Oonagh Reidy

Microsoft Ad’s Managing Director has defected to Facebook.

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However it is not known what precise role the former Advertising MD at Microsoft, Liam Walsh, will play at The Social Network, although it is presumed it will be a similar type position.

And ads are something Facebook is looking to do far more of with its latest ventures into mobile ‘check in’s’ and location based ads and look set to reach $50 million in ad revenues by the end of 2012.

And according to several of the larger agencies, bookings with the network are up 80 percent this year. SMI figures suggest Facebook wrote $6 million in agency revenues for the last quarter  although this doesn’t count direct bookings.

Microsoft employees were told yesterday that their boss was leaving the online performance advertising company he launched as Drive PM in 2007, according to Ad News.

Microsoft Advertising has also enjoyed some serious business growth in the last year, growing a phenomenal 79 percent rise in February last, compared to a year ago.  

“Liam will be joining Facebook Australia in the coming weeks. He will be part of our ongoing efforts to work closely with agency partners and to help them develop marketing strategies that are truly social by design.” Facebook’s regional vice president, sales, Paul Borrud said.

Walsh, a former sales director at Fairfax Digital, said he was “thrilled to be joining Facebook.”

Microsoft also suffered another major blow to its global staffing operations before Christmas, losing Ray Ozzie, its chief software architect.

After much tussle it looks like the Telco has won a chunk of online footie rights…for a bargain $100m price.

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Channel Seven and Foxtel are also major winners on the TV side, although it was a far costlier gamble, with a rumoured $1billion price tag being paid to the AFL for the all exclusive rights for the 2011-16 period.

Kerry Stokes’ Seven will pay around $475m of this sum although a lot of it could be in the form of free ads for the AFL.

This new AFL deal, which could be announced today, also represents a massive upsurge in the cost of broadcasting matches compared to previous agreements penned with the AFL and demonstrates the major importance networks place in it, giving a ‘halo effect’ for viewers.

The last deal held jointly by Seven and Ten was worth $780 million.

And showing all the games live could also help Foxtel hold on to its subscription numbers which have remained flat in recent months.

As for securing of exclusive AFL broadcast rights for 2012-2016 could also could be a big bonus for the Pay TV giants as IPTV and other online content services gain momentum.

“Internet TV and free-to-air networks own digital channels are fragmenting TV audiences,” one media exec told the Financial Review yesterday.

Telstra’s rights would secure web rights for games, although it is not clear whether it also managed to nab mobile rights.

If so, it could prove highly lucrative given the huge increase in popularity of such media in recent years.

The telco was also tipped to show live games on its T-Box, independent of Foxtel, in which it owns a 50 per cent stake, although it is thought this now won’t happen, leaving that ball in the hands of its Pay TV network.

Reports suggest it will buy probably one game a week, on delay.

And what of the other contenders? Ten Network fell off the bidding wagon earlier in the process due to the high costs involved.

However, the winning stations are likely to sub contract out to those who lost out which could include Nine or Ten.  

And considering Foxtel shareholding interests overlap in the form of Lachlan Murdoch (News Ltd) and James Packer (Consolidated Media Holdings) with Channel Ten, this could be very likely.

Under the previous deal, Telstra paid $60m for the rights to show match replays, highlights and club content on mobile phones and the internet.

Yahoo! Inc. report 28 percent earnings slide and “flat” growth as revenue sharing with Microsoft hits bottom line.

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Total revenue excluding “traffic acquisition costs” was $1,064 m for the first quarter, a 6 percent drop compared to last year, which it attributed the “revenue share search agreement” it has with Microsoft.

Net earnings dropped a dramatic 28 per cent from $310m to $223m for Q1 2011.

Revenue growth was for the first quarter of 2011 was “flat” it said in a statement today. 

Microsoft retains 12 percent of the net search revenue generated on Yahoo! Pproperties and affiliate sites, an agreement which kicked in last October, designed to cut operating costs.

