Author: David Kaplan

  • Condé Nast And Adobe Return From Drawing Board With iPad App


    Wired iPad Launch Cover

    The tablet version of Wired magazine was in the final steps of preparation last month when Apple (NSDQ: AAPL) launched released its iPad last month, but the use of non-compatible Adobe (NSDQ: ADBE) Flash as a key feature in the mag’s app caused the publisher’s and the tech company’s developers to race back to the drawing board. So, after a feverish few weeks of revamping the Wired app in compliance with Apple’s no-Flash rules, the digitized June issue was approved for sale in the iTunes Store on Friday and became available for sale at $4.99—the same as the newsstand price—a few minutes before midnight on Wednesday.

    At a demo for the Wired app, Condé Nast editorial director Tom Wallace was quick to get the controversy between Apple and Adobe out of the way.  “We’re happy with Adobe and Adobe is extremely happy,” he said. “The partnership with continue at least through the summer and probably into 2011.” He conceded that the process for preparing the Wired was complicated by Apple’s decision to ban Adobe Flash from its apps. “But only a little,” Wallace was quick to add.

    The release of Wired for the iPad represents the ideal for what Condé Nast wants for its digital magazines—at least at this early stage. Over the past few months, the publisher has created iPhone and iPad paid apps for GQ and, most recently, Vanity Fair. Those apps do satisfy certain goals Condé Nast has said it wants from its digital replicas, including counting towards paid circ under the Audit Bureau of Circulations measurements.

    The Wired iPad app promises to go a few steps further in terms of bringing more digital features like 360 image views to advertisers, in addition to the video and links to marketers’ sits that is currently offered to premium ads on the other apps. “We’re in the early days of this, and we’re still experimenting with how users experience it,” Wallace said, noting that the publisher’s R&D group is already planning enhancements for the next month. At the outset, the Wired app does come with a number of interesting bells and whistles. The app offers a number of ways to find content, including a “stacks” feature that lets users view magazine articles according to length. Like the previous apps, the bottom of the screen sports a “scrubber,” which allows for fast left/right scrolling through the pages.

    But the best aspect, at least for those with a wifi-only iPad, is that the Wired download comes as a complete package with all photos, videos, audio and animation, allowing users to continue their experience with or without an internet connection as they peruse the mag. That encouraged the editors and creative team to give 41 of the 61 editorial pieces an interactive component.

    Howard Mittman, Wired’s publisher, also noted that there are nine premium advertisers in the issue. While it wasn’t clear that the expectation of the June iPad issue—with Toy Story 3 on the cover—drove greater interest from advertisers, he did point out that mag pages were trending upward.

    Ultimately, the work on Wired has helped focus the R&D team and editors on what they want digital magazines to be. “There is a certain physicality to a magazine that we’re trying to preserve here,” said Scott Dadich, Wired’s creative director. “The magazine is not a website, and the website isn’t an app. So when it comes to designing features for each, we’re careful to see where overlaps occur and where they wouldn’t.”

    In trying to ensure the three formats remain distinct, Wired’s Wallace said that there was little concern that some readers would want opt to just read the website for free on Apple’s Safari browser than pay to download the digital magazine through iTunes. “That assumes that the audience for the web overlaps the person who buys the magazine,” he said. “That’s open to debate, but we think are some differences in the reader who comes to us from a search engine and one comes to Wired because they seek out the brand.”

    That idea that there are specific audience behaviors that can be reached through different vehicles also animates the thinking for the next big iPad app release this fall for Glamour. In addition to Wired, GQ and Vanity Fair, the R&D team is also working with The New Yorker, whose audience skews a bit older than the affluent, educated men and women who read VF, while Wired is almost 70 percent young men. “This structure will give us a broad overview of our audience and we expect to learn a lot of this summer,” Wallace said.

    At this point, the executives didn’t want to make any guesses for how well the Wired iPad app—the iPhone version will also be different and will be ready later this year—will do, though they said that GQ has so far sold 63,000 apps across both the iPhone and iPad since November. But because Apple doesn’t separate out how many are for the iPad, it’s a bit uncertain. Hence the reason for waiting a bit before releasing another version.

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  • MySpace: No Plans To Charge For Music Streams, Mobile Is Audience Driver


    MySpace Music

    After some good-natured tangling with Yahoo (NSDQ: YHOO) CEO Carol Bartz at the TechCrunch Disrupt conference, the site’s founder Michael Arrington laid into MySpace (NYSE: NWS) co-presidents Jason Hirschorn and Mike Jones. After (pretending?) to check a call on his cell phone, Arrington began his inquiry by asking pointedly, “So how come you’ve 25 million users since you started your reign?”

    The co-presidents dodged that one fairly well. Mike Jones explained that one-third of the News Corp. social net’s users come from mobile, which doesn’t show up in the comScore (NSDQ: SCOR) numbers.

