Research round-up: 27th May 2010

Google's Android mobile phone system overtakes Microsoft

Google's Android was the fourth most popular operating system on smartphones sold in the first quarter, research firm Gartner said on Wednesday, putting the company in a good position as handsets look set to surpass computers for browsing the Web.

Android, which was in 10 percent of smartphones sold in the quarter, lags Nokia's Symbian, Research in Motion and Apple. Gartner said Android was due to beat Apple soon as there were more handset makers using its operating system, and Android phones were already outselling the iPhone in North America.

Earlier this month, research group NPD said smartphones running on Android accounted for 28 percent of U.S. unit sales in the first quarter, ahead of the iPhone -- data Apple publicly questioned, saying it was based on a limited sample of consumers.

Hidden checkout charges most likely to make customers abandon online orders

Hidden charges at the checkout are the most likely thing to lead to online shoppers abandoning purchases and many would also be put off by being forced to register before buying, according to new findings released today.

The ecommerce drop-off poll, carried out by user experience consultancy, Webcredible, revealed that 41 per cent of online shoppers would abandon an online basket if faced with hidden charges at the checkout while 29 per cent claimed that being forced to register to make a purchase would make them drop out of a purchase. 

The results very much reflect current concerns surrounding the economy with customers put off by extra costs that they feel are unjustified and weren’t explained at the outset of the purchasing process.  Online security and privacy is also clearly a concern with online shoppers also deterred by having to submit details that they feel are unnecessary, to make a purchase.  The results also revealed that other reasons customers abandoned online purchases were a lengthy checkout process, no clear delivery details and not having a phone number provided on the website.

The research polled more than 1,200 online users between March and May 2010 on why they would abandon an order when shopping online.  11 per cent of respondents said they would abandon an order because there were no clear delivery details, 10 per cent stated a lengthy checkout process would be the reason they’d drop-off, and 8 per cent were put off by having no phone number provided.

Trenton Moss, Director at Webcredible comments, “Consumers are becoming increasingly demanding online and with the online shopping sector becoming more and more competitive, companies must realise that the slightest unexpected process or charge can lead to a user dropping-off and going to a competitor’s site.  Many of the reasons identified for abandoning an online purchase can be rectified through following basic usability guidelines, and ecommerce sites must ensure their buying process is as closely aligned to user-needs as possible, or they risk losing sales to competitors.”

Research Methodology

The ecommerce drop-off research polled 1,267 visitors to the Webcredible website between March and May 2010.

Source: www.webcredible.co.uk

90% happy to pay in cash to help others evade tax

In a massive poll on consumer revenge site MoneySavingExpert.com, 87% of people said they would happily pay in cash to get a discount, even if the person told them it was for criminal tax evasion.

Among that group, around a quarter said they would use it as an opportunity to haggle for an even larger discount.

This comes at a time when the new administration faces a huge job to cut the £156 billion budget deficit. Earlier this week, the coalition announced £6.2 billion of cuts to public spending.

The question asked was: "What would you do if a builder / masseuse / cleaner / plumber / market stall holder or anyone else offered you a 15% discount because 'it's better in my pocket than in the taxman's'?"
Of the 11,285 who responded...

• 65% would take the discount
• 22% would haggle and ask for a bigger discount
• 10% would refuse it
• 3% would report it as tax fraud

Martin Lewis, MoneySavingExpert.com creator, says: "Mention the black economy and people think of countries like Greece or the developing world - yet this is proof illicit transactions probably worth billions happen in the UK too. This is a real challenge for the new government's austerity drive. While increasing tax take is important, most don't see putting some cash in a back pocket as too bad, so a crackdown is likely to be highly unpopular.

"Even amongst the small number who'd refuse to take part in the transaction, some commented it was because they'd explicitly been told it was for tax evasion, and had it been left unsaid it wouldn't have been a problem. It's interesting to note, as a society, there seems to be an acceptable historic tradition of paying someone 'tax-free' while coming down hard on those who play with the benefits system. Actually, they're two sides of the same coin."
www.moneysavingexpert.com

Mobile VoIP users to exceed 100 million

A new study from Juniper Research has found that Mobile VoIP services will develop significantly faster in developed markets due to the direct correlation between 3G roll outs and the take up of mobile VoIP. This is the case even though mVoIP traffic volumes may eventually be higher in developing markets due in part to the calling patterns of migrant workers, according to the study Mobile Voice Strategies: mVoIP Opportunities & Business Models, 2010-2015.

