What is it with Western Union? Their service is used by almost every scammer, be it on eBay, spam emails, and now, nannying sites. It seems that they could do us all a favour and tighten up on their tracking and id requirements.
Fraudband….
“Fraudband” – what a great word
“THE Fairfax Media chief executive, David Kirk, has labelled broadband in Australia “fraudband” because it is too expensive and slow. “
Sad to see Australia go through the same issues as we have here.
“Mr Kirk said the problem was not government policy but the state of the market, dominated by one player – Telstra.”
sounds familiar…
Wii winning
The Wii seems to be besting the XBox360, while the PS3 languishes well behind.
While in Salt Lake City I dropped by a Best Buy – about 20 PS3’s were in stock and not moving – one every few days it seemed. Wiis were out of stock and would last 30 minutes each time a shipment (of about 20-30) arrived.
When will the penny drop? US Online Advertising 3-5 times here..
Just announced: 2006 US online advertising hit $16.8bn, showing a 34% growth rate over 2005. That compares to NZ’s $65m and 48% growth.
One way to compare is by population – USA online ad spend was US$56 per person, and NZ online ad spend was $NZ$15.80 or US$10.80 per person. That US number equates NZ$81.60 per person, or $334m in online spend, which is over 5 times as much as today.
We can adjust the population result by the difference in GDP/Capita. NZ has $24,797/$41,339 = 60% of the PPP GDP per person than does the USA. So 60% of the US ad spend per person would give US$33.60 or NZ$49 per person in NZ. That equates to a total of NZ$200m online spend – over 3 times the current spend.
Another way to look at this is by the online percentage of total ad spend. In 2005 USA total advertising spend was $143bn, and if we assume that has moved to $150bn then online is now responsible for an amazing 11.2% of all US advertising spend. That would equate to $250m of online spend in NZ, or almost 4 times as much as today.
So US online ad spend is three to five times bigger than NZ, and is still growing at a staggering rate. The portends are obvious – at some stage kiwi advertisers are going to wake up to overseas trends and start shifting serious amount of spend online. The coming epiphany as advertisers scramble to catch up with consumer viewing habits will be something to see, and TV and newspapers will suffer a lot.
A caveat. In NZ the advertising stats do not include search advertising. Apparently search is about a third of total ads, so that would increase our numbers by 50%. That still means little in the face of the ad-spend gulf between NZ and the USA.
No such thing as a free chocolate biscuit
Mauricio is upset that free biscuits are on the way out for AirNZ domestic flights. I’m glad.
I have no desire to pay for everyone else’s biscuits (coke, beer, hot meals etc.). If I am thirsty offer me water, but make me pay for everything else including food, alcohol and fizzy drinks (and you pay for yours). The only real tradition that AirNZ should keep is the sweets offered as landing approaches.
Airline travel is a combination of services, which are currently co-mingled but I really feel should be separated more:
: How easy it is to buy and change the ticket
: Getting to and from the airports
: Time in check in and security – long queue or no queue sir?
: How much luggage you check in (and how big/heavy you are personally)
: Where you hang out before you depart – seats at the gate? business class lounge and networking? all the way to ‘Free Hair cut sir?’ (VA again)
: A seat, which could range from a plank to a fully enclosed bed, and is located front/back/window/aisle/center between two fatties.
: How long you sit on the plane before departing and after arriving
: Transport from Airport A to Airport B, which can be direct, indirect, delayed or on time, fast or slow.
: Food and (non water) drinks, which can range from packaged American crap food to vintage champagne and haute cuisine
: Personal attention – ranging from ‘number please’ to ‘Time for your massage Mr. Wiggs’ (That’s Virgin Atlantic)
: Other entertainment during the journey, and how I feel during the flight
: How long to get out of the airport and how long (if ever) it takes to retrieve your luggage
: and, of course, the cost.
Many of these have both absolute and relative elements. How long you sit on the plane, for example, is a function of how long everyone sits on the plane, and how close to the door you are.
Also many of these elements are beyond the control of airlines (or airlines like to think they are). Airports can get congested, staff from another organisation can delay luggage arrival, ‘feel good’ security measures slow things down, and the airport itself could be located far away from efficient public transport.
