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By Posted on Posted in ArabNet, E-commerce, Group Buying 1 Comment

Group buying was one of the interesting panels that took place at ArabNet Shift Digital Summit on 23rd of March, and it was moderated by Alexander McNabb.

The panelists where Sohrab Jahanbani from Gonabit, Sinan Khatib from BuyWithMe, Paul Kenny from Cobone, Brendan Ogilvy from Effective Measure, and an Egyptian guy from a group buying company located in Cairo, but i am really sorry for not remembering nor his name, neither his company name (help needed). Unfortunately the Groupon people did not show up at the summit, if someone knows the reason, please share it with us.

There was a rumor going around, that Groupon will show up at the ArabNet and announce their acquisition for a local group buying company, well, it seems that this will stay a rumor.

Alexander mentioned during the panel that there are around 25 group buying companies serving the region (Middle East and North Africa), and this number looked very BIG to me, after hearing many panels describing the e-commerce situation in this same region unless these group buying sites will start promoting their offers offline in order to attract potential future clients.

Alexander McNabb | Group Account Director, SpotOnPR
Alex has worked with IT, media and communications in the ME for over 24 years. He has developed marketing strategies and communications programs for leading global brands, done consulting work with Arab governments, and built strategies and managed national and regional communications campaigns.

It takes lots of time and efforts to find the appropriate services to satisfy the deal seekers, and sometimes it is very hard to convince the businesses to participate in such promotions.

Yesterday evening I was having a discussion with my wife and I mentioned to her about these group buying sites popping up everyday that she should check, maybe she might be interested in something, knowing that she is not an online buyer, actually she never bought anything online but I wanted to check on her reaction once she visits the sites. And just for the record, she said that Gonabit sounded the easiest name to remember.

Personally I am a heavy online buyer, but never from group buying sites, so this morning, I have decided to check these sites to see what offers they are running and the first 2 sites I visited were Gonabit.com and Cobone.com and I was shocked !!!

Last week, during ArabNet, I had a side discussion with a friend, who was and is monitoring the group buying business in the region, so he summed up his point of view about this phenomenon, saying: “this is not a profitable business”, of course he backed up his argument with some simple figures to defend his case.

And my morning surprise made me totally understand my friend’s point of view more after seeing the available offers on both sites and this, from a business perspective.

Cobone is offering a bike ride in Beirut for $1.66-, so let us say the deal is on, and they sell 10 deals, or 20 deals or even 100 deals, the total cash out of this operation is $166.00- and let us also say the split is 50/50 between the site and the shop, so each one gets $83.00- >IF< 100 deals are sold.
Same exercise for Gonabit who is offering an online live footbal game for $7.50-.
(By the time I was writing this post, around midnight, Cobone had 12 deals sold and Gonabit just 1).

From this simple calculation, I am trying to understand how these site will get profitable on the long run with their operational cost and how they will manage to cover these costs.

Is this the investors money that is getting burned?

Or maybe we are observing a new internet bubble like the one we had in 2000 and for those who don’t remember how things went bad in the US, few examples to refresh your memory, Boo.com spent $188 million in just 6 months in attempt to create a global fashion store. Pets.com raised $82.5 million in an IPO only to go bankrupt nine months later.

The biggest dot-com company that crashed and burned was WebVan. The company aimed to deliver groceries to homes and businesses. It raised $375 million in an IPO. WebVan forgot that it was actually in the grocery business, which has razor thin margins to begin with. In a mere 18 months the company had spent itself to bankruptcy.

If someone from the group buying industry is reading this blog post, I appreciate explaining your business model, so we can get it, again from business and profitability perspective, and hoping you are not sitting in HermanMiller Aeron Chairs.

By Posted on Posted in ArabNet, Marketing, Social Media 2 Comments

The panel Case Studies in Social Media Marketing took place during the 3rd day of ArabNet.
The moderator was Ms. Alex Tohme and the panelists:
Mr. Patrick Atallah, CEO, 90:10 Group Middle East
Mr. Khalid Dalil, Research Manager MENA, NM Incite
Mr. Marc Dfouni, CEO & Managing Partner, Eastline Marketing
Mr. Vadi Efe, Founder and Partner, Dekatlon Buzz
Mr. Zafer Younis, CEO, The Online Project

Personally I have assisted to the first 20 minutes of the panel (then left to another panel which I thought can be more interesting) and I have heard many many times the words Facebook, YouTube and Twitter, which in my opinion are not the only tools someone should use to promote his brand/product/blog/site . Plus the audience was really eager to hear about real case studies in social media marketing and the filtered Twitter #ArabNetMe timeline got angry at one point because it did not happen, I am not sure if this happened after I left.

The reason behind this blog post are, 1st to talk about the importance of analytics in social media marketing from brand to client perspective, 2nd about a Lebanese startup who is good at this.

