands the open platform. Miner also believes native apps and HTML 5 both have their place. Android, however, supports both for the times you want or need to go offline.

Via: http://venturebeat.com/2011/07/12/google-ventures-rich-miner-on-the-mobile-revolution/

Huge!

Google is buying handset maker Motorola Mobility for $12.5 billion in cash.

That’s a 61% premium.

Needless to say this is a gamechanger in the mobile world, as Google moves down the stack, and is no longer just an operating system provider meaning it competes directly with Apple as well as the various other handset makers who currently use Android.

What’s more, one of the biggest arguments in favor of Apple’s continued to dominance is that without a complete end-to-end “stack”, no other platform could compete with its integrated software/hardware setup.

Bear in mind that Google has over $35 billion in cash, so this answers one question about what they’ll do with it. The company still has tons more dry poweder.

Other handset makers, like RIMM and Nokia are both up pre-market on the news as the focus obviously turns to Microsoft: Is it now forced to buy one of them? Or does Microsoft benefit because the remaining handset makers (Samsung, etc.) now turn more towards Windows?

Another angle that will be scrutinized is MMI’s patent portfolio, and how that plays out.

That’s one of the key points made by Larry Page in his post on the subject:

We recently explained how companies including Microsoft and Apple are banding together in anti-competitive patent attacks on Android. The U.S. Department of Justice had to intervene in the results of one recent patent auction to “protect competition and innovation in the open source software community” and it is currently looking into the results of the Nortel auction. Our acquisition of Motorola will increase competition by strengthening Google’s patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Appleand other companies.

Obviously lots to digest. Stay tuned with LIVE coverage all day at SAI.

Full press release below, and below that we’ve posted Larry Page’s Google blog post explaining the deal.

—————

MOUNTAIN VIEW, Calif. & LIBERTYVILLE, Ill.–(BUSINESS WIRE)– Google Inc. (NASDAQ:GOOG - News) and Motorola Mobility Holdings, Inc. (NYSE:MMI - News) today announced that they have entered into a definitive agreement under which Google will acquire Motorola Mobility for $40.00 per share in cash, or a total of about $12.5 billion, a premium of 63% to the closing price of Motorola Mobility shares on Friday, August 12, 2011. The transaction was unanimously approved by the boards of directors of both companies.

The acquisition of Motorola Mobility, a dedicated Android partner, will enable Google to supercharge the Android ecosystem and will enhance competition in mobile computing. Motorola Mobility will remain a licensee of Android and Android will remain open. Google will run Motorola Mobility as a separate business.

Larry Page, CEO of Google, said, “Motorola Mobility’s total commitment to Android has created a natural fit for our two companies. Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers. I look forward to welcoming Motorolans to our family of Googlers.”

Sanjay Jha, CEO of Motorola Mobility, said, “This transaction offers significant value for Motorola Mobility’s stockholders and provides compelling new opportunities for our employees, customers, and partners around the world. We have shared a productive partnership with Google to advance the Android platform, and now through this combination we will be able to do even more to innovate and deliver outstanding mobility solutions across our mobile devices and home businesses.”

Andy Rubin, Senior Vice President of Mobile at Google, said, “We expect that this combination will enable us to break new ground for the Android ecosystem. However, our vision for Android is unchanged and Google remains firmly committed to Android as an open platform and a vibrant open source community. We will continue to work with all of our valued Android partners to develop and distribute innovative Android-powered devices.”

The transaction is subject to customary closing conditions, including the receipt of regulatory approvals in the US, the European Union and other jurisdictions, and the approval of Motorola Mobility’s stockholders. The transaction is expected to close by the end of 2011 or early 2012.

Webcast Information

Google and Motorola Mobility will hold a conference call with financial analysts to discuss this announcement today at 8:30am ET. The toll-free dial-in number for the call is 877-616-4476 (conference ID: 92149124). The call will also be webcast live at http://investor.shareholder.com/media/eventdetail.cfm?eventid=101369&CompanyID=ABEA-3VZHGF&e=1&mediaKey=A21887C59EBAAC12F1BCF4D43C080953. The webcast version of the conference call will be available through the same link following the conference call.

