Looking at the Opposite Side of Statistics

Digital Buzz Blog is one of my favorite reads.  And they recently posted some stats which I believe came from Media Bistro.  Now, after you read the stats below, I’m going to give them to you in the exact opposite way.  Tell me if any of the story seems any different.

Version 1:

It was a huge year for Social Media and here is a great infographic that rounds up the key Social Media Statistics to kickoff 2012. It’s pretty impressive to see that Facebook has grown to more than 800 million active users, adding more than 200 million in a single year. Twitter now has 100 million active users and LinkedIn has over 64 million users in North America alone.

A few interesting take outs for social media statistics in 2012:

Facebook Statistics 2012:

  • An average Facebook user has 130 friends and likes 80 pages
  • 56% of consumer say that they are more likely recommend a brand after becoming a fan
  • Each week on Facebook more than 3.5 billion pieces of content are shared

Twitter Statistics 2012:

  • 34% of marketers have generated leads using Twitter
  • 55% of Twitter users access the platform via their mobile

General Social Media Statistics 2012:

  • 30% of B2B marketers are spending million of dollars each year on social media marketing
  • Nearly 30% of these users are not tracking the impact of this marketing
  • 20% of Google searches each day have never been searched for before
  • Out of the 6 billion people on the planet 4.8 billion have a mobile and only 4.2 billion own a toothbrush
Version 2: Just for a Devil’s Argument Sake

Facebook Statistics 2012:

  • An average Facebook user is only connected to 130 of the people in their rolodex, address book, company phone tree and email database, and are only fans of 80 of the brands which they purchase or evaluate
  • 44% of consumers say that they are NOT more likely recommend a brand after becoming a Facebook fan
  • There are roughly 800 Million Facebook users, and each week on Facebook more than 3.5 billion pieces of content are shared, meaning the average person shares just 4 pieces of content per week.  With 1 out of every 7 online minutes spent on Facebook, lots of people are lurking but not sharing. 

Twitter Statistics 2012:

  • 66% of marketers have NOT generated leads using Twitter
  • Almost half  (45%) of Twitter users cannot access the platform via their mobile, and are limited to using it on their personal computer.

General Social Media Statistics 2012:

  • 70% of B2B marketers are spending LESS THAN a million dollars each year on social media marketing
  • 80% of Google searches each day are repeat searches

So What is the Next Xbox/Sounders Sponsorship Worth?

It’s hard to think back to 2008, back before the Seattle Sounders officially existed in anything more than everyone’s imagination.

The Sounders were to become the 16th team in a league with a couple of marquee names in David Beckham and Landon Donovan. LA, DC and Toronto were the only teams to draw more than 18k fans a game.

So when the Sounders announced that Xbox was going to commit $20 Million bucks to the team and the league, it really seemed like – and was – a large sum of money to risk.

But now as we look at the end of the 3rd year of the deal, it’s the Sounders who can’t wait for the contract to expire. Unfortunately for them, they still have 2 more years of the deal. When you look back, the Xbox media team made a heck of a deal.

At $20 Million over 5 years, you are looking at a deal that is only $4 million a year. For that 4 million Xbox got rights to the front of the jerseys, signage in all MLS stadiums, naming rights to Xbox Pitch at Qwest (then Century Link) Field, and TV spots on all broadcasts.

Let’s look at some of the other deals in the MLS (sourced from The Brotherly Game):

  • Red Bulls: Red Bull @ $50 Million total, including stadium naming rights. But they also own the team.
  • Real Salt Lake: Xango @ $5MM per year.
  • Galaxy: Herbalife @ $3.5 – $5MM per year.
  • DC United: Volkswagen @ $3MM per year. (A few other deals are in this range, like Philly/Bimbo, San Jose / Amway.)
  • So if we assume the national value to the Sounders sponsor is roughly the same as the value any other team’s sponsor receives, the delta is in the value at home. So lets say maybe 1/2 – 2/3 the value is in national exposure, and 1/3 – 1/2 is in local. If that’s the case, then the national value is about $2 million for each team.

    So in those terms, the local value of DC United’s sponsorship would be about $1 Million per year. For Salt Lake, it’s $3 Million per year. Now the 38,500 fans per game in Seattle just about doubles everyone but the #2 LA Galaxy at 23,000 per game. So if the Sounders drive 2x more fans than Salt Lake, and 2x the TV impressions, you’d have to estimate the local value is at least $6 Million per year (2x Salt Lake).

    There are probably more scientific ways to figure this out, but we don’t have access to impression volumes, jersey sales and hard stats. And we haven’t included the premium that Xbox pays for being the local guys recruiting employees, and the international value of having the team play across Central America and Mexico, or the fact that they’ve gotten a smoking deal the last 3 years.

    So let’s ballpark a number of $9 Million per year to start the new deal in 2014. ($2 Million National Value, $6 Million Local value, $1 Million Premium.) How does that look?

    A Small Business Owner’s Thoughts on the Economy

    There’s no question that we are in some ridiculously bad economic times. And when you look at the system as a whole, the problem certainly seems unfixable. Now there is a lot of rhetoric on each side of the political aisle but here are the few humble thoughts from a small business owner.

