Saturday, August 22, 2020

An introduction to Email Marketing

1 An introduction to email Marketing

www.Hubspot.com Share This Ebook! 

EMAIL MARKETING 

Introductory content is for marketers who are new to the subject. This content typically includes step-by-step instructions on how to get started with this aspect of inbound marketing and learn its fundamentals. After reading it, you will be able to execute basic marketing tactics related to the topic. 

INTRODUCTORY IS THIS BOOK RIGHT FOR ME? Not quite sure if this ebook is right for you? See the below description to determine if your level matches the content you are about to read. Intermediate content is for marketers who are familiar with the subject but have only basic experience in executing strategies and tactics on the topic. This content typically covers the fundamentals and moves on to reveal more complex functions and examples. For more advanced content, view our webinar The Science of Email Marketing. 

INTERMEDIATE Advanced content is for marketers who are, or want to be, experts on the subject. In it, we walk you through advanced features of this aspect of inbound marketing and help you develop complete mastery of the subject. After reading it, you will feel ready not only to execute strategies and tactics, but also to teach others how to be successful. 

 

ADVANCED This ebook! 3 An introduction to email Marketing brings your whole marketing world together in one, powerful, integrated system. HubSpot’s All-in-One Marketing Software Get Found: Help prospects find you online Convert: Nurture your leads and drive conversions Analyze: Measure and improve your marketing Plus more apps and integrations Video Overview Lead Gene U ration blogging & social media q Email & Autom M ation Search optimization s Marketing analytics Lead Y m g management Request A Demo 4 An introduction to email Marketing www.Hubspot.com Share This Ebook! an introduction to email marketing By Magdalena Georgieva Maggie Georgieva is an inbound marketing manager at HubSpot responsible for creating new offers, including ebooks and webinars. She has previously helped with HubSpot’s email marketing program and the company’s landing page creation and optimization. Maggie is a prolific marketing blogger and has also written for publications like BostInnovation.com and The St. Petersburg Times. Follow me on twitter @Mgieva 5 An introduction to email Marketing Contents 5 email marketing challenges & solutions /8 6 types of marketing emails /21 9 email marketing metrics /41 conclusion & additional resources /52 6 An introduction to Quick email marketing facts Email opens on mobile devices increased by 34% from April 2011 through September 2011 as compared to the previous six-month period. Mobile email usage is at its lowest on Monday, desktop email usage is at its lowest on Sunday, and webmail email usage is at its lowest on Wednesday. “Finance” and “shopping” show above average webmail views as compared to other industries, at 49% and 48%, respectively. 

The industries leading the way in mobile email views are, not surprisingly, “social networking” (27%), “publishing” (26%), and “entertainment” (27%). Source: Return Path Report

7 Your email marketing campaigns should be part of a holistic “approach to educate your contacts.” Companies often list email as one of their most powerful marketing channels. To this day, the size of your email list is a demonstration of your reach and thought leadership. However, your email marketing campaigns should be part of a holistic approach to educate your contacts about your company.

Your marketing emails need to be complimented by other efforts, such as search engine optimization, content creation, social media engagement and behavior-based nurturing. So when reading this ebook on email marketing, keep the big picture in mind. In the following pages you will read about the top challenges email marketers face and how you can combat them. You will also learn about the types of communications you can send to your contacts. Use the best practices shared here as a roadmap to your email marketing success.

8 An introduction to email Marketing

CHAPTER 15 email marketing challenges & solutions

9 An introduction to Email marketing is a powerful channel but also one that presents many questions and difficulties. In their 2012 Email Marketing benchmark, MarketingSherpa surveyed 2,735 companies and asked them to rank the significance of 12 common email marketing challenges. In this chapter, we will focus on the top five challenges and suggest some ideas through which you can address these issues. 1 2 3 4 5 Integrating email data with other data systems Improving deliverability 

Growing & retaining subscribers Achieving measurable ROI Using email for funnel optimization 10 An introduction to email Marketing www.Hubspot.com Share This Ebook! 0% 10% 20% 30% 40% 50% 60% Integrating email data with other data systems Improving email deliverability Growing and retaining subscribers Achieving or increasing measurable ROI Using email for funnel optimization Very Significant Somewhat Significant Not significant 1 2 3 4 5 The survey respondents ranked these five challenges as “very significant.” What is even more interesting about this data is that it seemingly contradicts the survey responses in MarketingSherpa’s 2011 Email Marketing Benchmark. The number one challenge for email marketers in 2011 was “targeting recipients with highly relevant content.” While differently phrased, this challenge basically overlaps with the idea of integrating data systems in order to allow for powerful segmentation. Let’s dive into each one of these challenges individually. 11 An introduction to email Marketing

1 Integrating email data with other data systems Marketers want to amass valuable data across their different channels. For instance, they might like to see the possible relationships between landing pages and emails or to track the sales process of an email conversion. In addition to the obvious reporting benefits such integration provides, it also opens the door to a much more enjoyable experience for email subscribers. Just think about it--if you could bridge the gap between email marketing performance and social media activities, landing page conversions or new customer acquisitions, you are that much closer to optimizing your sales funnel and delivering content that your community loves. “Other data systems,” including form submissions and activities on site, can point you to the resources your recipients are truly interested in. In that way, you have a clear understanding of how to further engage them through careful targeting and segmentation.

