Microsoft has revealed its new Xbox, the successor to the Xbox 360. It’s a next-generation console, with plenty of power under the hood, but it’s also clearly about consolidating your digital entertainment and operate as much more of a lifestyle device.

“Where all of your entertainment comes alive in one place,” is how Microsoft’s Don Mattrick put it on stage during his introduction. The entire event was prefaced with a description of the various types of non-game media that’s becoming popular with online streaming set-top boxes and mobile devices. “To continue to lead, we must provide compelling answers to new questions,” Mattrick said.

“Design and build an all-in-one system to light up a new generation of games, TV and entertainment,” in a way that’s “simple, instant and complete” is how he characterized the mission for the new device.

Voice Control

Kinect is part of the package, and it’s a voice controlled experience from power on throughout the entire process. Your voice cues the Xbox to your user profile and sets up all your custom options. Then, you can dictate activities to Xbox One, sort of like how many imagined Apple would do their own Apple TV with Siri.

Changing between activities is as easy as telling the Xbox One exactly what you want it to be doing. It’s remarkably quick, quicker even than the process of changing channels on my at-home cable box hardware. But voice control isn’t the only trick, there’s also gesture recognition tech for controlling the system with your hands.

Snap Mode

There’s a “Snap Mode” feature, too, which looks like the Microsoft Windows 8 experience, in that it allows you to run two activities simultaneously. So you can watch a movie and then also browse the Internet at the same time, for example, to look up elements of that film. You can even use Skype, newly introduced to Xbox with the Xbox One, and have that running in Snap Mode too.

The Snap Mode feature does something that has until now mostly been reserved for computers and for mobile and tablet devices: provides a second-screen experience that runs right alongside things like live TV. Adding basically a HUD layer to live TV might be the Xbox One’s biggest appeal for content providers who are looking for additional ways to engage audiences losing interest in traditional ads.

Tech Details

The Xbox One has 8GB of RAM, along with a Blu-ray drive, as well as a native 64-bit architecture, a 500GB onboard hard drive, HDMI in and out (including passthrough capabilities for use with your existing home theatre setup), 802.11n Wi-Fi as well as an 8-core CPU and USB 3.0 connectivity. That’s mostly in line with what we’ve heard from previous rumors, but it’s still quite impressive.

The big advantage of the Xbox One is its architecture, however, according to Microsoft’s Marc Whitten. He said essentially it’s like they’ve combined three operating systems in one to deliver the seamless transition between games, applications, and live entertainment. The Xbox architecture combines with Windows, via a third OS that handles fast switching between multi-tasking apps.

Kinect And Controller

The Kinect has been updated to capture 1080p video, as well as detect many more points on the body for more accurate recognition. It’s also better at recognizing voice input and gestures, and it can even read your heartbeat while you’re excercising.

Overall it seems like Microsoft has put a lot of effort into developing the new Kinect, in order to smooth out any rough edges that the launch device had in terms of working as naturally as possible.

The new controller looks like the one you know an dlove but has an integrated battery compartment (more like the PS Dual-Shock in terms of creating a slim profile on the back), as well as Wi-Fi Direct and a high precision D-Pad. The new trigger design is supposed to be much more powerful as well.

DVR, Cloud Game Saves And Library

New cloud-based features require that the Xbox One’s Live service has 15,000 servers backing it up, and offers a number of features like back up of your media content, games and game saves to the cloud for easy portability. There’s also a DVR function to record game play, and also share save states.

This is likely why the Xbox was said to require a constant Internet connection; it sounds like a lot of the functionality is based in the cloud. Microsoft has said that it doesn’t require the console to be “always on,” specifying that it will be designed to allow you to continue to watch Blu-rays, live TV and even play games should your connection drop.

The One To Watch

When Sony unveiled their PlayStation 4, one of my complaints was that it focused too much on games and not enough on becoming more than just a console. Microsoft has taken the exact opposite approach, fielding a device that seems like it would be equally at home in either a hardcore gamer’s, or a non-player’s living room. That should help them deal with a changing gaming industry.

The Xbox One is launching globally “later this year,” but Microsoft didn’t get any more specific or provide an idea of price.

