Esther: Happy New Year business enthusiasts. This is our first show of 2010. And with the new year comes a new you and a whole slew of business initiatives. I'm Esther Steinfeld –

Katie: And I'm Katie Laird.

Esther: And our guest today is Tom Patterson, the CEO of Tommy John, the maker of an innovative men's undershirt. So maybe that's one of your new years' resolutions – to make sure you're a well-dressed businessman this year.

Katie: Ooh!

Esther: If so, you do not wanna miss this. That's in segment two, The BusinessMakers Breakdown.

Katie: And tune in to segment three, our Special Features, for a segment that we like to call funky small business. (Laughter)

Esther: Uh huh. Haven't done that in a while.

Katie: I'll – I know! I tell ya. Great way to start the new year.

Esther: Yeah.

Katie: We'll profile some awesome small businesses that are not doing business as usual. Then we'll give you some great new years' resolution for business tips to help you start the year off right. And of course, as always, we're gonna start off segment one with the Business Week in Review.

Esther: Exciting!

Katie: Exactly.

Esther: A lotta companies are doing some exciting things and one thing that's really exciting to me is that Twitter is actually making money now.

Katie: Unbelievable. (Laughter)

Esther: Can you believe it? They're actually making a little cash.

Katie: Exactly.

Esther: Not a lot, just a little.

Katie: Well, but define not a lot, Esther.

Esther: Well –

Katie: (Laughter)

Esther: You would think, considering Facebook is pushing half a billion dollars in revenue – or is it more now – that –

Katie: Lots more. (Laughter)

Esther: - yeah, that you know – maybe it's close to a billion, actually –

Katie: Yeah.

Esther: - that Twitter would be making something but actually, they're only making about 25 million.

Katie: So –

Esther: It's not very much.

Katie: It's – it's not, although they have raised about 155 million, you know, just from venture capitalists and what have you.

Esther: Right.

Katie: But I think that this is the beginning of something giant and I don't think that this is like, "Woo, great thinking from Katie," but Twitter signing on, specifically, with Google and Microsoft to actually make all of their tweets, or everyone's twitter streams searchable, this is the start of something – I mean we just have no idea how big – this time next year it's gonna be insane.

Esther: It could be awesome.

Katie: Yes.

Esther: Very exciting. Have you actually searched something in Google on your iPhone and seen the tweets pull up?

Katie: I haven't –

Esther: How they, how they update in real time in Google.

Katie: I haven't on my, on my – even on the iPhone? Like even when you search on a mobile app?

Esther: Uh huh.

Katie: That's phenomena- but I have, sitting at my PC, and it's creepy, yet cool. (Laughter)

Esther: It is creepy. It's a little creepy. Actually, a couple weeks ago, actually, was trying to verify Brittany Murphy's passing –

Katie: Untimely demise.

Esther: - and I – right and I, I saw it on Twitter, first, obviously, but last time I saw something about a celebrity dying, it was Zach Braff and he didn't die.

Katie: He didn't die. Weird!

Esther: So –

Katie: Yeah.

Esther: - I don't trust these twitter updates anymore, so I search Google and actually when I did, Google was pulling up all the live updates, instantly, in real time.

Katie: Yeah.

Esther: In the Google search, when searched Brittany Murphy death.

Katie: Yeah.

Esther: So. Very sad.

Katie: So it's workin'. Oh, it's workin'.

Esther: But yeah. Very interesting to see that happen.

Katie: Yeah.

Esther: So, like, many social media startups, Twitter focused early on kind of getting this community together. They weren't really concerned about the money –

Katie: They just want the people there.

Esther: Right. They want the me- the people. So that then when they start charging –

Katie: Yes.

Esther: - then you know.

Katie: Yeah. Well and it's not just if and when they start charging users but also – I mean the more eyeballs and the more hearts you have in a product, I mean, of course Microsoft's gonna give you what you want. (Laughter)

Esther: Right. Of course.

Katie: You have how many millions of users?

Esther: Yeah.

Katie: And it's also interesting to note some other things that Twitter's done outside of the 'States. They have actually been advertising, like specifically in Japan. You will see ads on the side of Twitter.

Esther: Huh.

Katie: And I don't know if this is ongoing but I know that every once in awhile they've been running these different campaigns with giant companies like Mitsubishi –

Esther: Interesting.

Katie: - you know, so they have been makin' money here and there but I think that this is it. You know, I mean –

Esther: Yeah.

Katie: - they're – and they also, a couple weeks ago, Twitter released their corporate contributors platform –

Esther: Right.