In my opinion (and i am not a social media strategist or whatever other titles comes to this position), the number of clicks are not important anymore, we all remember the early counters that used to be displayed with great proud at the bottom of sites in 1995.
Actually it is more about how your visitors behave on your site, why they are here, how long they are staying and what they are looking for, once you can analyze these parameters along with some others, you will be able to engage better with your site visitors/clients. And for me this is the real marketing.

It is not about the nice Facebook page you have designed nor the Twitter timeline you filled with info that are useless to most of your clients neither the video you have on YouTube that you believe is going viral and is not. You need to understand what your visitors want and give it to them in order to bring them back to you, otherwise you will see a very high bounce rate.

Facebook and Twitter will definitely assist you in any marketing campaign, but they should not be considered as the main tools for success. People blame the social media platforms for the failure of anything they are trying to shout about to a larger crowd, and they are totally forgetting about content, which is King and that they should listen to their customers and engage continuously with them.

Amazon was founded in Web 1.0 era, there were no social media, no YouTube, Facebook or Twitter, and they succeeded because they understood what their customers want. And some other brands succeeded with the help of social media because they exactly knew how to integrate with the right social media channels that suits the product/service they are trying to promote and its value. Check the Dunkin Donuts Coolatta campaign and the Dell Social Media Listening Command Center


The web analytics service I would like to recommend is Woopra, a Lebanese startup co-founded by Elie Khoury. I use it on this blog and it is cool!
Woopra delivers a complete suite of enterprise grade analytics in one easy to use live interface. You can monitor multiple Websites simultaneously in a tabbed window and switch quickly between them.
Woopra also lets you watch visitors LIVE as they navigate your site, interact with them via Chat, set up real time notifications, track campaigns, set up funnels, and much, much more!

By Posted on Posted in ArabNet No Comments

With the tremendous revenues being delivered by Apple’s App Store, the dramatic rise in popularity of Google’s Android, and the introduction of Windows Phone 7 and the Nokia partnership this year, there’s no doubt that mobile is the next major platform for development. This panel explores the potential and trends in the Arab app market, and weighs the tough choice facing developers: which mobile operating system should they build for?

Moderator:
Mr. Omar Christidis, Founder, ArabNet; Vice President, IBAG

Panelists:
Mr. Ghassan Chahine, DPE Lead, Lebanon and NEPA – IM, Microsoft
Mr. Gilles Fayad, Director of VAS, Middle East and Africa, Qualcomm
Mr. Rob Jonas, VP & Managing Director, Europe & Middle East, InMobi
Mr. William Kanaan, New Business Development Manager, MENA, Google


Photo credit: Gino Raidy

Few highlights from the panel:

  • Omar asked: how many people have a smart phone in this room? And everybody raised their hands
  • It is the developers who build the products
  • William Kanaan: Google wants to encourage data usage in MENA region on mobiles phones
  • Android is running on 6-10% of devices in the Arab World
  • There is no clear data on how much consumers in the MENA are spending money on Apps
  • Gilles Fayad: ” social networking is part of our DNA”
  • Saudi Arabia is #1 worldwide in mobile community
  • The difference between the region and the rest of the world, is the open market, consumers can choose their phones freely
  • William Kanaan: “you go to mobile provider store, pick a device, buy a data plan and get a bunch of Apps”
  • Ghassan Chahine (MSFT) :”Microsoft is offering the developing tools for mobile”
  • 150,000 apps on Android market
  • Most attendees are planning to develop on Android platform
  • Gilles Fayad:”the next thing might be eBook market and dont underestimate the region to publish”
  • Ghassan Chahine:”YallaApps.com by Microsoft to submit your Windows phone developed apps”
  • Google will be bringing their paid Apps to the region soon, no time frame specified
  • Mobile apps show info in a different way from tablets and laptops, thus it is a different user experience
  • Tablets growing in the region but no data about unit sales
  • Gilles Fayad:”smartphones will have 50% market share by 2015″

    • By Posted on Posted in ArabNet No Comments

    Less than 48 hours and ArabNet Shift Digital Summit is starting, check the program of day 1 here.

    The 1st day dedicated to developer and aims to draw engineers, the foundation of the web industry, from across the region, and address their technical concerns. It will feature programming case studies, tutorials, and presentations led by engineers at global platforms and regional development houses as well as allow developers to demonstrate their skills in exciting competitions.

    Participants will have access to the latest technologies and be able to connect and consult with senior engineers from major partner institutions.

    By Posted on Posted in ArabNet, QR Codes 1 Comment

    QR codes or Quick Response codes have experienced an increase in popularity over the past couple of years. However, it could be claimed that they are yet to live up to their initial expectations.

