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SPOTIFY WAS FOUNDED IN 2006, AND WENT LIVE IN 2008, AND HAS OVER 7M USERS IN EUROPE. 43-49 Parker Street London WC2B 5PS /031 Next geNeratioN media

Next Generation Media 2010

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Page 1: Next Generation Media 2010

—SpotifywaS founded in 2006, and went live in 2008, and haS over 7m uSerS in europe.

43-49 Parker StreetLondon WC2B 5PS

/031Next geNeratioN media

Page 2: Next Generation Media 2010

—twitterati – a group of influential

twitter uSerS with a high number of followerS, or

influential followerS—

—farmville uSerS gave 690m virtual valentineS giftS in 2010.

— next generation media_

The aegis media guide To

/000Next geNeratioN media aegis

Page 3: Next Generation Media 2010

—nxtgenmd _

next generation mediaWe first created this book in 2006 as a guide to all of the new technologies and trends in media. at that time we felt we needed to explain and define terms like broadband, user generated content and so on, with associated usage and penetration levels.

Now we feel that there is greater understanding of new media terms, and that the book needed a new purpose. the new book is intended as a guide to media and trends in 2010. it contains:

media evolution – from the analogue world ■■

of the 1980s to the post-digital 2010sdata – we still include data on the key measures ■■

and key markets.10 companies to watch – from apple to Zynga■■

10 trends – mobile, the Cloud, and more■■

Plus a handy glossary of new media terms■■

Best wishes,dan

dan Calladine Head of Media Futures

direct: +44(0)20 7550 3288 Mobile: +44 (0) 7796 278 367 email: [email protected]

aegis Media | Parker tower | 43-49 Parker street London | WC2B 5Ps

/001iNtroduCtioN

Page 4: Next Generation Media 2010

—nxtgenmd _

—twitterati – a group of influential

twitter uSerS with a high number of followerS, or

influential followerS—

CoNteNtsmedia evolution 03

media Changes by the decades 05

10 trends For 2010 07

media 101s 13

Key data 23

digital media glossary 25

/002CoNteNts

Page 5: Next Generation Media 2010

media evolution

People spend more time consuming media than almost any other activity. For example, on average 18-24’s globally spend

over 3 hours a day watching TV ■

over 2 hours a day listening to the radio ■

& purchase 2 magazines a month ■

Media has become more complex – we think about the transformation of media in three ways - technology, people and content.

the media landscape used to look like this:

With no real convergence between the three.

We think that media is one of the most exciting and fast moving forces in the world. TECHNOLOGY

PEOPLE CONTENT

—1980s

media evoLutioN

Page 6: Next Generation Media 2010

now it looks like this:

today’s media landscape is almost unrecognisable from 30 years ago, because in this time technology, people and content have all traNsFormed.

technology drives transformation:There are new devices and more devices. In the last 10 years we’ve seen the launch of things as revolutionary as the iPod, the iPhone, the Nintendo DS, the Wii and the ASUS Eee.

At the same time we’ve seen the launch of many websites that have changed the way people communicate, find information and spend their time, like Facebook, YouTube Wikipedia, Twitter and Hulu.

People and society have changed:More people now live in cities, and go on to further education. Women are more likely to work, and are likely to get married older than before. Even little things have changed, like the proportion of income people spend on food.

Media content has transformed:There are more TV channels now than before – and more TV show formats. There are more newspapers and magazines. Content is “always on” – there is more content available and more ways to consume it, and interaction is possible at speeds and levels that weren’t possible before the digital age.

New media is transforming communications

Old media is transforming and evolving

People/content/technology will continue to evolve

Understanding how people choose, engage, create and interact with content has become more complex