———————–

Supercharging Android: Google to Acquire Motorola Mobility

Since its launch in November 2007, Android has not only dramatically increased consumer choice but also improved the entire mobile experience for users. Today, more than 150 million Android devices have been activated worldwide—with over 550,000 devices now lit up every day—through a network of about 39 manufacturers and 231 carriers in 123 countries. Given Android’s phenomenal success, we are always looking for new ways to supercharge the Android ecosystem. That is why I am so excited today to announce that we have agreed to acquire Motorola.

Motorola has a history of over 80 years of innovation in communications technology and products, and in the development of intellectual property, which have helped drive the remarkable revolution in mobile computing we are all enjoying today. Its many industry milestones include the introduction of the world’s first portable cell phone nearly 30 years ago, and the StarTAC—the smallest and lightest phone on earth at time of launch. In 2007, Motorola was a founding member of the Open Handset Alliance that worked to make Android the first truly open and comprehensive platform for mobile devices. I have loved my Motorola phones from the StarTAC era up to the current DROIDs.

In 2008, Motorola bet big on Android as the sole operating system across all of its smartphone devices. It was a smart bet and we’re thrilled at the success they’ve achieved so far. We believe that their mobile business is on an upward trajectory and poised for explosive growth.

Motorola is also a market leader in the home devices and video solutions business. With the transition to Internet Protocol, we are excited to work together with Motorola and the industry to support our partners and cooperate with them to accelerate innovation in this space.

Motorola’s total commitment to Android in mobile devices is one of many reasons that there is a natural fit between our two companies. Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers everywhere.

This acquisition will not change our commitment to run Android as an open platform. Motorola will remain a licensee of Android and Android will remain open. We will run Motorola as a separate business. Many hardware partners have contributed to Android’s success and we look forward to continuing to work with all of them to deliver outstanding user experiences.

We recently explained how companies including Microsoft and Apple are banding together in anti-competitive patent attacks on Android. The U.S. Department of Justice had to intervene in the results of one recent patent auction to “protect competition and innovation in the open source software community” and it is currently looking into the results of the Nortel auction. Our acquisition of Motorola will increase competition by strengthening Google’s patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies.

The combination of Google and Motorola will not only supercharge Android, but will also enhance competition and offer consumers accelerating innovation, greater choice, and wonderful user experiences. I am confident that these great experiences will create huge value for shareholders.

I look forward to welcoming Motorolans to our family of Googlers.

Posted by Larry Page, CEO

Via: http://www.businessinsider.com/breaking-google-buying-motorola-mobility-for-125-billion-2011-8#ixzz1V6KELtUY

Posted By ] Adam Satariano

Apple Inc. (AAPL)’s iAd mobile-advertising business has cut rates by as much as 70 percent as some marquee clients are using rival services, two people with knowledge of the matter said, signaling the company is struggling to parlay its technology leadership into success in the ad industry.

When Apple rolled out iAd a year ago, companies such as Citigroup Inc. (C) and J.C. Penney Co. were being charged $1 million or more to run ad campaigns. Today those brands aren’t using iAd, and Apple is offering packages for as little as $300,000, said the people, who asked not to be named because the rates are private.

Even with lower prices, some advertising agencies are balking at iAd’s cost, especially because the promotions only reach Apple users. They’re turning instead to Google Inc. (GOOG)’s AdMob, Millennial Media and Greystripe, which serve a range of devices. That means Apple risks losing ground in a market that will generate $2.5 billion by 2014, according to EMarketer Inc.

“Apple’s closed ecosystem may have been interesting in the short run for advertisers, but in the long run they priced themselves out,” said Thom Kennon, senior vice president of strategy for the Young & Rubicam ad agency in New York.

Makers of applications, who benefit from iAd by selling advertising, are getting only 5 percent to 15 percent of their space filled by the Apple system, according to Mobclix Inc., an exchange for buying and selling mobile ads.

Lower Prices

Apple has cut the minimum ad purchase from $1 million to $500,000, and it’s offering agencies deals for as low as $300,000 if they bring together multiple campaigns, the two people said.

