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The Scoop – ISP Ruling Explained | Mobile Ad Insights | Google’s Glucose-Monitoring Contact Lenses January 17, 2014

Filed under: Corporate — CMI/Compas @ 4:54 pm

The following insights on one of the biggest news stories of the week comes from Campaign Analyst Elizabeth Speak: Verizon has won a case over the Federal Communications Commission to allow internet service providers (ISPs) to charge additional fees for faster delivery of content online. This could increase costs on sites such as Netflix, Amazon, YouTube, Pandora, etc. “With the restrictions lifted, carriers like Verizon, AT&T and Time Warner Cable could be free to charge internet companies higher rates for preferred treatment, expenses that may ultimately be passed on to consumers — or advertisers. But Netflix, Google’s YouTube and Amazon, meanwhile, may face higher costs of doing business, changing the industry’s economics.”
“The FCC regulations struck down by the U.S. Court of Appeals in Washington yesterday required internet service providers to treat all online traffic equally, rather than giving preference to companies willing to pay extra fees for faster service” Basically Verizon felt that they should be able to charge additional feels for highly trafficked websites where users would like to have the website work optimally despite the high amount of traffic to the site. “Carriers have argued that the biggest bandwidth hogs should share in the costs of sending their content to customers. The idea is to charge Netflix or Google the equivalent of first-class handling, so that “House of Cards” or YouTube videos can get guaranteed quicker delivery.”
Eventually this is also going to affect the Netflix experience and may result in additional fees from Netflix. “’Goodbye, open internet,’ said Jennifer Fritzsche, an analyst at Wells Fargo & Co. in Chicago. ‘There’s definitely a risk that Netflix customers will have to pay more, though it will probably take at least a year for it to take effect.’”
However– Comcast says it’s not going to participate in yesterday’s ruling, and will continue to operate under ‘open internet rules.’ This is good news for those of us in the Philadelphia area. “Comcast — the biggest U.S. broadband provider, with more than 20 million broadband customers — agreed to operate under open Internet rules after it acquired NBCUniversal in 2011. So it won’t be able to take advantage of yesterday’s ruling. The terms of that agreement with government regulators ends in 2018.The Philadelphia-based company pledged yesterday to keep the internet “open and vibrant.” And here is a fun little Infographic of a worst case scenario.

And Phil Turicik, Campaign Analyst, shares: Many of our clients are entering the mobile space with their advertising. Forbes Insights and Adobe teamed up to conduct a survey in October 2013 to learn how major companies are most utilizing mobile apps. Responses from top executives revealed both present tactics and anticipated future uses for apps. Here are a few takeaways:
– 83% of respondents said communicating with customers was the #1 function of mobile apps
– Within the purchase cycle, more respondents said apps are most valuable to retain customer loyalty (31%) than to initiate a purchase (28%), consider a purchase (22%) or create early awareness (18%)
– The top challenges surrounding apps include designing a user-friendly interface (54%), supporting multiple devices (48%), meeting app store requirements (47%) and not having enough expertise to build an app (34%)
– Most executives feel that the future of apps will involve communicating with customers (87%) above everything else, but that customer service support (82%), product information (81%) and brand engagement (73%) will also play major roles
– The lowest concerns of executives surveyed were 1) the cost of an app being too high and 2) the possibility of an app’s ROI being unclear
o This suggests that many companies disregard the cost of being in the mobile market and are willing to do whatever it takes to create an app that will effectively keep communication open with their customers
o For most executives, the mobile space is more about generating awareness than driving sales (for now)
On a related note, Pew has released the news that half of US adults now own a tablet or e-reader.

Google yesterday launched smart contact lenses, which can sense things such as blood glucose levels.

Some fun (and disturbing) reading for your weekend: the ‘wackiest’ HIPAA breaches of the year include a dumpster-diving news crew and Kardashian-obsessed HCPs.

-Carly Kuper, VP, Strategic Marketing & Corporate Communications
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