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TheLocalMedia&AdvertisingExperts
© 2015 BIA/Kelsey. All Rights Reserved.
2
BIA/Kelsey has led in this space for 30
years as the leading research, consulting
and advisory service company focused
exclusively on local media.
The local marketplace of media, marketing,
advertising and technology platform companies is
one of the fastest moving industries of our time.
© 2015 BIA/Kelsey. All Rights Reserved.
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© 2015 BIA/Kelsey. All Rights Reserved.
Uberfication
Local On-Demand Economy
Is Uber the death of marketing?
Local Advertising Forecast
Final Thoughts
Topics
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© 2015 BIA/Kelsey. All Rights Reserved.
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© 2015 BIA/Kelsey. All Rights Reserved.
4http://www.dizzle.com/blog/be-millennial-ready-3-ways-to-do-it-why-you-must/
© 2015 BIA/Kelsey. All Rights Reserved.
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© 2015 BIA/Kelsey. All Rights Reserved.
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Estimated Driver Earnings per Hour
© 2015 BIA/Kelsey. All Rights Reserved.
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Ladies and gentlemen, start your engines!
Ready to start driving for Uber? See me at the back of the
room to sign up . . .
© 2015 BIA/Kelsey. All Rights Reserved.
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Uberfication, aka “The 1099 Economy”
Nobody works for a company anymore, why should you?
© 2015 BIA/Kelsey. All Rights Reserved.
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Asking Tough Questions about the “Gig” Economy
© 2015 BIA/Kelsey. All Rights Reserved.
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The “Gig” or “Sharing Economy” and Safety Nets?
© 2015 BIA/Kelsey. All Rights Reserved.
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© 2015 BIA/Kelsey. All Rights Reserved.
Uberfication
Local On-Demand Economy
Is Uber the death of marketing?
Local Advertising Forecast
Final Thoughts
Topics
11
© 2015 BIA/Kelsey. All Rights Reserved.
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© 2015 BIA/Kelsey. All Rights Reserved.
How Does Uberfication Impact
Local Businesses?
Uberfication of Local Services
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© 2015 BIA/Kelsey. All Rights Reserved.
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JUNE 12, 2015San Francisco, CA
Mission Bay Conference Center
#BIAKLIVE
RISE OF THE LOCAL
ON-DEMAND ECONOMY
© 2015 BIA/Kelsey. All Rights Reserved.
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© 2014 BIA/Kelsey. All Rights Reserved.14
We define LODE as:
The marketplace of services summoned on-demand via mobile
apps, fulfilled offline.
LODE: Local On-Demand Economy
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© 2015 BIA/Kelsey. All Rights Reserved.
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Wait, what is LODE again?
LODE apps summon products
or services on-demand, to be
fulfilled or delivered offline.
For users: LODE brings immediate solutions to
their fingertips.
For providers: LODE aggregates demand,
creating marketplace transparency that reduces
marketing and customer acquisition costs.
The result: Bringing buyer and seller together in
an efficient marketplace with leaner unit
economics.
© 2015 BIA/Kelsey. All Rights Reserved.
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LODE: A Game of Supply / Demand Balance
Users
On-demand culture,
millennials, urbanization,
smartphone ubiquity
Providers
Unemployment, flexibility,
rise of the 1099 economy.
LODE Formula:
Create, Aggregate & Reveal Supply-Side Liquidity
© 2015 BIA/Kelsey. All Rights Reserved.
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Automation – Office and industrial jobs tipping toward
obsolescence
Sharing Economy – Sustainability and reuse/e-commerce/shared
ownership accelerate
Millennial Values - Time and experience become more valuable
than “stuff”
The Last Logistical Mile – Enterprise data exchange trickles down
to SMBs, workers, 30 years after it appeared in corporate life
Customization & Co-Creation – Customers turn demand to
specific features and values rather than mass-produced industrial
products; crowdsourcing
3D Printing & Robotics - Manual work can be done anywhere,
based on globally accessible production processes
The Converging Trends
© 2015 BIA/Kelsey. All Rights Reserved.
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© 2015 BIA/Kelsey. All Rights Reserved.
19http://digitalintelligencetoday.com/the-uberfication-of-everything-master-list-of-uber-inspired-businesses/
© 2015 BIA/Kelsey. All Rights Reserved.