Challenge 12 An introduction to email Marketing Get Your Hands on The Right Tools In order to integrate your email marketing with your other data systems, you need to use marketing software that allows for that integration to take place. In fact, integration is the foundation on which HubSpot’s software was built as it connects SEO, blogging, lead management and reporting with email marketing and lead nurturing. Think Segmentation Combining your different marketing databases allows for clear segmentation and ability to better target your customers and prospects with relevant email messages. Once you have access to an integrated marketing system, keep your buyer persona in mind and focus on the opportunity to target the right audience with the right message. Develop Content The more targeted your email campaigns, the more content you’ll need. Key to promoting relevant content in email is to provide an offer that is connected to the initial request. What action have your contacts taken on (or even off) your website? Offer them content that fits with their intent and their needs. 1 Integrate your data systems solution 13 An introduction to email Marketing www.Hubspot.com Share This Ebook! 2 Improving deliverability challenge Deliverability rate is the percentage of email messages delivered to your recipients’ inboxes versus the total number of messages sent. It tells you how many of the emails bounced back and if that number is high, it’s a sure sign of inactivity. There are soft bounces and hard bounces. The soft bounce is temporary and occurs when an email server rejects an incoming message. For instance, when your recipients’ inboxes are full. A hard bounce, on the other hand, is less benign and represents a permanent error to deliver an email. This generally occurs when the addresses you send to are bad or don’t exist. Low deliverabilty rate might get you blocked by ISPs (internet service providers). If your list is loaded with inactive emails, you don’t have a sense of your true complaint rate. While many marketers just look at total complaints over total list size, ISPs are actually looking at total complaints over number of active email users. ISPs can also mark abandoned email addresses as spam traps. This means that, even if you acquired emails in a legitimate manner, the abandoned addresses may have morphed into spam traps. Aside from all the ISP problems, low deliveravility rate also means you are wasting money sending messages to nonexistent addresses. ? Why are marketers so afraid of low deliverability rates? 14 An introduction to email Marketing www.Hubspot.com Share This Ebook! 2 Practice good email list hygiene solution Regular maintanance Clean up your email list by removing those addresses that are no longer engaged. You can identify these addresses with metrics such as opens, clicks, or website activity. A stricter opt-in process If you have a really serious problem with deliverability, you might want to redefine your opt-in process to prevent invalid emails from getting on your list. Either ask people to enter their email twice or experiment with double opt-in. preference center Make sure your recipients have an opportunity to update their email addresses. Invite them to your preference center from every email you send. That might also help you with segmentation and achieving higher engagement overall. 15 An introduction to email Marketing www.Hubspot.com Share This Ebook! 3 Growing & retaining subscribers challenge In MarketingSherpa’s survey, marketing professionals shared that their third most serious challenge in respect to email marketing is growing and retaining subscribers. No wonder! Increasing the size of your email list and keeping your contacts engaged in your messages is no easy task. These challenges receive two common responses: To grow their email database, marketers sometimes purchase lists. This practice will surely get you into trouble: it might add invalid addresses to your list and thus pollute your entire database. Even if the addresses you acquired are valid, the new recipients will most likely not be interested in your content and either unsubscribe or not engage with your emails altogether. Both of these alternatives are undesirable. To retain subscribers, a lot of companies send fewer emails, thinking that the communication frequency might in some way define engagement. Rarity of emails means they are more special, right? Wrong. Frequency of emailing, as we have established in our Science of Email Marketing research, doesn’t necessarily negatively impact subscriber retention. g 16 An introduction to email Marketing www.Hubspot.com Share This Ebook! 3 Earn your email subscribers solution CLear value proposition in email opt-in Don’t purchase email lists, but earn your subscribers. Be clear to your target market about what they will get out of subscribing to your emails. Give them a clear description of what the value proposition is. For example, will your emails offer: (1) tips and tools on how to run their business more efficiently, (2) product updates from your company, or (3) special offers via email? Your audience will want to know “why” they should subscribe before they decide to clutter their inbox with even more emails. Segment Lists to Match Your Priorities Are you concerned that you are emailing your subscribers too often? Give this thought a break and instead ask yourself if you are emailing the right people with the right message. In order to retain your email subscribers, you’ll need to provide them with ongoing value that is targeted to their needs. Make sure you are segmenting based on knowledge you have about your recipients. optimize & test Don’t limit your email testing to subject lines. Embrace testing of various elements in your email marketing efforts to optimize email performance. For instance, you can do A/B testing of landing pages. 17 An introduction to email Marketing www.Hubspot.com Share This Ebook! 4 Achieving Measurable ROI challenge Achieving measurable ROI (return on investment) is another challenge that marketing professionals face in the land of email marketing. In other words, it’s difficult for them to connect the dots between the messages they send out to prospective customers and the moment when these subscribers get further engaged and turn into customers. Interestingly enough, this problem is tightly connected to challenge number one - integrating email marketing with other data systems. When your marketing channels are not speaking to one another, it’s hard to identify how they affect conversions. For instance, you might see that your email blast got a 3.4% click-through rate (CTR), but can you also see if that communication contributed to generating new leads? What is more, do you see if it resulted in any new customers? 18 An introduction to email Marketing www.Hubspot.com Share This Ebook! 4 Close the marketing loop solution closed-loop marketing The solution to achieving measurable ROI from your email marketing campaigns is to practice closed-loop marketing. Follow a contact from the point of visiting your website through getting further engaged (viewing other web pages, downloading resources, clicking on your emails) to her final conversion into a customer. Implementing closed-loop marketing empowers you to track leads from their initial channel through a first conversion all the way to becoming a customer. Such intelligence, in turn, enables you to identify your most powerful marketing channels and assign clear value to each of them. In this way, you will be able to measure the ROI not only of your emails, but also of your other efforts, which might include social media and blogging. C marketing initiatives. about Hub loop marketing system. lose the loop between your Spot’s closedLearn 0 19 An introduction to email Marketing www.Hubspot.com Share This Ebook! 5 Using email for funnel optimization challenge As mentioned in the introduction of this ebook, email campaigns should be only part of your holistic marketing approach. Email cannot be truly fruitful just by itself, but can strengthen your other initiatives. (Just like you cannot use social media in vacuum, or only rely on blogging, or trust that search engines optimization is enough to meet your goals.) The real power comes from achieving a strong marketing mix. This, however, seems to be a challenge for marketers. How do you optimize your sales and marketing funnel with emails? Most marketing professionals are accustomed to sending one-time email blasts that are not necessarily related to the actions of their email subscribers, their interests or needs. Such a practice doesn’t help push leads down the sales funnel, but can alienate them. y 20 An introduction to email Marketing www.Hubspot.com Share This Ebook! 5 Nurture your leads solution Lead nurturing Lead nurturing sometimes goes by other names: marketing automation, drip marketing, auto-responders, etc. Simply put, lead nurturing is a system that allows you to send an automated series of emails to an early stage lead in order to pre-qualify them before handing them over to your sales team. If it typically takes your leads a month to make a purchasing decision, then make sure you’re spreading out your communications to keep them engaged throughout the month. By taking this approach, you save your sales organizations time because you educate and qualify the lead overtime. Among some of the key benefits of lead nurturing is that it enables marketers to establish contact with their fresh leads fast and stay top of mind for potential, and even current, customers. In comparison to email marketing, lead nurturing is also relatively easy to set up because it is automated and doesn’t need a ton of maintenance over time. Become effective at nurturing your leads. Learn about HubSpot’s lead nurturing program. 21 An introduction to email Marketing www.Hubspot.com Share This Ebook! CHAPTER 2 6 types of marketing emails 22 An introduction to email Marketing www.Hubspot.com Share This Ebook! Different types of email formats have different goals and “ advantages.” Whether you are just starting with email marketing or you have some experience sending marketing emails, you have probably asked yourself about the types of communications you can send out. Should you nurture your subscribers with weekly newsletters? Are dedicated sends better at optimizing your sales and marketing funnel? What about email digests? These are all valid questions that marketing professionals should consider when selecting the right format that meets their email marketing goals. In this chapter, we will discuss the different types of marketing communications and their respective advantages and disadvantages. This information should help you make an educated decision about picking the most appropriate email format and how to go about using it. ? 23 An introduction to email Marketing www.Hubspot.com Share This Ebook! Many business and organizations send email newsletters in order to stay top of mind for their recipients. In this section we will cover some general guidelines for using newsletters as the foundation of your email marketing program. Email newsletter N Define your goal Before we get into the nitty-gritty details of creating email newsletters, you will need to determine your goal. What is it that you want your email newsletter to achieve? You might want to nurture your existing contacts and become the first brand they think of when they need a product or service in your industry. This would be a fantastic goal if you are a B2C company. Or your goal might be to increase sharing so that you attract new people to your list. As you define your goal, think about what metrics you can use to track your progress. 