Archive for November, 2009

MySpace Reaches Deal With Another Music Label

The “virtual fifth label” is now friends with MySpace.  Merlin, an organization that represents independent music companies, is supposed to have signed a deal with the social network that should nicely complement MySpace’s existing partnerships with EMI, Sony, Universal, and Warner.

Merlin’s association with indie artists and late arrival to the music scene (it launched in January of 2007) set it apart from the so-called Big Four.  Just the same, Merlin’s a major force, with members in more than 25 countries, and names like Cat Power, Tom Waits, and The White Stripes linked with it.

So it’s quite noteworthy that, according to Andrew Orlowski, a Merlin spokesman stated, “After more than a year of negotiations, MySpace Music has finally offered Merlin a deal that is acceptable to its members, members who represent 10% of the global music market.”

What’s more, “The same eligibility and level of participation will be offered to all independent labels licensing content to MySpace Music.”

Of course, the details of the arrangement haven’t yet been made public, which leaves a lot of questions unanswered.  But it looks like MySpace, which acquired Imeem just yesterday and launched MySpace Music Charts the day before, is really on a roll on the music front.

Related Articles:

> MySpace Picks Up Imeem

> MySpace Launches New Music Charts

> MySpace’s “New Moon” Webcast Brings In 3m Viewers

eBay Completes Skype Sale

It looks like the eBay-Skype spectacle has finally come to a close.  Despite all of the arguments (legal and otherwise) that cropped up at one point or another, representatives of both companies announced last night that the sale of Skype to an investor group is complete.

Josh Silverman, the president of Skype, adopted a rather enthusiastic approach when breaking the news.  He wrote on the Share Skype Blog, “Great news – we’ve closed the deal with the new investors. . . .  Our journey continues: say hello to the future!”

And that future appears to be a bright one, by the way.  As had been agreed earlier, the transaction valued Skype at an impressive $2.75 billion (impressive if you ignore the fact that eBay bought it for $2.6 billion in 2005, anyway), and $1.9 billion in cash actually changed hands as the investor group acquired a 70 percent stake.

What’s more, the investor group (which was led by Silver Lake) includes such interesting organizations and people as Andreessen Horowitz, the Canada Pension Plan Investment Board, Joltid Limited, and Skype’s original founders, Niklas Zennstrom and Janus Friis.

This would appear to make it much more likely that SkypeIn service will expand into Canada, and there’s no telling how else the new owners will try to grow and improve the company.

Related Articles:

> eBay And Skype Settle Litigation

> Skype Founders Reportedly Close To Settlement With eBay

> eBay Sells Skype, Which Is Worth $2.75 Billion

Americans’ Social Media Habits Highlight Business Potential

Euro RSCG released some interesting findings from a study exploring the different ways Americans are using social media to “redefine their lives.” The study looked at 1,228 social media users in the United States.

“Word of mouth has always been the most powerful marketing tool; what social media has done is dramatically increase the scale, velocity and immediacy with which people can influence each other and create the biggest revolution to hit our industry since television,” said David Jones, global CEO of Euro RSCG. “One of the interesting findings of the study is that it’s the combination of online and offline experiences that creates the biggest impact.”

Other findings include:

- Even though 53.5% of respondents have met new people through electronic media, face-to-face interaction is still the “gold standard”

- Consumers are engaging more in multi-way exchanges of ideas and opinions among consumers and brands

- Consumers are not only move involved with family and friends, but they have increased involvement in political and humanitarian issues.

- 40% agree that social groupings online can be truly social, while only 14% disagree. According to Euro RSCG, figures varied little across age, gender, ethnic, or income groups.

“Online social networking has become part of our culture so quickly, it’s easy to forget just how new it is and how much it’s a work in progress. People are still experimenting with the different options and finding ways to make it part of their life,” said Marian Salzman, president of Euro RSCG Worldwide PR, North America. “Forget the images of sad antisocial types. Smart consumers are mixing and matching the tools that come available to meet their social needs. Electronic tools are making them even more socially active, just as the telephone did back in the day.”