The company still has the advantage of offering the biggest selection of mobile applications. Its App Store, which provides software for its iPhone, iPad tablet and iPod Touch media player, has more than 425,000 programs. When an ad runs within an app, Apple gives the developer 60 percent of the revenue.

Natalie Kerris, a spokeswoman for Cupertino, California- based Apple, said the company continues to sign some of the world’s leading brands.

“In its first year iAd has launched more than 100 campaigns in seven countries,” she said.

Apple also is taking steps to attract more advertising. In addition to offering lower prices, it hired a former ad agency executive, Carrie Frolich, who was the head of digital for WPP Plc’s MEC. And Apple added a new online design feature, called iAd Producer, to help agencies design ads more quickly.

Disney, AT&T

Twenty companies have used iAd in the past month, including Walt Disney Co. (DIS), where Apple Chief Executive Officer Steve Jobs is the biggest shareholder; AT&T Inc., a carrier of Apple’s iPhone; and insurance provider Geico Corp. About 50 campaigns will be joining the platform in the coming months, according to Apple.

The iAd system carried unrealistic expectations from developers and advertisers, said Noah Elkin, an analyst at EMarketer, a research firm in New York. Its biggest contribution is validating the nascent market of showing advertisements to people on their smartphones, he said.

“It has been successful in that it created a beacon for mobile advertising,” he said. “Advertising was always going to be a minor revenue source for them.”

Even if prices have come down, Apple legitimized the idea of spending large sums on mobile ads, said Krishna Subramanian, the co-founder of Palo Alto, California-based Mobclix.

“You can go to an automotive company and pitch a $500,000 to $1 million campaign, and it’s realistic,” he said.

Disappointing Results?

Still, iAd has frustrated some developers, which haven’t made as much money as expected, Subramanian said. They have turned to other companies to sell ad space, he said.

State Farm Mutual Automobile Insurance Co. is using competing mobile-adverting networks after being part of the initial group of companies to advertise through Apple, said Ed Gold, the insurer’s advertising director.

J.C. Penney, another inaugural user of iAd, also is working with other services, said Danika Berry, a spokeswoman for the retailer. Citigroup confirmed that it’s not currently using iAd as well. The companies said they may use iAd in the future.

Rival mobile-advertising companies have been luring clients by undercutting Apple on price and promoting their ability to run across multiple devices, including handsets from Samsung Electronics Co., HTC Corp. and Motorola Mobility Holdings Inc. – - phones that rely on Google’s Android operating system. Millennial Media also hired one of Apple’s iAd sales managers.

Limited Audience

“You’re cutting your potential audience in half by focusing on a single platform,” said Dane Holewinski, head of marketing at Greystripe, which was acquired by ValueClick Inc. (VCLK) in April. About 80 percent of the company’s advertising campaigns work across multiple devices. “Advertisers don’t care about platform. They care about audience, performance and engagement.”

The iAd system carries a level of prestige, in part because of its sleek design, said Rob Norman, CEO of ad agency GroupM North America, whose clients using iAd include Unilever NV.

“Everyone likes the consumer experience it creates,” he said. “Everyone wants to be there because they think that, possibly since television, this is one of the most elegant customer experiences.”

Still, companies must account for the cost, Norman said.

“We’d all like to stay at the Four Seasons, but not if it costs $150,000 a night,” he said. “There’s a price equation.”

Quattro Acquisition

The iAd platform was started after Apple acquired mobile- advertising company Quattro Wireless last year. It was introduced last July at the company’s annual developers conference as a way to take more interactive features, such as videos, and embed them within applications.

Apple targets ads by using data from the millions of accounts registered with its iTunes software. The pitches are made based on demographic information, along with a user’s music, movie or App Store purchases. Advertisers can choose “buckets” of users to target, based on demographics, though they can’t pick which specific applications the ads run in.

When it was introduced, Jobs said most other mobile advertising “really sucks.”

For now, many ad agencies haven’t embraced iAd as an improvement over the old approaches, said Rachel Pasqua, vice president of mobile for ICrossing, an online marketing firm. She cites the cost, time needed to get ads approved, limited size of the audience and control Apple has kept over data.

“I haven’t encouraged any of my clients towards it,” Pasqua said. “I haven’t seen a huge value proposition.”