    Arrington then dug the knife in a bit deeper: “Your music business is losing $10 million per month—is that working for you?” Again, Hirschorn and Jones continued amiably, explaining that they’re driving revenues and music sales from their free streaming. Asked if how long they can keep that service running without charging users, Jones said that the company has no plans to slap a subscription fee on music listening across MySpace. But ultimately, that depends on the labels. “We’re constantly talking to the record labels,” Jones said. “And so that could change. Right now, we’re a valuable music discovery service for them.”

    The MySpace duo was also took the opportunity to take aim some rumors surrounding the unit’s plans. Hirschorn told Arrington that “We didn’t hire [Quincy Smith’s] Code Advisors,” adding that they only have informal discussions on what MySpace should look at in terms of acquisition targets.

    In the end, Arrington admitted that he was a little tough on Hirschorn and Jones, offering a group hug—but only off-stage.

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  • Yahoo And Nokia: Focus Is On Mapping, Mail— But Not Advertising


    Yahoo Mobile Homepage

    Although they’ve been working together since 2004, the CEO’s of Yahoo (NSDQ: YHOO) and Nokia (NYSE: NOK) held a press conference in Times Square to announce the details of a new level for their relationship. The news, which leaked last week, has Yahoo providing Nokia devices with e-mail, search and services. In outlining the new aspects of the Yahoo/Nokia alliance, Yahoo CEO Carol Bartz placed particular emphasis on Nokia’s mobile mapping technology. “Yahoo lost its focus on maps a few years ago—well, not lost it, just invested in other areas, Bartz said. “By partnering with Nokia to build that up, we can still focus on other parts of the business, such as search.” She also noted that is this part of a larger plan for Yahoo to expand its existing partnerships with roughly 100 mobile companies around the world. Nokia will also help it drive growth in other markets including India and Thailand.

    Specifically, Nokia will be the exclusive, global provider of Yahoo’s maps and navigation services, integrating Nokia’s Ovi Maps across the internet company’s offerings. In return, Yahoo’s job involves becoming the exclusive, global provider of Nokia’s Ovi Mail and Ovi Chat services, which will be branded as “Ovi Mail/Ovi Chat powered by Yahoo!”

    The partnership with Nokia will not mean that Yahoo will forget about its iPhone, Blackberry and coming Android apps. For Nokia’s part, CEO Olli-Pekka Kallasvuo feels that Yahoo will help it gain greater market share in the U.S. Yahoo said co-branded services will begin to become available starting in the second half of this year and with global availability expected in 2011.

    One area that the two will not collaborate on is advertising. Bartz and Kallasvuo both said that this is strictly about consumer services. “There is no advertising relationship in this partnership,” Bartz said, though she added that at least in directly, their work on location services will help both to better tap local marketers, an area that is increasingly important to Yahoo.

    In conversation with Jason Titus, Yahoo’s VP for communications services, and Tero Ojanperä, Nokia’s EVP, services, the two discussed how adding advertising services to the arrangement was unnecessary. Essentially, if the geo-services and social media aspects of the deal work as intended, the ad dollars will flow to both companies respectively, they said. “We’re both moving aggressively in mobile advertising, and bringing the huge reach that Yahoo and Nokia have in combination, we’ll both become much more relevant to local advertisers,” Titus told paidContent.

    Asked whether there was a temptation to challenge Apple’s iAd mobile ad system for apps, Titus responded, “Apple (NSDQ: AAPL) is doing a lot of interesting things, but I don’t think that anyone should regard iAd as the be all, end all of mobile advertising. The mobile space is still just burgeoning, it’s still experimental. We’ve been doing digital advertising a long time and there’s going to be a lot of different experiences for mobile ads going forward.”

    Nokia’s Ojanperä said that the company will continue to use a number of advertising partners in various global markets. “What works in the U.S. is different than what works in China, so it makes sense for us to continue our existing relationships,” he said.

    There is one area of advertising that will see some teamwork from Yahoo and Nokia. When the unified services rollout during the second half of the year, there will be an extension of Yahoo’s ongoing branding campaign and Nokia’s promotion of its own new devices. “There will not be a dedicated device related to the Yahoo partnership,” Ojanperä said. “But we do have many exciting devices coming out, including the new N8 [smartphone], and we will advertise around those product launches.”

    In making today’s big announcement, Nokia and Yahoo needed to address the judgment that they were both being left behind by Google (NSDQ: GOOG), Apple and even, to some extent, Microsoft (NSDQ: MSFT), as all have their own mobile operating systems. The launch of these new services aren’t really about any new innovations in the space, but it certainly does help in getting both companies caught up. It may seem a little late to industry observers, but as Yahoo Titus noted, the mobile space is still pretty new for most consumers.

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  • Interview: iVillage’s Kahn: From Beauty To Pregnancy, To Mobile And Premium


    Jodi Kahn

    Since NBC Universal (NYSE: GE) acquired iVillage for $600 million four years ago, the women’s content network has tried a variety of ways to make good on that deal. After several brand restarts, NBCU brought in Readers Digest Association’s global digital head Jodi Kahn 18 months ago to finally put the network on better course. To do that, Kahn has been been on a hiring and site-launch spree the past few months. On the hiring end, she has tapped publishing vets like Glam Media’s Joe Lagani to run ad sales, while she has reformed iVillage’s verticals, like entertainment, into fuller sites.