TECHNOLOGY

PEOPLE CONTENT

—2010s

/004

Page 7: Next Generation Media 2010

ChangeS by the deCadeS

media ChaNges By the deCades

—1980s

analogue WorldMass media ■

Dominated by powerful TV channels ■

& newspapers

Strong gatekeepers ■

Interruptive ad models ■

VCRs popular increasing audience control ■

Strict regulation ■

—1990s

going digiTalMedia world in flux ■

New technology allows digital broadcasting, ■

increasing number of channels

New technology also reduces production costs ■

meaning more print

Internet becomes popular, but niche ■

Audiences more in control through rise of ■

in-home entertainment like gaming

Gatekeepers still strong ■

Page 8: Next Generation Media 2010

/006

—2000s—2010s

PosT-digiTal WorldDigital media now the norm ■

Devices getting smaller, with more capability ■

Content stored ‘in the cloud’ rather ■

than on devices

Asian countries and companies growing in ■

influence – not just making hardware, but offering services as well

Audiences increasingly measured, analysed ■

and targeted

New business models emerging in content ■

and advertising

Companies increasingly more able to restrict ■

and limit than regulators

digiTal WorldMedia world now embracing digital media ■

Broadband makes the internet a richer experience ■

New technology allows smaller, cheaper, more ■

sophisticated devices

Google becomes the largest media company, ■

by ad revenues

Audiences increasingly in control – can choose what ■

to watch, when and where

Traditional media players see falling revenues ■

Regulation increasingly irrelevant ■

Page 9: Next Generation Media 2010

mobile

001

the most interesting technological developments are likely to come in mobile services and applications. Penetration of the mobile web (3g) is rising, currently standing at 15% of all phone users globally according to ovum and morgan stanley, and the number of devices that are capable of offering a rich web experience is ballooning. By the end of next year it will be relatively hard to buy a mobile phone without a sophisticated operating system, just as it became hard to buy a non camera phone about 7 years ago. if the average contract length is 18 months, then 2/3 of mobile users will be replacing their handsets this year, and many will be trading up to smartphones (phones with advanced features like email, web browsing, and the ability to edit documents).

the market for apps will continue to grow, with the apple app store currently at over 5 billion downloads, and (maybe) 8 billion by the end of 2010. But there will be strong competition from android (a slew of new phones launched so far in 2010), Nokia (through symbian and maemo), and Blackberry. app developers will develop apps for all platforms.

10These are the ten key trends we've identified for 2010. It's a given that the strong growth trends will continue – there will be more people online, more time spent online, more mobile internet use, more videos uploaded, more blog posts published and so on. The two overriding themes for 2010 will be the rise of mobile internet and the continued use of cloud computing and storage. Most of the individual trends make reference to these.

trendS for 2010

10 treNds

Page 10: Next Generation Media 2010

—in Japan eCommerCe giant

rakuten made

16% of all revenueS from mobile SaleS in

2008

augmenTed realiTy

003

The Cloud

002

augmented reality puts a virtual layer on top of a real world view. it's become a bit of a gimmick in desktop computing (turn on your webcam to see a mini movie), but in mobile apps it can be used to show local landmarks or utilities on top of a standard map or panoramic view, as seen through the phone's camera. once these start to proliferate, maybe with voucher codes integrated, smartphones will suddenly have a whole new appeal.

mobile PaymenTs

004

Cloud computing is essentially the storage of information and resources in cyberspace rather than on an actual computer. Webmail is cloud computing - essentially you can access it from any computer or advanced phone anywhere in the world, as long as you have internet access.

the cloud also allows the simultaneous use of multiple devices – a laptop sometimes, a mobile at other times, and so on. similarly software and music don't need to be owned - they can just be accessed when needed. spotify and myspace music are classic cloud examples - you don't need to have the music downloaded to a device when you can access it whenever you want. in Japan eCommerce giant rakuten

made 16% of all revenues from mobile sales in 2008, a number that has been steadily climbing from 4% in 2004. in the West a few success stories like iPhone apps from companies like eBay and Pizza hut show that mobile commerce is likely to be big business here too. & there's more - the idea of using a mobile phone as a virtual wallet, or being able to 'text' money to friends seems likely to gain traction soon.

/008

—penetration of the

mobile web (3g)

15%—

iS riSing, Currently Standing at

Page 11: Next Generation Media 2010

asian influenCe

005

Video

006

the asian influence will rise. already China is the largest single online country, and the ability to create urls with asian character sets will spur the web still further. the lack of common languages and keyboards will start to become less relevant with the rise of picture based search, such as google goggles, where you just need to take a picture of an object to find out about it.

asian sites could well start to focus on the west, with search engine Baidu possibly launching in the west, and messenger site QQ showing the rest of the world how to monetise through virtual goods.

2010 sees youtube celebrating its 5th birthday, with a global reach of nearly 40% of all internet users each month. 2010 could also be the year that it expands its offering into full length films, tv shows and sports events, either for rental or pay per view. it has worked hard over the past two years to secure professionally made content, and successfully screened back catalogue films mainly in the us, and concerts globally. it even screened the olympics in 2008 in countries where the ioC had not sold the official rights, and stepped in to stream the indian Premier League cricket. We’ll also see lots more live events screened online via sites like vshare, ustream, justin.tv.

the BBC’s iPlayer and hulu could also grow beyond their national boundaries in 2010, but so far expansion has been slower than thought. youtube could now be the most likely global video channel for long-form video.