While Apple has stumbled in advertising, its influence over the technology industry means it’s too soon to count the company out, said EMarketer’s Elkin.

“IAd may have receded in to the background, but it’s too early to assume it’s not going to come back,” he said.

Via: http://www.bloomberg.com/news/2011-07-07/apple-s-iad-mobile-ad-service-said-to-cut-prices-as-clients-turn-to-rivals.html

The mighty Google has dispelled any doubt about the importance of the exploding Facebook nation and the need for companies to exploit evolving social mobile dynamics for ecommerce.

In its biggest and most adroit reactionary move yet, the search advertising giant’s new Google + aggregates its existing services and competencies (including its mobile Android operating system) in a social networking mesh that taps its vast collection of user information.

Friend grouping (Circles), sharing (including individual or crowd video chats called Hangouts), news and photo aggregation (Sparks), recommendations and other social features of Google+ look and feel like Facebook’s familiar framework — but their orientation and approach to leveraging social networks  are completely different.

Google is a social outlier that filters user information through complex algorithms and manages the relationship as a critical adjunct to its advertising and search business. Facebook was created as a user interface with members’ interactions, interests and functionality at its core.  Interactivity on Facebook is all about relating to others inside of existing and morphing social graphs; interactivity on Google is all about individual functionality inside of massive constructs like search, gmail and Picasa photo app.

Given the similarities of Google+ to Facebook, it seems ironic Google senior vice president Vic Gundotra told TechCrunch that the company considers online sharing “broken…even awkward.” Google has consistently missed the mark on real-time sharing among friends that is the glue that makes Facebook so “sticky.” But being late to the social -networking party is not the issue. Google’s Android is giving Apple a run for its money, even as a relative newcomer to the mobile operating system space.

Google+, an outgrowth of the earlier Google BUZZ, will be as much of “a crushing success,” according to Internet entrepreneur Jason Calacanis.  Google is poised to take half the social networking market from Facebook  because Google+ is backed by a mobile operating system that Facebook lacks, one fourth of the browser market (with Chrome), an app  store that competes with Apple’s iTunes (charging only 5% versus Apple’s 30%), and a responsive privacy dictum (compared with Facebook’s privacy games). Google also is moving more decisively in secure mobile payment by transforming smart phones into e-Wallets.

 
It fundamentally comes down to which player is more successful at bending companies away from the status quo and into the new social commercial paradigm. With all the fuss over Google+, it’s easy to lose sight of the enormous advantages Facebook has as an agile, private company seeking to out-design and out-execute Google and others.

A recent Web panel discussion hosted by Wedbush Securities Internet analyst Lou Kerner underscored the less obvious ways that Facebook is quickly moving to leverage its more than 600 million global active users (70% are outside the U.S.), 250 million active mobile users and $85 billion private-market value.  Here are some of the panelists insights into why the premiere social network is poised to drive social marketing and commerce:

Monetizing connections
People, not brands drive social commerce. Social graph is as important as individual preference since Facebook users generally each connect with some 140 other Facebook members. These are the micro markets some marketers and retailers have begun to creatively exploit. American Express is allowing members to convert their points to Facebook credits. The July 4 weekend, Paramount became the first studio to sell movie tickets on Facebook to Transformers III.

Defining economics
Facebook’s new video ads are being compared to conventional TV. Essentially, Facebook members (in particular the gaming zealots who have morphed on the social platform) receive credits to play even more for “free” if they periodically stop to watch relevant  Facebook video ads in pop up windows. Many believe that game king Zynga is carrying Facebook developing revenue streams by contributing about $300 million in Facebook credits and $200 million in advertising.

Buying critical mass
Just a fraction of Facebook’s global user base simultaneously “liking” something could exceed the several hundred million homes tuned into any one of television’s big live events, such as the Super Bowl.  Some portion of television’s $71 billion ad dollars, which are not yet reflected in Facebook’s $2 billion in annual revenues, will shift to social media because it creates its own scale, said Mott Monahan, director of digital ad network EpicSocial. eMarketer already is crediting Facebook with driving online display ad revenues beyond expectations to an estimated $31.3 billion in 2011.