But very very few airlines understand that this is the (partial) list of things that their customers are concerned about. Virgin Atlantic gets it, and respond by offering (upper class) passengers door to door service, the best airline lounge in the world, massages to reduce stress in flight, lie-flat seats, easy and free time of itinerary changes, a bar in flight, and all of the other standard business class accoutrements.
Some airlines (JetBlue, Southwest) fight to be in airports that are able to contribute to the passenger experience. Long Beach, which is the LA airport JetBlue flys out of, offers a rental car to gate times of 10 minutes (with luggage – I know from experience), which is phenomenal in the current USA climate, and makes LAX feel like medieval torture in comparison.
Many airports (Wellington, Heathrow) offer a fantastic level of service so that business class lounges are less required. These airports make significant money from the plethora of shops arrayed in what is essentially an up-market shopping mall and deliver relatively contented customers to airplanes.
I could go on. and on. and on.
Most of these features have been priced by placing various levels of them in economy, business and first class products. But why not let me select the elements I want and price them myself?
Sell first class meals to people in economy.
-Offer to upgrade folk in economy to an empty business class seat, while serving them an economy class meal. Charge them $0, $50 or $500 in the flight. (Qantas is guilty of not doing this).
-Sell food, rather than give it to everyone. Offer different standards of food.
-Charge us in flight without pain – we used a credit card to buy the ticket – so let us select to allow you to charge extras during the flight. Else let us use the entertainment system to buy stuff (food, upgrades, duty free) with a credit card.
-Offer to take responsibility for getting us to the airport, and to the office or hotel on the other side.
-Charge by total size-adjusted mass of travelers and luggage
-Let us upgrade to a flat bed for half of my flight. (and someone else for the other half)
-Let us (in and out) out two doors rather than one so we deplane faster.
-Give or sell us shorter lines – through security, at check-in, at boarding, at taxis.
-Don’t annoy us during the flight – turn down the volume on the inflight announcements – we are not deaf and nor do we want to be. Put the captains comments (Captains blog?) on the entertainment system. Shorten and tighten the safety announcement.
-Deliver free wifi not only at the airport but also in flight.
Again I could go on and on and on. Once you think about serving your customer’s complete experience then this stuff just falls out.
Strangely enough I had a flawless experience yesterday flying with AirNZ return to Nelson. More of the same please.
TVNZ’s new site – crippled
Go Tui – who managed to sneak a look at TVNZ’s new site. Read/Write web has also blogged about how TVNZ.com will be positioned as a third channel.
The site seems lovely to look at (looks like there is some nice ajax action, and the download speed tester recognises the constraints we have here)
Tragically it is fatally flawed – programs you buy are not yours – they expire after 7 days. Moreover it does not work on Apple Macs as it relies on the appalling Microsoft Windows Media Player with full DRM.
This crippled implementation though a step in the right direction is sad and weak.
How good would it be if we (anyone in the world) could automatically download programs, news or sports events from TVNZ.com, and have them stored on our own hard drive for later playing. That would be instant mySky for everyone.
Charge us for it sure, but once we download a program it should be free as in beer and free as in un-DRMed. If your prices are right (and they seem pretty good) then there is little incentive for us to on-sell the program. Meanwhile you’ll have a whole new revenue stream and tap into the diaspora of Kiwis. TVNZ.com should be 3 channels, not one.
Keep trying chaps.
Can I Scoopit?
I’ve finally got the Scoopit links working – thanks to the Scoop folk for figuring it out.
The question is now: is it ok to scoopit your own posts?
(I’m going to scoopit this one..)
lancewiggs.com exists
lancewiggs.com now exists and redirects to here – so if you are one of the 14 loyal supporters then you may now find it easier to spread the word… I’ll rename the entire site presently…
eBay Homepage Design
eBay Homepages vary by geography – as Auctions is a fairly geographically and culturally constrained business. Still, it is interesting to see just how dramatic the differences are:
Best homepage – the simplest by far, is Canada. The page is approaching Google simplicity, and it is abundantly clear what you have to do – enter a search term:

Here are ebay.com, Austria, UK and Sweden. Same but different.




Not left aligned: Poland, France and Singapore. The extra space is what I see in Safari. I have no idea why these render differently, but it does point to different code.



Strange colours: Australia is red for some reason, and NZ (spot the Kiwi) has bold colours, while Spain is blue.



Latin America is served by MercardoLibre, and sites seem essentially identical between countries.


Belgium asks for your language before diverting to the appropriate site:


And for completeness here is Trade Me. Some of the differences: categories are front and center, the listings displayed on the homepage are in standard format and Trade Me has advertisements and links on the top tab to news and dating sites. There are no advertisements on eBay’s homepages, despite the global online advertising market rising at rapid rates.

Don’t give Telecom money…
Orcon has a very basic appeal to potential customers: Don’t give Telecom your money.
It isn’t really compelling (well for most people…) as the prices are essentially the same, but apparently that too will change.

Kiva and Steers in Kenya
Disintermediate a Nobel Prize winning business and lend money to villagers around the world directly. There does not seem to be a revenue model for investors (i.e. the loans do not pay interest), and obviously there are verification costs, but it’s an interesting start – Kiva.org
Even without a revenue model for investors there has to be huge latent supply of people who will lend a small amount money without prospect of making a profit.
I for one have made an investment in Steers in Kenya…

(thanks to Tash for the pointer)
<Update – I’ve become addicted, and now made 5 loans>
Buffet on Newspapers…
Warren Buffet talks about the decline of newspapers in his latest missive. Some chilling words from the great investor.
The money quote
“Eventually, though, eroding fundamentals will overwhelm managerial brilliance“
The History
“..when two or more papers existed in a major city (which was almost universally the case a century ago), the one that pulled ahead usually emerged as the stand-alone winner. After competition disappeared, the paper’s pricing power in both advertising and circulation was unleashed. “
And now
“Now, however, almost all newspaper owners realize that they are constantly losing ground in the battle for eyeballs. Simply put, if cable and satellite broadcasting, as well as the internet, had come along first, newspapers as we know them probably would never have existed. “
The future
“True, we have the leading online news operation in Buffalo, and it will continue to attract more viewers and ads. However, the economic potential of a newspaper internet site – given the many alternative sources of information and entertainment that are free and only a click away – is at best a small fraction of that existing in the past for a print newspaper facing no competition. “
“We hope that some combination of print and online will ward off economic doomsday for newspapers, and we will work hard in Buffalo to develop a sustainable business model. I think we will be successful. But the days of lush profits from our newspaper are over. “
His masters voice..
Warren Buffet speaks. Buffet’s annual missive to shareholders is required reading for anyone in the investing game.
Warren Buffet has made 21.4% compounded annual gain for investors over a 32 year period, and has managed to solidly place himself as 2nd most wealthy person in the world. Moreover he will give it all away to the Bill & Melinda Gates Foundation.
A genuine good guy.
Geekzone news…
Who will buy TV3?
If PBL is part of a group that buys CanWest MediaWorks (Owners of TV3 and part-owners of Australia’s Ten network) then that lousy msn.co.nz site could get a whle lot better, as could TV3.
However if Kerry Stoke’s Seven network wins then we’ll see interesting times online as the two rivals PBL and Seven will be working together.
On the surface it makes far more sense for PBL to be the buyer – they already have a relationship with TV3. However there may be other synergies such as supply agreements, and those radio assets are significant, including The Edge, More FM, The Breeze and a few others.