10 treNds

— ServiCeS like twitter alSo

illuStrate how employeeS are the new faCe of the brand, for example frank eliaSon at ComCaSt,

SCott monty at ford, and twelpforCe from beSt buy —

Page 12: Next Generation Media 2010

TWiTTer

007

twitter will see huge growth, but a new type of user is emerging – one that treats it as one-to-many sms and mms. two years ago many of the people who were on twitter had a blog. these days many new twitter users are refugees from other services like myspace. Particularly in the us many twitter users seem to give their address as a myspace page, and treat twitter as a comms network for their circle of friends. While a year ago it was reckoned that young people don’t tweet, it seems that young people are increasingly getting into it.

twitter itself will stay as the core service, but extra functionality to simplify it, and make it more usable will come, like the list feature introduced recently. the money will start to come in too, for example through search deals and initiatives like promoted tweets.

services like twitter also illustrate how employees are the new face of the brand, for example Frank eliason at Comcast, scott monty at Ford, and twelpforce from Best Buy.

— youtube Celebrating itS 5th birthday, with a global reaCh of nearly 40% of all internet uSerS eaCh month.

/010

Page 13: Next Generation Media 2010

10 treNds

— aS people’S uSage inCreaSeS,

the web iS Seen aS a mainStream entertainment Channel, aS demonStrated by the riSe of video SiteS, SoCial networkS, and online gaming

Page 14: Next Generation Media 2010

fun

009

rejeCTers

010

measuremenT

008

measurement and understanding is key to communications – the ability to see how a campaign has worked, and understand why – and 2010 will see major advances in the measurement of social media effectiveness and mash ups in measurement between different media. agencies are learning to see in the new climate, and getting more sophisticated in how they measure campaign effectiveness. Clients are also getting more open about sharing results of initiatives (where they are successful, clearly…). expect to see examples of campaigns across all media measured in terms of revenues but also engagement, and combinations of the two.

delivery metrics like clicks and views will become increasingly less important than measures of success.

the digital world will be more fun. as people’s usage increases the web is seen as a mainstream entertainment channel, as demonstrated by the rise of video sites, social networks, and online gaming. more blogs will start aggregating random things, like cake decoration gone wrong, strange photos from yesteryear, or bizarre homemade items. similarly services like Foursquare will grow in popularity, due to their game-playing nature. Foursquare is a mobile service that asks you to report in whenever you visit a local place of interest – the person who checks in most often becomes the ‘mayor’ – adding a fun twist to a normal part of people’s lives.

it’s also the case that people are very willing to pay small amounts for ‘fun’ mobile apps and games. For example the singer t-Pain sold 300,000 of his ‘autotune’ apps in 3 weeks at $3 each. it’s pretty pointless, but great fun.

the number and complexity of stunts will also increase. in 2009 we've seen flashmobs, pop up shops and even events like the creation of a giant punch bowl for Courvoisier ("so big you can row in it"). everyone likes these - there are bound to be more of them.

Finally, let's not get carried away with our future visions. a lot of people do not yet live digitally. they don't download music, much less download films or tv illegally. they aren't on twitter or Foursquare, and didn't apply for an invite to Wave. in fact in the uK, according to research commissioned by the government's digital inclusion team, over 15% of the population have never used the internet. there are a lot of people who are very happy with mobile phones that will make calls and send texts, and not do much else. they don't have a Pvr, blu-ray or hdtv. these people will remain a very important group, and mustn't be ignored. most of the ideas i've written about here are moving from the early adopters to the mainstream, but there will always be people who lag behind, and are happy to. the huge sales of susan Boyle's album on Cd show that there are lots of people who don't download (in the us only 6% of first week sales were through itunes).

in essence we need to understand the future, but be aware that a lot of people are still living in the present.

/012

— t-pain Sold

300,000 of hiS ‘autotune’ appS in 3 weekS at

$3 eaCh. it’S pretty pointleSS, but great fun.

Page 15: Next Generation Media 2010

google

_001

Google is both the world’s largest search engine, and the world’s largest media company by advertising revenue.