Article courtesy of TechCrunch

Last week we reported that MessageMe, one of the latest messaging apps to hit the smartphone market, had picked up a $10 million Series A round of funding, and today, the company is officially confirming the news, along with some more details on how it’s been doing in the 2.5 months since it launched. It now has 5 million users across both iOS and Android — a five-fold increase on the 1 million that downloaded the app in its first 10 days.

MessageMe aims to carve out a name for itself by offering more ways than the rest of the pack — which includes WhatsApp, Line, KakaoTalk, Viber and Facebook (from which MessageMe gained some notoriety when it was restricted from using Facebook’s social graph API to find friends to use the app) — for users to communicate with each other on its messaging platform. In its case, this is done through notifications via text messages, but also pictures, doodles, video, voice, location and music sent from one user to another. Altogether, usage of these has risen three-fold, to 1,500 per second from 500 65 days ago.

From what we understand, although MessageMe is partly founded by people with extensive gaming experience — Arjun Sethi and Justin Rosenthal both worked together at social games company LOLapps (acquired by 6waves in 2011) — it will be messaging, not games, that will be the revenue driver for the company. Also: no plans to add in advertising, nor to charge for the app. Instead, it will build out premium messaging features such as stickers and money transfers.

The latter is shaping up to be a particularly interesting area, with not only Google swaggering into the ring, but as of yesterday Square as well, alongside a number of other companies like Venmo and established names like PayPal and Western Union already dabbling in features like this.

As we reported last week, and as confirmed by the company today, this latest round was led by John Lilly, the former CEO of Mozilla who is now a partner at Greylock; Lilly now joins the board of LittleInc Labs, makers of MessageMe. Other investors in the round include previous backers True Ventures (where MessageMe was first incubated), First Round Capital, Google Ventures, SVAngel, Resolut.vc, Andreessen Horowitz, and Social+Capital Partnership. The company’s angels also include Airbnb’s Brian Pokorny, Hiten Shah, Eric Wu and TinyCo CEO Suleman Ali.

The company is still in an early and small stage: currently there are only 10 people working for TinyInc Labs.

I caught up with co-founder Sethi to speak a little more about the direction of the company:

About those greyed-out tabs on your app. When are you launching stickers and money?
We’ll start rolling out new features in about a month, although we’re already doing some staged rollouts in beta. Stickers will feature our own content, as well as branded content, from companies that we’ll be working with. Money will be done in partnership with someone. A lot of the new features will come first on Android. Although it’s an app that we launched only last week, it’s easier to add and develop new features on Android.

What about Windows Phone and BlackBerry?
We are taking a close look at all the platforms out there, including web, Windwos and BlackBerry. We’ll see where most of the demand is and what users are asking for to decide what the next step will be for MessageMe.

Talk to me a bit about your thoughts on paid messaging services like WhatsApp or those that rely on adds for revenue.
There is no paid version planned. We’re definitely adamant on keeping it free, simple and fast. We’re also not doing any banner ads or third-party data stuff. We want to make sure that everything you do is private and secure. Even with premium services, you will pay or have option to opt out before you see or use it — that will come into play with how we roll out stickers and accessing content.

WhatsApp (200m+ users) has stolen a march on the messaging apps world with its seemingly global appeal, with Facebook Messenger also doing this to a lesser extent. Meanwhile others have a very regional focus. Where do you sit in that spectrum so far?
Outside of the U.S. most of our growth has been in Europe, and the UK specifically. Most of the usage so far is of a younger demographic.

What message apps do you use?
Besides MessageMe, I use WhatsApp because that’s what’s popular in South Africa [where he hails from] and also BBM. Because I worked in Asia, I also use KakaoTalk for friends in Korea and Line for friends in Japan. I think you’ll always have fragmentation, just as you still do in email [that begs the question of interoperability....]. Then again, I’m not your average user, but I use Line as heavily as MessageMe.

Article courtesy of TechCrunch

Wanderful Media has raised another $9 million from the long list of newspaper and media companies that were already backing the startup and its local deal service Find&Save.

The announcement comes after the relaunch of Find&Save last month. The service allows readers to browse deals aggregated from newspaper circulars, retailers, and other data sources. That was the first big redesign since Wanderful acquired Travidia (the print-to-digital conversion company that started Find&Save), and at the time, CEO Ben T. Smith IV told me that it was Wanderful’s first opportunity to put its own stamp on the product. That involved adding more personalization and social features, such as the ability to create shopping lists and to follow retailers and other users.