“By 2012 we expect significant uptake of mobile VoIP in its various different flavours”, says Anthony Cox, Senior Analyst at Juniper Research. “By that date mobile VoIP will be available over both 3G and WiFi networks. We also anticipate that several more traditional operators will have joined 3UK and Verizon in the US and developed relationships with mobile VoIP players such as Skype,” he says.

Further findings include:

·         Alliances between mobile VoIP players and traditional operators may provide the best option for  today’s incumbent operators to address the advent of mobile VoIP.

·         Revenues from the circuit switched voice market will continue to diminish over the next five  years, although this will not accelerate.

·         A high percentage of Mobile VoIP carried over applications will be via WiFi networks, bypassing operators’ networks altogether. Such traffic will result in some lost revenues, amounting to around $5bn by 2015.

The mobile voice report includes an in-depth analysis of the current state of play of the mobile Voice market considering the position of both the incumbent operator and the mobile VoIP new entrant. The report contains five year forecasts for the number of Mobile VoIP Users over 3G networks, the number of mobile VoIP users via alliances, number of mobile VoIP users via applications, number of 4G mobile VoIP users. It also contains the value of traffic associated with all of these categories.

Mobile Voice whitepaper and further details of the study ‘Mobile Voice Strategies: mVoIP Opportunities & Business Models, 2010-2015 can be freely downloaded from www.juniperresearch.com.

Mobile Research ‘Poised to Create a Tipping Point for the Industry’

OnePoint Surveys, the global market leader in mobile phone survey technologies and services, has published a white paper highlighting the risk that mobile research could become the greatest missed opportunity for the Market Research industry, if not handled appropriately.

The paper discusses the huge potential for mobile research thanks to the opportunities it generates around reaching people “In the moment” yet stresses that for mobile research to be successful, participants must be presented with the opportunity to take part in the way that they want to, not the way that ‘the industry’ believe they  should.

Dr Tim Snaith, the author of the paper and OnePoint’s Chief Research Officer said “For mobile research to take its place as the 5th global research methodology, it’s critical that the mobile channel is understood in its own right. This understanding and recognising the key principles that will influence its success, and adapting those principles as technology changes, will allow organisations to be able to take advantage of this unprecedented opportunity.”  He continued “Those who fully embrace mobile research will benefit from its distinct success factors; simplicity, cost, convenience and choice for the participant.”

 In writing the paper OnePoint have drawn on their experiences in assisting those seeking to develop the mobile research methodology and their knowledge consolidated from around 2,000 OnePoint supported mobile projects, accumulated over three years and across 47 countries.

 The white paper is available to download free from the OnePoint surveys website at www.onepointsurveys.com/tippingpoint

New survey reveals lack of understanding of image use online

A survey conducted by the newly-launched media industry educational resource, Stockphotorights.com, has found a lack of understanding of image use among a surprising number of those working in the marketing, advertising and digital arenas.

The findings also revealed that those working in the UK creative industries have developed a ‘hope for the best’ attitude. Nearly a quarter (23%) of those surveyed said that they do nothing consciously to ensure that the necessary permissions have been obtained from the copyright and trademark owners or models; they just license the image and assume “it’s all ok.” This attitude was evident with 37% admitting to regularly exposing themselves to potential risk by using images copied directly from image search engines, and 19% said they source imagery for commercial use directly from photo-sharing websites.

The survey questioned more than 400 UK creative professionals about their understanding of image use. Of the respondents, only 31% said they were aware that you could still face a legal claim relating to an image you have used, even if you have paid for it, and only 17% said that they pay for full legal protection when they license an image. Even among respondents who understood that certain image licenses include legal protection, 34% said they have considered themselves at risk by sourcing an image which doesn’t include it. Over half of those surveyed (52%) admit they do not fully understand legal protection.

The survey was carried out by Redshift Research on behalf of Stockphotorights.com, which has been set up by Getty Images, Inc. for the good of the photographic industry. The site is designed to represent image providers and has the support of BAPLA (British Association of Picture Libraries and Agencies) and PACA (Picture Archive Council of America). The resource provides image users with information they need to license images with confidence, by connecting them with key stakeholders from the industry. 

The survey also found that:

Over a third of creative businesses (31%) have never considered themselves at risk from licensing an image which doesn’t offer full legal protection

52% of those working in the creative industries said they did not fully understand legal protection 

84% of those working in the creative industries said that they are aware of the legal consequences of using an image without a license agreement

46% of those working in the creative industries aren’t aware that they could face a legal claim relating to an image, even if they licensed that image from a reputable supplier

17% of those working in the creative industries pay for legal protection when they license an image 

Stockphotorights.com

Government services rank poorly for digital technology

A representative sample of the UK population rate their experience of accessing central government services less favourably than their experience of accessing ten other customer-facing organisational types.  Government services rated worse than much-criticised technical support lines, telephone companies and insurance companies.  Local council services rated much more positively, ranking 5th on the list.