1 24 An introduction to email Marketing www.Hubspot.com Share This Ebook! Brand Awareness Similar to newspapers, newsletters create a certain anticipation in readers. Whether it is a daily newsletter or a weekend communication, you get into the habit of receiving it. If you enjoy the content, you will most likely stay subscribed to the newsletter and look forward to getting the next email. By building a habit in your email subscribers, you enable them to recognize your brand and associate it with a positive sentiment. repurpose content Newsletters generally contain information that you have already published. Many companies do quick summaries of their most popular blog posts and link to the articles from their newsletter. In this way, they bring subscribers back to the company website and engage them with more company content. diverse content Email newsletters give you the freedom to include different types of content that might be important to your organization. For instance, the same newsletter can contain a popular blog post, a new offer, an announcement of an upcoming event, information about a discount and a link to a survey. advantages + 25 An introduction to email Marketing www.Hubspot.com Share This Ebook! diluted call-to-action Due to their format--a compilation of information--newsletters can be overwhelming and ignorant of a specific call-to-action. If you include a series of blurbs or article summaries, the attention of your recipients will most likely be spread across these tidbits of information as opposed to staying focused on a certain element. Of course, you can address this by prioritizing the most important information at the top of the newsletter and include a clear call-toaction after/alongside each block of text. Design With newsletters, the layout becomes a much more complicated task than it is with dedicated email sends. You’ll have to spend some time deciding on the right placement of images and text, alignment and prioritization of information. Thankfully, there are a bunch of websites out there to help you with these efforts. MailChimp, for instance, offers a package of 36 basic, flexible templates you can use to get started. disadvantages - 26 An introduction to email Marketing www.Hubspot.com Share This Ebook! prospects customers newsletter Newsletters are great not only for marketing to prospects, but also for nurturing your existing customers with company news and events, product announcements and feedback requests. Such ongoing communication will help you retain happy customers and collect valuable insights about them. What are the tidbits of information they click on the most? Can you upsell to them at all? Don’t forget that your existing customer base can also spread the word about your company and share resources that you publish with their network. 27 An introduction to email Marketing www.Hubspot.com Share This Ebook! Stay focused on the goal As you work on your newsletter layout and content creation, stay mindful of your goal and make sure you are working towards meeting it by prioritizing calls-to-actions at the top of the email. The two examples above are of Brain Pickings’ weekend newsletter (to the left) and Fast Company’s design daily newsletter (to the right). These emails are always packed with useful and entertaining information, a sure sign of high clickthrough rates and an engaged audience. On the top of each newsletter, you will spot a call-to-action which invites people to either donate or subscribe. 28 An introduction to email Marketing www.Hubspot.com Share This Ebook! Similar to newsletters, email digests provide summaries of existing information and offer a snapshot of a specific time frame, e.g. a week or a month. Traditionally, digests highlight the most popular pieces of content that new readers will also gravitate towards. For instance, you can receive a digest of top books to read or movies to see. Some software companies send digests of usage data (e.g. HubSpot’s monthly performance digest). Digests should be easier to consume than newsletters because they generally consist of lists and links. That helps subscribers scan the email quickly and click on the parts that they are most interested in. The goals of a digest and a newsletter will most likely overlap. Remember to place the most important call-to-action at the top and measure clickthrough rate and conversions. If your goal is to drive traffic to specific pages, monitor CTR closely and don’t forget to optimize the pages to which you are sending visitors. digest l 2 29 An introduction to email Marketing www.Hubspot.com Share This Ebook! Here is an example of Copyblogger’s email digest that includes links to important articles and short blurbs describing what the reader will learn about after they click. The digest’s design can be much simpler than that of newsletters. Of course, you can build a few different versions and test which one receives more engagement from subscribers. Like newsletters and based on the goal you’ve set for them, email digests can be sent to different target audiences. One popular option is the blog digest which collects notifications about the articles you publish throughout a certain time frame and releases an email with the links. If you are blogging using HubSpot’s platform, your subscribers will have the opportunity to set up this type of digest. 30 An introduction to email Marketing www.Hubspot.com Share This Ebook! Dedicated emails, or also known as stand-alone emails, contain information about only one offer. For instance, you can be notifying your target audience about a new whitepaper you have released or invite them to attend an event that you are hosting. Dedicated emails help you set up the context to introduce the main call-to-action. In this sense, they are similar to landing pages. Dedicated sends are generally used to reach out to your entire email database, a practice that is not necessarily efficient in optimizing conversions and minimizing unsubscribes. While there are instances when all of your subscribers should be notified about a specific marketing campaign, such as a timely new offer or an upcoming event, in most cases you would want to segment heavily based on your subscribers’ different behaviors and interests. More on that, in the Lead Nurturing section of this chapter! dedicated email M 3 31 An introduction to email Marketing www.Hubspot.com Share This Ebook! focused call-to-action Unlike newsletters, dedicated sends can focus on really driving results for one call-to-action. As a MarketingSherpa case study of Kodak’s successful list growth tactic explains, “These calls-to-action were not stuffed at the end of a newsletter or tacked onto another message. They were the focus of a dedicated email, which gave them much more impact.” Easy to Build Once you have your email template in place, building dedicated sends should be easy. You will generally grab some of the information already on the landing page, make a few tweaks to it and spend most time on nailing down the subject line. Unlike newsletters, dedicated emails don’t need to include many graphical elements to separate the different blocks of text and prioritize information. Here, the entire email revolves around a single message. fast to measure Naturally, if you have one main message and call-to-action in your dedicated send, it will be easy for you to track progress. You can quickly check the email CTR, landing page views and conversions, and follow the long-term ROI. advantages + 32 An introduction to email Marketing www.Hubspot.com Share This Ebook! less consistent With newsletters, marketers generally stick to a specific schedule. For instance, you might create a weekly newsletter that goes out on Tuesday mornings. Or your company might be sending a weekend newsletter summarizing information published throughout the week. With dedicated sends, the schedule is less clear and, potentially, less consistent. You might use dedicated emails when you have published a new offer (which might be sporadic). Even if you decide to maintain a specific schedule, your subscribers might not realize it or expect communication from you because there is no clear connection between the separate sends. Homogenous content As dedicated sends contain one message, it’s tough to include a shout-out about some other campaign that might also be important to your organization. The workaround is to utilize the P.S. or to decrease the list size and use part of it for the second call-to-action you want to introduce. disadvantages - 33 An introduction to email Marketing www.Hubspot.com Share This Ebook! lead nurturing As an inbound marketing tactic, lead nurturing is all about understanding the nuances of your leads’ timing and needs. By getting these details right, you set yourself up for success. Lead nurturing introduces a tightly connected series of emails with a coherent purpose and full of useful content. In this context, lead nurturing offers more advantages than just an individual email blast. it’s timely Study after study shows that email response rates decline over the age of the lead. In his Science of Timing research Dan Zarrella, HubSpot’s Social Media Scientist, discovered that there is a positive correlation between subscriber recency and CTR, one of the key metrics of engagement. You need to use lead nurturing campaigns to take advantage of this dynamic. advantages + 4 34 An introduction to email Marketing www.Hubspot.com Share This Ebook! it’s automated Once you set up lead nurturing, emails are sent out automatically according to your schedule as new leads come in. This leads to a high return on a low investment. You might launch the campaigns and forget about them, but the emails will be doing the work for you, helping you qualify leads and push them down the sales funnel faster. It’s targeted Studies show that targeted and segmented emails perform better than mass email communications. Lead nurturing enables you to tie a series of emails to a specific activity or conversion event. You can craft your follow-up email based on the action a lead has taken on your website, thus showing that you are aware of their interests in the topic and what they might need next. Based on this information, lead nurturing emails can highlight reconversion opportunities that tie back to their earlier interests. Effect of Subscriber Recency on Clickthrough Rate (CTR) 35 An introduction to email Marketing www.Hubspot.com Share This Ebook! generates less concurrent buzz With dedicated sends to your entire email database, you can generate a lot of buzz around your brand. There is an explosion of engagement resulting from the simultaneous forwarding and social media sharing (especially if you have Twitter, LinkedIn and Facebook sharing links in your email). Lead nurturing cannot quite achieve the same buzz effect because it is programmed to schedule fewer emails to segmented audiences. So while there will still be sharing, you won’t see a huge spike in traffic and conversions on a specific day. Rather, the visits and leads will trickle in. passive tracking Because lead nurturing is automated and marketers often forget about it after they’ve set it up, it also tends to be under reported. Make sure your lead nurturing campaigns include unique tracking tokens and revisit your marketing analytics to evaluate performance and prove the ROI of your efforts. disadvantages - 36 An introduction to email Marketing www.Hubspot.com Share This Ebook! sponsorship emails All the types of marketing email we have discussed so far assume that you are sending communications to your own email database. If you want to reach a different audience and gain new leads, you might want to try out sponsorship emails. You pay for including your copy in another vendor’s newsletter or dedicated send. Research shows that US firms alone spent $1.51 billion on email marketing in 2011. Sponsorship email campaigns are one component to a paid media strategy, which could also include pay-per-click (PPC), display advertising, mobile advertising, affiliate advertising, etc. In this paid media universe you have the benefit of being specific when describing the target audience you want to reach. For instance, you might want to focus only on Asian American females in the 30 to 40 years-old range. Generally, you’ll have to design your email copy or ad placement in alignment with the specifications listed by the vendor. Check if the partner has any size restrictions or image suggestions. Provide them with both the HTML and plain text version of the copy in advance. The key element in sponsorship emails is to evaluate the vendor. Make sure you trust that they are a credible partner before you proceed with the relationship. !