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© 2014 BIA/Kelsey. All Rights Reserved.20
How BIG could it get?
© 2015 BIA/Kelsey. All Rights Reserved.
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Raising $1.5B, Puts valuation at over $25B
http://money.cnn.com/2015/06/27/technology/airbnb-funding-valuation-update/
© 2015 BIA/Kelsey. All Rights Reserved.
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http://www.forbes.com/sites/chrismyers/2015/05/13/decoding-ubers-50-billion-valuation-and-what-it-means-for-you/
© 2015 BIA/Kelsey. All Rights Reserved.
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Source: CB Insights, The On-Demand Report, May 14, 2015
© 2015 BIA/Kelsey. All Rights Reserved.
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$18.5B in estimated 2015 revenue, more than 60 percent of which is driven by Uber.
$465B addressable market for household services in 2015 (based on 18 percent of the U.S. population, less U6 unemployment, to reflect ability to pay for LODE services)
$93B in LODE company revenue is possible this year
3.9% LODE household services addressable market penetration in 2015
Professional services LODE businesses represents multiples of the household market
LODE Today
© 2015 BIA/Kelsey. All Rights Reserved.
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© 2015 BIA/Kelsey. All Rights Reserved.
Uberfication
Local On-Demand Economy
Is Uber the death of marketing?
Local Advertising Forecast
Final Thoughts
Topics
25
© 2015 BIA/Kelsey. All Rights Reserved.
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© 2014 BIA/Kelsey. All Rights Reserved.26
What does this all mean for
traditional sales, advertising
and marketing?
Burning Question
© 2015 BIA/Kelsey. All Rights Reserved.
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Look Ma, No Advertising!
© 2015 BIA/Kelsey. All Rights Reserved.
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© 2015 BIA/Kelsey. All Rights Reserved.
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How are your clients talking with
their consumers?
Consumer Engagement
© 2015 BIA/Kelsey. All Rights Reserved.
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Consumer Touch Points in the Journey to Purchase
Source: http://www.clickz.com/clickz/column/2191650/optimizing-social-media-across-the-customer-lifecycle
© 2015 BIA/Kelsey. All Rights Reserved.
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© 2015 BIA/Kelsey. All Rights Reserved.
Local Brand Investment &
Activation
Creating and Sustaining Consumer Trust
© 2015 BIA/Kelsey. All Rights Reserved.
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Trends in Connecting with Consumers at the Local Level
Digital Marketing Strategy Pyramid
Businesses need to have a
digital Presence.
Website
Social pages
Mobile apps
And they need to be
Discovered by consumers
Listings
SEO/SEM
This allows businesses to
Engage with consumers.
Social, native, mobile, video
Engagement
Discovery
Presence
© 2015 BIA/Kelsey. All Rights Reserved.
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Where do consumers spend their digital time?
© 2015 BIA/Kelsey. All Rights Reserved.
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Uber Psychology – 5 Reasons Why LODE Works So Well
1. Decision Convenience – Making
it fast and easy to choose
2. Access Convenience – Making it
fast and easy to acquire
3. Transaction Convenience –
Making it fast and easy to pay
4. Benefit Convenience – Making it
fast and easy to enjoy/use
5. Post-Benefit Convenience –
Making it fast and easy to re-
purchase
http://wpp.com/wpp/marketing/digital/the-uberfication-of-everything/
“There are three areas where marketplace startups can invest
more energy to make big gains: mobile development,
payment processing and user introduction flows. These
should be top priorities for your product and engineering teams if
they aren’t already”.
© 2015 BIA/Kelsey. All Rights Reserved.
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Lessons Learned – What Works Best to Build Trust?
1. Actionable rating systems
2. Carefully curated content
3. Human system that learns
like a machine.
4. Focus on supply
5. Feedback
http://firstround.com/review/How-Modern-Marketplaces-Like-Uber-Airbnb-Build-Trust-to-Hit-Liquidity/
© 2015 BIA/Kelsey. All Rights Reserved.
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Conventional wisdom:
“If you’ve got a smartphone,
you’ve got a salesforce?”
People work for money, which makes
them feel secure. The idea that most
workers need flexibility more than they
need steady salaries or health insurance
coverage is ridiculous.
Beyond the issue of ethics, there's also
an issue of quality.