Perhaps more interesting than the statistics provided by the firm, are the key takeaways it cites. This includes things like the fact that social media is an important consideration for any communications strategy, and the fact that it’s impossible to predict how bits of communication will spread across social media.

The firm also says that even though the web is world-wide, its emerging power is hyperlocal. This is because this is the space where online and offline most often meet. That is a key reason why businesses, particularly local businesses should not ignore social media.

Related Articles:

> If You Care About Search, You Must Care About Social Media

> A Few Guidelines for Drafting Social Media Guidelines

> Businesses Benefit From Reviews On Their Website

Excuse Me, But Where Did Google’s Organic Search Results Go?

In the past many SEOs have called organic search results the results on the left side of the page and the pay-per-click / AdWords results as the results on the right side of the page. As Google has grown more aggressive with promoting vertical/universal search I think a better way of defining the portions of the search result page are ABOVE THE FOLD and BELOW THE FOLD.

As recently as yesterday Google stripped the phone numbers off of non-sponsored map listings, even if you were doing a navigational search! And that shows that the primary goal of the maps is as filler content (rather than utility).

Update: it looks like Google claimed the phone number removal was a bug, but weird timing that the bug appeared at the same time they started selling premium local ads that appear on the regular search results.

So lets redefine these search result pieces as they are…

• AdWords Ads: the ads at the top of the search results and those which run down the right rail of the search results.
• Universal Search Results: filler stuff to put in the search results to a.) drive the organic search results lower down the page, while b.) driving additional incremental click volume to other Google properties which display ads.
• Organic Search Results: the results on the search result page that are determined algorithmically and appear below the fold. On some larger monitors a listing or 2 from this category may appear above the fold, at least for the time being.

In the future A LOT of verticals (movies, music, books, news, ecommerce, travel, etc.) are going to look more and more like local, where Google in some cases has at least 15 ads above the fold AND filler pushing down the organic search results…quietly building a backdoor portal that sends Google the second click if they were not able to monetize the first one.

To me this screams the importance of working the tail of search, because the more obscure a search query is the greater the risk to Google if they pollute it with junk from vertical search databases.

As Google gets stingier with their traffic that will increase the importance of relationship development and lead capture, as well as developing distribution channels outside of Google.

This new search result layout also highlights the importance of being #1 for your most important keywords…if only 1 result is going to show above the fold then there is little point being #2. So that will really help/force you to decide which words are practical to target and which words are not. If you have some valuable #3 or #4 listings you better start marketing them today before they end up below the fold tomorrow.

The last important thing this search result signals is the importance of increasing conversion rates and lifetime customer value…if/when search becomes pay-to-play in your market, will you still be able to compete? If not, what can be done to help bridge that gap?

Facebook Sends Cease And Desist To Friend-Seller

uSocial is a controversial advertising company that specializes in social media.  For a fee, it promises to get stories on the front page of Digg, direct followers to a Twitter account, and/or find someone Facebook fans (among other things).  But Facebook’s put at least a temporary stop to the sale of friends.

The BBC reported this afternoon, “Facebook sent Cease and Desist letters to USocial claiming that the way the marketing firm operates violates its rights by sending spam, using web tools to harvest pages, getting login names and by accessing accounts that did not belong to the marketing firm.”

As a result, “USocial defended itself against Facebook’s claims, saying that it did not spam users or use web tools to gather information about profiles. . . .  However, in response to the legal letters, USocial said it would delete the login information it had collected and broadly stop offering to sell Facebook friends.”

This is an interesting development insofar as, three months ago, Twitter also tried to crack down on uSocial.  Its back-channel methods apparently didn’t succeed, but now that Facebook’s established a precedent, we might see another attempt.  Delicious, Digg, and Reddit could well join the fight, too.

Of course, the hubbub around such a scuffle would act as free advertising for uSocial and might spread the notion that these social media sites can be gamed, so it’s also possible that absolutely nothing will occur.

Related Articles:

> Facebook Puts Privacy Policy In Users’ Hands

> Facebook Blocks Popular iLike App

> Want More Facebook Friends?