    Today, iVillage is launching its two newest sites, Pregnancy & Parenting and Beauty & Style, and Kahn is following the same pattern that has guided her through the other vertical rollouts.

    Like the other four that have appeared after iVillage’s Entertainment site launch in September, both the Pregnancy and Beauty channels offer the promise of personalization tools, along with a mix of straightforward editorial and community features draped with e-commerce functions. While she declined to discuss how the pending Comcast (NSDQ: CMCSA) acquisition of a 51 percent stake in NBC would affect her moves going forward, in a phone interview with paidContent, Kahn said she’s sticking to the basic playbook she outlined when she started the job: Do as much research as possible, followed by a lot of testing and then see what works. The following is an edited version of our conversation.

    paidContent: There are a lot of sites for new moms and makeover how-to’s. What’s different about these two new sites?

    Jodi Kahn: As was the case for the other sites we launched over the past several months—Entertainment, Food, Astrology, Health—we did a variety of research that told us what women really wanted from the web. They wanted a mix of expert opinion and community and they wanted to find it all quickly and easily. That’s not something that most sites offer.

    Specifically, the Pregnancy site is focusing on topics that range from getting pregnant to having a family, all the issues of dealing with children through the tween and teen years. We’re positioning this site as “We’re not your doctor, we’re not your mother, we’re a friend helping you through your pregnancy.” That said, the site will feature information that’s weighted equally from moms and doctors as well.

    The Beauty site is just that—tips on makeovers and style, without surrounding it all with the latest news on celebrity looks and glamour trends. Speaking of what women want online, we’ve brought in YouTube star Lauren Luke as the site’s digital expert makeup contributor. Her online how-to beauty videos have been seen over 77 million times, which shows how highly regarded she is.

    What are the next sites on iVillage’s rollout list?

    We have a Home site coming in August. After that, we’ll be releasing a new community platform that will underlie all the site channels this summer as well. Alongside those plans, we’re going to concentrate more on mobile.

    What are the mobile plans?

    We’re going to do a reverse of what’s usually done. We’re going to create some original mobile content, and then rework it for the web. We’ve already done that in one instance. Our Astrology Horoscope page originated as an iPhone app. Of course, we’ll also take some stuff from the regular websites and apply it to mobile as well.

    Any plans to charge for any of that content?

    We probably aren’t going to charge for the mobile content, at least not right away. We already do have a tiered paid content system in place for tarot card readings on the Astrology site. The prices range from $9.95 for a month’s subscription to $14.95 for three months and $29.95 for a whole year. We’re taking what we’re learning there and will apply it to other areas of the network. We don’t have any specific plans at the moment, but it could possibly center around a particular service offering. Like everything else, we’ll pilot something, study and plot the direction.

    You talked about the mix of community voices and professional editorial and experts across the sites. How do you view Yahoo’s acquisition this week of freelance aggregator Associated Content? Is that the kind of model you might explore?

    I’m interested to see what Yahoo (NSDQ: YHOO) does with Associated Content. I think it was a great purchase, and we’re going to explore ways of bringing more writers and voices into the site. But even thinking about that sort of thing is down the road; we’re going to stick to our knitting first before trying anything like that.

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  • Android, iPad Ad Requests Surge In April; iPhone Ads Declined Slightly


    Social Media And Smartphones

    Ad requests across smartphones using Google’s Android operating system and Apple’s iPad both rose 77 percent between March and April, according to a new report by mobile ad net Millennial Media. Meanwhile, ad requests on the iPhone fell 8 percent during the same period, but the device is still the leader by far, with a 62 percent share of smartphone impressions. And if you add up the numbers since this past January, the iPhone’s ad requests are still up 1.5 percent. Way behind the iPhone at number two is Blackberry maker RIM (NSDQ: RIMM), which had a 17 percent share of mobile ad impressions, and was up 3 percent in April versus March.

    Thanks to Google’s OS’ growth, Android maker HTC entered Millennial’s top five ranking of manufacturers for the first time and represented the largest increase within the largest 15 manufacturers in April with a 2.5 percent impression share increase month-over-month.

    The rise of Android impressions is related to increasing consumer interest. Last week, Google (NSDQ: GOOG) CEO Eric Schmidt told shareholders that the company’s partners are shipping at least 65,000 handsets with the Google open-source operating system every day.

    Meanwhile, advertisers and media companies have been salivating over the revenue possibilities of the iPad, as the device’s sales have exceeded even the most optimistic expectations. Even still, the iPhone has a huge head start in terms of ad impressions, and no one, not even Google, is close to toppling it from its perch at this point. Of course, that could change quickly, depending on when and if Google’s $750 million acquisition for mobile ad net AdMob goes through.