5 37 An introduction to email Marketing www.Hubspot.com Share This Ebook! highly targeted The biggest advantage of sponsorship emails is that you can be specific in defining the segment you want to reach. Get granular in identifying the different characteristics of your target audience--number of employees, geographic location, their interests and challenges, etc. exact roi There is a very specific investment in sponsorship emails--you know how much you are paying the vendor. Now you only need to track the results you are getting (visits, leads, sales) in order to determine what is your return on the cost you have paid. Knowledge of the exact ROI will help you fit in your marketing budget and build accurate marketing reports at the end of the quarter. advantages + 38 An introduction to email Marketing www.Hubspot.com Share This Ebook! it’s paid Sponsorship emails are being sent to people who you haven’t earned as subscribers (they didn’t opt-in to your list). In this context, you have to pay in order to get content in front of them.

Vendors offer different payment packages and here you enter the land of negotiation. Some of the most popular options are paying a flat free, paying based on a CPM (cost per thousand impressions) model or paying per new lead acquired. dedicated resources Sponsorship emails and management of the vendor relationship require a big marketing effort and tight control.

“For this style of sponsorship to be successful there needs to be a dedicated team behind it that understands data, brand synergies, and the ability to unearth unseen cobranding opportunities,” writes Jackie Fast, Managing Director at Slingshot Sponsorship. If you have a small marketing team, it might be tough to take full advantage of sponsorship emails. disadvantages - 39 An introduction to email Marketing www.Hubspot.com Share This Ebook! transactional emails Transactional emails are the messages that get triggered by a specific action your contacts have taken and enable them to complete that action.

For instance, if you are signing up for a webinar, you will fill out a form and then receive a transactional (thank-you) email, which gives you login information in order to join. If you are using a double opt-in, people will receive an email asking them to click on a link in order to confirm their registration. $ 6 Transactional are also the messages you receive from eCommerce sites like Amazon that confirm your order and give you shipment information and other details. 40 An introduction to email Marketing www.Hubspot.com Share This Ebook! high ctr Recipients anticipate transactional emails because they help them complete an action. That is why they open them and click on them. Take advantage of this dynamic and include a highly customized call-to-action (maybe even as a P.S.) to leverage the fact that the subscriber is fresh and very actively engaged with your email communication.

A 2008 Jupiter research showed that marketing content in transactional messages helped increased revenue and brand recognition. advantages + creates an obstacle Sometimes the idea of taking yet another action discourages contacts from completing their activity altogether because it seems to them like they are jumping through hoops. disadvantages -  CHAPTER 39 email marketing metrics 

To assess your email marketing performance, you must conduct ongoing trend analysis of several key metrics. That way, you can compare each campaign’s performance against your own averages to know whether a specific campaign outperformed or under-performed your internal email benchmarks. Your email service provider (ESP) should provide a wealth of reporting on each campaign and on your ongoing email performance. In this chapter we will cover the most important email metrics to measure and how you can use them to improve the performance of your email marketing program overall.

1 bounce rate DEFinition The percentage of total emails sent that could not be delivered to the recipient’s inbox, known as a “bounce.” how to use Use this metric to uncover potential problems with your email list. There are two kinds of bounces to track: “hard” bounces and “soft” bounces. Soft bounces are the result of a temporary problem with a valid email address, such as a full inbox or a problem with the recipient’s server. The recipient’s server may hold these emails for delivery once the problem clears up, or you may try resending your email message to soft bounces. Hard bounces are the result of an invalid, closed, or non-existent email address, and these emails will never be successfully delivered. 

2 delivery rate Definition The percentage of emails that were actually delivered to recipients’ inboxes, calculated by subtracting hard and soft bounces from the gross number of emails sent, then dividing that number by gross emails sent. how to use Your delivery rate sets the stage for email success or failure. To have any chance of engaging a customer or prospect with an email campaign, that message has to get delivered to their inbox. Look for a delivery rate of 95% or higher. If your delivery rate is slipping over time, you may have problems with your list (e.g. too many invalid addresses). If one particular campaign has a lower than average delivery rate, examine the subject line and content of that message. Perhaps there was some element that may have been flagged as spam by corporate firewalls or major ISPs, causing many more message than usual to be blocked. 4

3 list growth rate DEFinition A measurement of how fast your email list is growing. Calculate your growth rate by subtracting opt-outs and hard bounces from the number of new email subscribers gained in a given month. Then, divide that number by the original list size. how to use Email list growth rate is important because a healthy email marketing program needs to be continually refreshed with new names. Many of the addresses on your email list will naturally “go bad” over time, as people change jobs, switch ISPs or email programs, or just forget their passwords and create new accounts. According to the popular marketing resource MarketingSherpa, the natural churn rate of an email list can be 25% annually or higher, which is why you must continually work to add new contacts to your email database. 

4 ctr Definition The proportion of the audience who clicked on one more links contained in an email message. Organizations can calculate CTR either by dividing unique clicks by the number of emails delivered, or by dividing total clicks, including multiple clicks by the same recipient, by the number of emails delivered. how to use Monitoring email CTR is a cornerstone of email marketing analytics, because the CTR indicates whether the message was relevant and the offer compelling enough to encourage recipients to action. But CTR can vary widely by the type of message sent. For example, email newsletters often have higher CTRs than promotional messages, and transactional messages – such as emailed purchase receipts – often have the highest CTR of all the messages your business sends. For that reason, it’s best to benchmark your CTRs according to the different types of emails you send. 

5 email sharing Definition The percentage of recipients who clicked on a “share this” button to post email content to a social network and/or who clicked on the “forward to a friend” button. how to use Sharing rates are another indicator of the value and relevance of your email messages. Email offers that get shared or forwarded outside of your own house list can end up being your best performing campaigns, because you’ve drastically increased the reach of that message by tapping into the viral nature of your subscribers’ social networks. Watch your sharing rates carefully to discover which types of articles and offers tend to get shared the most, and use that knowledge when planning future campaigns.

