DW 2015: Julian Childs - The Age of the Consumer. How Trends in digital lifestyle define business models.

1. 1
THE AGE OF THE CONSUMER
How Trends In Digital Lifestyle Define
Business Models

2. Three Major Trends In Digital Living
2
INFORMATION
(OPEN) ACCESS
CONSUMER CONTROL
C
O
N
T
E
N
T
T
E
C
H
N
O
L
O
G
Y

3. INFORMATION
Enabled By Technology

4. There Are Now Nearly 3 Billion People Online
4
Global internet population
Source: International Communication Union, Google
0
500
1.000
1.500
2.000
2.500
3.000
3.500
(millions)

5. The Majority Are Under 34
5
Age breakout of global internet users
26,5% 26,7%
20,4%
13,7%
12,7%
15-24 25-34 35-44 45-54 55+
Source: comScore (November 2014)

6. ACCESS

7. Messaging Apps Are Exploding
7
Top apps (monthly active users – global)
Source: Company Statements, News Reports, BI Intelligence estimates
0
100
200
300
400
500
600
okt.10 apr.11 okt.11 apr.12 okt.12 apr.13 okt.13 apr.14
Millions

8. Attention Is Shifting To Digital, Especially Mobile
8
US consumer media consumption share
45%
25%
17%
9%
7%
4%
37%
18%
11%
4%
2%
23%
TV Online Radio Print Other Mobile
2009 2010 2011 2012 2013 2014
Source: eMarketer, April 2014

9. And The Shift Is Generational
9
Younger audiences prefer digital to traditional media
13
32 34
48
58
68 6947
36
26
17
7
2 318
15
20
15 14
11
134
4 8 7 8
122 1 4
3
9
Aged 16-24 Aged 25-34 Aged 35-44 Aged 45-54 Aged 55-64 Aged 65-74 Aged 75+
Read newspapers/
magazines
Listen to the radio
Go online via computer/
laptop/ netbook/ tablet
Use a smartphone
Watch television
Source: Ofcom Adults’ Media Use And Attitudes Report (April 2014) Q: Which of the following media would you miss most?

10. The First Smartphone Generation
10
Demographics of cell phone internet usage (among cell phone owners, % in
each group who use their phone to go online)
Source: Pew Research Center, Cell Internet Use 2013
85%
73%
51%
22%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
18-29 30-49 50-64 65+

11. Phablets Leading The Race
11
Global annual shipments by device
Phablets
Tablets
Smartphones
(Non-Phablet)
0
200.000.000
400.000.000
600.000.000
800.000.000
1.000.000.000
1.200.000.000
1.400.000.000
1.600.000.000
1.800.000.000
2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2018E 2019E
Source: BI Intelligence Estimates

12. Younger Demos Dominate Social
12
Average daily time spent with select social networks amongst US internet
users by age
Source: Cowen And Company (Twitter/Social User Survey 2014)
0
10
20
30
40
50
60
Facebook Tumblr Instagram Pinterest Twitter Snapchat LinkedIn
Age 18-29
Age 30-44
Age 45-60
Age 60+

13. CONTROL
Consumer Now In Control

14. Shift To Demand Pricing Over Controlled Pricing
14

15. BUSINESS INSIDER
The New Generation Of Business People

16. From Humble Beginnings
16
FOUNDED IN
2007
~2,100
PAGE VIEWS
t h e f i r s t
d a y
3
people in
a loading
dock

17. Fastest-Growing Digital Business News Sites
17
#1 business news site amongst legacy competitors
Source: Comscore US (000)
0
5.000
10.000
15.000
20.000
25.000
30.000
35.000
40.000
45.000
50.000
(000)
Business Insider.com
Forbes.com
WSJ.com
CNNMONEY.com
Bloomberg.com
CNBC.com
Economist.com
FT.com

18. A Successful Digital Model
18
Source: Google Analytics
Explosive growth across all platforms
November ‘09 August ‘15
MOBILE + TABLET
59%
19%
YoY Tablet Growth
Of All Uniques
72%
YoY Mobile Growth
438MM
+
Global Pageviews
65.8MM+
Global Uniques
113MM+
Global Visits
40%
YoY Growth
Tablet
Mobile
Desktop

19. 19
Mobile is how digital natives are
consuming content.

20. Business Insider Mobile Shifts
20
Mobile overlapping desktop traffic
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012 2013 2014
%WebsiteTraffic
Mobile Website Traffic Desktop Website Traffic
Source: Google Analytics, Businessinsider.com (2010 – 2014)

21. Business Insider Strong Video Growth
21
37.8 Million+ Streams / Month Of Original Content
Source: Ooyala
1.4 mil
4.4 mil
2 mil
4.4 mil
12.3 mil
19.8 mil
30.9 mil
37.8 mil
0
5.000.000
10.000.000
15.000.000
20.000.000
25.000.000
30.000.000
35.000.000
40.000.000

22. 22
Social is how they’re discovering it.

23. Social Is Becoming Everyone’s Front Page
23
Source: Cassandra Report by Noise | The Intelligence Group

24. Content Discovery Driven By Social
24
Unique users across all Business Insider properties
Source: Google analytics (September 2015). Reflects all BI properties including Tech Insider
36%
28%
16%
15%
5%
SOCIAL ORGANIC SEARCH REFERRAL DIRECT OTHER

25. Content Discovery Driven By Social
25
Unique users across all Business Insider properties
Source: Google analytics (September 2015). Reflects all BI properties including Tech Insider
36%
28%
16%
15%
5%
SOCIAL ORGANIC SEARCH REFERRAL DIRECT OTHER

26. Content Discovery Driven By Social
26
Unique users across all Business Insider properties
Source: Google analytics (September 2015). Reflects all BI properties including Tech Insider
36%
28%
16%
15%
5%
SOCIAL ORGANIC SEARCH REFERRAL DIRECT OTHER

27. Content Discovery Driven By Social
27
Unique users across all Business Insider properties
36%
28%
16%
15%
5%
SOCIAL ORGANIC SEARCH REFERRAL DIRECT OTHER
Source: Google analytics (September 2015). Reflects all BI properties including Tech Insider

28. Open Model Drives Scale
28

29. Concluding Themes
29
• Open or Niche. Not much in-between.
• Platforms driving access (distribution is disrupted)
• The emergence of the ‘prosumer’
• Opportunity (not just disruption)
• Consumers are in control, at greater scale
• Mobile bridges gap between physical and digital

30. APPENDIX

31. And An Important Source Of News
31
Is social media an important source of news and current affairs?
Source: Cassandra Report by Noise | The Intelligence Group
60%21%
19%
Yes
No
Neither agree
nor disagree