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  • Amazon Gets Deeper Into Publishing; That Kindle Android App Is Ready


    Amazon box

    While everyone is watching to see how Amazon (NSDQ: AMZN) will counter Apple’s iPad, the online retailer is concentrating on other things. The company has unveiled its second publishing imprint, AmazonCrossing, which will acquire the rights to foreign-language titles and publish the English versions. Secondly, it has finally released a free Kindle for Android app a year after it created one for the iPhone and iPod touch and a month after its iPad app became available.

    Amazon’s publishing move follows last year’s launch of AmazonEncore, a program aimed at promoting books from independent,  unknown authors who stand a good chance of attracting a wider audience based on “buzz” from Amazon reviews. Once a book appears to garner a certain cult status, AmazonEncore kicks in with an offer to partner with the offer of marketing support and distribution through the online store as well as independent bookstores via third-party wholesalers.

    The idea behind AmazonCrossing is similar, in that the e-tailer believes it can easily find books outside the U.S. to promote and publish, as an increasing share of Amazon’s revenues come from book sales.

    Meanwhile, the addition of the Kindle Android app is designed to extend Amazon’s e-book sales to those who might not have a Kindle. All of which also gives Amazon another opportunity to show off its “openness,” as the company stresses that buying a Kindle e-book lets users read it across their PCs and Macs, as well as their Blackberry smartphones. The news also comes a few days after Google (NSDQ: GOOG) CEO Eric Schmidt told shareholders that the company’s partners are shipping at least 65,000 handsets every day.

    More about AmazonCrossing here; details on the Kindle Android app here.


  • Smartphone Security Provider Lookout Raises $11 Million


    Lookout Logo

    As the mobile web increasingly looks a lot more like the PC-based one, companies like Lookout are hoping to make a name for themselves in providing security from hacks on users’ smartphones. The San Francisco company has raised an $11 million second round.

    Aside from promising to block mobile viruses and malware, Lookout’s cloud-based app also covers data loss and theft of the phone itself. Lookout, previously known as consulting firm called Flexilis, is available is on across some 400 mobile networks in 170 countries.

    In conjunction with the funding, Lookout has also made a few executive additions. Joseph Ansanelli, former CEO and co-founder of Vontu, has been named as chairman of Lookout’s board. Also, Chris Jones was added as VP of product management. He was formerly senior director of portfolio product management at Symantec. Lastly, Julie Herendeen, previously vice president of network products and advertising solutions for Yahoo (NSDQ: YHOO), has been named VP of marketing.

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  • Groupon Gets A Ticket To Europe By Acquiring German Clone CityDeal


    Groupon

    Social shopping site Groupon has acquired European imitator CityDeal, its second acquisition this month. Terms of the deal were not disclosed. Just as Groupon bought Mob.ly as a quick way to extend its mobile services, the purchase of Berlin-based CityDeal is intended to give it a large European presence practically overnight (or 19 months, to be exact), the company said in a blog post.

    In addition to local sites in the U.S. and Canada, there will now be a Groupon geographically tailored to users in Germany, the UK, Ireland, France, the Netherlands, Spain, Italy, Switzerland, Austria, Poland, Finland, Denmark, Turkey, Sweden. It is also working on adding sites for Norway and Belgium.

    By way of explaining the reasoning behind the purchase of CityDeal Andrew Mason, Groupon’s founder and CEO explains on the company’s official blog, it was more than enough time and effort to make local sites from Miami to Philadelphia distinctive enough. To do the same for a more than a dozen country-specific sites required an established presence.

    CityDeal has raised about €4 million ($5.6 million) after launching late last year. It is part of an increasingly crowded list of social shopping sites on both sides of the Atlantic, including leading sites like Gilt Groupe, which just raised another $35 million as it tries to expand its business and stay ahead of the pack. Release

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  • Fox News Preps Paid Apps—But Starts With A Free One


    Jeremy Steinberg, Fox News

    While it may seem that every major media outlet has had an iPhone app available for some time, there are a few holdouts. Fox News Channel has been one, but the News Corp (NYSE: NWS). cable net will announce the launch of the iPhone app later today. In a conversation with paidContent, Jeremy Steinberg, FNC’s VP for digital sales & business development, says the network didn’t feel there was a need to rush into the app space until advertisers were ready for more serious placements. In the meantime, FNC doesn’t plan to rely solely on ad revenues for its mobile offerings, as Steinberg says that the network is developing some paid apps for release later this year.

    While FNC has tended to trounce CNN in many of the most important TV ratings categories, the CNN iPhone app has held the number one slot in paid news apps since it first went on sale last September for $1.99. Since the FNC app is free, the two won’t be directly competing. But FNC’s entry into the app market may allow it to build up some interest before unveiling a paid app later on.

    In looking at the mobile ad landscape, Steinberg sees it as still between experimental and meaningful. “A lot of advertisers in the space are looking at expanding their footprint, and over the past year, with the growing adoption of the iPhone and now the iPad, eyeballs are really turning to mobile apps,” Steinberg says. “In all the conversations we have with advertisers today, mobile always comes up.

