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Monday, August 27, 2007

Finally, Twitter Adds Search

It’s a seemingly trivial feature, but Twitter’s lack of a search function led me and others to use Google or other search engines to try to figure out someone’s Twitter page. Today they’ve added that feature and allow search via name or other profile information (location, bio, and url).

It seems that Twitter has become much more stable since the launch of competitors like Pownce, Jaiku, Yappd and others. And now we’re getting new feature releases too. The wonders of competition.

How Grey Is Your Valley: Making Money From Open Source

Automattic founder Matt Mullenweg has spoken out against a number of open source projects for profiteering from their code.

The two examples Mullenweg cites are the open source forum platform Vanilla, which recently started including links in their code as a means to cover server and administration costs, and Pligg, which is currently on the market.

The post from Mullenweg follows an earlier crackdown in July against the inclusion of sponsored themes (themes that included paid text links) from the WordPress directories.

Given this crackdown on making revenue from an open source platform, the question then becomes: where is the line. How grey is your valley?

It’s important when considering the question to look at the different ways owners of open source platforms such as WordPress make money. Mullenweg was a co-founder of the Wordpress open source platform community. Today, as well as maintaining a chief role with the WordPress open source community, Mullenweg is the founder, and according to their website “Chief BBQ Taste Tester” of Automattic. Automattic’s business model relies on two key products: Wordpress.com and Akismet.

Wordpress.com relies entirely on the code base of the WordPress open source community. It is free to use for most, but they charge the top tier of users. On the whole it’s probably not a highly profitable business, yet none the less there is revenue. Without the Wordpress code there is nothing.

Akismet is a service that relies on the failure of the WordPress code to be able to natively deal with comment spam. The service is free for personal use and a paid service for everyone else. As the co-founder and essentially the head of the WordPress open source movement, Mullenweg leads the initiatives by WordPress to combat comment spam. On the other hand as the head of Automattic he runs a company that profits from those very failings. The question then becomes: can one profit from the failings of an open source product whilst still leading that very code’s development?

I’m not suggesting that anything Mullenweg does is wrong; indeed for someone still very young he deserves much admiration for all he has achieved. Revenue from open source is much broader than the occasional sponsored link, something that Mullenweg continues to rally against. It was not that long ago that Mullenweg was sprung for including in excess of 150,000 spam pages on Wordpress.org; it was an honest mistake but as they say, people who live in glass houses…

The question really is whether there is an acceptable line for advertising and conflicts of interest. Everyone is entitled to receive compensation for effort, including Mullenweg. I just remain unconvinced that those offering the odd paid link on a WordPress template is any different or worse than Mullenweg, who not only stuffs links to his own blog in every standard install of WordPress, but also runs a company that benefits from open source software, and at that the continued failures of that software to code serious issues.

Disclosure: Text Link Ads is a sponsor of this site. I also maintain a Text Link Ads account. Although the TLA crew may appreciate this post, I wasn’t asked to write it.

VideoEgg And Lots Of Others Call B.S. On YouTube

VideoEgg’s overlay advertising system has been in the market for a year and is driving “significant” revenue for the company. it’s so successful, in fact, that they recently launched a Facebook advertising network based on the same technology.

The idea is to use a Flash overlay advertisement with some basic information and graphics that takes up a small part of the viewable video area. Users click the ad and get a more in depth video ad. It’s less intrusive than a pre or post roll ad, and has far better performance than ads placed around a video. It’s likely to become the standard way ads are placed on video, even potentially on normal television as the thirty second ad spot continues to decline.

Given VideoEgg’s success with the unit it’s no surprise that YouTube has adopted the same format with their advertising. But it is surprising that YouTube failed to give even a passing mention to the company that invented the unit. VideoEgg also claims to have a patent application on this - something YouTube will certainly have to deal with down the road.

Nick Carr points out that much of the early press on YouTube was written by people who failed to do their homework. Carr trashes a CNET article that he says was basically an ad for YouTube. CNET subsequently changed the title of their article but there is still no mention of VideoEgg’s invention of the unit

Meanwhile, VideoEgg seems to be handling the situation well and taking advantage of the publicity. They added the graphic above to their home page, and are talking to press about their product. Suddenly, everyone is interested.