Asked to rate the ease of accessing services from a range of customer facing organisations, respondents ranked them as follows (with 1 as the easiest and 11 as the most difficult):

1.       Banks

2.       High Street retailers

3.       Online retailers

4.       Hospitals

5.       Local Councils

6.       Other utilities (gas, electricity)

7.       Telephone companies

8.       Broadband providers

9.       Insurance companies

10.    Technical support services

11.    Central government services

The poll also found that more government investment in technology that directly improves access to services would be popular with the electorate.  A clear majority (77%) of the UK population approve of government investment in IT to improve access to services, with approval marginally higher amongst the 55+ age group.  At the same time, 42% of respondents expressed concern about the cost of Government IT projects.  Only 4% felt negative about their personal use of new communications methods.

Des Speed, CEO of Lagan Technologies, said: “Our polling points to clear opportunity for the new government.  It demonstrates that there is a clear public appetite for the use of technology to improve access to local and national government services.  Governments worldwide use technology to improve access and efficiency and reduce cost. Our experience of working with 200 local governments tells us that much can be achieved in a relatively short time for minimal investment. Systems that interface with social networks, mobile phones, PCs and the domestic phone can enable citizens to access responsive government services wherever they are.”

Asked what would most improve access to public services, 53% of respondents were in favour of one memorable number for contact with all government services. The memorable phone number was most popular with the 55+ age bracket.

A quarter of respondents (24%) were in favour of their own web page for accessing services.  Seventeen percent of the 18-34 year old age bracket favoured an iPhone-style app for communication with government services.  Amongst the 18-34 year old age group 26% favoured the use of mobile web applications.

One in ten believe that central government services have become more efficient in the last 5 years.  Three in ten (29%) believe that central government services have become less efficient.

The three favoured methods of accessing local council services are phone (68%), email (66%) and access via the internet (63%).  Fewer than half chose mail (48%) or visits to council offices (47%). 

Brits hoarding nearly 80 million unused gadgets

Every Brit owns at least one gadget which is no longer in use, according to new research from recycling experts Redeem, amounting to nearly 80 million old electronic devices lying unused in people’s homes¹. The research into Britain’s gadget disposal habits shows that we are missing out on more than £390 million of potential income from recycling our unused electronic equipment².

Mobile phones top list of unused electronics

Mobile phones top the list of unused electronic equipment with four in ten (41%) Brits owning at least one mobile phone which is no longer in use, amounting to nearly 32 million handsets gathering dust. If every Brit were to recycle their unused phones, they would stand to recoup a total of nearly £160 million. However, it’s not just old mobiles that are clogging up people’s drawers and cupboards. A fifth of all Brits (22%) already own an iPod or other MP3 which is no longer in use. The same number (21%) of people have an unused digital camera and one in eight (12%) has an old laptop.

Increase in e-waste

The research also reveals a worrying tendency for Brits to throw away their old gadgets, resulting in an increase in the amount of e-waste being sent to landfill sites releasing toxic substances which are damaging the environment. In total, a quarter (25%) of Brits have thrown away an old electronic device. Of these, 11% have thrown away an old mobile phone, 9% an old iPod or MP3, and 5% an old laptop.

Upgrading will lead to a bigger problem

The problem of e-disposal is compounded by the frequency with which we are now upgrading our gadgets. Three quarters of owners (75%) have upgraded their phone within the last two years with nearly nine in ten (85%) iPod owners upgrading their models during the same period. Looking ahead, nearly half (48%) of mobile owners are looking to upgrade their mobile within the next year. The findings support the results of a recent report by the UN, which showed that e-waste is growing at a rate of about 40 million tonnes per year globally as consumers, in both developed and developing nations, buy new gadgets and discard their old ones.

Brits still lack awareness over options

One of the main reasons for Britain’s stockpile of unwanted gadgets is that three quarters (75%) of Brits remain unaware of their options for either selling or trading in old electronic equipment In fact, only 14% have ever used a recycling or trade-in service, despite the increasing prevalence of services such as money4urmobile.com or mobilecashmonster.com. 