    “That said, we feel strongly that it’s necessary to create a significant dual revenue stream to match what we have at the cable network,” he adds. “So there will be paid mobile apps down the road and we will offer unique, premium content.”

    The FNC iPhone app does have a noteworthy sponsor in Sprint (NYSE: S), which will be the exclusive advertiser for the next month and could try to capitalize on users’ frustration with the AT&T-powered connection for the Apple (NSDQ: AAPL) device. For now, there are no plans to release an app for Google’s Android, though Steinberg said one is likely.

    As for the iPhone app itself, it will offer live streaming video as well as clips and news updates. The app will also promote listening to Fox News Talk Radio with live streams.

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  • Gadget Media: Gawker’s ‘Lost’ iPhone Story: Denton Would Do It Again


    iPhone 4

    The big device news this week was Gizmodo’s post about the Apple (NSDQ: AAPL) engineer who lost a prototype for the next generation iPhone. Naturally, that was the lead topic kicking off paidContent parent ContentNext’s State of Gadget Media conference held at Edelman’s SoHo offices, as MediaMemo‘s Peter Kafka put the first question to Nick Denton, head of Gawker Media, publisher of Gizmodo. One of the controversial aspects of the news was Gawker’s use of “checkbook journalism” to get the story. As Jeff Bercovici pointed out, Gawker could face legal issues regarding the handling of possibly stolen goods. So Kafka asked Denton if there was anything he would have done differently. Denton, without missing a beat, answered no. Except for one thing.

    The only thing Denton would have done differently was to wait to out the hapless engineer, Gray Powell, so soon after the initial story. “We could have waited a few days and milked the pageviews.”

    Nevertheless, according to Denton, there have been a lot of pageviews and visits. On average, Gizmodo gets about 500,000 uniques a day; the iPhone story pushed it to 2 million.

    Rafat Ali, publisher and editor of ContentNext, asked Gizmodo competitors how they would have handled the story. Scott Ard, editor-in-chief of CNET said that they would never pay for a story. “Our readers expect that of us and they care that we don’t pay for news,” he said, adding that he wouldn’t want CNET to incentivize criminality. MacRumor‘s Arnold Kim also said that he wouldn’t pay for news, but if he had the story about the lost iPhone, he certainly would have run it.

    As a marketer, Kim Titus, public relations director for Samsung, has watched the iPhone story this week with amusement. But from a news story, he sympathizes with Apple, saying it hasn’t helped the product. “The news that has emanated from Gizmodo‘s story is all about how they got the news, nothing about the product itself,” Titus said. “It’s all journalists talking about journalists.” At that, Denton, seeming a bit weary of the topic himself, said with more than a dash of sarcasm, “Yes, that’s always interesting.”

    Track up-to-the-minute coverage on State of Gadget Media on Twitter via the #gadgetmedia hashtag

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  • AT&T Beats Estimates, But Revenues Remained Flat


    AT&T Bars

    A day after Apple’s earnings were catapulted by iPhone sales, the device did pretty much the same for carrier AT&T (NYSE: T). The telco’s adjusted net income was up significantly—a $1 billion non-cash charge it attributed to the health care reform bill sent profits down by 19 percent in actual terms—and that was enough to beat analysts’ estimates. Still considering that it added 1.9 million wireless subscribers in the quarter—the highest quarterly total in company history, giving it 87 million subs in all—revenues were pretty lackluster, remaining virtually flat year-over-year. The company also signed on 2.7 million iPhone activations, with more than one-third of the activations for customers who were new to AT&T.

    AT&T also said it added 512,000 postpaid subscribers,  That was down from 897,000 the year before, but analysts had factored that in as well. Other highlights from the release:

    —Revenue per monthly subscriber were up 10.3 percent, with postpaid subscriber revs up 3.9 percent—the fifth consecutive quarter with a year-over-year increase in postpaid ARPU
    —3.3 million net increase in 3G postpaid integrated wireless devices on AT&T’s network to reach 26.8 million, more than double the company’s year-earlier total
    —The AT&T U-verse TV wireline unit has tended to struggled, but it managed to experience a net gain of 231,000 subs in Q1 to reach 2.3 million users.

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  • News Corp. Buys Social Gamer Irata Labs


    Irata Labs

    News Corp. (NYSE: NWS) has acquired Irata Labs, a developer of social games across Twitter and Facebook. The deal’s terms weren’t disclosed. The San Francisco company is not expected to be folded into MySpace or game network IGN Entertainment, according to the LAT, which cites unidentified sources. But Irata will be tapped to work with various News Corp. holdings when needed, suggesting that digital head Jon Miller has separate plans for growing Irata as a standalone. At the moment, the company says it’s developing a location-based platform for social gaming.

    Irata’s has two main products that it developed. Its most popular one is Spymaster, which debuted last year and is played mostly on Twitter—one of the few games that have emerged on the microblogging site—and on Facebook. The other is iList Micro, which lets users turn Twitter into a classifieds section, allowing them to look for things to buy according to ZIP code or product type.