Katie: - where companies are actually able to pay Twitter to have these different functionalities where – you know, especially in companies like ours where, you know, we're managing a corporate Twitter account but it's not always just one person. You know and actually if you wanna stay sane and profitable, sometimes it really should not just be one person.

Esther: Right.

Katie: But be – being able to have multiple people on an account and being able to, you know, track real-time stats to see who's contributing what, you know, to be able to have –

Esther: More analytics.

Katie: - different levels of permission, these analytics. You know, I mean this is a much-needed functionality but again, another great profit center, I think, down the road for Twitter. So the sleeping giant is awakening. (Laughter)

Esther: I hope so.

Katie: Money-making giant. (Laughter)

Esther: Well, actually, with the new year comes a lot of predictions, especially because we're going into a new decade.

Katie: Oh yes. Fresh.

Esther: You know we have a lot of predictions for things that are coming up in 2010 and one of the categories is digital media. We're big into digital media. We both work for online companies. So it's interesting to look at some of the trends that are happening in digital media and where we're going. So a couple of notable ones from ClickZ. They say that more comprehensive data profiles on consumers – this is, you know, based on compound behavioral profiling. So in other words, not just looking at your own customers' data but kind of this pooling together. You'll be able to go to a couple different sources, you know, these companies are already popping up. You'll be able to go to these companies and get these comprehensive profiles of the type of customer that you wanna get. So that's kind of interesting. It won't just be your own behavioral targeting, it'll be behavioral targeting over tons of different sites. You can mine all this data at one time and look at it, you know, if this person's shopping at this site, then they'd also shop here and here and here.

Katie: Yeah.

Esther: So that's who you'd wanna target.

Katie: That's pretty cool.

Esther: Very interesting.

Katie: As a consumer, it always makes me a little bit nervous but then the marketer in me, I'm like, "Yay! More data!" (Laughter)

Esther: I know. Oh, I know. Oh I know. Google owns our souls, believe me.

Katie: Oh, yeah. You know they really do.

Esther: Well, some of the other things that are happening – some of the good things that are happening – it's not just the app building. I mean apps are obviously gonna be huge in 2010 – mobile applications – you know, mobile sites.

Katie: Uh huh.

Esther: But also advertising within mobile sites and applications. So for instance, if you use Pandora, which is a streaming music app, you'll see these little ads that pop up on the bottom of it for other companies that are completely unrelated to music, which is very interesting. So maybe you don't have the money or the time or the skill to build a mobile app – maybe you don't wanna pay someone to do it. Maybe you don't have the time to build a mobile site – you can still get a piece of this mobile world by advertising within someone else's app. There's already the – kind of this cross-pollination going on. So it's kind of cool to see that happening.

Katie: Absolutely and especially since it's so new and fresh, people are really not gonna be as "Ugh, you know, advertising."

Esther: Exactly.

Katie: So I know that I have actually thumbed up and, you know, clicked through to, you know, very relevant ads, exactly, in Pandora, actually.

Esther: Uh huh.

Katie: And it's – and it's funny 'cause it's not just like blanket whatever ads – it's stuff that's very relevant to me and it's a lot of times local. You know, geographically, you know, sound.

Esther: Right.

Katie: So I'm really curious as to what Pandora's able to tell advertisers based on my music preference on what kinds of things I'd be interested in.

Esther: Uh huh.

Katie: And I would never in a million years share exactly all of my Pandora stations, for, you know, fear of (Laughter) –

Esther: Ridicule?

Katie: - and risk ridicule from our producer John.

Esther: Yeah.

Katie: So anyway - (Laughter) so another trend that this great article is throwing out there for 2010, you know, of course, not just mobile app advertising but online advertising in general. What this article is saying is that the Online Publishers Association is really showing that this upcoming year's gonna be giving us a whole different creative online ad environment. We're gonna be seeing larger ad formats and not the tiny, tiny little banner ads, but – and this is what's most exciting to me – online advertising's gonna be a lot more involved. You're gonna see a lot more product information. There's gonna be a lot of increased opportunities for some really cool interaction with a brand, just through an advertisement, which in turn, I think is really gonna capture information that they want, get people onto their landing pages, onto their website. So I mean I think that this is gonna be a very interesting, you know, one might say banner year for, you know, banner ads.

(Laughter)

Esther: Ba dum bump. Actually it's happening already, I've noticed. There's a site that I love to shop at called bluefly.com.

Katie: Oh, I love that site.

Esther: It's amazing.

Katie: Yeah.

Esther: Well, if you ever visit a site that has a Bluefly ad on it after you've been to Bluefly, the ad shows the last product that you viewed.

Katie: I've never seen that before.