COO Doug Kilponen said yesterday that the relaunch has gotten a positive response so far. That’s one of the reasons for the new funding — to increase the distribution around a product that seems to be working. He added that the new Find&Save spurred interest from new investors too, so “we’ll hopefully see some news on that as well.”

This brings Wanderful’s total funding to $36 million. All of Wanderful’s existing backers participated, Kilponen said, and the round had no lead investor. The existing investors include (deep breath) Advance Digital, A. H. Belo Corporation, Community Newspaper Holdings Inc., Cox Media Group, The E. W. Scripps Company, Gannett Co., GateHouse Media, Hearst Corporation, Lee Enterprises, MediaNews Group, The McClatchy Company, and The Washington Post Co.

Although Find&Save has its own website, it also integrates with the sites of newspapers like the San Francisco Chronicle — in fact, it says its network already reaches 100 million unique visitors each month. The next step, Kilponen said, will be the launch of Find&Save apps for mobile and tablet.

Article courtesy of TechCrunch

The bookend to Yahoo’s Big News Day — a major refresh of its photo sharing site Flickr — will see the company drop its Flickr Pro pricing tiers as part of a bid to compete better with Facebook/Instagram and the rest of the crowded market in the online photo space. But it is not getting rid of paid tiers altogether: it’s keeping an ad-free tier, called Ad Free, as well as a tier for power users, doublr, respectively priced at $49.99 and $499.99 for a year of use.

The Ad Free service, at $49.99, will do away with the advertising the runs along the right side of the current photo feed — and if today’s discussion of what Yahoo intends to do with ads on Tumblr is any indication, ads that may be appearing soon within your photo streams.

The doublr service (again with those dropped vowels… this had to have played some small role in warming the company to buying Tumblr), priced at $499.99, gives users 1 terabyte of extra space, on top of the 1 terabyte that they will already get free as part of a Yahoo account.

The Pro tiers — priced at $6.95 for three months, $24.95 for 12 months and $44.95 for two years — included unlimited uploads and storage, as well as no ads, and a particularly mean-spirited allowance: those who did upload pictures could download more than just a smaller version of them. (Meaning: those who didn’t pay up wouldn’t get the full copies until they did. Their originals have always been stored by Flickr.)

From what we understand from a person close to Flickr, dropping Pro isn’t going to make much difference to the company because Pro never did very well.

“It has always been a relatively small percentage of the overall user base,” our contact says, adding that while now-distant past CEO Terry Semel had made a big push on premium services, after his departure (and actually during his time) there was “virtually no investment made” in trying to develop or push the Pro tier.

Nevertheless, there are now currently Pro users wondering how exactly Yahoo will be compensating them for the rest of their annual subscriptions. Yahoo notes that as part of the changes it will be removing “pro” badges beside people’s names and people can no longer gift pro subscriptions. Strangely, in a bit of an AOL subscription move, Yahoo says it will continue to offer renewable subscriptions to pro to “Recurring Pro users.”

The Pro tier did have another role to play. Today, CEO Marissa Mayer recounted how the small-image download was what prompted her to rethink Flickr altogether. “When we looked across our services we asked, why are we doing that? That started a thought experiment,” she said. The decision was that Flickr no longer wanted to offer “degraded” images. “We keep your images and you have high resolution images everywhere which is a huge differentiator.”

But in the age of Dropbox, BitTorrent, Mega and more, there are so many places to store pictures online today: will anyone really want to pay such a premium price for that place to be Flickr and Yahoo? In any case, as one person has pointed out already, why users wouldn’t just register for two accounts rather than pay for the extra space?

In the meantime, Flickr users are taking a page from the Tumblr book of user reviews, and laying out their vitriol about the changes over here.

Article courtesy of TechCrunch

It’s easy to forget that Yahoo has had a long on-again-off-again love affair with online video. Remember Broadcast.com, which kicked off the Mark Cuban Era? But you might not remember that, because other online video platforms long ago left Yahoo in the proverbial dust. Today, as Yahoo streamed its Flickr product and Tumblr acquisition announcements, we were given a demonstration of why Yahoo has been left in the dust — and why it’s had to turn to acquisitions for help in, well, nearly every department.