Google started as part of a PhD project at Stanford, and has been live as a search engine since 1998.

It was founded by Larry Page and Sergey Brin, and has been a publicly listed company since 2003. Its stated aim is to categorise the world’s information, in whatever form this may take, so has diversified from just being a search engine to acquire lots of other businesses, including Blogger, YouTube, and AdMob.

Currently Google has 907m monthly visitors, or 74% of all internet users. Search is the largest part of this, with 772m monthly users, or 63% of the world’s internet users.

Google makes over 95% of it’s revenues through advertising, and reported revenues of $6.77bn for Q1 2010.

Google’s major moves this year are expected to be in mobile, with the launch of the Nexus One phone, and the release of more phones from other manufacturers using its Android operating system.

101'smediamedia 101's

In the post digital world it's often individual companies that make a difference, and drive innovation and progress.

Here are 10 companies we think are doing interesting things in 2010. All are helping to define the media landscape.

Page 16: Next Generation Media 2010

faCebook

_002

/014

Facebook is the world’s largest Social Network, with over 400m members.

It was created in 2004 while founder Mark Zuckerberg was at Harvard, and was initially limited to people in academic institutions. It was opened up to other users in 2006, and quickly took off, first in the English speaking world, then elsewhere. It is currently the largest social network in the US, and most of Europe, and growing strongly in most other places.

The company is privately held. It does not see itself as a ‘social network’, but more as a social utility. It has become in effect a ‘platform’ for other things to exist on, for example games like Farmville, which members play while signed into Facebook.

Facebook makes its revenue from advertising, and has developed its own ad formats and sizes that can be targeted based on users’ demographics, stated locations and stated interests, for example music and films that they say they like.

It has successfully overtaken MySpace in the US, and local social networks like Tuente in Spain and Bebo in the UK,

and now has its targets set on others like Orkut in Brazil. Facebook’s challenge is to stay relevant to existing members while attracting new ones, and allow advertisers to target based on user interests, without users getting put off by perceived loss of privacy. It has recently shown how it can socialise the rest of the web with its universal ‘Like’ button enabling users to see what online content outside Facebook their friends enjoy.

Page 17: Next Generation Media 2010

101'smedia

youTube

_003

YouTube is the world’s most popular online video viewing site.

It was started in 2005 after the founders realised that there was no easy way to share their own videos. Now it has nearly 500m unique visitors a month, boasts 2 billion video streams a day, and says that 24 hours of content are uploaded each minute.

Google bought the site in 2006 for $1.65 billion, and has steadily tried to monetise more and more of the content. The main problem is that with the level of uploads it is impossible to check all content before

putting ads onto it, but some methods, like scanning for recognisable songs, have been used to sell music against videos that use songs in the soundtrack.

Google has also been very active in doing deals with large content producers to put professionally made material on the site. For example Channel 4 in the UK has a channel with full length episodes of popular shows, with pre-roll ads. In 2009 the site broke new ground by streaming a U2 concert live, and in 2010 it screened Indian Premier League cricket in markets where the TV rights had not been sold.

media 101's

Page 18: Next Generation Media 2010

/016

ebay

_004

Ebay is both the world’s largest eCommerce site and auction site.

Founded in 1995, it is older than almost any of the other most popular sites, including Google, Wikipedia, YouTube, Facebook and blogger, and has held onto its position of strength despite the rise of other eCommerce platforms. It currently has 157m monthly visitors.

One of the factors in its success is that it spends almost no money up front on advertising, but instead uses affiliate marketing, so sites that run the advertising only get paid on results.

Ebay has recently started to shift the emphasis onto large sellers – for example companies that sell remaindered stock – rather than individual sellers. More prominence is now given to ‘fixed price’ auctions like Daily Deals, than individual sellers with traditional auction sales.

Ebay’s moves into mobile have been very successful; it has reported sales of 1.5m items through mobile apps in over the Christmas period.

Ebay also owns the online payment system Paypal, and a minority share of the Voice Over IP communications company Skype.

Page 19: Next Generation Media 2010

aPPle

_005

Apple is seen as one of the most innovative consumer electronics companies in the world.

Founded in 1976, it made its name in high end computers, but diversified into entertainment products with the iPod in 2001.

The iPod was such a game-changing product because it showed that Apple were making products but also providing services. It now dominates the branded MP3 player market – in fact it is one of the only companies still making MP3 players with over 30gb of storage.