Young men are biggest ‘hoarders’ of unused phones

The biggest culprits, when it comes to hoarding old mobile phones, are those aged between 25 and 34 with nearly six in 10 (59%) owning at least one unused mobile phone. Men are more prone to hoard with nearly half (47%) clinging on to old handsets compared to just over a third (36%) of women.

Commenting on the findings, Jamie Rae, chief executive, Redeem, said: “Nobody would throw hard cash in the bin, but by discarding old electronic equipment, such as mobile phones, iPods and cameras, people are effectively chucking money into a landfill site. As this reports shows, the issue of e-waste will not disappear, so we need to make sure that consumers are aware of their options when looking to dispose of old gadgets. It only takes a few minutes to dig out your old devices, but it could help to avert further damage to our environment whilst helping to line the nation’s pockets at a time when every penny counts. When it comes to phones, for example, newer models such as BlackBerry and iPhone can fetch between £50 and £300 per phone – a significant sum of money for most of us.”

Report reveals most visible websites in the legal sector  

Greenlight, the UK’s leading independent specialist search engine optimisation (SEO) and pay per click (PPC) consulting firm, has released its first quarterly integrated research report for the legal sector, ‘Legal Sector Report – Issue 1 February 2010’.                                                                                                

This research is based on 1.2 million consumer online searches in Google performed in February 2010, for legal-related keywords, with a focus on generic keywords, business law, family law, finance law and negligence. The data was then used to rank the 60 most visible websites and aggregators on page one of Google’s search results in both natural and paid search.

Using industry data, Greenlight’s research identified and analysed 1,000 of the most popular search terms used by consumers to find legal services in February 2010. Generic keyword searches for legal services were the most searched for, accounting for 729,000 searches which was 60% of the total volume. This according to Greenlight, indicates that multi-channel legal firms should consider these terms in order to capture a large share of the overall market. Negligence-related legal searches followed with 303,391 (25%). With a 9% share, family law followed with 111,480 queries (9%).

In natural search*, Wikipedia, lawsociety.org.uk and solicitors.co.uk were the three most visible websites, achieving 56%, 48% and 38% share of voice, respectively. Only ten websites were visible for more than 11% of legal-related searches, which according to Greenlight indicates there are massive gains to be made for many players within the online market.

The paid search** section of the report determined an advertiser’s share of voice based on how often they appeared on Google, which ad position they bid for and the search volume generated for the keywords they bid on. The ranking represents visibility across the top five keywords in February 2010.

NationalAccidentHelpline was the most visible advertiser, attaining 68% visibility. It was followed by ContactLaw with 47% then AccidentsDirect with 42%. Of the top ten advertisers, four were negligence law firms, three were lawyer and law firm directories, two were multi-channel firms and one was a conveyancing service.

No site or advertiser achieved strong visibility across both mediums. It appears that online legal services focused on either natural or paid search, not both.

 Greenlight’s report, ‘Legal Sector Report – Issue 1 February 2010’, profiles search behaviour in this sector. It assesses which websites and aggregators are the most visible in natural and paid search results and hence have the greatest share of consideration when UK-based searchers go to Google to find legal services.

www.greenlightsearch.com

Most IT bosses get info from online news

Most company IT bosses prefer to get their technology news and info, including news from IT companies, via online publications and blogs, with print magazines playing less of a role. They are also adopting Twitter and LinkedIn to stay updated on IT industry developments.
The findings come from an independent survey of 300 IT decision makers in UK companies commissioned by technology PR agency, CloudNine PR.
64 per cent of the IT heads questioned in the poll said they find online publications ‘useful’ or ‘very useful’ for keeping themselves updated on IT industry developments, including news from IT companies. This places online media in top spot in the list (see below) of IT chiefs’ preferred technology news and information sources compiled by CloudNine.
Second came independent IT blogs, scoring 52 per cent, with print publications (47 per cent) taking fourth place.
Interestingly, one in five (20 per cent) of the sample, which included CIOs, IT directors and IT managers, finds Twitter useful or very useful for keeping abreast of IT news and developments. And LinkedIn, which is the more longstanding and business focused networking site, ranked even higher with a score of 30 per cent.
Uday Radia, MD at CloudNine PR, highlights several useful findings for technology PRs and marketers:
“It might surprise some people to notice that more IT chiefs now value online publications than print. After all, it wasn’t long ago that it was considered a bigger result by PRs and marketers to get their information covered in the weekly or monthly IT print mags than their online counterparts.
What methods do UK IT chiefs find ‘useful’ or ‘very useful’ for keeping up-to-date on IT industry developments, including general news from vendors?
1 Online publications (64 per cent)
2 IT blogs (52 per cent)
3 Trade shows (50 per cent)
4 Printed publications (47 per cent)
5 Vendor Events (44 per cent)
6 IT Analyst blogs (40 per cent)
7 IT analyst events (38 per cent)
8 Vendor emails (31 per cent), LinkedIn (31 per cent)
9 Twitter (20 per cent)
10 YouTube (19 per cent)
11 Facebook (13 per cent)
12 SlideShare (12 per cent)
(Based on an independent survey of 300 UK IT decisionmakers commissioned by CloudNine PR)
CloudNine PR commissioned independent research specialist Vanson Bourne to conduct the survey. It consisted of a poll of IT decisionmakers, including CIOs, IT directors and IT managers in 300 UK companies. The sample included organisations with 50 to 250 employees, 251 to 1000 employees and over 1000 employees. There was an approximately equal split of companies operating in Financial services; Manufacturing; Retail, Transport and Distribution; and Business and Professional Services.
www.cloudninepr.com.