A permanent company salesperson
plays the long game, building customer
satisfaction for years, not days. That
relationship is more important to your
bottom line (loyal customers = sales)
than the short-term savings of temping
out your sales floor.
http://www.inc.com/carey-smith/don-t-fall-for-the-uber-fication-of-sales.html
© 2015 BIA/Kelsey. All Rights Reserved.
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© 2015 BIA/Kelsey. All Rights Reserved.
Uberfication
Local On-Demand Economy
Is Uber the death of marketing?
Local Advertising Forecast
Final Thoughts
Topics
36
© 2015 BIA/Kelsey. All Rights Reserved.
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© 2015 BIA/Kelsey. All Rights Reserved.
Norfolk-Portsmouth-Newport News
Snapshot: Local Advertising Forecast
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© 2015 BIA/Kelsey. All Rights Reserved.
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Local Ad Market Currently
Dominated by Traditional Media
*Note: Radio online revenues include online revenue from terrestrial and online streaming services.
Newspapers Print
11.5%
Newspapers Online
2.5%
Direct Mail
26.9%
TV O-T-A
13.8%
TV Online
0.7%
Radio O-T-A
10.3%
Radio Online*
0.8%
Print Yellow Pages
2.1%
Internet YP
1.6%
OOH
5.7%
Cable
4.8%
Magazine
1.2%
Magazine Online
0.3%
Online / Interactive
11.5% Email
1.6%
Mobile
4.8%
2015 U.S. Local Media Revenues — $139.4 Billion
© 2015 BIA/Kelsey. All Rights Reserved.
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Steady Shift Toward Digital Media –
Ad Revenues
$105.8 $103.1 $104.7 $102.6 $103.7 $101.9
$32.1 $36.3$40.7 $45.6 $50.8 $55.8
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
$180.0
2014 2015 2016 2017 2018 2019
Traditional Online/Digital
US$ B
illio
ns
Note: Numbers are rounded.
2014-2019
CAGRs:
Total Media
CAGR 2.7%
Online/Digital
Media
CAGR 11.7%
Traditional
Media
CAGR -0.7%
$139.4$137.9$145.4 $148.3
$154.5 $157.7
© 2015 BIA/Kelsey. All Rights Reserved.
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Source: BIA/Kelsey, Media Ad View+ Market Reports, 2015
© 2015 BIA/Kelsey. All Rights Reserved.
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Source: BIA/Kelsey, Media Ad View+ Market Reports, 2015
© 2015 BIA/Kelsey. All Rights Reserved.
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Source: BIA/Kelsey, Media Ad View+ Market Reports, 2015
© 2015 BIA/Kelsey. All Rights Reserved.
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Source: BIA/Kelsey, Media Ad View+ Market Reports, 2015
© 2015 BIA/Kelsey. All Rights Reserved.
44
© 2015 BIA/Kelsey. All Rights Reserved.
Uberfication
Local On-Demand Economy
Is Uber the death of marketing?
Local Advertising Forecast
Final Thoughts
Topics
44
© 2015 BIA/Kelsey. All Rights Reserved.
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1. Understand and Embrace these changes, your clients will need you to
understand what’s going on and help them see how they need to shift their
creative and marketing mix.
2. Brand Activation and Consumer Value Proposition are enduring parts of
advertising and marketing. Digital marketing will play an increasingly
important role. Presence, Discovery, Engagement are the three pillars in
digital.
3. Business Categories will be impacted differently by the emerging Local On-
Demand Economy. It’s not a one size fits all marketing strategy. That’s good
for you, clients will need your help for what works best in their category.
4. Go Forth and Prosper. Spock had it right. While there’s lot of change and
confusion, therein lie the seeds of opportunity. Go get it!
Final Thoughts: So What Do I Do About All This?
© 2015 BIA/Kelsey. All Rights Reserved.
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For more information, see our report.
TheLocalMedia&AdvertisingExperts
© 2015 BIA/Kelsey. All Rights Reserved. This published material is for internal client use only. It may not be duplicated or distributed in any manner not permitted by contract. Any unauthorized distribution could result in termination of the client relationship, fines and other
civil or criminal penalties under federal law. BIA/Kelsey disclaims all warranties regarding the accuracy of the information herein and similarly disclaims any liability for direct, indirect or consequential damages that may result from the
use or interpretation of this information.
For more information:
Rick Ducey
Managing Director
BIA/Kelsey
(703) 818-2425