However, display revenue after traffic costs, which refers to marketing costs paid to partners, did increase 10 percent to $471m, although its search revenue fell 19 percent to $357m.

Other factors attributing to the falling revenue figures included “the impact of the divestitures of Zimbra and HotJobs and certain fee rate reductions.”

Income from operations increased by 1 percent to $190m, a jump of $2m from the same period a year ago.

Net earnings were $0.17 per diluted share, down from  $0.17 y-o-y.

However, in spite of the flat figures, the search giant remains confident, calling itself “the world’s premier digital media company” despite the market domination Google has over the market. 

“We are solidly executing toward our plan for returning Yahoo! to sustainable revenue and profit growth,” said Carol Bartz, CEO of Yahoo!.

It also beat the midpoint of revenue guidance while delivering on the bottom line, it said today.

“We continued to extend our lead as the world’s premier digital media company with users to Yahoo! branded properties increasing 15 percent year over year and minutes spent increasing 17percent.”

However, the company enjoys considerable success in Australia, operating as Yahoo!7, in a joint venture between the Seven network and Yahoo, which reported profits of $22m and revenue of $91.5m last year.

It’s the nail in the coffin for 3 as a standalone brand as Vodafone entry into its store intensifies.

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The 3 chain of stores which is currently getting a makeover and being turned into dual service operations, has gone a step further, with VHA recently moving to allow 3 customers get service from Vodafone stores.

All 3 stores will now operate under dual logo’s although as a provider it will continue to sell handsets and plans from both networks.

The rebranding exercise, which has been taking place since last year has gathered pace with several stores in Sydney undergoing the change recently.

There are over 288 3 stores currently nationwide, according to the its website.

So, the end of the brand isn’t nigh, but rather its stores will be set “set-up to sell and service 3 and Vodafone customers” a spokesperson for Vodafone told SmartHouse, which may prove a major boon for customers on the networks, with a massive jump in the number of stores at their disposal.

Operation 3 whereby 3 customers can now get service from Vodafone stores, has been underway since last week, VHA confirmed today, and will be continuing over the next few months.

 “From 13th April, 3 mobile customers can visit 95 Vodafone retail stores and 31 select Vodafone Dealers across the country to service their mobile needs including adding a new service, upgrading their account, purchasing additional services or devices, or just seeking assistance,” VHA said in a statement to SmartHouse. 

 “Our 3 mobile customers (now have) access to more store locations and a better customer experience. “

The merger between Vodafone and Hutchinson, announced in February 2009, resulted in the amalgamation of the No.3 and 4 players in the mobile market, to form Vodafone Hutchinson Australia.  

Apple’s top dog is never far from head office, despite his illness, Apple execs said today.

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And like the Terminator, which is the nickname also given to its forthcoming iPhone 5, Steve Jobs hopes to be back, sooner rather than later, chief operating officer Tim Cook told analysts today.

But it seems he’s never far away and “continues to be involved in major strategic decision,” says Cook.

“I know he wants to be back full-time as soon as he can,” Cook, who has taken over the running of tech giant, said. 

Apple have been busy announcing a stellar performance for its 2011 fiscal second-quarter earnings today, during which it sold 18.65m iPhones – two million more than expected.

And despite Jobs’ leave of absence, the Wall Street star player has still managed to maintain top spot in the tabs market, accounting for 80 percent share of that market.

“We’re firing on all cylinders,” Jobs said in a statement following the figures announcement. “We will continue to innovate on all fronts throughout the remainder of the year.”

Steve Jobs’ brainchild also sold 4.69m iPads, although this was down on forecasts.

However it has warned that shortages of components could hinder the company in the next quarter.

Read Apple Smashes All Records Profits Up here

In January, 55-year-old Jobs announced he was taking a medical leave of absence as CEO – the third time during his reign as head of the world’s largest technology company.

He took medical leave in 2004 and in 2009. Last year he announced that he had pancreatic cancer and received a liver transplant during his last leave.

“He is still on medical leave but we do see him on a regular basis,” Cook said.