Tag Archives: Microsoft

Social Media Politics, Agencies Admit Failure, Yahoo For Sale

Social media is used in Egypt to change the government, and in Mexico to keep people safe. But in the U.S. it’s being used by politicians to bicker and throw mud. Is it just me, or does this seem incredibly out of whack?

As politicians of all stripes follow Barack Obama’s precedent setting social media campaign from 2008,

I’m starting to wonder if they can really be this clueless. After all, what have they been doing for the last 4 years? They’ve had no particular use for social media since 2008, yet they expect us to engage with them now that they’re hopping on the bandwagon.

Listen to this week's show at www.SocialMediaCheapAndEasy.com

Another social media flop is ad agencies. A new report from RSW/US and RSW/Agency (2011 New Business Report) found that while 95% of U.S. ad agencies are using social media to identify potential clients, less than 10% of their new clients are coming to them through social media.

Evidently they didn’t pay attention last year when the Nation’s Restaurant News published the results of their own industry survey. In that case, it was specifically for Facebook, and they discovered that while 65% of restaurants were using Facebook to market themselves only 3% of their customers were interested.

Naturally, the agencies blame social media for the poor results. Listen to this week’s show for the real reason why they’re getting no social traction.

And we wrap up the show this week with a look at Yahoo being on the bidding block. Google and Microsoft are interested in financing a purchase, although neither company wants to directly own Yahoo. Strange, but true.

More importantly, there’s a particular line in this story that really raised my ire. It ties everything together this week, and is a stinging indictment of all the profiteers and opportunists. This one piece is the best possible evidence for why we need to revive capitalism.

Facebook Killing Music Sharing

Is Facebook killing music sharing because they're profiteers or just ignorant?

Facebook is talking about bringing music sharing services such as Spotify, Rhapsody, Rdio, MOG and Deezer onto their site. The idea is to make your profile an entertainment hub. But how much of a hub will it be if it drives these businesses out of business?

Very few online music services are profitable, and they have a model that causes them to lose money every time a free subscriber joins. After all, even “free” music requires a royalty paid to the record companies.

Pandora, which had a successful IPO, has yet to make a profit. Martin Scott from Analysys Mason estimates Spotify had a $6 or $7 million dollar profit in 2010, and Rhapsody’s president Continue reading