Broadband providers failing to support the next generation of Internet Protocol

Broadband providers and manufacturers of broadband equipment are failing to support the next generation of Internet Protocol, thinkbroadband.com warns.

‘IPv6’ is version six of the ‘Internet Protocol’ which has been available since 1998 however it is currently only supported by a very small number of niche broadband service providers. It is important that service providers can support IPv6 as the available address space we currently use (‘IPv4’) is projected to run out in just over 18 months’ time. After this, it will not be possible to allocate new IPv4 addresses which are used to identify each computer on the Internet, and whilst it will take some time before the effects are truly felt by consumers, it will start to divide the Internet.

“IPv6 is the future of the Internet and any forward looking service provider should, at the very least, be running IPv6 trials” explains Sebastien Lahtinen, co-founder of thinkbroadband.com. “Mainstream operating systems such as Microsoft Windows and Apple’s OS X have supported IPv6 for some time now, and even companies like Google have been offering it since 2008, but only a small number of broadband service providers and router manufacturers are ready” he adds.

The current IPv4 address space contains 4.3 billion addresses, but as more users and companies come online in countries like China, we’re fast running out of them. The number of addresses offered by IPv6 is 340,282,366,920,938,000,000,000,000,000 billion (2 to the power of 128) which means that the size of the Internet could double every year and we would still have enough IPv6 addresses for the next 96 years.

“IP addresses are like phone numbers and as the telephone network expanded, it was necessary to make them longer to make space for new numbers, for example by changing London’s area code from ‘01’, to ‘071’, then ‘0171’ and finally ‘020’ in April 2000” explains Sebastien Lahtinen. “The good news for consumers is that because we use domain names rather than IP addresses when going to websites, you will be able to continue to type www.google.com into your web browser, and it will take you to Google in exactly the same way whether it uses IPv4 or IPv6” he concludes.

Thinkbroadband.com conducted research by calling 17 broadband service providers and asking each one whether they supported IPv6. The results indicated significant confusion among sales staff working for broadband providers as to even what IPv6 was, with several providers incorrectly claiming to support it.

When asked about whether broadband services offered by the ISP support IPv6, answers included:

·          “Is it Internet Explorer 6?”

·          “I know quite a bit about computers but I’ve never heard that before.”

·          “Never been asked. I’m just looking at Wikipedia right now”

·          “Is that voice over Internet?”

·          “[IPv6] has not been released in the market”

·          “We support IP version 5, but I’m not too sure about 6”

·          “Is that a TV channel?”

·          “[We] would advise you to use version 4 [..] Version 6 never always works”

·          “There is clearly a lot of confusion about IPv6 within the sales and support teams working for many service providers.

We found that very few operators had heard about IPv6. One operator even had to resort to reading Wikipedia to find out more. The fact is that ISPs should be preparing their customer support teams for queries about IPv6 as consumers become more aware of it and begin to look into how it is going to affect them. IPv6 may involve hardware updates for consumers, so support departments may start to receive more queries about this and our survey shows that providers just aren’t prepared.” commented Sebastien Lahtinen.

You can check if your connection is IPv6 ready by visiting www.thinkbroadband.com/ipv6

Think Broadband IPv6 – www.thinkbroadband.com/ipv6

IPv6 Speed Test – www.ipv6-speedtest.net

www.thinkbroadband.com

Online Ad Spending up 25% on last year- Rubicon

the Rubicon Project, the digital advertising technology company, reveals exclusive insight into emerging industry trends and market shifts that occurred in the first quarter of 2010, along with insights into what’s next for the digital ad landscape, in the ninth installment of its Online Advertising Market Report series.

