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Nielsen “Whinge” Over New Online Measurement Plan

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Nielsen Online which earlier this year claimed that the bulk of visitors to technology sites in Australia were from overseas has now lashed out at the IAB’s decision to only provide accreditation for panel-based measurement techniques, claiming the announcement is a “step backwards” for the online industry.

Following a three-month review process, Stuart Pike, chairman of the IAB-led Cross Industry Online Advertising Measurement Committee, today announced panel measurement had been identified as the “most appropriate solution for industry standard online audience measurement in Australia”.

Nielsen, which earlier this year produced a list of what it described as the top 10 technology sites in Australia but failed to include up to 5 sites that were outranking many of those chosen by Nielsen, has been an advocate of a measurement that best suits its business practises.

According to AdNews, Allan Dibb, managing director of Nielsen Online, has labeled the decision “a step backwards” for online measurement.  “It’s like the IAB are taking the easy way out,” Dibb said.

Nielsen Online has long championed site-centric measurement, which involves placing tags on the browsers of visitors. More recently, Nielsen Online has been working on a hybrid measurement technique that combines site-centric measurement with panel based measurement.

“International observers are saying that Australia is leading in this space. Bringing together site-centric and panel based measurements was ground-breaking and we believe it’s the right metric for our clients,” said Dibb. “I believe a lot of the industry currently agree with us on this.”

But the IAB has dismissed the idea of a hybrid approach in the short term. “We believe that the best approach for online audience measurement will be panel based methodologies,” said Pike.

“There is undoubtedly a place for hybrid solution at some point, but for the immediate future our focus will be upon reviewing panel methodologies with a view to refining and tightening the current methodologies before they can be accredited.”

Dibb said it was possible Nielsen Online might shun the IAB accreditation system altogether and advance its hybrid approach as an alternative to the IAB’s attempt at an industry standard – although he conceded it was early days and wanted to confer with clients first.

According to Dibb, the IAB’s proposed panel-based approach will damage smaller players, including ad networks, which are becoming an increasingly element of the online industry. “Look at our magazine clients for example. We’ve got 75 magazines sites, but only 18 of them appear in our NetView panel. Regardless of how big the IAB wants to make panels, they are never going to capture that long tail.”

Dibb said the IAB’s board and membership was “unrepresentative” of the online industry as a whole and, therefore, its attempts to produce a consensus on an industry standard, could be problematic.

“The IAB doesn’t represent all players. It represents big publishers, not ad networks and not the big classifieds players down in Melbourne. All those players are not part of the IAB.”

Dibb also criticised the IAB’s focus on monthly data, which he said was a step backwards from the daily data Nielsen Online was increasingly focused on. “The point is to help agency buyers, but while the average campaign is monthly, in the US it’s going weekly. If that happens in Australia, monthly data won’t be anything for agency planners to go by,” said Dibb.

An example of how accurate Nielsen Onlines methodology is was reflected in the technology top 10 when CNet who attract millions every month was missed out. It then turned out that Nielsen had only included paying clients.

Class Action Bought Against Major CE Retailer

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Only in the USA. Anyone with an investment in the consumer electronics industry, knew that by mid 2009 sales were going soft and most people knew that Best Buy had an advantage after their arch rival Circuit City collapsed that helped them hold up sales.

Despite this a Pennsylvania-based law firm has filed a class action lawsuit against Best Buy on behalf of company shareholders who claim the company misrepresented its finances. A company spokeswoman said Best Buy will fight the suit.

The suit, filed in the United States District Court for the District of Minnesota by firm Barroway Topaz Kessler Meltzer & Check, accuses the company of misrepresenting its financial health to its shareholders, including “that demand for the company’s electronic products was declining and/or weak.” The complaint also alleges that the company knew but did not disclose declining performance until much later than they should have.

The suit is seeking unspecified damages.