The iPod also put Apple products into the mass market for the first time, and in turn had a halo effect on the other products like desktop computers and laptops. The launch of the iPhone in 2007 gave people an iPod as a phone, and again has proved very popular, with 14% of the smartphone market in 2009, and sales of nearly 9

million in the first quarter of 2010 alone. The key to the success of the iPhone was the App store – over 200,000 small programmes & games developed by independent companies that add myriad uses to the phone. This way the phone can improve functionality every day.

In April 2010 the iPad went on sale in the US and sold 300,000 units in the first day. The iPad is effectively a device for watching video and playing games, but also with email and basic computer functions, and the ability to use the same apps as the iPhone. The iPad has gone on to sell 1 million units in under a month, and 3 million units in 80 days.

Apple has the sort of hard-core fans that other companies would die for. As a result any new product launch from Apple is treated as a major media event.

101'smediamedia 101's

Page 20: Next Generation Media 2010

TWiTTer

_006

Twitter is a social networking site that allows people to transmit 140 character messages, including links.

It was founded in 2006, and achieved mainstream fame in 2009 through celebrity users and its role in major news events like the aftermath of the Iranian election. In April 2010 it made its first ever official statement on user numbers, claiming 106m accounts globally, and 55m tweets per day.

Twitter differs from Facebook and other networks by using non reciprocal relationships – that is, if someone wants to follow what you are doing you do not need to also follow what they are doing. This means that celebrities and public figures can use it to communicate to their fans without allowing undue access. It also means that respected authorities in any field can be followed by people for information at no real cost (in terms of a relationship) by the follower.

Twitter uses an open source technology, and allows other companies access to its API (Application Programming Interface) so that they can use the data (e.g. the messages) within twitter to feed into other sites and programmes. For example other companies can make pages that show mentions of their names on twitter, or show the level of mentions of a certain word as a chart over time.

Twitter is still a privately owned company, and is believed to be profitable, or at least breaking even thanks to commercial deals, such as supplying data to Google and Bing for their search results. Twitter recently trialled a programme of ‘promoted tweets’ where companies could pay to post a tweet that would appear in search results. Expect to see more ideas to generate revenue as the year progresses.

/018

Page 21: Next Generation Media 2010

media

foursquare

_007

Foursquare is a virtual game played over a mobile application in which people get points for the number of different locations they visit. The most frequent visitor to a location becomes the virtual ‘Mayor’.

Foursquare was founded in March 2009; in late April 2010 it told Bloomberg that it had 1m registered users, and was on track to hit 3 million by the end of the summer.

Foursquare has started to sign commercial deals, generally with companies that have multiple branches, to allow them to offer special services or deals with users. Examples of this include Zagat (special badges awarded to people who visit 3 or more Zagat rated restaurants) and Bravo (special badges

created for locations relating to TV shows). Venues can also set up their own special deals on the site, whereby the ‘Mayor’ gets a free drink or a special offer.

Like twitter, Foursquare has an ‘open API’ which means that application developers can mine the data and produce tools and sites that use this information. So far a few have been produced – e.g. to show the ‘Mayor’ deals available by city, and to overlay comments for venues onto a Google map (fourwhere.com)

Being just over one year old, Foursquare is likely to change over the next year – more features, more deals, but keep the same general functionality.

101'smedia 101's

Page 22: Next Generation Media 2010

zynga

_008

Zynga is an American company that produces casual games to play on social networks, most notably FarmVille on Facebook and MySpace.

Zynga was founded in 2007, and is still privately owned. According to stats from AllFacebook.com, Zynga games make up 5 of the ten most popular Facebook applications – Farmville has 80m monthly users, Texas HoldEm Poker 30m, Café World 28m, Mafia Wars 24m, PetVille 21m, &. Overall Zynga claims to have 60m daily players. Games are free to play, but extra features and ‘energy’ can be bought online. Most of the numbers

involved with Zynga are very high – for example 60m players each day, and in February 2010 FarmVille players exchanged 690m virtual Valentines gifts.

Zynga has created a charity company, Zynga.org which allows people to donate to charity via the games. For example in January 2010 players donated over $1.5m to Haitian earthquake relief through buying virtual goods in 4 different games.

/020

Page 23: Next Generation Media 2010

rakuTen

_009

Rakuten is Japan’s biggest online retailer. Founded in 1997 it has revenues exceeding $1.1billion, mainly through its shopping channel Rakuten Ichiba.