The event was nearly impossible to watch. Because, well, you know, Yahoo! As you’ve heard by now, Yahoo has been on an impressive buying spree over the last month — including, by the way, a scuppered deal to boost its video tech and buy the “YouTube of France,” Dailymotion — snatching up a new company seemingly every week.

But today, the company raised the bar even higher with the $1.1 billion acquisition of Tumblr, hoping to turn back the clock and gain access to Tumblr’s millions of young users.

The company held a media event in New York City this afternoon to formally announce the acquisition — along with sharing the news that it will be moving into new digs in Times Square — but something was stealing the spotlight from Mayor Bloomberg and Marissa Mayer. And that would be Yahoo’s questionable video tech. Those who watched the event from home spent most of that time enjoying a hiccupy stream. Or none at all.

You can see the error message above. The video-streaming technology is Yahoo’s own, running through Yahoo! Screen, first launched back in 2006, renamed Screen from Yahoo Video. With all the acquisitions Yahoo has been making of late, it makes one think that, for its next acquisition, Yahoo should go for some new video technology. Of course, after Tumblr, it may be broke.

But, come on, Yahoo has somehow become the Rudy story of the tech industry. At the very least, someone should launch a Kickstarter page so that it can continue to make acquisitions.

Article courtesy of TechCrunch

This is a guest post by Mario Zelaya, Managing Director at Majestic Media, a Facebook Preferred Marketing Developer & digital marketing agency, specializing in custom apps and promotions for web and mobile.

Marketers are starting to focus more on social media efforts, realizing that it’s an important piece of the marketing puzzle. They’ve started to use social media, but only as an extension of a traditional campaign or as a small marketing initiative on the side. Many of them are hesitant to rely too heavily on social media. They’re willing to let social media ride in the car, but they’re reluctant to give them the keys.

According to a report released by Social Media Examiner at the end of 2012, 83 percent of marketers have said that social media was important to their business. However, the CMO survey released in February found that marketers are only allocating 8.4% of their budget for social media.

Many believe that in order for a campaign to succeed, it always needs to be integrated across different channels. This is simply not the case. At Majestic Media, we’ve seen time and time again that a fully digital campaign, or even a fully social campaign, can reach hundreds of thousands of consumers, achieving millions of social impressions and engagement, and generate a tremendous amount of traffic.

Majestic Media recently launched a social campaign for Maple Leaf Foods, promoting their new product, Bacon Portions. It was a simple Facebook Application that allowed users to pledge to “Never Waste Bacon” and enter for the chance to win a year supply of bacon.  Yes, bacon.  Not a brand new car, $25,000 or an extravagant trip, simply bacon.

The campaign was launched organically on Facebook, posting on Maple Leaf’s Facebook Page for current fans to see. Within 12 hours, we had reached 3,458 pledges. Following the launch, Maple Leaf Foods started a small paid campaign on Facebook consisting of Promoted Posts and Sponsored Stories. Within a week, we saw nearly 19,000 pledges and #NeverWasteBacon was the No. 1 trending topic on Twitter in Canada.

Facebook was the primary focus, but Twitter and Instagram also played a large part in the success of the #NeverWasteBacon campaign (which is still running).

Maple Leaf was able to gain a huge amount of traffic without incorporating traditional mediums like radio, TV, or print. They were able to generate such a large amount of organic traffic because they took the time to build an audience. They spent time interacting with their followers and provided them with engaging, relevant content.

Social media has the power to drive a major campaign, but only if you do it right. This might seem obvious, but you’d be surprised by how many brands blame a failed Facebook campaign on the social network, rather than the fact that they didn’t take the time to prepare.

Social campaigns can be wildly successful if you have the right strategy in place, give people the incentive and the encouragement to share with friends and spend the time listening and building up your audience to ensure what you launch is inline with what they want to engage with.  Campaigns don’t always need to be fully integrated and rely heavily on paid media to be wildly successful.

Mario Zelaya is the founder and managing director of Majestic Media, Canada’s first Facebook Marketing & Technology agency. His extensive experience on the Facebook Platform includes building out social strategy, campaign ideation, app architecture, and social design for brand clients such Volkswagen, Kia, General Motors, Mazda, Gatorade, Hot Wheels, Infiniti, Nissan, Visa and many others. Majestic Media has executed over 200 large-scale campaigns and works with big brands and agencies in helping them to get results and ROI through campaigns that are social by design. Follow Majestic Media & Mario on Twitter @majesticmedia @zelaya.