“Best Buy has a long-standing practice of not commenting on pending litigation. That said, I can tell you that we believe the case lacks merit. We will defend the case vigorously,” Best Buy spokeswoman Sue Busch Nehring told Dealerscope.

Reports: NBN Delayed Until 2020

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The Senate has just approved the pushing back of the $36 bn NBN until 2020, it has been confirmed.
Broadband Minister Senator Stephen Conroy

“The build has expanded,” he confirmed to the Senate hearing today.

The minister has reignited controversy on the proposed broadband network, producing a  massive 23 pages long list of amendments to NBN legislation currently being debated in the Senate.

Conroy says the amendments will ensure the NBN operates as an open-access, wholesale-only network, to support vigorous retail-level competition for Australians.

But critics say Conroy’s amendments reveal NBN Co may end up with power to charge different prices for bush communities using wireless and satellite services than their city counterparts using fibreoptic cable.

That appears to go against assurances given to independent MPs last year that there would be uniform pricing across the country.

Many of the country’s leading telco’s including Telstra, Optus and TPG have all voiced criticism over the NBN.

Read ’23 Pages Of Amendments To NBN’ here

CE Surge Pushes RBA Rate Rise

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Official interest rates have jumped 25 basis points to 6.5 percent, their highest point in 10 years. The surging domestic CE market has been held up as one indicator prompting the rate rise.
Economists attribute this latest move to the stronger-than-expected climb in inflation, and Westpac Economist Bill Evans told ABC radio today the booming CE market was one factor influencing the RBA’s decision.

Banks are expected to pass on the rate rise to customers as early as today or tomorrow, which will see average standard variable mortgage rates jump to 8.32 per cent.

The rate increase comes as little surprise, with economists having widely tipped the rate rise which is after higher-than-expected annual inflation rate figures for the June quarter. Numerous economist polls by organisations including AAP and Reuters found an overwhelming majority of economists expected rates to rise to at least 6.5 percent, with only a handful tipping rates to remain unchanged after today’s meeting of the RBA.

The rates hike is the fifth since the 2004 election. The decision came after the US Federal Reserve announced it was keeping its own interest rates steady at 5.25 per cent for the ninth time.

That decision came against a backdrop of volatile financial markets and rising default rates in the US sub-prime mortgage market.

How To Find Business Success Online

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The Internet offers amazing opportunities to reach new customers, expand your market reach and grow your business cost-effectively. So, has your business considered the move towards eCommerce as the next step in your business plan?

eCommerce facilitates the immediate exchange of goods and services online, with the internet now a viable and established sales channel for businesses of all shapes and sizes. By removing the traditional geographic and time barriers of “bricks-and-mortar” businesses, eCommerce enables the consumer to buy almost anything they want at any time of the day.

The July 2006 Sensis e-Business Report, recorded a staggering 53% of small to medium-sized businesses are now receiving payments through the Internet. So with such a competitive retail market, it begs the question: Why should this online market exclude your enterprise?

“We have noticed a substantial segment of new web entrepreneurs are stay-at-home mums and dads or people in their spare time looking for a flexible means to boost their income,” said Larry Bloch, CEO of NetRegistry. “Ironically it seems these “hobby” businesses are so profitable they have become full-time commercial enterprises”.

 

One such example of this is Simple Savings. Within two months of establishing the business in 2003, the company achieved its first years’ financial projections. Matt and Fiona Lippey’s “hobby” business had quickly turned into a profitable venture. Whist raising their two young children, the Lippey’s recently launched localised versions in New Zealand and the UK, with the US scheduled for an April release. 

When asked to discuss the most challenging aspect of their business, Mrs Lippey said, “Remembering family comes first. When operating a business from home, the hardest part is drawing a boundary between the business and your family. I am a professional mother who happens to run a business, which is our sole income”. Her husband, Matt, manages all the programming and accounts, making it a perfect team.

