keeping on top of technological trends and uses of existing technology daniel l. appelman heller...
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Keeping on Top of Technological Trends and Uses of Existing Technology
Daniel L. AppelmanHeller Ehrman LLP
Trends and Uses of Technology
Focus on the Internet
Existing and evolving WWW
New services
Evolving models of doing business
Trends and Uses of Technology
Search
Social networking
Multimedia
audio
video
Mobile
Internationalization
Stages of the WWW
Search Engines
Trend: evolution to better organized data and more focused searches
raw keyword search
advent of contextual advertising
recommendation engines based on past searches, purchases
Search—Implications for Advertising
More focused searches result in more targeted advertising
Internet advertising looks increasingly attractive
Advertising dollars shift to Internet (Google, Yahoo, etc.)
Search—Implications for Advertising
pay per impression
pay per click
pay per conversion
Increasing demand for pay per conversion
Social Networking
User-generated content
MySpace, Facebook, Wikipedia, Yahoo! Flickr
Technological developments make organizing and finding information faster and more intuitive
search
tagging
Social Networking
Fastest growing segment of WWW
Opportunities for monetization
subscription to premium services
specialized search capabilities
contextual advertising
Multimedia on the Internet
Video has largest share
Audio decreased with advent of video sharing and lawsuits
Bandwidth issues
Copyright Issues
Multimedia on the Internet
User-generated content and infringing content led the way
Trend: Increasing use of Internet to distribute audio and video
Trend: Increasing use by big content providers
iTunes
Time Warner
Disney/ABC/Apple
Audio
P2P enabled sharing of user-generated and pirated content
Technology way ahead of ip protection and accepted business models
Trend: ip protection and accepted business models are catching up
Trend: increasing recognition that business models must adapt
Audio
Grokster decision gave increased confidence to content providers
iTunes success prompted others
Trend: everyone is jumping in
Online music segment experiencing fantastic growth
“Brick & Mortar” stores failing fast
Video
Online video trailed audio because of bandwidth demands
Technology has removed that obstacle
YouTube, Grouper demonstrated technical feasibility and user demand
iTunes begins selling videos
Trend: similar growth pattern as audio
Video
Video sharing may represent 60% of internet traffic
Mostly unmonitized currently
Trend to monitize
Tagging combined with corporate partnerships
Copyright issues impeding monetization
Video
Technology innovation helps
improved search
tagging
P2P file sharing applications
Video portals help organize and publicize
Yahoo’s The 9
Mobile
Tremendous growth in cell phones and other mobile devices
Tremendous growth in demand for Internet services through mobile
IM
Web-surfing
Collaborative gaming
More in some countries than in US
Mobile
Tremendous growth opportunity
In US, 17% residential broadband penetration vs. 8% mobile
Tremendous untapped potential
Internationalization
US share of internet users falling
down to 20% next year
That’s because other regions are increasing faster
China, Russia, India increasing fast
Trend: globalization of Internet services and online advertising
Web Infrastructure—Web OS
“Plug & Play” blocks of infrastructure that can serve multiple web applications
Storage services
Search services
Computation services
Messaging services
Information services
Web Infrastructure—Web OS
Amazon Long Range Business Plan—WebOS S3
Offering web infrastructure services to other businesses
search, storage, lookup and data management
Charges on “pay per fetch” or “pay for space” basis
Google, Microsoft, others will offer infrastructure-for-rent for web applications
Trends in the Internet
Growth of multimedia content on the web
audio
video
Growth of mobile access
Growth of social networking
Internationalization of internet services
Improvements in Search
Trends in the Internet
Data and content increasingly organized
Data and content increasingly monetized
Consolidation of search and content providers
very few companies account for most of the value
Google, Yahoo, eBay, Amazon
Trends in Advertising on the Internet
Internet gets increasing share of advertising dollars
8% in 2006
projected 13% by 2011
Technology improvements result in more effective targeting and conversions
Recommendation engines result in more effective marketing
Web 2.0
Network as platform; network as application
Data on remote servers; not on local drive
Users own and control the data
Architecture of participation and collaboration
Web 2.0
writely
iTunes
Social Networking and Collaboration
Flickr—shared photo community-generated tag database
del.icio.us—
eBay, craigslist, Wikipedia
Web 3.0
Semantic layer
Machines learn from data
Building on data organized by tagging and preference engines
Trends in Technology
Technology will give increasing ability to
organize and find data
personalize online services
focus online advertising
maximize value of advertising dollar