In the wake of releasing eight comedy series pilots into the wild last month, Amazon is starting to make decisions concerning which pilots will be purchased for development and which will get the axe.

According to Reuters, the company has chosen to build out Alpha House, a show featuring John Goodman about four Senators in DC who live in a house together, along with Betas. Betas tells the story of startups trying to make it in the world and stars Ed Begley Jr. Amazon picked up this series back in March.

On the other end of the spectrum, Zombieland was cut from consideration, along with Browsers, a musical comedy following four young kids who work at an online newspaper.

I’ve watched all eight of Amazon’s new comedy series pilots, and have to say that Zombieland’s death disappoints me. Betas was funny enough, and obviously catches our particular attention considering it covers the lives of four “computer geeks” who are building a startup and trying to get funding in Silicon Valley.

Zombieland, on the other hand, is a bit of an upset. Based on the 2009 hit movie Zombieland starring Woody Harrelson, Jesse Eisenberg and Emma Stone, the show ranked as one of my favorites having not seen the movie. But die-hard Zombieland fans felt the series failed the same quick-wit and devastating charm only Woody Harrelson can provide.

Writer and producer Rhett Reese broke the news on Twitter:

Our Zombieland series will not be moving forward on Amazon. Sad for everyone involved.—
Rhett Reese (@RhettReese) May 17, 2013

I'll never understand the vehement hate the pilot received from die-hard Zombieland fans. You guys successfully hated it out of existence.—
Rhett Reese (@RhettReese) May 17, 2013

Reuters reported that Zombieland received an average of 3.5 stars in 5,500 reviews, whereas Alpha House received 2,600 reviews with an average of four stars and Betas received more than 1,500 reviews averaging 4.5 stars.

The company has not been entirely clear about its feedback methodology for deciding which shows to purchase, but has explained that this is a first try at something new. There are no hard and fast rules for choosing how to move forward, and the company has said it will develop up to seven of the series, or none at all.

Obviously, we’re already locked and loaded with two of the pilots, and we’ll wait to hear back on the remaining four.

[via The Verge]

Article courtesy of TechCrunch

After announcing its deal to acquire Tumblr for $1.1 billion, mostly in cash, Yahoo today started to lay out some of the details for how it intends to make use of the property while trying to stick to its promise “not to screw it up.” Expect more advertising by next year as well as more Tumblr content on Yahoo properties, but more of a cautious step as to how Yahoo will deal with some of Tumblr’s more NSFW content.

Here are some of the more interesting details revealed in the call:

What are Tumblr ads going to look like? Tumblr apparently made only $13 million in revenues last year but CEO David Karp apparently thinks the site is “ready” to make more now that it understands its users, according to Yahoo CEO Marissa Mayer. But she also noted that they will be working from a challenged position, not just because of user resistance but because Karp himself has been “skeptical” about online ads.

In the conference call, Mayer made an early reference to how Tumblr would be able to make good use of Yahoo’s advertising technology, in ways that fit Tumblr’s so-far successful, image-based, quick-blogging, youth-oriented format — what she called “native advertising formats.”

As one example, she pointed to an ad format that Yahoo launched at the end of April, in-stream ads that it runs on its news pages. “On Tumblr we feel we can monetize in ways that are meaningful and add to user experience,” she said. She cited the Tumblr dashboard, or as she called it, the inbox for the blogs you follow. “Today Tumblr already does some ads in that feed. We would like to look at that and understand how to introduce more ads where the ads fit the expectations and follow that form and function.” She also noted that Yahoo may possibly work with bloggers to provide ads that will be run with their permission.

On top of this, expect to see more search ads: there are also plans to integrate Yahoo’s search functionality into the site as well. “We think there is a complelling search story,” said Mayer. “Their body is 50b posts and 5 billion posts of original content so search is already vast. We see an opportunity to integrate with search and provide that. That’s one area we are excited by the acquisition.”

Throughout this, a focus on trying to be Tumblr-centric about whatever Yahoo tries to do there. “It’s not a choice between creativity and monetization,” insisted Mayer.

