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Article by John Backus, Partner New Atlantic Ventures

“Much has been written about the explosive growth of smartphones and tablets, but apps are what make them useful and are driving their adoption. IDC estimates mobile app downloads will reach nearly 182.7 billion in 2015. There are now nearly one million apps, mostly for Apple and Android devices, and Gartner projected app revenue from app stores alone will reach $58 billion by 2014. Apps are big business.

But this sheer volume of apps creates real complexities for app developers and consumers alike. As a developer, how does your app stand apart from the pack? As a consumer, finding the right app is like looking for a needle in a haystack.

Conventional wisdom suggests that search is the answer. Chomp, Quixey and even Yahoo! let you discover apps through search. Others are trying to help you search for apps with various algorithms, through social networks and games.

I disagree with this this entire approach.

Search is not the answer for app discovery – finding the top apps is serendipitous.

We find our best apps today by talking to our friends at a restaurant, by reading about them in a blog or an article, or by stumbling upon them on a recommended or top ten list.

Not a month goes by when an entrepreneur I meet, developing a smartphone app, can’t quite answer a simple question: How will you market your app to your customers? All too often the answer lies somewhere between “Apple is going to feature my app,” and “I’m going to advertise it in other apps.” Neither is a compelling answer, nor likely to help developers build a big business.

We’re placing a big bet, alongside VC media giant, Syncom, that serendipity will drive the app discovery process. That’s why we invested in Apptap. Similar to what an ad network does today, serving you ads based on the content of the web page you are viewing, AppTap serves you apps to consider, based on that same content.

A USA Today online reader, browsing an article in the sports section, is likely interested in seeing sports-related apps. A visitor to TUAW (The Unofficial Apple Weblog) is likely to be intrigued by cutting edge Apple iPhone or iPad apps, but not by an advertisement on basket weaving. A Pandora iPhone listener, on the other hand, is likely not interested in clicking out of Pandora to check out a flashing app advertisement.

So if you are a developer, quit trying to trick customers into downloading your app via incented downloads. Don’t run random app ads, it is too reminiscent of early run-of-site banner ads. And don’t think that hoping to be featured in someone else’s app store is a good strategy.

Instead, put your app where your customers are likely to discover it, and you will be well on your way to growing your audience with users actually interested in your app.

Originally published on the Huffington Post, January 13, 2012. Follow John on Twitter @jcbackus”

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Article from GigaOm.

“2011 has been a year of milestone birthdays in tech. September saw Google become a teenager, email hit the big 40 in June, and even Twitter turned five back in March. Perhaps the most significant tech birthday this year, though, was the World Wide Web itself turning 20.

In 1991 British scientist Tim Berners-Lee posted a brief summary of the World Wide Web (or W3) project on the alt.hypertext newsgroup, writing:

“The WWW project was started to allow high energy physicists to share data, news, and documentation. We are very interested in spreading the Web to other areas, and having gateway servers for other data. Collaborators welcome.

It’s safe to say that Berners-Lee’s invitation to potential collaborators went fairly well. That initial web page has expanded to more than 19 billion pages (at the last count) and there are millions and millions of workers across the globe who rely on the World Wide Web to go about their daily lives. In those 20 years, the changes to the workplace that have taken place thanks to the Internet are nothing short of remarkable. Email is as good a place as any to start.

You’ve got mail

Try to explain the workplace B.E. (before email) to someone under 30, and you could be describing life in the 19th century for all the relevance it has to their working day. Back then, we lived in a world in which quaint technologies such as the fax machine prevailed. With the fax machine, it was not unusual to wait days for a reply.

Later, when Web-based email began to grow in popularity, it transformed communication in the workplace. You could now receive a response to a question within minutes, especially once broadband connections became more commonplace. You could send information and documents to colleagues around the world at the click of a button.

Email overload

But technology was now developing at a pace that seemed astonishing even to those who worked in the industry, and email, after a honeymoon period, hit problems. “Too intrusive,” said some. “Too much of it,” said others. “Not quick enough,” moaned the rest.

When consumer-based instant-messaging technologies infiltrated the workplace – AIM launched in 1997 and Yahoo! Messenger (then Pager) in 1998 – users were suddenly able to communicate with co-workers in real-time. Years later, these tools would often be integrated into a platform that also included voice over Internet protocol (VoIP), shared whiteboards, video conferencing and file transfer features.

It was around this time that social networks also began to establish a presence. Some of these are undoubtedly more consumer-focused, but there can also be no denying that Facebook, LinkedIn and Twitter have had a massive impact on working life, too. The ability to communicate and share content with your extended network (and beyond) has transformed many of our traditional working practices. As well as enabling businesses to engage in two-way conversations with their customers, these social networks are now a central part of the recruitment process. Last year, I wrote a piece on how Facebook, LinkedIn and Twitter can enable you to find a team of peers without breaking the bank of recruitment agencies. You can tap into your workforce’s network and find like-minded, talented people to become part of your company.

Getting ready to collaborate

The net result of all the technological developments outlined above has been to change the very fabric of how we work. We now live in a collaboration economy. To share and communicate information, ideas and innovation has never been easier, or come more naturally to the workforce. The emergence of the Web has given rise to a global working village, with location and time zone utterly irrelevant. You can work as closely with someone in another country as you would with someone sitting opposite; work from home or on the move, and even send files from your mobile handset to someone on the other side of the world.

