8TH ANNUAL CRUNCHIES AWARDS Get Your Tickets Now For The Tech Gala Of The Year! News TCTV Events Editor’s note: Keith Teare is General Partner at his incubator Archimedes Labs and CEO of recently funded just.me . He was a co- founder of TechCrunch. As all predatory, or formerly predatory, men and women know, if you’re at a party and still by yourself at 2 a.m., and the drinks have been flowing, bad behavior replaces etiquette as the crowd shrinks. That’s when desperation to not leave alone kicks in. There is a new law emerging in cyberspace. As desktop traffic growth declines, and mobile adoption explodes, predatory marketers need to monetize mobile traffic or die trying. As this law takes hold, bad behavior is replacing smart long-term product thinking. The result is an explosion of unnatural acts of engagement. Facebook allows users to escape its filters (designed to give a good experience) by paying to force their Facebook posts in front of their friends — $7 a time and you’re golden. Twitter sends constant reminders about “what you missed” on its service. Google Plus has notification defaults set to a level that results in constant stream of inane emails. Users are the net losers in this festival of lowering the bar when it comes to how badly behaved a marketer is permitted to be in order to drive use. Let’s examine this increasingly desperate effort to engage with users. 1. The key driver is that mobile CPMs are only 15 percent of desktop CPMs. As traffic migrates, seven ads on mobile bring the same revenue as one on the desktop, because the lower CPMs coincide with lower click-through rates. 1,495 SHARES Posted Dec 29, 2012 by Keith Teare ( @kteare ) Unnatural Acts And The Rise Of Mobile
Mary Meeker outlines the gap in this slide, covered by our own Kim-Mai Cutler: The possibility exists in 2013 that the absolute revenues of the major players will decline as desktop revenues suffer and mobile revenues fail to make up the difference, even as they grow dramatically. This nightmare scenario is key to understanding what is driving bad behavior by marketers and product leaders. Bradley Horowitz recently made some pretty good jokes about Facebook’s bad behavior, but Google is not immune from this disease, although its large revenues from desktop search possibly delay the impact compared to Facebook. Indeed, Google, due to its high desktop-based revenues, should be more focused on the trend than anybody. It has way more to lose than either Facebook or Twitter. All three companies are clearly more than capable of facing the mobile tsunami from a personnel point of view. But tsunamis have a way of being hard to handle no matter how good you are. And shortcuts tend to turn into nightmares.
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- Fall '11
- Advertising, Interpersonal relationship, bad behavior