6 conversion rate Definition The percentage of recipients who clicked on a link within an email and completed a desired action, such as filling out a lead generation form or purchasing a product. how to use Conversion rate is the ultimate measure of an email campaign’s effectiveness. The higher your conversion rate, the more relevant and compelling the offer was for your audience. However, conversion rates are dependent on factors beyond the original email message, such as the quality of your landing page. Measuring conversion rate requires integration between your email platform and your web analytics. You can perform this integration by creating unique tracking URLs for your email links that identify the source of the click as coming from a specific email campaign.

 Revenue per 7 email sent DEFinition A measure of the ROI of a particular email campaign, calculated by dividing the total revenue generated from the campaign by the number of emails sent. how to use This metric is ideal for ecommerce marketers who generate a lot of direct sales from email campaigns. Again, it requires integration between your ESP and your ecommerce or web analytics platform. If you are already tracking conversion rates, you also can collect the order value for each conversion to perform this calculation. 

8 open rate Open rate is a metric that many marketers use to measure the success of their campaigns, but it’s an unreliable gauge for several reasons. Most importantly, an email is only counted as ‘opened’ if the recipient also receives the images embedded in that message, and a large percentage of your email users likely have image-blocking enabled on their email client. This means that even if they open the email, they won’t be included in your open rate, making it an inaccurate and unreliable metric for marketers, as it underreports on your true numbers. The flipside of under-reporting is the fact that open rates can be manipulated by writing catchy, even sensational subject lines that get recipients to open a message but then leave them feeling mislead by the message’s content. For that reason, it’s better to focus on click-through rate as a better measurement of a successful email send. Open rate is an unreliable “gauge for several reasons.” 

9 unsubscribe rate As with open rates, the unsubscribe rate isn’t a reliable picture of the health of your email list. Many subscribers who are tired of receiving email messages from your brand won’t bother to go through the formal unsubscribe process. They’ll just stop opening, reading, and clicking on your email messages. Again, tracking your click-through rates and conversion rates is a better way to monitor subscriber engagement and interest. But checking your monthly unsubscribe rate is helpful for calculating your overall list growth rate, and to watch for sudden spikes after a particular email campaign. 

Conclusion & additional resources 53 An introduction to Email marketing is a powerful channel for driving real business results and “ achieving measurable ROI.” Email marketing is a powerful channel for driving real business results and achieving measurable ROI. In this ebook we discussed the top challenges you will most likely face in email marketing and suggested ways to solve these issues. We also covered six types of marketing emails, giving you some guidelines about the different formats you can create based on your individual goals and needs. Lastly, we talked about the metrics that you should monitor in order to define success. 

By reading this ebook you have acquired a great foundation to your overall email marketing strategy. If you are interested in learning more about optimizing your emails, view our webinar The Science of Email Marketing. 54 An introduction to email Marketing www.Hubspot.com Share This Ebook! Become great at Email marketing Integrate your email marketing program with your other channels and start achieving measurable ROI. Sign up for your free 30-day HubSpot trial. www.HubSpot.com/Free-Trial

 


Thursday, July 30, 2020

Myth of 5G Network

Myth of 5g Network

By Egbon Shalom

 

5G networks are digital cellular networks, in which the service area covered by providers is divided into small geographical areas called cells. It’s easy to understand why wireless communications technology has become increasingly important over time: By facilitating increased access to information on the go, advances in wireless communications have facilitated improvements in business, education and technology around the world. As mobile communications improve, so too do connections among people.  

Artificial Intelligence Combined with 5G Robotics

One thing that is certain is that this type of technology may enables robotics in a different way and ‘intelligent’ robots to operate within a broader environment. We can immediately consider the extended adverse use of this for defence purposes and monitoring a population. However, on the other hand within hospitals and health technology this may enable a different working environment or follow-up by technological inventions.

Running solutions related to the field of artificial intelligence is done externally already so will you truly notice a difference? If the video, text or other expression/input is transferred to a different place — then what is the difference for users. Using machine learning techniques in 5G network to improve the utility in the radio spectrum which is allocated. Currently it seems like Self-driving autonomous vehicles, Automating or managing public transportation, Time-critical industry automation, Remote healthcare. These are all areas where hardware and software will enable changes in operations. Of course process automations are already influencing working life with data from workers being monitored as well as performance measured. However, the robots that can operate in healthcare, transport and industry will likely be enhanced by these new technologies in Internet of Things (IOT).

Colloquially, the term "artificial intelligence" is often used to describe machines (or computers) that mimic "cognitive" functions that humans associate with the human mind, such as "learning" and "problem solving".

The importance of 5G technology

We often say that 5G will usher in the Fourth Industrial Revolution and change the economy. Because of the speeds and capacity that Verizon’s 5G network promises to bring, it has the potential to be an indispensable technology. It is estimated that by 2035, 5G “will enable $12.3 trillion of global economic output and support 22 million jobs worldwide.”

Reasons 5G is important

5G is not only important because it has the potential to support millions of devices at ultrafast speeds, but also because it has the potential to transform the lives of people around the world.  

Improving accessibility

Improvements in 5G technology can help make life better. For example, significant advances in autonomous vehicle technology are possible with 5G, creating the potential for people to have new levels of personal and professional freedom. Connected appliances can help automate tasks around the house, which can not only improve personal convenience but also help those who need assistance with everyday tasks.

Extending the reach of mobile broadband

5G can power technology well beyond what current mobile technology permits. Thanks to its speed and bandwidth, 5G promises to make significant improvements in 3D holograms, virtual reality and augmented reality, creating opportunities to connect people far beyond what current cellular technology allows.

Improving safety, health and security 

Access to 5G technology promises to improve mission-critical services that affect safety and security of services today. Opportunities include smart cities with 5G in public spaces, the potential for remote surgery, better traffic control and many other applications that depend on nearly instantaneous response time.

While many of the applications for 5G are expected to directly impact how businesses run, the implications for accessibility, the reach of mobile broadband and the improvements in society’s safety, health and security have the potential to be farther reaching. 5G technology is important for consumers as well as businesses as we move into the Fourth Industrial Revolution and explore all that 5G has to offer, including things we likely have not thought of yet.

Advantage:

Increased Bandwidth for All Users

For those who don’t know, the bandwidth is the amount of “space” available for people who are using data to download files, view internet pages, and watch videos. The less bandwidth that is available, the slower everyone’s devices will run. One of the advantages of this new fifth generation of wireless technology is that there will be more bandwidth on the data networks of companies such as Verizon, T-Mobile, and Sprint. Many people have memories of 3G technology as they watched the progress bar load their web pages. On 5G, this will be a worry of the past. This means that people won’t feel like they are fighting for data with all of the other users when they enter crowded spaces such as sports arenas and airports. With more bandwidth available, people will also be able to use this bandwidth to do more with their devices, making them more versatile than ever before.

With more people able to use this increased bandwidth, some people may worry about their speeds on a 5G network. This will be a problem of the past as people using a 5G network will be able to browse the web, download files, and even stream video at blistering speeds. While people on 3G and 4G networks may remember struggling to download files or watching videos buffer for minutes on end, this will not be a problem with 5G networks. Because of the increased bandwidth, people will be able to use more of it without crowding out other users. With more of the network dedicated to each individual smart device, smart devices will be able to run faster than ever before.

