MicroVision will make Big Bucks for Big Tech. The writing is on the wall. I've connected the big dots below. The stand-alone devices are getting their attention. The real fun will begin with attached and embedded devices. When a mobile device user can instantly (and without fiddling with focus) create a large image on any nearby surface, it will improve big tech's ability to advertise.
To be able to do local advertising and know that they're getting more than one set of eyes on a local ad will be great for advertisers and the companies that provide it - mainly Facebook and Google. MicroVision will do very well, as they provide the medium for that service.
Advertising is important -- why else would the mobile companies be offering streaming video free? Binge-on.
Largest companies by market Cap (Google #2, Facebook #12)
Facebook and Google get the majority of their revenue from advertising
They serve their customers -those who pay to advertise- very well. That's why they're so successful. They do this by targeting the advertising to what the people they are serving want.
They know your behavior
Facebook knows what you're doing on your computer, and they know what you're doing with your device. When they deliver advertising, they know what you've looked at, what kind of device they're delivering to, and what it's operating system is. (The majority of the mobile viewers of this blog use Apple iPad, followed by the Xiaomi HM Note G4. I can know this because Google tracks it.)
They are dependent on the ecosystem
They are also dependent on bandwidth, and content that draws eyes, and the medium that delivers the content - the screen. That's where MicroVision comes in. The more eyes on their content, the more they can charge for it - the better for their advertisers and for them.
Mobile as a new market greatly increased their earnings
When mobile (very recently) became a new market for them it increased their earnings power significantly
Screen Size is KEY to comfort to mobile video
Larger screen size greatly increases the appeal of mobile video -- small screen size is a barrier! -- Note that Screen resolution is the LEAST concerning factor.
: The image below is from Yahoo Advertising.
Weird Economics
MicroVision will make Big Bucks for Big Tech. The writing is on the wall. I've connected the big dots below. The stand-alone devices are getting their attention. The real fun will begin with attached and embedded devices. When a mobile device user can instantly (and without fiddling with focus) create a large image on any nearby surface, it will improve big tech's ability to advertise.
To be able to do local advertising and know that they're getting more than one set of eyes on a local ad will be great for advertisers and the companies that provide it - mainly Facebook and Google. MicroVision will do very well, as they provide the medium for that service.
Advertising is important -- why else would the mobile companies be offering streaming video free? Binge-on.
Largest companies by market Cap (Google #2, Facebook #12)
Facebook and Google get the majority of their revenue from advertising
They serve their customers -those who pay to advertise- very well. That's why they're so successful. They do this by targeting the advertising to what the people they are serving want.
They know your behavior
Facebook knows what you're doing on your computer, and they know what you're doing with your device. When they deliver advertising, they know what you've looked at, what kind of device they're delivering to, and what it's operating system is. (The majority of the mobile viewers of this blog use Apple iPad, followed by the Xiaomi HM Note G4. I can know this because Google tracks it.)
They are dependent on the ecosystem
They are also dependent on bandwidth, and content that draws eyes, and the medium that delivers the content - the screen. That's where MicroVision comes in. The more eyes on their content, the more they can charge for it - the better for their advertisers and for them.
They are also dependent on bandwidth, and content that draws eyes, and the medium that delivers the content - the screen. That's where MicroVision comes in. The more eyes on their content, the more they can charge for it - the better for their advertisers and for them.
Mobile as a new market greatly increased their earnings
When mobile (very recently) became a new market for them it increased their earnings power significantly
Screen Size is KEY to comfort to mobile video
Larger screen size greatly increases the appeal of mobile video -- small screen size is a barrier! -- Note that Screen resolution is the LEAST concerning factor.
: The image below is from Yahoo Advertising.
Weird Economics
There are some weird economics that occur with mobile devices too, weird may be the wrong term -- but counter-intuitive, and indirect. Many devices are sold at a severe discount, because money can be made from the content, the subscriptions and other add-ons that go with the device. We've all seen a $650 cell phone sell for $20 or $50 with a contract.
In 2013, the cost to make a PS4 was $381. It was sold for $399. So, after packaging & shipping, and allowing retailers to make money, Sony made zero selling the PS4. Yet gaming is one of their most profitable endeavors.
The profit for the company (SONY does make a lot of money on gaming) comes from the secondary market, selling the games, the subscriptions and content through the device.
Free Streaming Video fits this perfectly.
Some background information below that I looked through to compose this:
There are some weird economics that occur with mobile devices too, weird may be the wrong term -- but counter-intuitive, and indirect. Many devices are sold at a severe discount, because money can be made from the content, the subscriptions and other add-ons that go with the device. We've all seen a $650 cell phone sell for $20 or $50 with a contract.
In 2013, the cost to make a PS4 was $381. It was sold for $399. So, after packaging & shipping, and allowing retailers to make money, Sony made zero selling the PS4. Yet gaming is one of their most profitable endeavors.
The profit for the company (SONY does make a lot of money on gaming) comes from the secondary market, selling the games, the subscriptions and content through the device.
Free Streaming Video fits this perfectly.
Free Streaming Video fits this perfectly.
Some background information below that I looked through to compose this:
AdWords and Search Advertising (GOOGLE)
The bulk of Google’s $66 billion revenue in 2014 came from its proprietary advertising service, Google AdWords. Of that revenue, 68 percent – or just over $45 billion – came from Google’s own websites.
How does Facebook Make its money? (Nice presentation, a little dated.)
Q3 2015 Financial Summary
The bulk of Google’s $66 billion revenue in 2014 came from its proprietary advertising service, Google AdWords. Of that revenue, 68 percent – or just over $45 billion – came from Google’s own websites.
How does Facebook Make its money? (Nice presentation, a little dated.)
Three Months Ended
September 30, 2015
| ||
Google websites
|
$
|
13,087
|
Google Network Members' websites
|
3,694
| |
Total advertising revenues*
|
16,781
| |
Other revenues
|
1,894
| |
Revenues
|
$
|
18,675
|
How does Facebook make money?
To say that advertising revenue is critical for Facebook is an understatement. About $11.5 billion (92 percent) of the company's $12.6 billion in 2014 revenue came from ads. Facebook increased its total revenue in 2014 by $4.59 billion, and more than 98.2 percent of that growth came from increases in advertising revenue.
Facebook points to increases in News Feed advertisements as the "most important factor" driving ad revenue growth. Average price per ad for Facebook ads also climbed by 173 percent in 2014.Rise Of Mobile
One key area of advertisement growth for Facebook is mobile ads. In December 2014, Facebook had more than 745 million average mobile daily active users. In 2014, 65 percent of Facebook's total advertising revenue came from mobile ads, up from 45 percent in 2013.
AOL ONE
AOL was purchased by Verizon
Advertising Test
If you'd like to figure this out, go and shop online for something that you are normally not concerned with. For example, look for an unusual hardware item. Just pretend you really need to find an unusual part for something around the house. Spend 20 minutes looking for it online, then sign back on to Facebook. You will find advertisements you see on Facebook now feature these items.
Search for an item that you would normally NEVER look for, search on Google, and Amazon. I have a couple of oddball items listed below for you to experiment with.
Search for the item and "click through" on at least two. (Click the listing.)
* digital microscope
* sushi mold
* bagpipe reeds
* chicken plucker
No comments:
Post a Comment