Thursday, March 26, 2009

The Web in Africa

First World nations that were present for and part of the development of the world wide web take the freedom of the web for granted. When we lose access, we complain about missed ebay bids, not talking to friends, or not being able to watch goofy videos on YouTube. But in some countries, the freedom the Web provides reaches much futher than “free shipping.” In many nations, even with minimal, spotty access, the ability to participate in the social web has hugely affected the participation of people within society. It is so powerful that oppressive regimes have spent large amounts of money and energy restricting and filtering their citizens’ access to maintain control.

The obstacles put in place by dictatorial governments can only hold the flood of information back for so long. Jonathan Gosier wrote a 3-part blog on the web in Africa, which describes some of the advances being made – technically and culturally – in some cases, in spite the efforts of government control. His goal is to encourage entrepreneurship through the use of the Internet in the third world.

http://www.readwriteweb.com/archives/social_media_in_africa_part_1.php
http://www.readwriteweb.com/archives/social_media_in_africa_part_2_mobile.php
http://www.readwriteweb.com/archives/africa_democracy_social_media.php

When government can no longer control information, the people can begin to hold government accountable. In Ethiopia, the services Feedelix uses technology that can bypass government filters to keep users connected. In Zimbabwe, the civic group Sokwanele uses the web to alert citizens and the rest of the world to violence and forced “land redistribution”, while the government attempts to suppress reporting. http://appfrica.net/blog/archives/131

Perhaps because of the need for the populous to communicate above the government radar, Africa’s mobile market is the fastest growing worldwide. While there is little broadband infrastructure, VSat services can provide a signal, even without electricity.
Due to this availability, many regional social sites have popped up – Muti.co.za, which is like Digg, Sokwanele.com provides updateable maps through SMS, Amatomou is a news Aggregator, Mzaleno tracks Kenya’s Parliamentary actions.

The downside of satellite connectivity is that networks get bottlenecked and will slow down, which keeps prices high and speeds low.
Johathan Gosier writes his blogs in hopes that the developing world will notice the extraordinary potential available in Africa

Sunday, March 22, 2009

The demise of Advertising is near.

Monetization is necessary for all businesses, and is becoming a sticky issue for Web 2.0 companies. Advertising revenue seems like one of the most likely strategies for many of the companies who are competing in a “Free” space. However, according to Eric Clemons, all media advertising revenue is failing, and the Internet effectively shatters any hope those advertisers would have of resurrecting it. He discusses these ideas in the TechCrunch article, “Why Advertising is Failing on the Internet.”
http://www.techcrunch.com/2009/03/22/why-advertising-is-failing-on-the-internet/

He states three reasons for this failure. The first two are ongoing plagues, but haven’t begun to do real damage to ad revenues: 1) “Consumers do not trust advertising”, 2) “Consumers do not want to view advertising.” It is the third reason, which has changed since the popularity of the internet, that really crushes advertisers: 3) “Consumers do not need advertising.”

Professor Clemons states, “will no longer need advertising to obtain …information. We will see the information we want, when we want it, from sources that we trust more than paid advertising. We will find out what we need to know, when we want to make a commercial transaction of any kind.”

We have heard a great deal about how Facebook has been experimenting with ways to earn money though targeted advertising, including programs like Beacon. People are uncomfortable with this, but it seems like Facebook is directly addressing the items that Professor Clemons is concerned about.

You can trust the advertising if it comes from a “friend.” If you are notified through Facebook that a friend has purchased a dress at Ann Taylor Loft, for instance, you know that your friend made an informed buying decision to do so. Therefore, you can trust that, if you go to Anne Taylor Loft, the dress will feel nice, be a nice color, and fit well (at least it will fit someone like your friend well).

You want to see the advertising if you are already on your friend’s Facebook page, because you are interested in your friend. This is not an in-your-face popup, not even a targeted ad, it is actual information about your friend.

Finally, you can go wherever you want to for more information. You can go to your friend, to the Ann Taylor Loft website, or to the ATL store. You decide what information you want and go get it when you want it.

The hurdles, though, are that people feel like they are being “used” to advertise for these companies. Are there better ways to appeal to consumers?