The site has over 28,000 merchant shops offering over 35m different items for sale, to over 45m members – one third of the Japanese population. Choice is so large through the creation of a platform for merchants, rather than an online store. As a result lots of B2B business is done through Rakuten, in addition to B2C.

Although Rakuten currently only generates less than 10% of total sales outside Japan it has been expanding outside globally, through organic growth and acquisition of sites in other markets like Buy.com in the US.

Rakuten is seeing a shift within Japan from eCommerce to M-Commerce – in Q1 2009 18% of it’s revenues came from people purchasing over mobile devices, up from 4% in 2004.

media101'smedia 101's

Page 24: Next Generation Media 2010

/022

sPoTify

_010

Spotify is a streaming music service that members can use to create and share playlists.

It was founded in 2006, and went live in 2008, and has over 7m users in Europe (It is used by over 15% of the Swedish population). It is currently available in Sweden, Spain, Norway, Finland, United Kingdom and France. Users can choose either a free version with ads, or a premium ad-free version for £4.99 per month. There is also a mobile app, available on the major operating systems, that costs the same as the premium web version.

Spotify was keen to sign up official deals with all of the major record companies before going live, giving them a share of the ad revenue and subscription revenues, rather than facing legal issues after launch. So far most record companies seem to still be in favour of Spotify, although Warner Music has said that it remains sceptical of the ‘Freemium’ services that sites like Spotify offer.

The biggest question for Spotify is whether it can launch in the US, which would open it up to a much bigger audience. A US launch has been rumoured for months, but not materialised yet; in the meantime other services like Pandora, which is gaining listeners at a rate of about 3m a month.

Page 25: Next Generation Media 2010

■■

Next geNeratioN media Key data

key data

internet and Broadband penetration

internet Penetration (% of individuals 15+)

68.9% 70.0% 58.9% 58.3% 45.4% 57.0% 85.0% 32.7% 32.6% 29.9% 75.4% 4.4%

Broadband Penetration (% of households)

64.0% 63.0% 64.5% 58.0% 45.5% 53.2% 82.2% 18.0% 20.4% 23.4% 87.9% 3.2%

source: emarketer Feb 2010

mobile Penetration and usage 2009 (% of individuals 15+)

mobile users

89% 81% 78% 84% 84% 80% 82% 67% 88% 56% 94% 94%

mobile internet regular users

22% 26% 16% 22% 23% 23% 18% 11% 10% 18% 0.4%

3g Penetration

37.0% 29.0% 25.0% 20.0% 33.0% 38.0% 22.0% 3.0% 4.0% 71.0%

source: Forrester, emarketer / informa / WCis+, morgan stanley research 2009

Page 26: Next Generation Media 2010

■■

/024

ad spend usd millions and % online 2009

ToTal 159,111 20,184 13,536 16,573 12,175 7,353 5,746 6,686 9,601 49,780 5,585 4,120

online % 9.3% 26.8% 14.1% 5.9% 7.9% 12.3% 16.3% 4.1% 4.5% 3.0% 18.7% 1.9%

source: aegis media estimates 2010

iPtv Penetration 2008 (% households)

14.5% 0.5% 18.0% 3.0% 3.2% 4.0% 1.0%

source: idate / ofcom dec 2009

top search, social Network, and video sites reach, January 2010

top search engine

googLe.Com googLe.Co.uK googLe.Fr googLe.de googLe.it googLe.es googLe.NL yaNdex.ru googLe.Com.Br Baidu.Com Naver.Com googLe.Co.iN

80% 89% 82% 78% 90% 85% 87% 60% 83% 59% 85% 83%

top social Network

FaCeBooK.Com FaCeBooK.Com FaCeBooK.Com FaCeBooK.Com FaCeBooK.Com FaCeBooK.Com hyves.NL vKoNtaKte.ru orKut.Com.Br reNreN CyWorLd.Com orKut.Co.iN

54% 75% 58% 23% 72% 52% 63% 46% 73% 13% 56% 48%

top video site

youtuBe.Com youtuBe.Com youtuBe.Com youtuBe.Com youtuBe.Com youtuBe.Com youtuBe.Com youtuBe.Com youtuBe.Com tudou.Com PaNdora.tv youtuBe.Com