This has all been made possible by the World Wide Web. From Skype to smartphones and social networking to SaaS, it’s all underpinned by the internet and the changes to the workplace of 20 years ago are just extraordinary. With a global mobile worker population set to hit 1.19 billion by 2013, one can only wonder what the Internet will bring us next. Bring on the next 20 years!”

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Article from SFGate.

“Google reported sales that beat estimates Thursday as businesses spent more on advertising to online consumers.

Third-quarter sales, excluding revenue passed on to partner sites, rose to $7.51 billion, Google said on its website. That topped the $7.23 billion average of analysts’ estimates compiled by Bloomberg. Net income climbed 26 percent to $2.73 billion ($8.33 per share) from $2.17 billion ($6.72) a year earlier.

Google, despite concerns about the economy, is benefiting from growing demand for online advertising, including search-based marketing that makes up most of its sales. Search-based advertising should reach $37.7 billion this year globally, up 23 percent, while total Internet ad spending should climb 20 percent, according to media researcher MagnaGlobal.

“Search is good,” said Kerry Rice, an analyst at Needham & Co. in San Francisco who rates the stock a buy and doesn’t own shares. “Paid search is still the biggest component of online advertising, and Google’s obviously going to win the vast majority of that dollar.”

Google rose 1.9 percent to close at $558.99 on the Nasdaq Stock Market. The shares have dropped 5.9 percent this year.

Third-quarter profit, excluding some items, was $9.72 a share, exceeding the $8.76 average of analysts’ estimates.

Even with more competition from Microsoft, Google picked up market share in the United States, according to Efficient Frontier Inc., which helps companies promote products online. Google had 82 percent of spending on search advertising in the third quarter, up from 81 percent in the two previous quarters.

Microsoft, which provides search and ad services for Yahoo’s U.S. websites under a new agreement, had 18 percent, down from 19 percent in the previous two quarters, according to Efficient Frontier.”

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Article from Business Insider.

“Douglas Leone of Sequoia Partners just finished on stage at TechCrunchDisrupt, and he had some interesting advice for young founders: stop talking.

On stage with Mike Arrington, he gave the following advice for small startups:

Little companies have really 2 advantages: stealth and speed. You [Arrington] come from the world of speed and no stealth.

The best thing for little companies do is to stay away from the cocktail circuit….We at Sequoia have never released a press release in 35 years….Then run like a son-of-a- gun. Don’t say anything to anybody.

Leone contrasted the startups from when he started in 1988 with the companies he sees today. Back then, startups were building infrastructure — like chips — and that took an older founder with some experience at a big company, then a team 15 or 20 people who would lock themselves in a building and spend 12 and 15 months building “fundamental IP.”

Now, a couple of young smart people can create a beta Web site over a weekend and iterate from there. A lot of younger founders “don’t know what they don’t know,” and that creates the temptation to talk too much.

He’s worth listening to: Leone claims that Sequoia has never lost money on a fund, and has returned between $15 and $20 billion to its limited partners on an estimated total investment of between $5 and $7 billion. The company’s early investments include Yahoo, Google, and YouTube.”

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Article from SFGate.

“Here’s a mind-numbing stat: Americans spent a total of 53.5 billion minutes on Facebook in May, according to a new Nielsen study released Monday.

In fact, the media-measurement firm’s new report on social networking found that Americans spent more time on Facebook than on any other website – and it wasn’t even close. Yahoo was second with 17.2 billion minutes in May and Google ranked third at 12.5 billion minutes.

With Americans now spending nearly one-quarter of their overall Internet time on social networks and blogs, Nielsen said the results show “how powerful this influence is on consumer behavior, both online and off.”

“Whether it’s a brand icon inviting consumers to connect with a company on LinkedIn, a news ticker promoting an anchor’s Twitter handle or an advertisement asking a consumer to ‘Like’ a product on Facebook, people are constantly being driven to social media,” said Nielsen’s first-ever State of the Media report to focus on social networking.

The report took a snapshot of online activity during May and found nearly 4 of every 5 active U.S. Internet users went to social-networking and blogging sites, accounting for 22.5 percent of the total amount of minutes people spent online. Online gaming was next with 9.8 percent, followed by e-mail at 7.6 percent.

In the social-networking and blogging category, Palo Alto’s Facebook was the runaway leader with 140 million unique visitors during the month, with Google’s Blogger blogging platform a distant second with 50 million unique visitors spending about 723 million minutes.

But the up-and-coming blogging platform Tumblr was third with 623 million minutes, edging out both San Francisco microblogging service Twitter Inc. with 565 million minutes and the professional social network LinkedIn Corp. of Mountain View, which had 325 million. Nielsen said New York’s Tumblr Inc. has nearly tripled its audience since May 2010 and is now “an emerging player in social media.”

Also, the report said 70 percent of all adult social-network users shop online. But 60 percent of social-network denizens create reviews of products or services, making them more likely to be influential for online and offline purchases.

And compared with average Internet users, social networkers are 26 percent more likely to post their political opinions, 33 percent more likely to say what they like or don’t like on television and 75 percent more likely to spend heavily on music.

Other Nielsen findings include:

— The profile of the most active social-network user is of a woman of Asian/Pacific Islander descent between the ages of 18 and 34. The majority of social-network users are women, but men are more likely to visit LinkedIn.

— About 31 million people watched nearly 157 video streams on social networks or blogs in May. More women than men watched video this way, but men spent 9 percent more time watching those streams.

— While almost all social-media users access their networks by computer, a growing segment – about 37 percent – now do so with their mobile phones. More than twice the number of Internet users age 55 and older accessed social media on their phones than a year ago.”

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