Included within the report is the latest update on the Rubicon 20 Index, a measure of performance across a number of factors (including CPM, revenue and traffic volume) on a roster of twenty of the Web’s most heavily-trafficked properties. CPMs across the Rubicon 20 Index have risen by an average of 25 percent vs. Q1 2009; in addition, the highs on the index in the latter part of the first quarter of the year outperformed nearly all of 2009.
“Everything we saw in the beginning of the year indicates that 2010 is going to be strong for revenue growth and continued, rapid innovation in the digital advertising industry. Our index showed that March spending on average was 38% stronger than January 2010,” said Craig Roah, COO and Founder of the Rubicon Project.  “It’s no longer about proving the value of display market, it’s now about making it efficient and safe for publishers to transact with all demand channels available in order to monetize their inventory. With that goal in mind, we will continue to build and provide the digital ecosystem with technology that accelerates revenue for the publisher.”
Additional key forecasts and trends addressed in this report include:

·          Google’s relaunch of DART for Publishers (DFP), the forced integration of AdExchange and DFP for publishers, and the impact of the release in the marketplace;

·          Audience targeting, an opportunity for publishers to regain relevance with advertisers as publishers find targeting an effective way to drive recurring revenue from repeat business from advertisers;

·          The need for publisher-facing technology that addresses all the risks of real-time bidding (RTB) to publishers, as RTB continues to drive a shift in current digital ad spending;

·          A rise in interest for self-service display advertising for publishers, specifically as the local market ripens;

·          Increasing security risks via malware or “malvertising” driving the need for automation and technology innovation that assures publishers, consumers and advertisers protection against attacks and direct loss of revenue;

·          The Congressional privacy bill, issued by Rep Rick Boucher, expected to continue industry debate on expected requirements from advertisers and publishers.

Also included in this report is market insight from industry leaders including Jay Sears, GM of ContextWeb’s ADSDAQ; Andy McLennan, Inventory Analytics Manager at Time Inc.; Mark Rose, VP of Interactive Sales for MediaNews Group; Patrick Mersinger, Sr. Interactive Director of Creative Loafing; Andy Fisher, EVP of Global Data & Analytics Director at Starcom MediaVest; Anthony Katsur, GM of MediaMath and Zach Weinberg, Founder and President of Invite Media.

To access the full Q1 2010 Online Advertising Market Report, as well as past published reports for free, visit: http://www.rubiconproject.com/market-intelligence.

Price remains the priority for hosting providers – but at what cost?

123-Reg has just completed a customer survey, receiving responses from over 6,500 customers.  Its findings show that while competitive pricing is an important part of the purchasing decision, the UK’s biggest domain registrar has seen overwhelming feedback that purchasing decisions are based not just on price, but value for money.

This market shift is testimony to the way that individuals, communities and small businesses are evaluating which web hosting company to work with and the decision criteria they use in the process.

Thomas Vollrath, chief executive of 123-Reg, warns that buying hosting just on price could be a costly mistake.

The survey highlighted that nearly 60 per cent of consumers make their purchasing decision on price.  This isn’t a surprise for anyone, web hosting has been a vibrant, competitive market for years; but what 123-Reg found is that customers also highlighted factors such as recommendations, products and ease of use as being more influential than price when it came to their purchasing decision.

As consumers, we all want low cost products and services, but the results of the survey have highlighted there is a definite move away from buying just on price.  We believe this is because the way that we use the internet has changed – websites no longer solely belong to the large corporate companies with large budgets for websites.  Individuals, clubs, community associations can now all communicate information to the world, highlighting achievements, conveying information and make calls to action.

In fact, nearly a third of the survey respondents made their purchasing decisions based on the products offered, demonstrating that web hosting companies need to look at the wider needs of customers – they want be able to create websites, with specific email addresses as well as knowing the environment is secure.  They are not designers, they are not tech-savvy - but they have a passion and desire to learn and use the tools.

There are of course many tools that can be downloaded from various parts of the internet, but as any non-expert knows, navigating this minefield without support can cause more problems than solutions.  This becomes critical if those websites are shopping portals.  Payment handling, VAT processing, organising merchant ID and secure certification are all vital for those customers wanting to start an online shop.

We believe it’s down to the hosting providers to evaluate quality products and provide them as part of a package to customers that are embarking on a website journey. Yes, cost is important but adding additional functionality and value will ensure that buying hosting based on its price doesn’t become a costly mistake.

www.123-reg.co.uk

Dramatic growth forecast for superfast broadband

Point Topic’s newest broadband forecasts for the UK are good news for broadband operators and service providers.  The total number of broadband lines is now expected to be 25.1m by the end of 2014, almost a million more than before.  The increase is not huge but it will help to improve the business case for broadband, and particularly for investment in superfast broadband using next generation access.