51% 61% 47% 51% 60% 57% 64% 17% 55% 23% 25% 36%

source: comscore 2010

Page 27: Next Generation Media 2010

digital media gloSSaryunderStanding the key (& ConfuSing) termS

@ - the @ sign is used in twitter as a prefix to another user’s name to direct a message to a person – for example @StephenFry. This has also been adopted by Facebook, and has also become shorthand in other circles.

android – Google’s mobile phone operating system – that is the computer operating system that powers functions like an app (qv) on mobile phones. Google have made Android open source (qv) so that other mobile phone handset makers like Sony Ericsson are able to use it and spread its penetration.

aPi – Application Programming Interface. A system that allows other software to interact with software on a site. For example twitter has an open API, which means that other sites and programmes can take information from twitter and put it onto other sites and programmes. Facebook was one of the first major sites to make its API available for others to use, meaning that lots of freelance developers were able to create widgets for the site, massively expanding the number available. Apple have also released the developer API for the iPhone, meaning that freelancers can develop apps for that platform.

app / Widget – a small programme on computer or mobile phone that performs a specific task, for example connecting to a specific news source, or city guide. Facebook popularised apps in the late 2000s, and Apple has made them the focus for much of the iPhone’s marketing. So far over 4 billion iPhone apps have been downloaded.

Checkin – Users of mobile location-based services like Foursquare and Gowalla check in to venues to show where they are. They get points for the more checkins they make. Both Facebook and Twitter have announced that they will be introducing location-based checkin systems.

CPa – Cost per action. A way of buying advertising – for example the advertiser only pays if a sale can be directly tracked back to a click on a specific ad on a site. Affiliate marketing works in this way – sites that take advertising get paid on performance. Note that many premium sites do not accept CPA advertising.

CPC – Cost per click. A way of buying advertising – the advertiser only pays if a click in made on the ad. Paid search activity, for example on Google all works in this way. Note that many premium sites do not accept CPC advertising.

CPm – the advertiser pays each time an ad is shown to a user – for example in a big video ad. if the rate is £20 CPm, then the advertiser pays £20 per thousand impressions, so 1m impressions would cost £20,000.

dunbar’s number – roughly 150, and supposedly the number of ‘friends’ that a human brain can cope with. Named after the British anthropologist robin dunbar, who claims that this number crops up over and over again in research of ancient villages, nomadic tribes, and army units.

eCommerce – online shopping. in the uK online sales now account for about 10% of total retail sales, according to research from Kelkoo.

engagement – active consumption of online material, including adverting, compared to simple exposure. the simplest measure of engagement is time spent on a site or interacting with an ad.

#fail – Fail, or #Fail is a term used online and particularly on twitter to show that something has not worked, or is frustrating. For example lots of people complain about their mobile phones with the words ‘[brand]’ then ‘#fail’. there is also a very popular comedy site called Failblog (failblog.org) which shows funny pictures of things that ‘fail’ for whatever reason.

digitaL media gLossary

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——

So far over 3 billion iphone

appS have been downloaded.

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fan – a ‘fan’ was a Facebook term for someone who is a supporter of a specific cause or brand. For example adidas originals has over 2.7m fans on Facebook. as of april 2010 the term ‘Fan’ has been replaced by ‘Like’ – that is you now ‘Like’ adidas originals, rather than are ‘fans’ of it.

follower – a follower is a twitter term for someone who receives updates from another user. ashton Kutcher is the most followed person on twitter with over 4.8m followers.

forum – a bulletin board. Bulletin boards are one of the rew remnants of the ‘old web’ that are still popular, and gather together like-minded people, for example supporters of a sports team or a band.

fTW – For the Win – something which is great; the opposite of ‘Fail’ (qv). For example ‘half price starbucks today FtW’.

hashtag – a work prefixed by the ‘#’ sign often used in twitter to make posts on the same subject easy to fine – for example ‘#olympics’. many conferences and events now have their own official hashtag for delegates to use when tweeting during the conference.

impression – an advertising page view.

iPTV - Internet Protocol Television. Television over broadband lines through a dedicated device or hardware attached to the TV.

like – A term used in Facebook to show that a member aligns themselves with a personality, a company or a movement. ‘Like’ replaced ‘Fan’ (qv) in April 2010, and Facebook has also let other sites put Facebook ‘Like’ buttons on their pages, so that visitors to any site can potentially see which of their Facebook friends like the content on it.

linkbait – Terms used by unscrupulous website owners (often spammers) to appear high in the search rankings and get more traffic. For example many sites will take headlines from major news stories and use them as irrelevant content to get visitors.