Esther: Unbelievable. I know.

Katie: That's cool.

Esther: It's very cool.

Katie: And weird at the same time. (Laughter)

Esther: It's very strange. I don't know how they do it but it is awesome.

Katie: The magic of the Internet, Esther.

Esther: It's awesome as a online marketer. I don't know how awesome it is –

Katie: Yes.

Esther: - you know, it's kinda creepy if you're –

Katie: Yeah.

Esther: - there's a creepiness factor to a lot of the things that we see these days but it's still pretty cool to see that dress that you just looked at.

Katie: Yeah it's – (Laughter)

Esther: Like, "Oh, I just –

Katie: Wait – weird!

Esther: - How did it know?"

Katie: Yeah.

(Laughter)

Katie: Hopefully, it's not showing it to you on sale when you just purchased it on lunchtime or something.

Esther: Oh, exactly.

Katie: Like, "No, Bluefly!"

Esther: I know, now purchase at 40 percent off. No!

Katie: Ahhh! (Laughter)

Esther: Ugh, so bad. So hopefully some of these media predictions will come true – hopefully they'll affect your business in a positive way.

Katie: Absolutely.

Esther: Something else totally off topic but totally worth talking about –

Katie: It's on topic all the time, Esther. I don't know what you're talking about.

Esther: It's – I know it's not your – I know it's a topic that's on your mind all the time.

Katie: Always. (Laughter)

Esther: Oh, mine, too. Um, cupcakes.

Katie: Cupcakes. (Laughter)

Esther: We love cupcakes and you know cupcakes have just become this national phenomenon. Kind of started in New York and LA, these little cupcake boutiques started popping up several years ago and now cupcakes are everywhere.

Katie: They are the new crazy thing to do right now. To eat, to buy and, according to The New York Times, this is like the latest entrepreneurial dream. Like this is the thing that people quit their jobs for or this is what they turn to when they can't find jobs. They're like, "What the hey, like we'll start a cupcake bakery." (Laughter)

Esther: Unbelievable. Well this guy, Adam Borden, he works for Baltimore-based venture capital firm, Bradmer Foods. You know, they specialize in food-focused enterprises –

Katie: Yeah.

Esther: - and he said, "Cupcake stores are taking the place of ice cream stores." Interesting. He said, "Cupcakes aren't seasonal items like ice cream and they appeal to people who want the authentic experience. They have an allure, based on nostalgia."

Katie: That's one of the biggest draws, I think, for me is just remembering, you know, those kindergarten, first grade's cupcake parties, you know?

Esther: Yeah.

Katie: It's little Susie's birthday and what are they gonna bring, hello, like cupcakes. (Laughter) Not a layer cake. Not a tiramisu. It's gonna be a cupcake.

Esther: Well, there's an article on Slate that I absolutely love by a write named Daniel Gross and he says the cupcake bubble is about to burst.

Katie: You know what, it is.

Esther: And here are his reasons why. He says, "In America, bubbles form because any good business idea gets funded a dozen times over. That's the American way. Cupcakes are now showing every sign of going through the bubble cycle. The first-movers get buzz and revenues, gain critical mass, and start to expand rapidly. This inspires less-well-capitalized second- and third-movers, who believe there's room enough for them, and encourages established firms in a related industry to jump in." So we've got, kind of, this muddying of the waters, so to speak. You've got this, like, expanding cupcake boutiques everywhere and maybe not the best cupcakes –

Katie: Not always.

Esther: - and not the best funded and the best managed.

Katie: Marketed.

Esther: That's – yeah, marketed, exactly. So it's gonna be one of those things where the bottom feeders melt away and the few great ones survive.

Katie: So I would just hope – and this, obviously, is coming from the geek within – you know, just like Google keeps gobbling up these really cool, small, you know, little tech companies – I wish that there was some, like, cupcake princess in the sky that would swoop down and buy all these cupcake restaurants, 'cause there are so many, you know, great little spots to get your icing on –

Esther: Uh huh.

Katie: - but alas, the bubble is about to burst. I can feel it. (Laughter)

Esther: Yep. And that's too bad.

Katie: It is.

Esther: So –

Katie: Everyone to my house for cupcakes. Everyone.

Esther: That's right. Katie makes wonderful cupcakes.

Katie: Bring the wine.

Esther: So we'll just be, we'll be right on over.

Katie: Exactly. It sounds good. (Laughter)

Esther: So now, let's stay tuned for segment two, The BusinessMakers Breakdown, where we hear from Tom Patterson, CEO of Tommy John. You've been listening to The BusinessMakers Overtime Show, heard here and online at thebusinessmakers.com.