Zyb, The Mobile Social Network

Michael Arrington

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The idea of taking an address book application and turning it into a social network isn’t new - Plaxo just did it two weeks ago.

Now ZYB, a Danish startup, is using the mobile phone contact list as the center of the network, and the company doesn’t have the emotional baggage that still lingers with Plaxo and makes many users hesitant to trust them (I, for one, forgave them long ago).

Zyb first launched in mid 2006 as a service to back up your mobile phone. Through a relatively painless process, users can auto-sync their contacts and calendar to ZYB’s servers. It’s useful in the event of a lost phone, but the web interface is actually much easier to use to enter new contact and calendar information, too. The service, which is free, has about 200,000 active users (mostly in Europe).

ZYB, realizing that people add most or all of their close friends, co-workers and family as mobile phone contacts, has now built a social network to leverage those connections. You can add anyone on your contact list as a friend, which sends a request to them to add you as well. Users have standard profile pages to add photos, comments, etc. And they can also text/sms in status updates which appear on their profile, and friends can choose to subscribe to those status updates via text as well (very Twitter-like).

ZYB is free to users, although the company says they will eventually add premium services like Outlook-sync for an additional fee.

The basic ZYB service is difficult to use on U.S. mobile phones, although the setup takes only a minute on European phones. U.S. residents can still sign up and use the service, though (as I have done) and simply add contacts manually.

The company is headquartered in Copenhagen, and has a development office with most of its 20 employees in Cambridge. They raised €3 million in funding from Nordic Venture Partners in late 2006.

Ok, Ok. All Of You (even YouTube) Invented Video Overlay Ads “First”

When I wrote a post earlier today suggesting that YouTube was not the first to use a Flash overlay advertisement for online video, I didn’t realize I’d be getting so many emails and comments disputing exactly who first invented the unit.

VideoEgg has certainly been doing this for a year or so. In a comment to that post, though, an (unconfirmed) ex-YouTuber says the idea was “discussed long ago inside the company” and follows up with:

All other video sharing websites that came out around the time YouTube emerged were still using Quicktime or Windows Media. YouTube might as well accuse VideoEgg of stealing the idea of using a Flash video player.

Next up was Adbrite founder Philip Kaplan, who emailed me to say that Adbrite has had their own overlay product for nearly a year. He also pointed out that I wrote about it. The ad unit is less sophisticated, but it is certainly a Flash video overlay ad unit.

And finally, Brightcove CEO Jeremy Allaire sent me a long email saying they’ve been doing this as far back as October 2005. He also says the ad units are not particularly popular with advertisers:

I caught your post on VideoEgg taking credit for video overlays as an ad format vis a vis the latest YouTube ad product introduction.

To reinforce this point, while I don’t want to claim “invention”, we were certainly very well ahead of the market when we introduced video overlay ads back in October of 2005, just as YouTube was getting their first pirated episodes of The Sopranos on their site. At the Web 2.0 conference that fall, Brightcove debuted our beta service and as part of that both demo’d and discussed how we wanted to changing video and television advertising with new formats that could engage the user in a non-intrusive manner while creating opt-in ‘takeover sponsorship’ units that a marketer would be excited about. We demo’d overlay ads from Coca Cola running in a MTV Networks channel that we were just launching with them. The New York Times covered this debut.

We subsequently demo’d and introduced these formats again at AdTech in New York that fall, and if you speak with any number of a major content owner brand partners, it has been part of our platform since then, along with a wide range of other innovations in video ad formats, policies and targetting mechanisms.

Interestingly, despite having been 18+ months “ahead of the market”, to our disappointment, there has been extremely limited uptake by the advertising community around these formats. There are a lot of factors behind this limited uptake, including:

- the advertising community buying video have been very focused on leveraging existing creative and buying patterns in the online video space
- most content publishers and media owners have been focused on getting the ‘basics’ up and running, and also responding to the RFPs from marketers and advertisers, which are almost 100% focused on basic short-form video commercials
- for premium brands and content, the basic pre-roll and companion banners are yielding extremely attractive CPMs and there is little evidence that :15 ads have any negative impact on end-user viewership behavior — in fact, our own metrics show that sites that run without any ads, and then introduce :15 pre-rolls and banners achieve identical usage and performance (e.g. no drop-off in users because of ads) on their content.

Nonetheless, we remain very bullish about ‘composite’ video advertising formats that combine overlays and unique and non-intrusive calls to action with deeper interactive marketing experiences. We’ve been pushing this for years and only now are starting to see the publishers and media owners that we work with begin to take an interest in these formats. I believe this is because we’re now entering a phase where content companies are looking at ways to maximize yield and revenue within their content, and they are introducing more mid and long-form content which require, by economic necessity, a different suite of formats to deliver a good user experience.

So where does that leave us? Maybe none of these startups did - Om says it all goes back to old school television. We’ll see if VideoEgg’s patent filing is unique enough to be issued. But they’ve already said they won’t be using it offensively to stop others from doing this. The market will sort it all out.

cartoon credit: the amazing Hugh MacLeod