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May 7 2008   2:08PM GMT

Sprint/ClearWire WiMAX move to shake industry



Posted by: Tom Nolle
Google, Intel, WiMax

ClearWire and Sprint have finally married, apparently, brokered by Comcast, Google and Intel. The move is said to be preparing to shake up wireless carriers, but the most significant impact will be to expand the notion of a hot spot into something with metro or even national scope. As we have said continually, WiMAX is portable user technology not mobile technology, and thus will have its greatest impact where 3G is used for laptop connect. We expect to see pricing for wireless laptop plans fall, but all wireless including WiMAX has a significant limit in total bandwidth per cell, and this will result in sub-par performance relative to wireline broadband connections.

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Mar 3 2008   2:18PM GMT

Golden Google: Signs of reality?



Posted by: Tom Nolle
Google, IP advertising

Business Week has joined other publications and sources in noting that Google may be experiencing the signs of decay in its basic click-through ad model. Google’s stock sunk when its reported clicks dropped in January, and investors began to worry whether the Google model was recession-proof. We think that click ads have their place, but we’ve continually noted that the majority of ad spending today (which exceeds $700 billion worldwide) is directed at models that don’t translate well into clicks. This isn’t to say that online advertising could not, at some point, take over for virtually all ad fulfillment—it likely can. However, the click model isn’t going to be the way to get there by itself, and the industry needs to address the question of what kind of flexible online model will work in the long run.

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Feb 22 2008   2:30PM GMT

Google video ad trials - the clueless approach



Posted by: Tom Nolle
Video, Online advertising, Google

Google has launched a trial of its controversial banner-add-on-video strategy, and we believe the step shows the extent to which the online content ad process is detuned from market reality. The approach has continually been shown to be offensive to viewers of video, far more so than the ever-offensive banner ads on web pages. In addition, it shows that Google has no real notion of how to address online content sponsorship other than to try to replicate the banner-and-click approach, and that is not attuned to the current broadcast TV advertising paradigm. Google also plans to put video ads on search result pages, a step that is likely to further clutter the search results and create more user angst.

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