Qualifying the ad spend
Unlike television, social media allows marketers to know precisely who sees and responds to any form of advertising. Facebook tracks engagement on a one-to-one basis, and marketers only pay when a person clicks on their ads. The result is more qualitative and quantitative impressions (generally 1,000 % higher than average ad unit), which renders a more efficient and cost effective ROI, according to Justin Merickel, vp marketing at digital marketing agency Efficient Frontier.

Learning the viral play
Facebook represents an amazing word-of-mouth marketing engine and personalized brand opportunity, according to 8^th Bridge CEO Wade Gerten. The social shopping service’s survey of Facebook users indicates more than one-third prefer never to leave the platform for any functionality, including shopping, suggesting that Facebook is morphing beyond a social network. 85% of consumer interaction with the more than 50 brands and 3,000 shopping campaigns 8^th Bridge manages occur through friend-to-friend sharing and recommendations.

While social media clearly will be a driver of e-commerce and an overall economic power shift, it is easy to over simplify this phenomenon. A Booz and Co. strategy + business article earlier this year dubbed “social apponomics” as the holy grail for companies to profitably commercialize on social media with community-based marketing and tailored applications. The key will be to focus on partners (not competitors), think local mobile, target customers in multiple segments and transform pricing into a trusted dynamic conversation that will pay continuous dividends.

Getting marketers and retailers to that promised land is where Facebook and Google will carve out their competitive edge. Successful social mobile marketing and commerce requires a completely new mind-set and wiliness to innovate. Perhaps the best evidence is that online e-commerce still comprises less than 10% of all retail sales largely because retailers essentially have slapped their print catalogs onto Web sites and into emails and texts without fully exploring social mobile commerce dynamics.

At this early juncture, both Facebook and Google are flawed in shifting their focus more to collective connections as critical mass rather than on nurturing, mining and monetizing individual consumer relevance, which could have more steady, long-term advantages to marketers seeking loyal customers.

Still, the rush to mine social commerce by Facebook, Google and others could have negative repercussions. Users already overwhelmed with instant mobile communications and data might easily be quelled by powerful new waves of interactive marketing and commerce even in the company of friends. The reluctance of consumers to spend in an uncertain economy will remain a potent counterbalance. No matter how much “fun” it is to share, recommend and buy with friends, consumers will come to their senses faster than any of these well-heeled companies.

Via: http://www.businessinsider.com/facebook-google-locked-in-social-marketing-e-commerce-fight-to-the-death-2011-7#ixzz1RKIihQg7

This is a sweet comeback for CEO Michael Barrett. As I noted in our first post about AdMeld in 2009, Barrett was fired from News Corp. in 2008 when the division that owned MySpacefailed to meet a $1 billion revenue target. Most sources we spoke with at the time said he was the fall guy for an unrealistic revenue target to begin with, set by News Corp.’s Rupert Murdoch in a previous earnings call.

Admeld helps the world’s top online publishers sell their ad inventory smarter. Built and run by publishing veterans, the company provides its clients with expertise and technology to capture new revenue streams, control how they sell each… Learn More

Google provides search and advertising services, which together aim to organize and monetize the world’s information. In addition to its dominant search engine, it offers a plethora of online tools and platforms including:… Learn More

Via: http://techcrunch.com/2011/06/09/google-acquires-admeld-for-400-million/

Image via CrunchBase

Posted By ] Maggie Shiels Technology reporter, BBC News, Silicon Valley

Google is set to introduce a mobile payments platform that will turn its Android smartphones into a digital wallet.

At an event in New York on Thursday, the tech giant is expected to show off the technology called near field communication or NFC.

The technology allows devices to ‘talk’ to one another wirelessly.

Consumers wave their phones in front of a reader at a checkout to pay for a purchase or to receive special offers.

The Wall Street Journal has reported that the programme will initially be launched in New York and San Francisco before being extended more widely across the US.

Retailers who are said to be taking part include deparment store Macy’s, American Eagle Outfitters and Subway fast-food chain.

While Google has made no comment on the reports, it has sent out invites to the press asking them to attend an event at its New York offices where it will show off its “latest innovations”.

Mobile network operator Sprint is also expected to take part.