    1) There are actually jobs out there – This may seem like an inflammatory comment to my unemployed readers. But when we spun off our new company, Relaborate, a little while ago, one of the first things we needed was a developer to help us flesh out the prototype. And let me tell you – that developer was really hard to find. You may not want to code. But if you want a job, learn to code. You won’t be the best coder in the world but the economy needs more coders.

    2) The Unemployment system is horrendous – I’d like to hire more people to full-time, full benefit roles. However, our clients aren’t always signing 12 month deals. So often that means contract/project work. And too many times, I hear the following positively ridiculous statement: “How long is the gig? I’m not sure I can do any work or get paid for doing project work, because it will mess up my unemployment benefits.” That’s insane. The entitlement system provides incentive to not do part time projects, which could lead to a full time role. The system actually discourages productivity. Sure, someone could argue that I should just give the person a full-time job. But that’s not always an option. If I have a specific time-bounded project that I need someone with a specialized skill set to help me with, I’d like to pay a fair market wage to someone to help me with it. The system shouldn’t be stopping that person from being able to say yes. Someone should be able to fix this.

    3) The labor “Supply and Demand” Curve is out of whack – This goes back to the point about developers. The Universities need to do a better job of controlling how many degrees are given out in each field of study. If the country only has jobs for 10,000 Art History majors, the Universities shouldn’t pump out 20,000 new Art History majors a year, paying $40k a year in college tuition. I know it would take a little foresight and research to make these projections, but I kind of assume the Universities should have the collective intellect to pull this off.

    4) It takes a little effort – A friend of mine recently offered to help someone with some connections. The job seeker sent a Facebook Wall post asking for those connections. No resume, no personal email, no phone call…just a Facebook Wall post. The entitlement generation needs to figure out a few things about professional behavior.

    Now the point of this post is not to be a rant. It’s actually optimistic. Every day I work with people who are hungry to work more. I see entrepreneurs trying to build companies that will enable them to hire people. I see people who are under-employed wanting to work. But I call upon the high schools and universities to push students towards careers where there is demand, I urge the politicians to fix the arcane unemployment rules that make it hard for people to take short-term project work, and I strongly encourage the under-employed to think about what kind of roles people are desperate to hire. I want to be Commissioner of Baseball. But there’s already a line of people more qualified than me for that role, so I’ll have to keep doing these Marketing jobs. It’s just the way it is.

    In a lot of ways, we are all our own small businesses, and we are all selling a set of services to someone. We all need to have something that people are willing to pay for.

    Happy Independence Day

    Sure, I know we all equate July 4th with a nice 3 day weekend in the middle of the summer.  But I want to take 2 minutes to reflect on exactly what we are celebrating.  Now, I don’t know what really happened 200-300 years ago, but I’ll try to remember what my history teachers told me.  

    Sometime in the 1600’s, we were all living in England.  And then some of our friends and neighbors decided they had had enough of religious oppression.  So they hopped on boats like the Mayflower and headed to the new “colonies” in America.  

    Eventually, enough of us moved over here that we developed some sort of free market up and down the Eastern seaboard.  And we must have been doing pretty well developing new products, exporting new crops and creating a nice sustainable economy that didn’t require subsidies or loans.  Because the guys back in England said, “You guys are really showing success.  We need to raise taxes on you so we can spread that money around over here.”

    Eventually, we got tired of a bunch of professional politicians and lifelong royalty-types telling us what to do.  We were sick of a government that reached out too far, who taxed us too much, and who got involved with things they had no expertise or knowledge about, passing arcane laws that made no sense.

    So, as one big group we denounced our relationship with the oppressors.  We announced independence, and developed a loose government in which the colonies – now called states – would govern themselves.  The national government would pretty much be in charge of monitoring interstate commerce and running a national defense made up of all the state militias.  But at the core of the idea, was that we would govern ourselves in a manageable, state by state way.  We’d be responsible for our own welfare, and only rely on the federal government to arbitrate disputes and manage a defense – where if you attacked one of us, you attacked all of us.

    Obviously times have changed and we’re in a more complex world now.  But every Independence Day, I like to reflect back and remember what our whole country was based on.  I wonder how many ways we’ve deviated from the original plan, and whether that’s a good or bad thing.

    A Few Photo Apps I Use Daily

    This is not meant to be a definitive review of iPhone Photo Apps.  I’m not anywhere near qualified for that kind of analysis.  But, I’ve downloaded quite a few, and here are a few I use pretty regularly to post photos up to my TumbleBlog at AndyBoyer.Tumblr.com.

    Also, I’m going to assume you already have tried, or regularly use Instagram and Hipstamatic.  

    Photosynth

    1) Photosynth: It’s not the easiest tool to use super effectively, and tends to be pretty buggy, but when it works it’s a pretty cool way to take a panoramic shot.  Great for the top of moutnains, stadiums, or places where you just want to capture a 30,000 foot of your surroundings. The issue is that it is hard to line up the string of photos in a way that creates the perfect stitch.  But, I’m sure with a little more diligence, you can pull it off better than I do.  (Also, make sure you are standing next to someone who isn’t going to move around a lot and get their head in the shot.)