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

Wikipedia Edits Cause Australian Political Scandal

The Australian Prime Minister’s Office have been caught editing Wikipedia, the latest in a growing line of Wikiscanner entrapments.

Staff from the Office of Prime Minister and Cabinet (PMC) edited Wikipedia entries that were damaging to the Goverment, including pages covering the Children Overboard Affair and Mandatory Detention. Other edits included deleting the nickname of “Captain Smirk” from the Wikipedia biography of Australian Treasurer Peter Costello, and a range of bizarre edits, including the addition of the line “Poo bum dicky wee wee” to a Wikipedia article on Bubishi, a book related to Martial Arts.

Australia faces a Federal Election by November this year, and the edits have become major news locally. Opposition Leader Kevin Rudd accused the Prime Minister of directing public servants to change history to suit the Government and that the behavior was “odd.” Notably though, Rudd admitted that his own staff might have edited Wikipedia “for factual changes.” The truth I guess is in the eyes of the beholder.

The Australian press also discovered that staff from the Australian Department of Defence were the most active Wikipeda editors among Australian Government Departments, having made over 5000 Wikipedia edits. DOD edits included changes to pages ranging from the 9/11 Truth Movement, the Australian Defence Force Academy and the Vietnam War-era Pentagon Papers. A Defence spokesman said that the Department would move to ban access to Wikipeda for all staff.

Could The GPhone Be Nigh?

Todays completely unsubstantiated rumor comes from Rediff News, a usually well respected source of news based in India. Rediff is reporting that the Google Phone is set to be launched in 2 weeks time! The GPhone is said to simultaneously launch in both Europe and the United States, with the only thing standing in Google’s way being US regulatory approval.

The report goes on to claim that Google is believed to be in talks with a number of Indian telcos.

If speculation is any guidance, the certainty of there being some sort of Google mobile device in development is a given. The Register reported in March that a European Google executive confirmed the existence of the GPhone and other reports go back to 2006; Om Malik reporting in December that a Google phone was being developed for release in 2008. Engadget posted alleged pictures of the GPhone in January 07 (see pic) with notes claiming that the device was a button-less touchscreen phone that came with GPS built-in for pinpoint navigation around Google Maps. ZDNet wrote that the phone was said to be 3G with built in Wifi and was designed by Samsung. The Register again reported in early August that the GPhone would include 3G, Wifi and GPS, and that UK mobile operator Orange was in talks with Google to carry the device.

Google has continued to deny rumors of the phones existence, but has taken a more public interest lately in the mobile phone sector, confirming that it was likely to bid for a slice of the soon to be released 700mhz spectrum in the United States. Google as a mobile phone operator would make a lot more sense if Google were also preparing a GPhone that was automatically fine tuned to work with Google’s variety of applicable services, including Gmail, Maps and Google Docs.

Any Google phone will also be immediately compared to Apple’s iPhone. Whilst the iPhone provides an attractive package, it has so far only taken a small marketshare in the US cellular market, and is yet to have been released anywhere else in the world. A 3G (and therefore quicker) internet focused GPhone with a broad release worldwide could well present a strong competitor to Apple.

Intuit Shuts Down Zipingo. Yelp Winning This Space Through Attrition

Zipingo, the small business review site launched by Intuit in late 2005, shut down yesterday.

When it launched, Zipingo competed with a slew of other startups that were targeting local business reviews. Of the three that we mentioned - Yelp, Judy’s Book and Insider Pages - only one, Yelp, remains in it’s original form. Judy’s Book changed its model to focus on coupons and deals, and Insider Pages sold for little more than the capital it originally raised to CitySearch.

The message above is all that remains of Zipingo. Without coming right out and saying it, the reason they’ve shut it down is that no one was apparently using it. Comscore wan’t tracking them at all (see Yelp v. Insider pages below).

Other startups, of course, are joing this space all the time. Google and Yahoo will take their pound of flesh, but upstarts like AskPoodle are giving it a shot as well.

Zipingo joins the TechCrunch DeadPool.