Rant About It

Archive for the ‘Google’ Category

Google Powers Podcasting Ads Growth

Posted by rantaboutit on February 21, 2007

Google powers podcasting ads growth
Podcasting advertising revenues are expected to rise five folds in the next five years. That would mean marketers will spend $400 million dollars on podcasts in 2011, which would be only 2% of spending expected this year in the interactive ad market. Analysts expect Google GOOG to develop an audio version of AdSense which would allow any podcast producer to include ads in their shows.

Rant: Audio ads can be sometimes really annoying for the podcast listeners. Google and podcast producers need to be cautious not to overwhelm the listeners with too much ads or it could turn against them.

Bernanke’s message to investors
Fed Chairman Ben Bernanke recently relieved the investors by stating that he was upbeat about the economic growth and sees signs of slowing inflation and stabilizing housing sector.

The labor market is a key area of concern: a low unemployment rate and difficulty finding qualified workers have resulted in higher wages, but he said increasing productivity and narrowing profit margins could help offset labor costs. He called recent pressures in the subprime mortgage market a significant concern but said they wouldn’t harm the overall economy. The Fed cut its forecast for GDP growth from 3% to 2.5%, forecast 2% core inflation and 4.5% unemployment.

Rant: Inflation is the key concern for the Feds. If the inflation doesnt slow down, Feds might have to increase the interest rates furthur.

Starbucks to buy more coffee
East Africa is the birthplace of coffee and the origin of some of the finest coffees in the world. East African growers account for about half of the world’s specialty coffee. Most coffee growers in Africa live in poverty.
Starbucks SBUX has stated that they are planning on doubling their purchases of coffee from East Africa. Six percent of the coffee purchased by Starbucks comes from Africa. They have also agreed to establish a farmer support center to help farmers improve coffee quality and improve yields and prices. Starbucks also said it would help small-scale coffee producers by providing $1 million in micro finance loans.

The announcement comes amid a dispute between Starbucks Corp. and the Ethiopian government, which wants to trademark the names of three coffees produced in the country.

Rant: Is Starbucks exploiting African coffee growers ? Or are they supporting their right to fair trade ? This is an open question i would like someone to answer…

Global EFT
Most EFTs are currently overbought, with Mexico EWW and Malaysia EWM trading at theoretical highs. India IFN, on the other hand, is currently slightly oversold.

Rant: EFTs is the latest thing to hit the world. Naturally with their obvious advantages they have become everyones favorite. But is the recent buying spree justified ?

Related Posts:

  1. When U.S. economy goes down…
  2. Something for those Lazy Investors !!
  3. Does Google really love MySpace ?
(Source: SeekingAlpha)

Posted in Bernanke, Exchange Trade Funds, Google, Technology | Leave a Comment »

Does Google really love MySpace ?

Posted by rantaboutit on February 9, 2007

MySpace.com was founded in 2003 and bought in July 2005 by Rupert Murdoch’s News Corp. NWS.

For those of you who do not know about MySpace, here is a quick introduction from Wikipedia.org

MySpace.com is a social networking website offering an interactive, user-submitted network of friends, personal profiles, blogs, groups, photos, music and videos. MySpace also features an internal search engine and an internal email system. It is currently the third most popular website in the U.S. They crossed 100 million accounts in August 2006, with a news story claiming the site attracts new registrations at 230,000/day.

Google-MySpace Deal 2006
This kind of website is definitely going to attract attention from the big boys like Google GOOG, Yahoo YHOO Microsoft MSFT and eBay EBAY. Google struck a $900 million advertising deal with MySpace 6 months back. Google wants to provide Google search tools on MySpace and run Google ads. This will benefit Google by allowing them to promote themselves and their advertisers to a huge community. In return Google will pay News Corp, $900 million in ad revenue over the next 3 years. Win-win for both !! But there is more…

Before the Google deal goes through, MySpace wants to strike some more deals, especially with eBay. Now this would be a cool feature for MySpace users. This deal would allow MySpace users to buy and sell products. Additionally eBay’s payment system PayPal would become the means for payments. This will benefit eBay generate more revenue from the merchandize sale and payment processing fee. In return MySpace can expect a big chunk of revenue.

Google-MySpace Deal 2007
Obviously Google is not happy with the eBay-MySpace deal. Google’s listing service Google Base and their recently introduced payment service GCheckout will take a hit. Add to that Google has realized that people looking up different profiles dont really care about clicking the ads and therefore is not turning out to be a good source of revenue. So what does Google do now ? They will be renegotiating terms of their deal with News Corp. Meanwhile, MySpace has grown in audience and will be looking for more cash. This one is going to be tricky from both ends. That said, I am sure Google will not completely blow off the deal since it will keep competitors like Yahoo and Microsoft at bay.

Recommendation: Keep close eye on how the deal folds. This would affect the way these big boys do busines in the next year or two.

Related Posts

Posted in Ebay, Google, Technology, Yahoo | 1 Comment »

Yahoo and the Panama buzz !!

Posted by rantaboutit on January 25, 2007

The latest buzz around Yahoo YHOO is about their new Ad Ranking System called Panama. Currently Yahoo places a paid ad solely based on the amount you are willing to pay for the keyword, whereas Google GOOG uses both price of the keyword and a quality score to rank the ad. Yahoo is looking to rectify this with Panama. Shareholders, employees and advertisers are for obvious reasons, praying that Panama works. Positive comments and publicity are all good, but unless the system helps generate more revenue it means nothing, especially to the investors.
The company began to transition customers to Panama in mid-Q4, any revenue growth will likely come in Q1 at the earliest. The question to ask is whether this transition is going to have a positive or negative impact on their Q4 or Q1 revenue. If it is going to be negative, Google will gain on it.

According to Wall Street Journal, some small Yahoo customers have had to cut back spending significantly during the transition. Some mid-size companies were spending $10,000 to $15,000 a month on search-related advertising through Yahoo. After their account was transition, Yahoo declined to let them continue running some ads linked to specific keywords. In response these companies slashed their spending on Yahoo and increase their spending with Google.

Conclusion: For now, Google seems to gain with their existing system. Yahoo in this transition phase might lose out some revenue, and if they are not too careful might lose out on some loyal customers too.

Recommendation: I love both Google and Yahoo and see brighter future for both of them. The advertising pie is big enough for both. Google investors can enjoy steady rise in their stock prices, where as Yahoo investors might see light at the end of the tunnel after a wait for another qtr or two.

Posted in Google, Industry News, Technology, Yahoo | Leave a Comment »