    The company consists of just three people—CEO Chris Abad, software architect Ben Myles and creative director D. Keith Robinson. About two years ago, the company received $1.5 million in initial backing for iList from Dmitry Shapiro, founder of the Veoh Networks (which declared bankruptcy and was then sold to Qlipso earlier this month), Assistly CEO Alex Bard and Draper Fisher Jurvetson,

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  • Lifetime’s iPad Ad Blitz Promotes ‘Project Runway’ Finale


    Project Runway Video Player

    Although the iPad is the hands of less than half-a-million people, Lifetime is targeting those users with an ad campaign for this week’s season finale of Project Runway. The campaign features “behind-the-scenes” video from the series during Fashion Week. iPad users will also be able to to vote for which designer they think will win this season. The ad units are in HTML5—not Adobe (NSDQ: ADBE) Flash, which doesn’t run on the iPad—so viewers can also watch full screen videos from the show. While the iPad is top of mind for this campaign, it will also run on Apple’s iPhone and Google (NSDQ: GOOG) Android phones as well.

    The use of “rich media” in ad campaigns is hardly novel at this point. But with companies like Gannett’s PointRoll and Interpolls, which worked on the Lifetime campaign, gaining traction, the use of rich media as opposed to “static” banner ads is likely to become more prominent as online ad spending comes back. Online video ads will play a larger part of that. According to the last eMarketer forecast, spending growth for online video will run in the 34 percent to 54 percent range between last year and 2014—growing from $1.4 billion in 2010, to $5.2 billion in 2014.

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  • USA Today iPad App Will Go Subscription Model This Summer


    USA Today iPad App

    USA Today’s free, solely ad-supported iPad app will switch to subscription in July when the app’s exclusive sponsorship deal with Courtyard by Marriott concludes, Gannett (NYSE: GCI) CEO Craig Dubow said during the company’s Q1 earnings call. The app, which hit Apple’s iTunes App Store just before the iPad launched nearly two weeks ago, has been downloaded 175,000 since then, Dubow said. It is currently number one among iPad news apps, while USAT’s iPhone app, which launched in December 2008, currently ranks the number four in the same category. The company is still in the process of determining the pricing structure for the iPad app subscription, such as whether existing print subs would get a discounted rate or have free access.

    No word on whether the iPhone app would also become a subscription product. In addition to the USAT news app, the paper also has a free iPhone travel app called AutoPilot. A Gannett rep did say that USAT doesn’t expect the introduction of the paper’s iPad app to detract in any way from its iPhone version, which is nearing 3 million downloads. The company began charging for an e-paper version of USAT last August.

    Later in the call,  Dubow said that the subscription for the USAT iPad app would kick in after July 3rd or July 4th, when the Courtyard Marriott’s sponsorship ends. Asked what the expectations were for advertising and continued popularity of the iPad app, Dubow responded, “Keep in mind, we’re only in this two weeks. The download numbers are encouraging. But it’s hard to say what impact the subscription will have on growth of the app. We’re going to have to get a good read as to whether its replacing print subs or not. The more people see how beautiful it is, I expect we’re going to see continued growth for similar numbers. I believe Apple (NSDQ: AAPL) is covering the [iPad] supply issue, but I wouldn’t comment regarding what this means for the Kindle version; the two are different. I don’t think the Kindle version has the traction that we have on the other side. We see where all this headed.”

    As USAT’s iPad app goes subscription, Dubow believes that advertiser demand will still hold steady. As for the pricing, he and Gracia Martore, COO and president, said that they have yet to settle on a price structure for the app subscription. “We’ll be evaluating user data and other metrics going forward and we’ll figure out the pricing for the iPad app subscription.”

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  • FT Deal With Foursquare Lets Users ‘Unlock’ Paywall


    Financial Times

    The Financial Times’ metered online paywall system is considered one of the more successful models, but a new partnership with location-based social net Foursquare is aimed at younger readers who are most resistant to paywalls. The partnership will launch sometime in the next few weeks, Business Insider reports

    The partnership is limited to specific areas on Foursquare, which lets users “check in” at various locations via their mobile phones, alerting users they’re connected with. The FT has chosen a number of cafes and businesses situated within business districts and schools such as Columbia, Harvard and the London School of Economic, among others. When Foursquare users check in at a designated spot, they can earn points that will ultimately unlock the FT.com’s online subscriptions, which can run from $183.04 for 52 weeks (or $3.59 per week) for unlimited access to $299 ($5.75 per week) for mobile access included as part of a premium sub.

    The move is notable because the FT has been so ardent in defending its pay system. Clearly, the Foursquare deal shows that the FT isn’t about to give up on its metered model, but it demonstrates that even one of the prime examples of paywalls has to be flexible when it comes to attracting younger users.

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  • iAd Solves Some Problems With Mobile Ads—But Not The Most Important Ones


    Apple iPhone Os4 iAd

    The iPhone has already been credited with helping to lift the mobile ad space out of obscurity, and Apple’s new ad platform will further capture the attention of marketers and ad-agency creatives, helping to drive new revenues.