    2) Diptic: Easy way to quickly stitch a few photos together into one “frame.”  Do the edits right on your phone, and choose from about 10-20 layout options.  Then, upload that picture to your Facebook pge or what not.

    3) Comic Touch Lite: Fun little free version of an app that simply ads comic bubbles to the pic.  Nothing revolutionary here, but super simple to use and fun at bbq’s and such.

    4) Camera Plus: I like playing with this, and I think it provides slightly better photos.  Not 100% sold though.  (No example)

    5) 100 Cameras in One: Basically it’s Hipstamiatic with a different style interface.  Take pics, run them through a filter, see the result.

    Things I’m playing with and haven’t decided upon yet.  (ie, saving them for a future blog post.)

     PicPlz, SlowShutter, ToonPaint, MillColour, Phototreats, Retro Camera, Labelbox, LiveFX

    Also:

    I’ve already written about publishing tools like Zapd and Color, so I left them out of this post.

    Let me know if you have any photo editing tools that you are using every day.

    Business Stars of Tomorrow Take Center Stage at UW Business Plan Competition

    I’ve said it every May since 2007 – judging the Investment Round of the UW Business Plan Competition is one of my favorite days of the year.  It’s exciting to absorb the energy and inspiration from all of these young entrepreneurs and idea generators.  Sure, most of the 38 “companies” on display won’t ever go past this day, but everyone who takes part surely takes something they learned, something they discovered, or an idea they came up with into future companies.

    Enough hyperbole – Let’s talk about what I saw.

    Now, the problem for me every year is that there are always these awesome engineering and medical companies that I just don’t get.  A UW med student will tell me something like, “When you combine this UW technology with this UW technology, you get a compound that completely eliminates both cancer and male pattern baldness, AND adds 4 inches to your vertical leap. We would just need 4 years and $50 million to make it work.” And since I don’t understand anything about biology, I would invest in them.  Or, they’ll show me a prototype of a jet pack or invisibility cloak.  The idea sounds cool and reasonable, and I say, “I want one of those.”  Only later do I learn why the technology is impossible.

    So this year – and I apologize to the science guys – but I really only visited the companies that I thought I would really understand well enough to ask hard questions of.  And without commenting on who I through my investment “dollars” at, here are some of the ideas I liked and people I liked talking to.

    1) Seattleite Magazine – I’ll mention them first, only because I met founder Jane Yuan a few months back and saw an early version of their business plan.  There could be a market for this kind of online pub in Seattle.  It’s a fun read, with lots of good pics of Seattle people and places.

    2) Breadcrumb – The reverse of FourSquare, Breadcrumb notifies a person’s emergency contacts in the event that they DON’T check in when expected, dramatically improving search and rescue efforts for missing or injured people.  Perfect for hikers, campers, mountain climbers, fisherman, etc… whose parents worry about them.

    3) Online Pay Station – I really root for these guys.  Think old school market meets unlimited product options. This is a company for African residents – enabling people without bank accounts or credit cards make online orders via companies like Amazon.com.  They pay Online Pay Station (OPS) cash at an OPS Internet Cafe, OPS makes a bulk buy to save on shipping, receives the order, then warehouses the merchandise until the buyer picks it up.  

    4) PotaVida – Did you know that you can put dirty water in a plastic bottle, stick it in the sun, and then the sun will kill all the really nasty, dangerous organisms in the water in 6 hours or so?  I didn’t.  The problem is, you don’t *really* know when the water is clean.  PotaVida makes a little LED based contraption that tells you when the water is safe.  Go to a disaster relief location, put 100 bottles on a roof at once, but a PotaVida device on one of them, and suddenly you know when the water is safe to hand out.

    5) Punchkeeper – Take all of the loyalty cards that you have to carry around, and put them in one app on your mobile phone.  Snap a pic of a QR code to get credit.  That simple.

    6) Sky Fu – They call it “Self Defense for the Social Web.”  I summarize it as Radian6 for small businesses who need to monitor Yelp, Trip Advisor and the like.  

    7) Pterofin – Designs and manufactures innovative wind energy devices for residential and commercial use.  I don’t get why it works better than regular turbine, but they say it does, so why not beleive them.

    8) TripBox – Makes travel planning easier.  Cool demo.  Hard to describe. Maybe Widget based travel planning.

    9) Digital Menu – Almost makes too much sense to work.  Rather than spending money printing out paper based menus every day, restaurants just go to this site, pick from the templates, update the menu, and Digital Menu turns it into a mobile or tablet based menu that can be shared online, across social channels, and that you can even view at the restaurant.

    10) Soothie Suckers –  Kids don’t want to take herbal medicine.  So the solution – put it in a popsicle.  That’s the theory here.  For what it is worth, the popsicle tastes good.

    There were a lot more great companies on display – 28 more in fact.  But that would make the blog 100 pages long.  Here’s the list of the companies that made the next round.  But congrats to everyone who made it from the initial 100+ down to this final 38.