The short-term forecasts have also been increased.  The actual total for end-2009 was 80,000 higher than forecast at 18,370,000 lines.  The forecast for end-2010 has been increased to 19,790,000, up from 19,580,000 previously.  Looking back, projections such as these made by Point Topic are also proving highly accurate.  The forecast for end-2009 made in October 2007 was within 1% of the actual result. The current forecast for end-2010 is just 1.2% higher than the forecast published in 2007.

A major feature of the longer-term forecasts is the dramatic growth projected for superfast broadband, mainly based on fibre to the cabinet or premises (FTTx).  Contrary to much opinion, Point Topic is projecting a boom in FTTx similar to what happened with BT’s DSL broadband services in the mid-2000’s.

“We believe that FTTx will echo the development of DSL in the UK,” says Tim Johnson, Chief Analyst at Point Topic.  “People with dial-up internet access converted to broadband in their millions in the boom years.  We forecast that superfast broadband will do the same around the middle of this coming decade.”

The number of DSL lines grew from 550,000 to 12.3 million between 2003 and 2007.  Point Topic now expects that next-generation FTTx broadband will do something similar, with 12 million lines by the end of 2016. Most of these users will have migrated from DSL.  Cable will also play a significant role in providing superfast broadband but is expected to show a lower growth-rate overall.

“The difference from the noughties is that we think there will be a quicker run-up this time,” says Johnson.  “While it took DSL three years to get from almost nothing to half a million, we expect that FTTx will cover similar ground in only two years.”  The difference reflects a whole combination of factors; much greater commitment by BT, a much more competitive market, much more experience of broadband rollout and a relatively mature technology. 

Key factors on the other side of the balance are that FTTx demands much more new investment than DSL and superfast broadband is not yet fully proven as a must-have service for ordinary homes.  “We think these barriers will be swept aside as user demand for bandwidth and a quality experience spirals upwards,” says Johnson.

Will the Con-Lib Coalition Have a Positive Impact on UK Businesses?

British Business has suffered over the recent years. Writing as someone who has worked in the creative industry, many agencies have witnessed a cut back in client budgets. Some blame this is on the public sector over spending which has had a negative effect on private sector consumption and investment.

Research indicates that business owners are optimistic about the con-lib coalition and hope that Cameron and Clegg can recover British economy by bringing back financial stability. We asked six business managers and directors to share their views with Zeta about the results of the 2010 General Election. There was a consensus of hope particularly amongst small business owners and entrepreneurs.

An Overview of the Creative Industry

The economic growth of any country comes from the government and the private sector. But let's take a look at the state of the UK creative industries in particular:

Many of us in creative industries have seen a drastic cut back in Private Sector spending; signified by huge cutbacks in client budgets since 2008. This being attributed to huge government spending which has had a negative impact in private sector consumption and investment. When those in management decision making level do not understand the true importance of marketing these divisions are usually the first to see a slash in budget.

Lucky for those of us working in a digital agency, we haven't suffered nearly as much at the hands of the public sector over spend. Rather we have seen an increase in online marketing spend with more companies starting to embrace and understand the value of marketing their business and products online. In fact, 66% of companies are planning on increasing their digital marketing budgets during 2010 (econsultancy, 2010).

Creative SME's have competed for public sector contracts

In attempts to further conserve profits many SME's have turned to the public sector to sustain their business. This has been a difficult strategy for some creative SME's due to the rigid procurement processes which prevent smaller private sector providers from competing for public sector contracts. Read more about public sector organisations using private design companies on the Zeta blog.

A Con-Lib Coalition and hopes for economic recovery

The long awaited outcome of the 2010 UK General Election was finally concluded last week after a long weekend of political confusion, discussion and debate.  After thirteen years of under New Labour ruling, signified by Spin, Conspiracies and of course the hated Recession - the British public hopes that an alliance between Tory leader Cameron as PM and Lib Dem's Clegg as deputy will see Britain move into a realm of stability and economic prosperity, with Cameron leading the way to an economic recovery.

The Conservative-Liberal Democrats coalition has left many UK businesses and business owners feeling a lot more optimistic about trade and the future stability of the economy. The proposed cuts to the public sector spend may finally give private sector organisations the fuel to prosper again.