Approximately three years ago Simple Savings integrated eCommerce facilities into their website. Ninety percent of their sales are now conducted through this online payment-processing channel, which also dramatically reduced the required manual processing hours of staff. According to Lippey, “eCommerce is a very profitable way to work”, however she advises other businesses to “grow only as you can afford to grow”. Their Australian site, simplesavings.com.au, now receives over 8 million hits per month.

When asked to provide advice for other women starting up an online business, Lippey states “For an Internet business to succeed you have to help people, isolate a common problem many people have and provide a solution.”

For each success there are also many failures and, according to Bloch, the biggest challenge for people looking to set up an eCommerce website is good advice. “There is a complex array of software tools and online services out there and most people just don’t know where to start.”

 

“People are daunted by the technology and the perceived expense of setting up an online store”, says Bloch. “But the truth of the matter is that improvements to shopping cart technology over the past few years mean it’s now incredibly easy to build a presentable store from scratch for as little as $39.95 a month.”

“No matter the size of your business or your budget, there is a range of tools, services and products that will enhance your businesses performance and ensure you remain competitive. eCommerce is driving a new breed of successful entrepreneur – who are working smarter, taking advantage of the efficiencies of doing business on the web and achieving growth as well as sustainability quicker and cheaper than ever before”, states Bloch.

To help start-ups grow their business online, NetRegistry offers an affordable eCommerce hosting package. “The first six months are often the hardest for any business. By providing people with the right tools and removing some of the initial set-up costs, we hope more budding start-ups will take the plunge into eCommerce.”

Call a NetRegistry consultant on 1800 78 80 82 and discuss how eCommerce can enhance your business or visit their website www.netregistry.com.au

 

Water Price May Double

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It’s no secret that Australian businesses and individuals consume vast quantities of water. The protracted drought means prices of the valuable commodity are set to increase, but by how much? A new report suggests it should double in cost.
Water price rises have been on the agenda for some time, and a new report from the Water Services Association of Australia (WSAA) has suggested it should double.

Costs at the moment vary between 90 cents and $1.50 for every kilolitre of water used, and the costs of improved infrastructure and processes like desalination are putting pressure on these prices.

The authors of a recent WSAA report predict that they could double. That may sound alarming, but many water experts say consumers actually pay too little and some suggest the price should almost triple.

In a country as hot and dry as Australia, water is a scarce commodity, so many water supply experts say the price we pay for it is too cheap.

Professor Stuart White, director of the Institute for Sustainable Futures at the University of Technology, Sydney, agrees. “It’s true we historically and currently pay too little for water,” he said.

 

“We don’t pay varying amounts when it’s scarce [we] use restrictions, but we could pay more during drought periods.”

He says the price should be up to three times higher and the figure is not just based on pure economics. “If we take into account the massive spending spree on infrastructure [water] should be higher. Some of the proposals are well over $2,” he said.

“More importantly we are not including the impact on the environment so there’s a whole range of externalities [that could] drive it up potentially to over $3 per kilolitre or cubic metre. “
Infrastructure
The WSAA report says many states will be forced to build new dams and desalination plants because recycling and conservation projects will not save enough water.

 

University of New South Wales water treatment expert Greg Leslie knows the cost of the pipes, treatment plants and other infrastructure needed to supply water to customers.

It amazes Professor Leslie how cheap water remains despite these costs. “The effort to supply safe drinking water, it is amazing it is sold for the price it is. It is certainly worth a lot more than what we pay for our water bill,” he said.

Dr John Marsden, a water economist who advises both the federal and state governments, says cost rises are inevitable. “It is going to vary by city. One needs to be careful about generalising. [We could see it rise to] $1.20 to $1.80, or see it rise to $2.20,” he said. “We are not going to see it at $5.”

But Dr Marsden says consumers must keep any price increases in perspective. “Up until recently we were only paying a third of our household energy budget. It’s not that this is going to become unaffordable, [like] a price hike and sticker shock,” he said.

“Prices [may go] up by 20-50 cents but that is small compared to energy budgets and gambling. Its not unaffordable but we will be paying more.”