In January Google chairman Eric Schmidt wrote in a guest edition of the Harvard Business Review that mobile money is a key part of Google’s strategy for 2011.

“Phones, as we know, are used as banks in many poorer parts of the world—and modern technology means that their use as financial tools can go much further than that,” said Mr Schmidt.

Demand

Research firm Forrester has said it expects 40-50 million NFC equipped phones to be sold in 2011.

Apple is reportedly planning to include the technology in its upcoming iPhone 5 which is expected to be unveiled at its developer conference next month.

Microsoft is also said to be making plans to incorporate NFC in future Windows phones as is BlackBerry maker RIM.

Samsung and Visa have said they will facilitate mobile payments via NFC on smartphones during the summer Olympics in London next year.

“Google’s Nexus S device that it recently announced is the first Android powered device supporting NFC and we expect NFC is going to increasingly become a default feature of every smartphone that is sold over the next couple of years,” Charles Govlin, principal analysts at Forrester told BBC News.

Market researcher Gartner said with the total value of mobile transactions reaching $245 billion in 2014, demand for mobile wallet services will be huge.

But not everyone is convinced that contactless payments using a phone will replace cash.

“In my view, while I think it is clear that potentially these phone-based transactions will be widespread, it will happen slowly. One reason being that consumer behaviour changes very slowly,” said Mr Govlin.

“The big beneficiary here will be Google, a company that is all about information. The metadata involved in such transactions could allow Google to serve ads and make you a more valuable target for advertisers,” he added.

Last week the first NFC service was announced in the United Kingdom involving Orange and Barclaycard.

Mobile wallet services have been available in Japan for a number of years.

Watch: Rory Cellan-Jones demonstrates how it can work, http://www.bbc.co.uk/news/technology-13540466

Via: http://www.bbc.co.uk/news/technology-13540466

Half of smartphone owners have now completed some sort of purchase on their mobile, increasing by 20% over just nine months, with 11% of smartphone shoppers now using the device to make a purchase on a weekly basis, according to research by eDigitalResearch and Portaltech.

The study also finds that smartphone owners are increasingly using their phones to shop, browse and research for products via their phones. More than a quarter (28%) now use their smartphone to find product information on a regular basis and remains one of the most popular shopping activities to complete on a phone.

The study looked at the increasing role of mobile in retail commerce and surveyed both smartphone and non-smartphone users. The results clearly show the continuing shift in consumer behaviour as more and more shoppers are adapting to new technologies, browsing, shopping and interacting with brands on the move.

Chris Russell, Director at eDigitalResearch, tells us: “This second study reinforces what our previous results have shown; that the dramatic increase in Smartphone use is fundamentally affecting consumer behaviour. We are entering into an age of MEcommerce; a shopping revolution where the consumer now has the power to dictate to retailers where, when and how they want to shop and interact”.

The results clearly indicate the growing trend that smartphones are being used more and more as an essential lifestyle accessory, with almost a 15% rise in the number of consumers interacting with mobile applications on a daily basis.

The results also show that consumers expectations of mobile websites have dramatically increased since the first research results last year; 31% of users now say that quick browsing should be an essential feature of mobile websites, compared with just 20% who said the same last June. Other significant factors that people see as essential include security, fast loading images, zoom functions and a professional looking site, reaffirming that consumers expect to find the same coherent retail message across channels.

Smartphone users who said that they never shopped online reduced from 70% last June to 49%, echoing the overall trend of growing consumer acceptance of m-commerce. Similarly, smartphone owners who said that they expected to browse and purchase more on their phones in the next 12 months more than doubled from 20% to 46% and firmly establishes the importance for retailers to continue to develop and invest in mobile.

Rachel Wilkinson, Head of Brand and Retail at Portaltech, explains: “I hope this research reassures reluctant retailers that mobile is not a flash in the pan, but a rapidly increasing channel that should be integrated into wider marketing, social and commercial strategies. Mobile is unique in that it is the most portable and accessible channel to a consumer – you are literally in the palm of your customer’s hands and this level of accessibility 24/7 allows retailers to deliver messaging, marketing or unique experiences in a totally different way from any other channel.”