Disadvantage:

An Increased Bandwidth will mean Less Coverage

One of the key advantages of 3G cell towers was that they could cover immense territory with relatively few cells. This is because the network did not require as much bandwidth, meaning networks had to deploy fewer cells. When technology progressed to 4G networks, the cells were producing more bandwidth, meaning the coverage radius of each cell was smaller. People may have noticed that their coverage may drop more often than on their 3G network. As the 5G network gets rolled out, this trend will continue. More cell towers will be required to produce this immense bandwidth because the cells are not able to cover as much space as a 3G or 4G cell. Because more cells will need to be rolled out, 5G users should expect that their coverage may not be as widespread at first.

The Radio Frequency May Become a Problem

Radios, cell towers, and even satellites communicate using radio frequencies. Frequency is measured in Hz and the radio frequencies tend to operate in the GHz range. Early reports on the 5G network indicate that this network is going to transmit its data in the range of around 6 GHz. Unfortunately, this radio frequency range is already crowded by other signals, such as satellite links. With numerous types of signals operating in the range of 6 GHz, it is fair to wonder whether or not the overcrowding is going to pose a problem as people try to transmit their data signals at this frequency. Will there be issues sending and receiving signals? Time will tell as this network frequency starts to spread.

Conclusion

5G networks are expanding and they hold potential, however we should not give in to the ‘race’-mentality. Although from a security perspective it is understandable, and it is a dilemma in terms of the environmental consequences. China is ‘leading the race’ in expanding the coverage into several cities, perhaps as a way to show that they are not intimidated by the ongoing trade war. 5G may enable smaller connected devices to work better in terms of their connections. Thus perhaps the move for Google buying heavily into wearables with the purchase of FitBit is a gamble that makes sense. However, the question of AI and 5G is a question as much, or even more, of international security as it is of personal security. There is no doubt in my mind now that these solutions are being rolled out they must be closely followed-up from within the companies, by government and independent researchers.

