Ducey HRAMA 09 july2015

TheLocalMedia&AdvertisingExperts

© 2015 BIA/Kelsey. All Rights Reserved.
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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.

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Uberfication
Local On-Demand Economy
Is Uber the death of marketing?
Local Advertising Forecast
Final Thoughts
Topics
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4http://www.dizzle.com/blog/be-millennial-ready-3-ways-to-do-it-why-you-must/

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Estimated Driver Earnings per Hour

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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 . . .

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Uberfication, aka “The 1099 Economy”
Nobody works for a company anymore, why should you?

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Asking Tough Questions about the “Gig” Economy

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The “Gig” or “Sharing Economy” and Safety Nets?

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Uberfication
Final Thoughts
Topics
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How Does Uberfication Impact
Local Businesses?
Uberfication of Local Services
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JUNE 12, 2015
San Francisco, CA
Mission Bay Conference Center
#BIAKLIVE
RISE OF THE LOCAL
ON-DEMAND ECONOMY

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WedefineLODE as:
Themarketplaceofservicessummonedon-demandviamobile
apps,fulfilledoffline.
LODE: Local On-Demand Economy
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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.

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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

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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

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19http://digitalintelligencetoday.com/the-uberfication-of-everything-master-list-of-uber-inspired-businesses/

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How BIG
could it get?

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Raising $1.5B, Puts valuation at over $25B
http://money.cnn.com/2015/06/27/technology/airbnb-funding-valuation-update/

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http://www.forbes.com/sites/chrismyers/2015/05/13/decoding-ubers-50-billion-valuation-and-what-it-means-for-you/

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Source: CB Insights, The On-Demand Report, May 14, 2015

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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

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Uberfication
Final Thoughts
Topics
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What does this all mean for
traditional sales, advertising
and marketing?
Burning Question

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Look Ma, No Advertising!

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How are your clients talking with
their consumers?
Consumer Engagement

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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

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Local Brand Investment &
Activation
Creating and Sustaining Consumer Trust

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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

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Where do consumers spend their digital time?

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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”.

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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/

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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

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Uberfication
Final Thoughts
Topics
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Norfolk-Portsmouth-Newport News
Snapshot: Local Advertising Forecast
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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

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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
$180.0
2014 2015 2016 2017 2018 2019
Traditional Online/Digital
US$Billions
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

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Source: BIA/Kelsey, Media Ad View+ Market Reports, 2015

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Uberfication
Final Thoughts
Topics
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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?

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For more information, see our report.

TheLocalMedia&AdvertisingExperts
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
rducey@biakelsey.com
(703) 818-2425

Ducey HRAMA 09 july2015

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Ducey HRAMA 09 july2015