    But iAd’s impact will be limited for two reasons. The first is the lack of a standard metric for mobile advertising, which continues to hold back online ad spending in general. Until Apple (NSDQ: AAPL) can solve that problem—outside app analytics companies like Flurry are certainly trying—mobile buys will continue to be modest and mostly experimental.

    To put it in perspective, eMarketer says marketers spent just $416 million on mobile ads in 2009—compared to the $22.7 billion spent across the web last year, according to the latest numbers from the Interactive Advertising Bureau. The other constraint about iAd is that it’s mostly a self-interested solution. It’s app-centric, and the majority of the mobile universe doesn’t use an iPhone and that won’t change anytime soon.

    In his presentation earlier today, Jobs expressed a sentiment that even many mobile ad evangelists concede as well: “We think most of the mobile advertising really sucks. We thought we might be able to make some contributions.”

    But the main contribution Jobs is talking about involves making the iPhone app experience a little less vexing. As Apple explains in its release, when users click on mobile ads, they’re almost always taken out of their app to a web browser, which loads the advertiser’s site. Most of the time, that process completely cuts users off from what they were originally doing in the app. So, iAd’s solution is to offer advertisers a full-screen video and interactive ad content without ever leaving the app, and letting users return to their app anytime they choose.

    This actually does solve some important issues for marketers and agencies. For one thing, users might be more apt to click on an ad if it looks better and doesn’t force them to start over when they return to their app. Even more than PC-based online ads, mobile advertising has been particularly plagued by a stunning lack of creativity. A wider, and more interactive, canvas, could result in some more spending.

    But the overarching problem is that no one can agree on what is the most important mobile ad metric to track, and the systems for measuring from analytics companies are still considered inadequate. There are so many companies offering competing metrics, no one can say which is the standard. To put it more simply, the TV ad market works because everyone agrees on the value of a Nielsen ratings point. That’s missing in online advertising, and is even more elusive with mobile.

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  • HuffPo Launches Separate ‘Twitter Edition’; More Focus On Real-Time News


    Arianna Huffington

    The Huffington Post is launching a “Twitter edition” that is intended to serve as an extension and a distinct entity from the main news and opinion site, the company told paidContent. The primary purpose is to harness the social networking aspects of the site to create a real-time news service for each of HuffPo’s 19 sections. The move follows the introduction of sponsored Tweets across a number of channels as part of president and chief revenue officer Greg Coleman’s goal doubling HuffPo’s revenue over the next year. But in separate conversations with co-founder and editor-in-chief Arianna Huffington, CEO Eric Hippeau and chairman Ken Lerer, I was told that the advertising part is secondary, at least for the moment.

    Right now, the key thing is to get HuffPo users to accept and use the new Twitter edition format and the three executives are confident that they will. (Examples of the Twitter edition pages include tech, politics and comedy.)

    “The idea is to produce an entirely separate edition from The Huffington Post with the same kind of content we always have provided—but super-charged, if you will, for Twitter users,” Lerer told paidContent. “We think it’s reasonable to assume that there will be more and more Twitter users; we think it’s here to stay. As more users get accustomed to it, this will be a way that users will increasingly seek their news from our site. I can see people coming to the main site and going to the Twitter editions. Eventually, I can see people just going to the Twitter edition instead of the main Huffington Post sites and verticals. Ultimately, it will end up being as significant an addition to The Huffington Post as we’ve made to date.”

    At least at first, HuffPo readers will not be going straight to the Twitter edition. As Huffington told me, the Twitter edition front page is still in the works. “We want to see how people use the Twitter edition and that will influence how we create the front page for it,” she said. She described the integration of the Twitter format into HuffPo as a natural step for them. “Twitter has become an essential means of newsgathering and sharing. But readers want someone who can sift through all the feeds and curate the best, most relevant news. And that’s our role.”

    She noted that editors of the 19 HuffPo sections, including the local sites, will be the curators of the corresponding Twitter edition verticals, which include politics, technology, entertainment and other channels. The tweets won’t just come from HuffPo regulars, Hippeau added. “This is our way of doing breaking news, using real-time Twitter feeds of people that we have followed, people who have a certain authority on the news we cover, whether it’s health care reform or the Academy Awards or technology or sports.” The site’s audience will also be able to enter their Twitter account IDs and tweet from the HuffPo Twitter edition as well.

    “We’re one part social network, one part news content site,” Hippeau said. “So for us, the question has always been how to use Facebook, Twitter and other social networking tools and our content and integrate it with our advertisers. There’s a number of different ways we can do this. But for right now, along with everyone else, we’re still in the experimental stage and we’re testing a variety of methods and ideas.”

    In terms of deriving revenue from the Twitter edition, Hippeau, Huffington and Lerer said that is coming soon as well. How soon? Hippeau said there might be some clues next week after Twitter is expected to formally discuss its revenue model at its Chirp conference. “We hope after they announce it, we’ll be able to partner with them on whatever they’ll be offering,” Hippeau said.