Friday, May 8, 2020

Artificial Intelligence and 5G


Why is 5G Relevant to the Field of AI?
My focus this week has been exploring the intersection of artificial intelligence and 5G. When looking at the potential risk and possibilities with this combination and perhaps talking to industry experts about their thoughts. Who is studying the effects or changes that this is leading to? There is a big investment by telecommunication companies into these areas, and there is an expressed fear by many in regards to the possible adverse consequences. It may change the way that we use applications within the field of artificial intelligence, that you can do more with a small device because your connections allow for data to move more swiftly. Thus on an interface many applications will be decentralized with cloud (on a server). It is clear that if good things can be extended then less good aspects can too.
I will explain and go through:
How 5G works, Spectrum allocation, Robotics and 5G. EU’s Security Policy relating to 5G.China’s 5G expansion. Google’s purchase of Fitbit for $2.1 Billion.
1. How Does 5G Work?
5G networks are digital cellular networks, in which the service area covered by providers is divided into small geographical areas called cells.
A good explanation has been attempted in Digital Trends.
The article explains spectrums: low-band, mid-band and high-band.
“Low-band spectrum can also be described as sub 1GHz spectrum. It is primarily the spectrum band used by carriers in the U.S. for LTE, and is quickly becoming depleted. While low-band spectrum offers great coverage area and penetration, there is a big drawback: Peak data speeds will top out around 100Mbps.
Mid-band spectrum provides faster coverage and lower latency than you’ll find on low-band. It does, however, fail to penetrate buildings as well as low-band spectrum. Expect peak speeds up to 1Gbps on mid-band spectrum.
High-band spectrum is what most people think of when they think of 5G. It is often referred to as mmWave. High-band spectrum can offer peak speeds up to 10Gbps and has very low latency. The major drawback of high-band is that it has low coverage area and building penetration is poor.”
There are a lot of hairy displays of 5G in fancy connective points.
This has additionally been displayed in a manner of evolutionary progression, as is often done within technology.
This becoming the first city with tech coverage of 5G becomes a goal in and of itself. In one sense an enabler of technology.
2. Artificial Intelligence, 5G and Spectrum Allocation
On the 25th of October Karen Hao from MIT Technology Review wrote an article called: “DARPA is betting on AI to bring the next generation of wireless devices online.” This article placed its focus on an important aspect of wireless communication. Because there is a planning of how the bandwidth is supposed to work via the radio spectrum. The electromagnetic waves in the frequency range of the radio spectrum is called radio waves — and these are widely used in modern technology, especially within telecommunication. To hinder interference between different user’s radio waves is strictly regulated by national laws, coordinated by an international body, the International Telecommunication Union (ITU). Karen Hao’s article discussed a recent hackathon organized by the Defence Advanced Research Projects Agency (DARPA). In the article she writes:
“The challenge was prompted by the concern that the growing use of wireless technologies risks overcrowding the airwaves our devices use to talk to one another.”
Since the frequencies are divided up between different commercial and government entities those who owns rights to a bit of spectrum rarely uses all of it 100% of the time. The new 5G networks that are emerging makes this more urgent as it is projected to grow enormously over time
Graph displayed in MIT Technology Review retrieved the 28th of October 2019
The challenge that were to be tackled in the competition issued by DARPA was to design a new type of communication device that doesn’t broadcast on the same frequency every time. The suggested proposal was to use machine-learning algorithms to find the frequencies available. They are wanting to move from a system managed through ‘pen and paper’ to a system managed by ‘machines autonomously’.
Karen Hao describes the final where 10 finalists competed against each other. This included scenarios in supporting communications in a military mission, an emergency response and concert venue. A team from the University of Florida took home the $2 million grand prize.
2.1 IoT and AI Revolution
To see the most accentuated possibilities that lie within 5G it may be interesting to look at a few of the actors that have much to gain from its expansion such as Samsung. In a news article written by Samsung on the 28th of October 2019 there is a description of the IoT and AI Revolution.
This article claims that 5G connectivity will allow different solutions to access more data real-time which will make solutions very different. 5G uses ‘far less power’, leveraging IoT sensors that can last for year. Within farming adjusting irrigation levels and in manufacturing within factories placed to detect when the condition of equipment changes.
There is in addition to this the possibility to carve out multiple uses for doctors to secure handling of patient data. The article states:
“5G is up to 20 times faster than 4G. But this latest generation of networks is hardly just ‘faster 4G.’ Coupled with record-setting low latency, 5G’s speeds will allow developers to create applications that make the most of improved reaction times, such as near real-time video transmission for sporting events or security purposes.”
2.2 But is it a Race?
As pointed out earlier this year there has been a great effort by the companies wanting to expand 5G connection to frame the competition as a race. Here is an entire microsite from industry lobbying group CTIA titled “The Race to 5G.” There are serious trade-offs in the spectrum and they are being neglected due to the speed the deployment is being made.
“And once the ‘race’ to build out 5G in big cities is ‘won,’ the pressure to expand access to other places in the country will vanish, making that divide even worse. It is worth carefully considering all of these things before giving in to haste.”
Therefore we should not get too carried away with this ‘race’ and be blind to possible adverse consequences that this expansion may bring.
3. Artificial Intelligence and 5G Robotics
3.1 The Speed that May Enable Further Usage of Robotics and AI
If we disregard the environmental damage that AI and Robotics could cause considering the heavy resource requirement it has, let us think about what it actually could do. Phone companies and telecommunications tout the amazing new things you can do with your phone should you be able to ‘up your speed’ or bring it to the next level. However, truth be told what would you do? Not much more than before. Streaming is already working rather well, and you can play candy crush etc. Yet we did not imagine what we would be doing with this type of speed or connectivity before it arrived. Everyone, or most people, sitting with their eyes glued to a phone on public transportation. The public spaces filled with people that are somehow cluelessly walking with their phone stretched out in front of them to navigate, read, play or socialize on the go. Beyond your immediate use there are several use cases in industry we should be aware of.
3.2 Artificial Intelligence Combined with 5G Robotics
One thing that is certain is that this type of technology may enables robotics in a different way and ‘intelligent’ robots to operate within a broader environment. We can immediately consider the extended adverse use of this for defence purposes and monitoring a population. However, on the other hand within hospitals and health technology this may enable a different working environment or follow-up by technological inventions.
Running solutions related to the field of artificial intelligence is done externally already so will you truly notice a difference? If the video, text or other expression/input is transferred to a different place — then what is the difference for users. Using machine learning techniques in 5G network to improve the utility in the radio spectrum which is allocated. Currently it seems like Self-driving autonomous vehicles, Automating or managing public transportation, Time-critical industry automation, Remote healthcare. These are all areas where hardware and software will enable changes in operations. Of course process automations are already influencing working life with data from workers being monitored as well as performance measured. However, the robots that can operate in healthcare, transport and industry will likely be enhanced by these new technologies in Internet of Things (IOT).
3.3 Blockchain, 5G Robotics and AI
However much this title looks like a buzzword bingo there is something to be said for the security need required by these new type of solutions. Considering the question of who works in this IoT area we can argue that actors such as IOTA will see a great deal of growth going ahead.
“Our vision is to enable all connected devices through verification of truth and transactional settlements which incentivize devices to make available its properties and data in real time. This gives birth to entirely new general purpose applications and value chains.”
The Next Generation of Distributed Ledger Technology.
The IOTA protocol is a Distributed Ledger Technology developed by the IOTA Foundation. It is a next-generation…
www.iota.org
Therefore I think with the required security in these advancements company actors such as IOTA will be necessary to make it mesh or at least able to work.
3.4 A Looming Question — Sustaining 5G Robotics and AI
As mentioned in the introduction we must seriously question this advancement, we cannot continue running into ‘modernity’ and ‘advancement’ while putting both hands up to our ears. If we ignore the potentially adverse consequences of the aforementioned buzzword bingo we are in serious trouble. Energy and resource requirements by streaming AI to heavily encrypted 5G networks sounds absolutely ridiculous, is it even defensible to do so?
4. EU’s International Security Policy, Artificial Intelligence and 5G
4.1 Increased Connectivity and Emerging Risks
On the 9th of October 2019 Techcrunch wrote an article about a new joint risk assessment report into 5G technology. So far the European Union has resisted pressure to boycott Huawei as a 5G supplier on national security grounds. In March 2019 US suggested that EU should block Huawei from accessing its market. The report identifies “security challenges” more likely to appear in 5G networks.
“An increased exposure to attacks and more potential entry points for attackers: With 5G networks increasingly based on software, risks related to major security flaws, such as those deriving from poor software development processes within suppliers are gaining in importance.”
Certain equipment are becoming more sensitive such as base stations or management functions in networks. Reliance of mobile network operators on suppliers may lead to a higher number of ‘attack paths’. These can be exploited by threat actors. Non-EU States or State-backed are considered as the most serious ones and the most likely to target 5G networks. Risk profile of individual suppliers will become important. There is a risk of major dependencies on suppliers. Dependency can present a high degree of risk. Threat to availability and integrity as well as privacy and confidentiality.
According to TechCrunch the next step will be: “…the development, by December 31, of a toolbox of mitigating measures, agreed by the Network and Information Systems Cooperation Group, which will be aimed at addressing identified risks at national and Union level.”
“The implication is that the business of 5G security will need to get commensurately large to scale to meet the multi-dimensional security challenge that goes hand in glove with the next-gen tech. Just banning a single supplier isn’t going to cut it.”
4.2 Best British Tech Startups in 5G
KPMG hosts a competition for startups and within this I have seen advancements (I work with KPMG). I will list two of the startups mentioned in this competition:
Garrison Technology have pioneered an innovative security platform to counter the threat of persistent and targeted attacks, which exploit corporate internet connectivity. David Garfield, CEO at Garrison Technology, tells us more in his interview below. SenSat Technology uses simulated realities of major urban areas to extract actionable insights using machine learning techniques. This reduces the rollout cost for telecommunications companies for 5G and ultimately, the cost of 5G for consumers.