    In more simple words, QR codes are square bar codes, scanned by a smartphone and once scanned they are able to provide information on the item connected with the code by directing the scanner to a website related to the code. Giving you the option of creating a simple and accessible channel between every day items and relevant websites. So you can say goodbye to long URLs.

    QR Codes have experienced substantial success in Japan, appearing in magazines, billboards, business cards, shop windows, T-shirts, and more.

    QR codes are only bound to become more common in the coming years. People are increasingly reliant on their mobile devices, and typing out URLs on the tiny keyboards is still not very efficient. These QR squares are a shortcut around that problem, can easily be integrated with various services, and incorporate geo-location data. Advertisers may not have figured it out just yet, but QR codes are their best friends.

    There’s no limit to how, or even how much, you can share with QR codes.

    Data can be translated into a QR code by any QR generator, many of which are available free online. Users simply enter the data to be translated, and the generator produces the code, which can then be displayed electronically or in printed format. Decoding the information can be done with any mobile camera phone that has a QR reader, which is freely available online for most devices.

    Once the software is loaded, a user points the cell phone camera toward the code and scans it. The software interprets the code, and the cell phone will either display the text or ask for permission to launch a browser to display the specified web page.

    To know more about what is happening in the mobile platforms, applications and startups in the MENA region, consider visiting the ArabNet 2011 Shift Digital Summit, from March 22-25, in Beirut-Lebanon, which will draw over 1,000 attendees and 80 speakers from around the world. It will include a Developer Day (March 22), Two Forum Days (March 23 & 24), and a Community Day (March 25).

    By Posted on Posted in ArabNet No Comments

    The ArabNet 2011 Shift Digital Summit will conclude on March 25th with a Community Day to educate and engage the public about the Arabic web. During this day, the Summit exhibition will be free and open to all visitors and special sessions will be held for the public to provide them with a better understanding of the digital future.

    Community Day will kick off with a discussion panel on the state of technology in the Arab world at present and the technology of the future.

    The panel will be followed by presentations on social media and digital activism led by local organizations, inspirational talks by several young entrepreneurs on the challenges and rewards of starting a business, and career talks given by leading executives from top internet companies to give direction to attendees interested in a career in the tech industry.

    In other exciting announcements of new features at ArabNet 2011, this year technology is being cranked to the max at ArabNet. As the leading digital event in the region, ArabNet is utilizing exciting new technologies in a way that will change how events are experienced in the Arab world.

    One of the coolest things is the official mobile application for the 2011 summit. The application will be available on iPhone, Android, BlackBerry, and through a mobile website as well. It will allow attendees to view the program of the event, speakers, announcements, and social buzz. The app will also allow attendees to connect with each other through messaging and business card exchange features.

    In addition, ArabNet is planning a motion-powered photo booth (using Microsoft Kinect) that allows attendees to take photos and upload them directly to Facebook. Each registrant will get a QR code prior to the event that they’ll be able to use in different locations. Attendees will use their QR codes to tag themselves in photos, participate in voting, enter competitions, and take part in other activities.

    The event will feature live visualizations as well of social media activities happening throughout its course.

    By Posted on Posted in ArabNet, Etiquette No Comments

    Great posts by Michael Arrington (full post) and Mark Suster (full post) on how to interact at business events and conferences and (re) approach people.

    Below are some points by Michael Arrington:

    1. Never underestimate the power of an introduction.
    2. Don’t approach someone when they are clearly in the middle of something.
    3. Don’t approach someone when they are in the middle of a mob trying to get their attention.
    4. If you get someone’s business card, never call them. Send an email.
    5. When you approach someone, don’t assume they know you even if they do.
    6. If you forget to tell them who you are, don’t get offended if they don’t know.
    7. If you’ve blown it to this point, for the love of God fix it.
    8. Look for body language. If you pay attention you can tell how engaged they are.

    To know more about what is happening in the mobile platforms and applications, consider visiting the ArabNet 2011 Shift Digital Summit, from March 22-25, in Beirut-Lebanon, which will draw over 1,000 attendees and 80 speakers from around the world. It will include a Developer Day (March 22), Two Forum Days (March 23 & 24), and a Community Day (March 25).

    By Posted on Posted in ArabNet, Games, Mobile No Comments

    Investors are making a high-risk bet that Angry Birds is the next big thing, a game that can expand beyond its smartphones origins.
    Rovio, the Finnish developer behind Angry Birds, has just raised $42m from prominent investors. Rovio recently announced a commercial tie-in with 20th Century Fox on Rio, an animated film about birds. The developer will also launch Angry Birds on Facebook in May 2011.

    To know more about what is happening in the mobile platforms and applications, consider visiting the ArabNet 2011 Shift Digital Summit, from March 22-25, in Beirut-Lebanon, which will draw over 1,000 attendees and 80 speakers from around the world. It will include a Developer Day (March 22), Two Forum Days (March 23 & 24), and a Community Day (March 25).