So when are those ads coming? CFO Ken Goldman said that ad revenues from Tumblr will be “modest” this year — the acquisition is not expected to close until the second of of 2013 — but that they will “ramp up” in 2014 “and beyond.” “We do think those revenues will start monetizing materially [and] will contribute to revevenues in 2014 and beyond,” he said on the call, “not just standalone for Tumblr but also incrementally, helping Yahoo to growth.”

Porn? The NSFW, notorious part of Tumblr was never referred to by name, but an analyst did ask about what Yahoo, while courting mainstream brands to market to that attractive Tumblr audience, would do about content that is not “brand safe”. “The richness and breadth of the content… is what makes it more exciting,” enthused Mayer. “In terms of addressing concerns around brand safety we need to have good tools for retargeting.” [Another acquisition, methinks? In any case, no outright announcement that Yahoo intends to get rid of all those sites that Tumblr has more or less accepted into the fold.]

Mayer continued: “Tumblr is now at the point that they do know what it is and what makes sense to monetize in way that is tasteful.” She also mentioned due diligence but also something else, effectively implying that Yahoo will figure out a way of getting around the NSFW content and serving ads where they want them to go, because that’s what the advertisers want: “There are a lot of marketers eager to participate in Tumblr platform and the demographics,” she said.

What does the $1.1 billion “substantially in cash” mean? Goldman noted that it’s effectively an all-cash deal, save for some shares in Yahoo for David Karp. He also noted that Yahoo still has “ample cash” for more acquisitions and investments, to the tune of about $6.2 billion. These will not likely be along the lines of Tumblr in terms of size. “This is an exceptional company and team,” she said of Tumblr. At 300 million monthly unique users, Yahoo is paying about $3.67 per user for the acquisition.

Complementary properties. Mayer made a lot of the fact that Tumblr and Yahoo actually fit “really beautifully together,” like South America and Africa, in her words. In addition to Yahoo skewing older and Tumblr skewing younger, “We are strong on sports, finance and news; Tumblr’s strong on architeture, travel and fashion. We need great tools for content publishing and creation. They have them. Tumblr prides itself as a home for brands. Yahoo is all about brands.”

Tumblr comes to Yahoo. While a lot of the expectation so far has been about how Yahoo may mess up or spiff up or monetize up Tumblr, another theme that emerged during the call was the idea of Tumblr content going out to Yahoo properties — a way of attracting users to Yahoo that may not have gone there before.

“Our strategy is to let Tumblr be Tumblr,” said Mayer. “There are some who will always prefer Tumblr and will never come to Yahoo. [But] as we pull Tumblr content into our news feed and media experiences it will cause them to become that much more interesting and richer and will cause more to come to Yahoo. I imagine engagement will improve as we incorporate that content.”

Flickr. There is a separate news conference today that will likely concentrate on updates to Flickr, but today Mayer appeared to douse out speculation that it will be a move to begin integrating its online photo site with Tumblr in any way: “In terms of how the content of Tumblr evolves it depends on the creators,” Mayer said in answer to a question of what this acquisition will mean for Flickr. “It’s something that we will turn our attention to in the future. It will provide great storage, but we will see how those two cousins should relate to each other.

Image: Tumblr (where else)

Article courtesy of TechCrunch

Some more consolidation afoot in the worlds of mobile marketing and mobile payments: Payvia, one of the many startups working in the area of carrier-based mobile billing, is buying Mogreet, a mobile marketing company that delivers campaigns via text, video and picture messaging services. Terms of the deal were not disclosed — although we have contacted the company to ask. Payvia says that the whole of the Mogreet team will be coming over, including Mogreet founder and CEO James Citron, who will become Payvia’s Chief Marketing Officer.

The move is an interesting one, in that it signals how Payvia, to differentiate itself from the pack, is creating applications itself that utilize its payment services.

“Our mobile payments offer resonates strongly with the market because it is built on our proprietary carrier connected technology that gives us a unique ability to understand consumer mobile usage,” said Darcy Wedd, CEO, payvia, in a statement. “Our clients have told us they also need a simpler way to link targeted mobile transactions to their marketing campaigns. By integrating Mogreet’s solutions on our platform we answer that need. As the only company to solve a known disconnect between traditional mobile commerce and engagement solutions, Payvia is well positioned to increase mobile’s share of the $252 billion* e-commerce market.”