Andrew Walker, CEO or Portaltech adds: “In the last year, mobile has gathered pace with retailers reporting traffic of between two and 12% via the mobile channel and Morgan & Stanley predict that by 2014, sales via a mobile device will overtake sales from a PC. The trends in multi channel and convergence within retail, are reinforcing the importance of a single integrated platform that can manage and support all the channels, including mobile.”

Via: http://www.internetretailing.net/2011/05/half-of-smartphone-owners-now-shop-online-via-a-mobile-device/

Image via CrunchBase

Posted BY ] DAILY MAIL REPORTER

Microsoft is on the verge of buying Skype for $8.5 billion – despite the Internet phone service making a loss last year.

The deal would be the biggest in the 36-year history of the world’s largest software company.

It could indicate Microsoft’s intention to compete with Apple and Google as it pours resources into the mobile and internet arenas.

Despite doubling sales and profit in the last eight years, Microsoft’s stock has largely languished at the same level, as investors worry about its ability to counter new rivals or adapt to new ways of computing.

Microsoft already has video chat as a function in its Windows Live Messenger service, but it is not available on its Windows Phone 7 software.

Adapting for the future: Head of Microsoft, Bill Gates

Skype also makes versions of its own service which can be used as an app on the iPhone and iPad, Research in Motion’s BlackBerry and Android phones. It cannot be used on Microsoft phones.

Apple’s FaceTime video calling service — available on its latest iPhone and Mac computers — has been a big hit with consumers.

Google recently followed suit by adding video to its popular Google Talk application for smartphones.

The deal is relatively small for Microsoft, which has $50 billion in cash and short-term investments on its balance sheet.

The $8.5 billion purchase price would likely include the $686 million in long-term debt on Skype’s balance sheet.

‘I think the price is quite reasonable,’ said Sean Lee, a Taipei-based manager of the Global Top Dividend Fund at Shinkong Investment Trust, which owns Microsoft shares.

Luxembourg-based Skype, which had delayed plans for an initial public offering, had recently been looking at other options.

Facebook and Google were separately considering a tie-up with Skype.

Microsoft and Skype declined comment.

Via: http://www.dailymail.co.uk/news/worldnews/article-1385472/Microsoft-set-buy-Skype-8-5bn-biggest-deal-history.html#ixzz1LwjCmCFZ

Image via CrunchBase

Posted By ]  Thomas Claburn InformationWeek

Google and mobile advertising metrics companies Flurry and Mobclix were sued last week in San Jose, Calif., for allegedly harvesting location data and device identification numbers, and for “introducing a computer contaminant,” code that reports metrics.

The lawsuit, filed on behalf of plaintiff Juliann King, claims the companies violated federal computer fraud law and California laws governing computer crime and business conduct, in addition to breaching an implied contract.

The complaint asserts that Android users have downloaded apps that include embedded information-harvesting code–APIs for gathering advertising and app usage metrics–that sends detailed information about users, including their locations and unique mobile identifiers, to mobile advertising companies. This information, the complaint claims, is then used to track, profile, and personally identify users.

Past news reports about Android app security appear to have led to the lawsuit. The complaint cites findings by corporate and academic security researchers that reveal, for example, that half of 30 Android apps tested “transmitted the user’s physical location and, in some cases, phone number, to defendants, without disclosing such transfer to the user, for purposes unrelated to the advertised purpose of the app and, in most cases, in plain text.”

Google declined to comment on pending litigation. The company has defended its handling of location sharing on Android devices, noting that Android location sharing is opt-in and that Google provides “notice and control over the collection, sharing, and use of location.”

Flurry, and Mobclix did not immediately respond to requests for comment.

The complaint arrives amid growing unease about data collection and privacy. Last month, Apple was forced to defend its handling of location data after researchers raised questions about the presence of a Wi-Fi hotspot database stored on iPhones. Apple has since released a code update to address the issue.

Lawmakers have been mulling limits on online data collection for months and on Friday, Senator Jay Rockefeller (D-W.Va.) said he planned to introduce Do-Not-Track legislation, which requires companies to honor consumer choice when consumers say they do not want their online activities tracked.