A study of business owners and executives by employment law firm Citation, found that 63% of business owners believe their company would perform better under the new Con-Lib ruling.

But what is the feeling of business owners and directors in creative industries and other private sector organisations? I sought to do a bit of my own research to see if this figure is representative by asking business executives and directors whether they agreed that UK business would perform better under the new ruling.

The general views reflect the 63% figure, and despite the differing political opinions, there is a general consensus of optimism and hope.

·          Ruth Lopardo, Entrepreneur/Founder of www.loveitloveitloveit.co.uk Online Children's Clothing Store

"My thoughts on the coalition as a business owner are that I'm concerned that the government will be stable enough in the medium term to see the fledgling economic recovery through without tipping the country back in to recession, especially with a Chancellor as inexperienced as George Osborne.   The Conservatives are often seen as the party of business, and whilst the Lib Dems are an unknown quantity in Government they may bring a fresh approach.  However, the current economic situation will give both the Government and businesses a very rocky ride.  The scale of spending cuts proposed by the coalition to cut the budget deficit is also of concern; if lots of customers are losing their jobs or cutting back spending in case they lose their jobs that can only be bad for business.  On a personal note, as a children's clothing retailer, I would be very much against the application of normal rate VAT to kids clothes, that would be a disaster for my customers and for my business."

·          Liz Jackson - MD of Great Guns Marketing www.greatgunsmarketing.co.uk

"I'm very pleased that after much deliberation the Conservatives and Liberal Democrats have finally struck a deal. If they can put their differences aside and work for the common good then I see no reason why it shouldn't be a success. Undoubtedly what we need right now is a government that acts quickly in cutting the deficit, removes the ludicrous 'jobs tax' and believes in public sector growth. Also, I think it is good to see wise political minds such as Vince Cable being drafted into the cabinet as he clearly has a vast array of political and financial knowledge that will help lead the British economy from the brink of bankruptcy towards growth."

·          Roger Allen, MD of Zeta

"Britain desperately needs a stable government that addresses the issues at hand clearly without the 'spin' and double speak which was synonymous of New Labour. The new Con-Lib coalition will combine Tory realism with liberal policies. Political stability and sound financial management are the foundations that businesses need to prosper."

·          Hessia Fernandes, Entrepreneur/Founder of www.cooltribe.com - UK Online Green Social network

"The coalition was born more out of need than idealism so I am slightly suspicious of its agenda and its ability to last. But having said that, there is a real opportunity for both parties to make it work.  I am at the moment reserving judgment as we haven't yet passed the PR/spin phase.  I am genuinely interested to see what happens in the next few weeks.  As a small business, my main point of concern is George Osbourne's inexperience at managing projects of this scale, after all the economy is in dire straits and it feels like we've given the little schoolboy the titanic to captain in a sea full of icebergs.  For my business to grow I need a growing economy where businesses will invest in online marketing so I just hope that the budget deficit cuts don't put too many people out of work and don't push businesses to be more cautious with their marketing spend."

·          Commenting on the 13th May 2010, Clive Sexton - Director of leading Global Interim Management Provider - Impact Executives

"49 days to the emergency budget, 4 days to parliament assembling, 11 days to the Queens speech. It is inevitable that there will be significant and major cuts across the public sector, inevitable union strife, in addition there are concerns that there will also be civil unrest also across the UK, this has been building for sometime. Unavoidable higher taxes, VAT going up to 20%. So the private sector just needs to draw a line under it all, look at new markets beyond the UK and Eurozone, where there is growth opportunity and come up with totally new propositions for the UK market and adapt those on a country by country basis and lift itself out very positively of the demise we have been in this past year plus and GO FOR POSITIVE CHANGE AND GROWTH STRATEGIES, which will be driven by INNOVATION."

·          Jamie Gavin - Founder of Jay -G Media http://www.jaygmedia.com/

"I believe the Conservatives are trying to appeal to small businesses by offering normal incentives like waving N.I contributions for the first registered employee etc - which is all well and good, but I worry that if they are unable to live up to expectations and effectively recover the state of the economy there will be no economy left to operate in under con-lib."

What is the future for British Industries?

The facts suggest that business leaders remain hopeful that the new alliance will help British businesses perform better. Clive Sexton's comments highlight that whilst the government is essentially leading the country and dictating budget and spend within the UK economy, the sustainability of individual businesses and organisations will always be determined by the drive and innovation of their individual leaders and employees.

This article was written by Aimee Carmichael. To read the full article visit: http://www.zeta.net/zeta-news/con-lib-coalition-and-uk-business.html

Source: http://www.zeta.net/