    Speaking of the business, I asked all three how the company’s revenue growth and profitability are faring. We have heard rumors that HuffPo, which raised a huge $25 million funding in December 2008, was having some cash problems and might be seeking an additional round. All were adamant that HuffPo would not be raising more money anytime soon. “I hadn’t heard those rumors, and the idea that we need a cash infusion is completely wrong,” Hippeau said. Lerer added, “A significant portion of the $25 million is still in the bank, if we needed it and we don’t.”

    While they noted that HuffPo doesn’t release its financial numbers, all insisted that revenue had doubled in the past year. Hippeau said he expected the company to reach profitability sometime this year. “The latest comScore numbers have us at 24 million monthly uniques and the panel-only numbers have us at 12 million, which is more than 100 percent growth over the previous year,” Hippeau said. “We’re confident that our business is solid and that we’ll continue to double revenues this year as well.”

    Update: Here’s HuffPo’s announcement (pdf).

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  • Personalized Talk Radio Service Stitcher Closes $6 Million Second Round


    Stitcher

    Stitcher, a service that lets talk radio listeners move programs to their mobile devices, has completed a $6 million second round funding. The round was led by Benchmark Capital. Previous backer New Atlantic Ventures also participated, as did individual investors Ed Scott and Ron Conway. San Francisco-based Stitcher plans to use the proceeds for general product and platform development.

    Stitcher’s service is free and resembles what LastFM and Pandora do for music. Users pick their radio programs and add it to a customized “station” on their mobile device. The two-year-old Stitcher previously raised $3 million in funding.


  • The Economist’s Paywall Rises A Little Higher


    Economist Obama Cover

    The Economist is once again extending the range of its paywall, Mediaweek reports.  Last October, the magazine, which already commands one of the highest subscription fees among popular titles, limited free online access to print articles less than 90 days old after previously charging for items that spent at least a year in the archives. Now, all of the digital pieces from the weekly print mag will require a subscription, though some news updates and blog items will remain free on Economist.com.

    The change comes as The Economist prepares to unveil a paid app for Apple’s iPad and iPhone. The goal is to have fairly uniform pricing across all platforms, as the print version generally charges $103.50 and a subscription on Amazon’s Kindle costs $10.49 per month (or $125.88 for a whole year).

    While the first two days of the iPad’s release didn’t appear to show much movement among paid media apps, The Economist has been one of the few magazines to buck the trend to lower subscription rates among magazines. Whether it can extend that stance to apps is an open question, but it’s certainly better positioned than most other news outlets.

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  • Salon’s Traffic Rises, But Ads Struggle; CEO Calls iPad A ‘Fatal Distraction’


    Richard Gingras, Salon CEO

    If you want proof that more traffic doesn’t necessarily translate into more ad revenues, consider the news and culture site Salon. The site credits last November’s design overhaul with growing the site to 6.3 million global users in March, a 35 percent versus the same period last year, according to internal Omniture (NSDQ: OMTR) numbers. The site says traffic is up 22 percent for Q1 as well. But Salon CEO Richard Gingras says that doesn’t mean that ad dollars are rolling in proportionately. “We do see signals of advertising coming back, but it’s not coming back as fast as we’d hoped. The economy is still weak and media buyers are still cautious.”

    comScore (NSDQ: SCOR) puts Salon’s traffic for February at 3 million visitors in the U.S., putting it behind sites like Slate.com, which ranks last on comScore’s top 10 general news sites, with 4.5 million unique visitors. So Salon, which has been around since 1995, has a lot of catching up to do. Aside from the redesign, which emphasized shorter, punchier content, Gingras credited smarter search- and-distribution strategies for pulling in bigger audiences. “We’ve been able to drive referral traffic up from search engines, social media sites, and third-parties, which is tricky to attract because it is directly dependent on site content.”

    The site certainly benefited from the interest in the healthcare debate, but Gingras wants to ensure that Salon doesn’t have to rely mostly on big news items. He started building out into verticals like Salon’s food channel, which also includes e-commerce. He plans to add more verticals in the coming months, but he declined to say what other areas Salon will be branching out into. Possible areas include more consumer-electronics and women’s content. “It’s important for Salon to expand beyond news and politics,” Gingras said. “Aside from having clearly defined topic pages, you have to be opportunistic with editorial content on the web. It’s driven by editorial personality, and we’re trying to develop those voices as well.”

    Gingras says mobile will also get more attention, with iPhone and Android apps in the works. He expects to charge around $2 for the app downloads.“I don’t see charging for subscriptions on phones either, since we’ve had experience with paywalls and they weren’t successful.”

    As for the iPad? “Personally, I’m eagerly awaiting the iPad,” he says. “I’m not spending a whole lot of time thinking about it for Salon, though. I think the iPad is a fatal distraction for publishers. They have this view that it will save them and help bring back the old model. That’s not going to happen. If it becomes a more commonly used device, I could see creating something special for it. But not right now.”