Today, the Victorian Government announced it wants a blanket 15 per cent price rise next year to help pay for a $5 billion plan to secure Melbourne’s water supply.
But when it comes to price hikes as a method of encouraging greater water efficiency, water experts such as Dr Marsden are sceptical.
“The available information we have is that people are not responsive to price,” he said.
“If we want to deal with demand we need a combination of responsible measures that are water efficient. Price is a useful tool but not the only one.”

E-security Info Site For SMBs

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The Federal Government has now rolled out a new website designed to educate small businesses on online security.

The website www.staysmartonline.gov.au was launched by ICT Minister, Senator Helen Coonan today.

“I acknowledge that e-Security can be daunting and difficult to understand, but simple measures can put businesses on the front foot and prevent major and potentially costly e-security breaches later on.

“Small businesses will have quick access to a range of information that can be used to protect their own critical business information, along with the confidential information of their customers.”

Senator Coonan also invited expressions of interests to participate in the 2008 National e-Security Awareness Week, which will be an annual event over the next four years.

The Stay Smart Online website and National e-Security Awareness Week are part of a $13.6 million package of initiatives announced by the Australian Government in the 2007-08 Budget.

Organisations can express their interest in participating in the National e-Security Awareness Week by emailing onlinesecurity@dcita.gov.au or contacting 02 6271 1284.

Internode Cuts Costs With Virtual Web Server

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Broadband company Internode says it has reduced power consumption and increased the performance of its web servers with new ‘virtualisation’ technology at its two major data centres.

As a result, the company has also managed to lower costs for web hosting for its customers. For example, entry-level web hosting plans now cost $10 a month, less than half the previous price.

Since the start of this year, Internode says it has progressively introduced the ‘virtual server’ technology to its operations, firstly to meet its internal needs and, most recently, for customers. This technique creates multiple ‘virtual server’ environments that more efficiently share the resources of available physical servers.

As a result, Internode has reduced the number of physical servers dedicated to web hosting from 11 to five, while at the same time more than doubling its web-serving capacity, creating a total of 30 ‘virtual servers’. Immediate benefits, the company says, include close to halving of power consumption by Internode’s web servers, reduced demand for air conditioning use and less pressure on server rack space in its data centres.

Internode says the improved operational performance has allowed it to launch a new range of web hosting services for small to medium businesses as well.

Internode Business Web Hosting Product Manager Jim Kellett said, “Virtualisation makes a far more efficient use of servers and eliminates single points of failure, especially as we have spread the physical servers and data storage across its two major data centres. If one of the physical servers fails or a data centre is compromised, then the system immediately transfers the load to other servers or the other data centre with minimal disruption.

See: www.internode.on.net

QLD Man Arrested For Hacking Neighbours’ WLAN

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A Rockhampton man who reportedly used his neighbours’ wireless internet connections to send dubious emails in an effort to extort money has been arrested in an undercover sting, according to the Associated Press (AP).

For several months, the 22-year-old man allegedly accessed other Rockhampton residents’ wireless connections and sent emails that could not be traced back to him, via his handheld computer or PDA, also accessing a “masking” service that allowed him to send the alleged threats to a variety of people using a magazine editor’s email address, Queensland police reported.

Police in Queensland, New South Wales and Victoria – as well the Australian Federal Police – were involved in investigating the emails, said AP.

Rockhampton police said investigators thought they had traced the offender’s IP address to a home in the city’s north last week, however when officers arrived at the home, they discovered that the elderly couple living there had their wireless internet accessed by someone else.

“In the area, in North Rockhampton, 12 separate homes have been identified (as having emails sent from their connections),” Senr-Sgt Pickless told AP.

The breakthrough in the case reportedly came when the man allegedly demanded money to be dropped off at a certain location and was arrested by undercover officers there.

He has been charged with attempted extortion and sending hoax messages and police were analysing the man’s PDA and PC, said AP.