Another new stride for the skyrocketing Google. After a several-month-long bidding war with Microsoft, who was also vying to make the transaction, the Web search leader delivered the final blow on April 13 with its deal to purchase the online advertising company. The New York-based firm, which was founded in 1996, handles ads for numerous websites, including MySpace and The Wall Street Journal. It also offers agencies and advertisers services that gauge the effectiveness of their online ads. With this latest transaction, valued at $3.1 billion and still pending approval from the US authorities, Google takes a giant step forward in the online graphic ad market, of which DoubleClick controls 85%.

The acquisition of DoubleClick by Google represents a hard hit to its competitors and consolidates the king of search engines as the star of online adverstising as well. Google’s entry into DoubleClick aslo promises the possibility of combining the information on the habits and behaviors of the audience with that of searches and even emails received and sent though Gmail.

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Title: First Study on Administration of Systems in Spanish SMBs
Source: NTR Global and EspacioPyme
Date: February 27, 2007
Abstract: The study performed by NTRglobal and EspacioPyme shows that 48.2% of Spanish SMBs with a total of 6-9 employees do not have an effective system for managing their computers and servers. Based on a poll of more than 400 upper management and technology directors, the report also notes that this causes companies to lose an average of five hours per week, which builds up to 260 annually. When one considers that in Spain the average gross cost of skilled personnel was €24,000 in 2006 and that there are over 318,800 companies of this type, the resulting financial damage, according to the report, adds up to €950 million annually. Some of the key hindrances for IT output in this segment of companies are difficulties in usage, setup and implementation, lack of automatic error detection capabilities and the inability to use systems remotely.

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Title: Estudio sobre uso, interés, conocimiento y percepción de la blogosfera española
Source: Zed digital
Date: April 12, 2007
Abstract: According to the First Study on the Use and Perception of Advertising in the Blogosphere in Spain, blog ads are not repellent to Spanish Internet users. In fact, 81.8% of these writers allow advertising to be included in their blogs if it is not intrusive, although just 48.5% would only accept ads with relevance to the blog’s content. The results of the poll show that consumers give a high degree of credibility to the opinions shared in this platform. Incidentally, 39.2 % of users say they have purchased a product after seeing it reviewed in a blog, while 44.1% would switch from their usual brand if they came across a negative comment in a blog.
With regard to advertisers, just 16.1% have done blog campaigns, which is basically due to the lack of data as to the potential profitability of the channel and its failure to reach the desired target, as well as a general lack of awareness. On the other side of the scale, advertisers that have actually invested in blogs do so because these let them establish emotional ties with customers, because they encourage participation and because it is a yet untapped market.
The study also shows that 36.1% of bloggers have ads on their blogs, although over half of them do not post them voluntarily but instead are required to do so by the blog host provider.

Full Story (In Spanish)

Telefónica is not willing to surrender the mobile Internet market, where it currently has one million 3G users but trails Vodafone, which has 2.28 million. In an effort to both lure clients away from its rival and boost the takeoff of mobile Internet, Telefónica has launched an offensive that includes rates up to 20 times lower than those it has been offering to date. Furthermore, neither signup nor monthly fees is required: users can go online with their mobile devices for a euro a day. The French operator Orange and the Spanish Yoigo are preparing their own sales pitch to shore up their standing in the market, which thus far equates to a penetration rate of just 8%. In addition to the price, speed and reception are other outstanding issues currently impeding mobile Internet in its effort to become a true alternative for fixed-line connections such as ADSL.

News in Cinco Días
Article in El País

Just as YouTube completely changed the face of online video, Joost could in turn revolutionize the world of Internet television. It could even give YouTube a run for its money or perhaps bump it from the top spot. There are, however, some notable differences between the two. For starters, YouTube focuses on user-generated content aimed at broad audiences, while Joost is based more on professional content and is making a run at the professional television market. Furthermore, its content strictly complies with copyright laws and thus it has reached deals with media companies such as CBS and Viacom to show their programs.
Created by the founders of Skype, its strengths lie in the personalization and interactive aspects. Users can search for a TV program they want to watch and play it immediately without any commercial breaks, although there is one ad before and another at the end. They can also recommend programs and create their own channels.
Joost is currently in the beta phase and could have an official market release by the end of the year. So far it already has backing from major consumer brands such as Visa, Microsoft, Procter & Gamble, IBM, Nokia and L’Oréal, which will advertise on Joost.

Articles in TimesOnline, New York Times, News.com and El País

By Sandra Sieber, IESE professor and director of the information systems department
Supporting innovations tend to improve the market shares of established companies. Nevertheless, it is not wise to disregard the power of disruptive innovation. In the case of high technological innovation, there are generally opportunities to add new technologies onto the value proposition.

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