While some of Google’s competitors like Microsoft have voiced support for a Do-Not-Track law, Google itself has not. Google relies on data to monetize the free services it provides and has consistently defended its stewardship of user data and the utility of anonymized aggregated data to improve its services.

Venkat Balasubramani, an attorney with Seattle-based law firm Focal PLLC and a contributor to Eric Goldman’s Technology & Marketing Law blog, characterized the suit as a rehash of tracking cookie lawsuits in a mobile context. “I think this is just seizing on the public reports and zeitgeist,” he said in a phone interview.

The lawsuit’s assertion that the inclusion of mobile metrics code in an app constitutes trespass isn’t likely to get very far, he suggested, noting that past claims that spam is equivalent to trespass because it slows machine performance have been shot down. The lawsuit’s characterization of the apps as engaging in “unauthorized access” in violation of federal and state laws face similar challenges, he said, noting however that courts have shown willingness to treat access that exceeds authorization as a violation of the Computer Fraud and Abuse Act in some contexts.

Balasubramani explained in an email that such suits typically have a hard time in the absence of some showing of specific harm. He allowed that one outcome of this and similar cases might be stronger efforts by companies like Flurry and Mobclix to elicit promises from developers to use advertising reporting code in an acceptable manner. But he also observed that such companies usually have explicit and lengthy terms of use policies that require developers not to misuse the power of code.

Via: http://www.informationweek.com/news/internet/google/229403062

There is a trend brewing and it seems rather ominous. It seems all major tech corporations are trying to step into each other’s territory, sometimes overtly. Competition definitely benefits the consumers, but the way tech majors are encroaching upon each other’s realm is definitely surprising.

Expanding its Ecosystem

A fortnight ago, the world’s largest online retailer, Amazon, forayed into cloud services offering its consumers an ability to access their music from anywhere on any device. This is a territory that cannot be deemed as a business realm of Amazon. Though rumors were rife that Apple and Google to are also planning to launch similar services, nobody had expected that it would happen so soon. According to Reuters, they have learned from reliable sources that Apple has inked a deal with two of the major record labels to supply music to its online music storage services. The major difference here is, rather than giving access to music to the users from any device, the access is limited to just Apple devices. In short, Apple is just expanding its ecosystem.

Attempting to Forge Business Relationships

The music of course will be sold through iTunes. The only difference is that users can stream their purchased music from multiple Apple only devices. The move undoubtedly is an effort to strengthen its position in the mobile apps and the mobile OS market. Another major difference is the fact that unlike Amazon, Apple actually is seeking the permission from record labels to allow them and its users to stream their music from any geographic location. Sony, WMG, EMI, and UMG are some of the record labels Apple is trying to persuade.

Apple’s True Intentions

If Reuters is to be believed, then the deal with WMG has been cracked or solved; this was a mystery for some time. Apple had acquired lala.com some time back. At that point of time, the acquisition did not make any sense, but now some light has been shed on their original intentions. Apple is not a dumb company; they would not be at the forefront of the tech universe otherwise.

Skip the Middle Man

If you are thinking that Google is just snoozing around, you are wrong. Google Music is another service that everybody has been eagerly waiting for. And if rumormongers are to be believed, the search engine giant is already in talks with Spotify, which industry insiders say will be instrumental in rolling out music streaming services. Spotify however denies any such association or covert discussions. It was also heard that Google, which has been unable to broker any agreement with the record labels, had almost abandoned any plans for music streaming. However, Google might have taken a cue from Amazon and might launch the particular service without actually taking into confidence or forming any business ties with any record company. Well, at least they tried; no one can harangue them for that.

Microsoft in an Innovative Lull?

The only major player in the tech market not making any big announcements so far is Microsoft. Investors and aficionados have been complaining that the company has stopped innovating. However, things may change a bit and these puff puffs may be put to rest after Nokia starts putting on shelves Windows 7 based phones. But again, that may not happen anytime before 2012.

Movers and Shakers

Google, Apple, and Microsoft, each one is eager to capture and dominate the mobile internet market. Apple though may have the lead at the present moment, though Google may catch-up real soon. Microsoft is clearly in the third spot.

Via: http://newsystocks.com/news/4095374/apple-google-and-microsoft-the-latest-moves-in-the-mobile-internet-market