Payvia says that it has the largest direct carrier connected messaging and mobile payments platform in the U.S., covering 120 million unique mobile users and processing billions of mobile messages every year. The company says it has paid out to merchants and developers worldwide more than $2 billion in global mobile commerce revenues. (There are other carrier billing platforms that will claim they are bigger, but the qualification here seems to be around the messaging platform that Payvia does this through.)

The trick with carrier billing services is that they give publishers, developers, and in this case brands and marketers, ways of offering goods and services to consumers on mobile devices, letting them complete purchases by charging those goods/services directly to their mobile bills. Services like these mean more seamless payments because they do not require users to enter credit card details, which can be painful to do on handsets and in some markets are a dead end because of the low penetration of payment cards. Other carrier billing companies like Bango claim that as a result carrier billing services are a more lucrative channel overall for getting users to pay for things on mobiles.

Last year, Payvia hit the news when it won a deal to power mobile/SMS-based donations for the Obama re-election campaign: a more classic example of how many mobile payments companies generate revenues, as the backend provider for services created by others, and also a sign of how Payvia was already formulating services that basically let users make transactions from within messages.

What the Mogreet acquisition will give Payvia is the ability to apply this to a wider variety of messages, and also a client base. Current customers of Mogreet’s include Cox Media Group, Emmis Communications and Gamefly.

The acquisition also signals a potentially new phase in the development of mobile marketing campaigns. While Mogreet’s services up to now have been more focused on encouraging people to click through to mobile web sites, or to enter short codes to receive further information, this potentially could mean that now marketers could create campaigns that encourage purchases from within the message.

Payvia is backed by Silver Lake Sumeru, Montgomery & Co., and Trinity Ventures (amount undisclosed), while Mogreet has raised some $14 million from DJF Frontier, Black Diamond and others.

More to come.

Article courtesy of TechCrunch

“If you’re not paying for the product, you are the product” is a truism that Yahoo! wants to monetize with its $1.1bn cash purchase of Tumblr blogging platform.

With 108m bloggers generating 13 billion page views per month on the NSFW-oriented (Not Suitable For Work – read – adult content) Tumblr, Yahoo! is hoping to turn eyeballs into advertising revenue (perhaps using its other recent purchase Summly to curate and summarise Tumblr topics).

Will it work where Yahoo! has failed in the past (think Geocities, del.icio.us, Flickr..)?

The challenge is simple - convert Tumblr into profitable advertising space.  But the solution is less evident.

Tumblr generated just $12m in revenue in 2012 – valuing the company in the real world at $36m – not $1bn. If plastering pixel-spam on Tumblr dashboards and posts was a really good idea, wouldn’t Tumblr have done it already? Facebook has held off haemorrhaging users by not turning Instagram into advertising space (yet), and Google has gone on record promising not to pollute Glass-vision with ads. Perhaps Yahoo! has something different up its sleeve – more than old-style interruptive advertising imported online? But given the ‘adult’ nature of much Tumblr content, how many big advertisers would want to take the PR risk advertising alongside explicit content?

So what if Yahoo! pivots Tumblr away from advertising and towards commerce?  We’re not talking the roaring trade that Tumblr could do in selling ‘adult toys’ and ‘adult content’ – but a bigger social commerce opportunity… Here are three ideas;

1. Since so many Tumblr blogs are themed (most fetishes appear to be covered), could Yahoo! allow bloggers to post a ‘shop’ button on the blog’s menu, that picks up the ball that Google shopping recently dropped with a decent price comparison/top picks).  A revenue share with Tumblr users – a la YouTube – could work? Think Google Shopping 2.0
2. Building on the themed nature of Tumblr blogs, the blogging network would make a ideal platform for a new generation of group-buy commerce – allowing like-minded people to come together and get great prices if they buy in bulk. Think Groupon 2.0
3. The simplicity of Tumblr would make it ideal as a next-generation e-commerce platform, making it easy to sell their stuff to communities of people passionate about a subject.  Tumblr has a real opportunity to tie this content + commerce knot, and become a leading e-commerce solution.  Think Etsy 2.0