Security platforms is becoming important especially when the rollout of 5G handles sensitive data. Using AI to enhance these communications will be essential for robotics to be working well.
According to the security report: “…consideration should also be given to the development of the European industrial capacity in terms of software development, equipment manufacturing, laboratory testing, conformity evaluation, etc” Therefore we can expect more investment either into the industrial expansion in EU regarding 5G or a great deal of investment into 5G security over the coming years.
5. China and 5G in 2019
5.1 Racing Past Global Competition as a Leader in 5G Technology
China is said to be leading the charge on implementation of 5G, and I will explore an outline of the current situation towards the end of 2019. For this article I have read up on writing by Jeremy Goldkorn; a report by EY on China and 5G; recent articles in Bloomberg; and in Fortune. The official state-run press agency of the People’s Republic of China Xinhua reported earlier in 2019 about the current plans in China to expand the 5G network. It stated that the Ministry of Industry and Information Technology officially issued 5G commercial licenses to China Telecom, China Mobile, China Unicom and China Radio and Television.
Infographic from Xihuan news agency retrieved the 31st of October 2019
中国信息通信研究院《5G产业经济贡献》认为,预计20202025年,我国5G商用直接带动的经济总产出达10.6万亿元,5G将直接创造超过300万个就业岗位。
China Information and Communication Research Institute “5G Industry Economic Contribution” believes that from 2020 to 2025, China’s 5G commercial direct economic output will reach 10.6 trillion yuan, 5G will directly create more than 3 million jobs.
In this regard China also states that it welcomes foreign companies to work in China.
The ministries of Commerce and of Ecology and Environment released a short-term plan 2019–2020 to work on this issue together by promoting consumption of electronics and vehicles that depend on 5G. Commercially companies such as Huawei has begun moving fast towards developing their own technology to pull away from America with their ongoing trade war after being blacklisted by Trump.
A report by EY outlines that China is poised to win the ‘5G race’. They have made an apt infographic to illustrate this showing that China has a large share of the current 5G connections; revenue and a large degree of local connections.
Infographics by EY retrieved on the 31st of October.
Although trust in certain countries has dropped for China, there has still been an expressed interest to develop 5G together and there is an outline expenditure on 5G solutions.
The 30th of October the publication Bloomberg released an article titled China Rolls Out World’s Largest 5G Mobile Phone Network. The news related to China’s three state-owned wireless carriers debuted 5G mobile phone service. The article states:
“China Mobile Ltd., the country’s largest carrier, unveiled its network in 50 cities including Beijing, Shanghai and Shenzhen, with packages priced as low as 128 yuan ($18) a month”
This comes in a way against the backdrop of the rejection of US by Huawei and its 5G technologies. It was planned a year later, but is now rolled out earlier than planned. This means China has the largest commercial 5G network in the world.
Retrieved from Bloomberg on the 31st of October
Further Bloomberg writes that dominance in China is an important strategic move for Huawei:
“Dominance in the world’s largest market can blunt the effects of a U.S. campaign against other countries installing Huawei gear, which it accuses of posing a security threat. Despite the U.S. pressure, Huawei said in July that it had signed more than 60 commercial contracts to supply 5G networks around the world, including at least 28 in Europe.”
The consulting firm EY previously outlined a pathway to commercial launch, but it seems China is speeding ahead of these expectations.
Infographics by EY retrieved on the 31st of October
There is additionally a series of use cases to considered. I have mentioned some previously, however we can see that there is a larger amount of possibilities to be considered in personal and business use-cases.
In Fortune online Alan Segal, director of the Digital and Cyberspace Policy Program at the Council on Foreign Relations argued on the 31st of October 2019 that:
“A lot of it is also driven by the realization that (the U.S.) doesn’t have a manufacturer in this space, so, let’s try to slow the Chinese down,”
Combining this with one of the most ambitious policies for artificial intelligence in the world seems an interesting way to take technological leadership.
It seems at least that China has achieved 5G leadership, at least from a surface look at the issue.
In saying so we have to add with some moderation that knowledge about 5G and relating to these technologies and distributed. Size is not everything, and we may not know who is currently advancing 5G technologies beyond the current scope and large scale of the Chinese investment.
6. Fitbit + Google AI + 5G = ?
6.1 Google Buys Fitbit for $2.1 billion
An article in the Verge published the 1st of November 2019 announced the purchase of FitBit by Google:
Google has just announced that its buying wearable company Fitbit for $2.1 billion. In a blog post announcing the news, Google SVP of devices and services Rick Osterloh said that the Fitbit purchase is “an opportunity to invest even more in Wear OS as well as introduce Made by Google wearable devices into the market.”
This can be a complex investment, yet I have seen a few different arguments in terms of why this acquisition was made:
Google wants to invest in wearables and did not manage to develop solutions viable enough on its own. It is therefore buying FitBit to allow for this offering. Google is buying FitBit for proprietary technology. Google has bought FitBit for its data — not to increase ads, but to assist in its investment in health technology (which makes up large parts of the Alphabet portfolio).
There are likely more reasons, however there appears to be a strong awareness by the scare towards consumer in terms of protecting their health data. The statement directly from FitBit on the 1st of November said the following:
“Consumer trust is paramount to Fitbit. Strong privacy and security guidelines have been part of Fitbit’s DNA since day one, and this will not change. Fitbit will continue to put users in control of their data and will remain transparent about the data it collects and why. The company never sells personal information, and Fitbit health and wellness data will not be used for Google ads.”
Rick Osterloh, Senior Vice President, Devices & Services at Google. Said they would be bringing together the talent from FitBit in hardware together with software and artificial intelligence to build better wearables.
This happens simultaneously as Alphabet which owns Google is expanding its investments in Verily and Calico. These are two companies which are repeatedly mentioned in Alphabet Inc’s quarterly statements. Health data is a hot topic.
Although Google may not use FitBit data for ads it could very well use that aggregated data for drug development or insights for health in Verily and Calico. What stops Google/Alphabet from doing so?
I have fetched a description from the third quarterly (Q3) for 2019 page of Alphabet’s investor relations page. The following two sections are excerpts from Q3.
6.2 Calico
Calico is a life science company with a mission to harness advanced technologies to increase our understanding of the biology that controls lifespan.
In September 2014, AbbVie Inc. (AbbVie) and Calico entered into a research and development collaboration agreement intended to help both companies discover, develop, and bring to market new therapies for patients with age-related diseases, including neurodegeneration and cancer. In the second quarter of 2018, AbbVie and Calico amended the collaboration agreement resulting in an increase in total commitments. As of September 30, 2019, AbbVie has contributed $750 million to fund the collaboration pursuant to the agreement and is committed to an additional $500 million which will be paid by the fourth quarter of 2019. As of September 30, 2019, Calico has contributed $500 million and has committed up to an additional $750 million.
Calico has used its scientific expertise to establish a world-class research and development facility, with a focus on drug discovery and early drug development; and AbbVie provides scientific and clinical development support and its commercial expertise to bring new discoveries to market. Both companies share costs and profits for projects covered under this agreement equally. AbbVie’s contribution has been recorded as a liability on Calico’s financial statements, which is reduced and reflected as a reduction to research and development expense as eligible research and development costs are incurred by Calico.
As of September 30, 2019, we have contributed $480 million to Calico in exchange for Calico convertible preferred units and are committed to fund up to an additional $750 million on an as-needed basis and subject to certain conditions.
6.3 Verily
Verily is a life science company with a mission to make the world’s health data useful so that people enjoy healthier lives. In December 2018, Verily received $900 million in cash from a $1.0 billion investment round. The remaining $100 million was received in the first quarter of 2019. As of September 30, 2019, Verily has received an aggregate amount of $1.8 billion from sales of equity securities to external investors. These transactions were accounted for as equity transactions and no gain or loss was recognized.
6.4 What Do you Expect from $2.1 Billion?
When you buy a company for unimaginable sums of money (for most) it is not inconceivable that a return on investment is expected.
Then again according to Quartz: “Alphabet reported $32.6 billion in revenue from Google’s advertising business, a jump of about 16% over the same period last year.”
Still despite the large earnings that Alphabet has this is a rather sizeable bet. Fitbit which had seen its stock decline by ~80% since its IPO in 2015.
FitBit seems to have been declining for a few years prior to the purchase in terms of sales and revenue.
Google is buying its way into the wearables market and could increase drastically the expansion of FitBit as well as the possibilities of the platform.
Retrieved from IDC on the 2nd of November
6.5 The Bets Are On
Will this bet pay off? Does it matter?
This gives more power to understanding humans, which certainly has been part of Google’s success.
Amazon Alexa might speak to you, but with the developments in 5G getting a device on your body that can do so while consistently streaming the results may be possible to a higher degree.
Earlier this year it was predicted that 5G would boost the stock of FitBit:
“By enabling wearables to do so much more, and making them so much more indispensable, 5G will make wearables much more popular and valuable, boosting these companies’ financials.”
The advent of 5G will also enable wearables to more precisely monitor the physical, emotional, and mental well-being of individuals.
This investment by Google in other words is expected to pay off.
Another reason for the investment could be due to a realization that ‘search’ is changing. More people are asking Alexa and will be asking their own devices. The ‘battle’ or competition for devices is therefore possibly influencing Google’s current strategic investment.
Conclusion
5G networks are expanding and they hold potential, however we should not give in to the ‘race’-mentality. Although from a security perspective it is understandable, and it is a dilemma in terms of the environmental consequences. China is ‘leading the race’ in expanding the coverage into several cities, perhaps as a way to show that they are not intimidated by the ongoing trade war. 5G may enable smaller connected devices to work better in terms of their connections. Thus perhaps the move for Google buying heavily into wearables with the purchase of FitBit is a gamble that makes sense. However, the question of AI and 5G is a question as much, or even more, of international security as it is of personal security. There is no doubt in my mind now that these solutions are being rolled out they must be closely followed-up from within the companies, by government and independent researchers.