maemo – Nokia’s advanced mobile phone operating system.

mashup – a site or application that uses a combination of two data sources, for example a site that overlays crime statistics onto a google map. Mashups rely on open APIs (qv) to get data from different sites.

m-Commerce – Shopping over mobile devices. Many sites now have popular mobile shopping options, including Ebay,

which sold 1.5m items over its mobile apps (qv) over Christmas 2009

micropayment – Small payments made to sites. Precise definitions of how small this needs to be vary, but for many the success of paid iPhone apps (qv) which often cost less than £1 point to the success of the concept of micropayments. Micropayments are often held up as something newspapers need to adopt to survive – for example pay £0.02 to read an article.

nsfW – Not Safe For Work. Written before a link to warn that the contents of the link are likely to contain nudity or graphic language.

open source – Software that allows users to edit and improve it.

P2P – Peer to peer – Sites that allow sharing between individual members, rather than through a central point. P2P sites make a virtual network of the members, using storage space across their computers and other devices, so that nothing is held centrally. Examples include file-sharing networks like Gnutella, but peer to peer technologies are also involved in the telephone service Skype and the music streaming service Spotify.

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—twitterati – a group of influential

twitter uSerS with a high number of followerS, or

influential followerS—

—farmville uSerS gave 690m virtual valentineS giftS in 2010.

digitaL media gLossary

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digital media gloSSaryunderStanding the key (& ConfuSing) termS

Paywall – a system that blocks content to all but those who pay to see it. Paywalls usually also block search engines from seeing the content.

Pre-roll – a video ad that plays before the main piece of video content, normally for 15-30 seconds. Newspapers generally use pre-roll ads before their video stories, and professional content sites like hulu also use pre-rolls. youtube has started to use pre-rolls for premium partner videos, for example tv shows from Channel 4 in the uK. it is also possible to buy ‘Post roll’ ads, but these are less common.

Pwn / Pawn / own – slang to mean someone owns someone else – i.e. to get the better of them. the perpetrator of a successful prank can boast that he has ‘pwned’ his victim.

seo – search engine optimisation – Changing the design of a website, often on a daily basis, to make it appear higher in the search rankings.

social search – search with results gathered from user-generated sources, like twitter, or even from a specific group of friends or contacts.

status update – a declaration of what you are doing, written on a social site.

symbian – Mobile phone operating system owned by Nokia but also used by other manufacturers. Less advanced than Maemo.

tl;dr – ‘Too long; didn’t read’ - slang used on forums and messageboards in response to links posted.

Troll – Someone who posts deliberately inflammatory material online, often in comments to other articles or videos. Often the troll will know that they are making an indefensible point (e.g. ‘Macs are useless’) but will do it to infuriate people who don’t realise that it is a joke.

Tweet – A message sent on twitter. A ‘ReTweet’ or ‘RT’ is a forwarded tweet.

Twitterati – A group of influential twitter users with a high number of followers, or influential followers. For example it is assumed that a topic or movement on twitter only really establishes momentum once a member of the twitterati tweets about it, increasing the reach and impact of the message.

ugC – User Generated Content – for example an amateur video on YouTube, a blog post, or a status update on a social network.

unique user – A unique visitor to a site. Note that this can only be verified as a unique computer address – if 10 people on the same computer in an internet café visit the same site they only count as one user, but if a person visits a site on a work computer and a personal one, this counts as two users.

universal search – Search results in multiple formats, for example general web results, news results, and video results, all on one page.

user-initiated – A video or music track, usually in an ad that only plays when the users requests if to.

Virtual goods – Non-physical goods, like a picture of a bunch of flowers that can be given online, usually in a virtual world, like second life, in a game, like Farmville, or on a social network. For example Farmville users gave 690m virtual Valentines gifts in 2010.

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—ea paid a reported $300m for playfiSh, another SoCial media gameS— Company in november 2009.

Next geNeratioN media

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Produced by aegis media’s intelligence Team

We regularly produce content to help our clients understand how the communications landscape is transforming.

To access more from Next Generation Media please look at our content on Slideshare and YouTube:

www.slideshare.net/NextGenerationMedia www.youtube.com/user/AegisNextGenMedia

for further information please contact:

dan Calladine Head of Media Futures, [email protected]

Caroline Vogt Head of Intelligence, [email protected]

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—nxtgenmd _2010—