Amazon Home Services has been in beta since November and has now formally launched. The service will take on Angie’s List, Home Advisor and a slew of new players in the increasingly crowded home services space (i.e. Pro,com, Serviz, Home Depot’s Red Beacon, Thumbtack and apparently, Google.)

VP Pete Faricy told The New York Times that it now covers more than 700 types of services and has already entertained 2.4 million “serve offers.” A look at Amazon’s map identifies four highly developed core markets (Seattle, San Francisco, New York and Los Angeles) and 36 moderately developed markets (and many more lightly-developed markets.)

All of Amazon’s “hand picked” pros that hope to work with Amazon must undergo background checks, which will cost $50 (plus $40 per employee); have appropriate licenses, and carry insurance. All listings will also feature Yelp reviews as well. Pros will pay Amazon 20 percent for services that cost $1,000 or less, and 15 percent above that amount, as well as monthly subscription fees — although those fees are waived through June 2015. The 20 percent fees are comprised of 15 percent service platform fees, and 5 percent transaction fees. The fees and requirements are fairly standard in the industry.

What Amazon brings to the table is its brand and especially, a high volume of consumers. It is currently targeting its customers with an offer of a $20 gift card for first time users. It also has millions of merchant and consumer credit cards in its profiles, which can be a major advantage. Longer term, it has the potential to leverage its Local Offers business, which has been including service offers for some time. Amazon doesn’t, however, have an instant collection of merchants that are pre-inclined to work with it for marketing purposes.

It also doesn’t have the behavioral intelligence that informs its retail services,or its own reviews — although Yelp’s reviews will help it out here. There are always thoughts that Amazon would want to try to buy a service such as Angie’s List or Home Advisor to complement its efforts in these areas.

On the surface, it seems like a stretch for Amazon to enter home services. It could, of course, be an initial failure, like Amazon’s Fire Phone. (or a long term success, like Kindle and Amazon Web Services). But if you are thinking big… services are a key part of the local economy that Amazon is tackling for sales, leads, payments, hosting and other areas.

We note that many of the competitors in the space leverage the new models of Uber-like, Local On Demand Economy that BIA/Kelsey is focusing on at our June 12 NOW event. There is certainly plenty of potential. As Home Depot Silicon Valley head Anthony Roddio noted at our ILM 2014 event in December, “The market is ripe but no one is there yet.” Some estimates have penetration in this segment at under 10 percent.

The post A Look at Amazon’s Entry into Home Services appeared first on BIA/Kelsey - Local Media Watch.

Amazon Home Services has been in beta since November and has now formally launched. The service will take on Angie’s List, Home Advisor and a slew of new players in the increasingly crowded home services space (i.e. Pro,com, Serviz, Home Depot’s Red Beacon, Thumbtack and apparently, Google.)

VP Pete Faricy told The New York Times that it now covers more than 700 types of services and has already entertained 2.4 million “serve offers.” A look at Amazon’s map identifies four highly developed core markets (Seattle, San Francisco, New York and Los Angeles) and 36 moderately developed markets (and many more lightly-developed markets.)

All of Amazon’s “hand picked” pros that hope to work with Amazon must undergo background checks, which will cost $50 (plus $40 per employee); have appropriate licenses, and carry insurance. All listings will also feature Yelp reviews as well. Pros will pay Amazon 20 percent for services that cost $1,000 or less, and 15 percent above that amount, as well as monthly subscription fees — although those fees are waived through June 2015. The 20 percent fees are comprised of 15 percent service platform fees, and 5 percent transaction fees. The fees and requirements are fairly standard in the industry.

What Amazon brings to the table is its brand and especially, a high volume of consumers. It is currently targeting its customers with an offer of a $20 gift card for first time users. It also has millions of merchant and consumer credit cards in its profiles, which can be a major advantage. Longer term, it has the potential to leverage its Local Offers business, which has been including service offers for some time. Amazon doesn’t, however, have an instant collection of merchants that are pre-inclined to work with it for marketing purposes.

It also doesn’t have the behavioral intelligence that informs its retail services,or its own reviews — although Yelp’s reviews will help it out here. There are always thoughts that Amazon would want to try to buy a service such as Angie’s List or Home Advisor to complement its efforts in these areas.

On the surface, it seems like a stretch for Amazon to enter home services. It could, of course, be an initial failure, like Amazon’s Fire Phone. (or a long term success, like Kindle and Amazon Web Services). But if you are thinking big… services are a key part of the local economy that Amazon is tackling for sales, leads, payments, hosting and other areas.

We note that many of the competitors in the space leverage the new models of Uber-like, Local On Demand Economy that BIA/Kelsey is focusing on at our June 12 NOW event. There is certainly plenty of potential. As Home Depot Silicon Valley head Anthony Roddio noted at our ILM 2014 event in December, “The market is ripe but no one is there yet.” Some estimates have penetration in this segment at under 10 percent.

The post A Look at Amazon's Entry into Home Services appeared first on BIA/Kelsey - Local Media Watch.

Amazon has been one of the biggest business phenomena of our time. At ILM 2014, Brad Stone, author of The Everything Store: Jeff Bezos and the Age of Amazon, unpacked the company’s unlikely navigation of the dot com boom, all the way up to its current work with mobile, fulfillment and yes, drones.

As a former New York Times tech reporter and current Bloomberg Businessweek Senior Writer, Stone has been covering Amazon and the progression of tech & e-commerce for the past 15 years.

“I figured if anyone can tell the story of this iconic company; and the way we shop, read and interact in the cloud, I could be the person to do it,” he told BIA/Kelsey Chief Analyst and VP Peter Krasilovsky on stage.

Through examining the tech giant, Stone began to view it in light of a construct that (Amazon investor) John Doerr has famously devised. This is to separate companies between missionaries and mercenaries.

The former are characterized by founders and cultures driven to change the world or solve big problems. The latter are driven primarily by financial gain. But missionaries often end up achieving greater economic payoff through a more passionate product focus, and are the companies Doerr invests in.

According to Stone, Amazon is both missionary and mercenary. It’s missionary tendencies can be found in the way that it has changed the way we shop, read and consume media. The mercenary side is apparent in its cutthroat business tactics in competition, and famously adversarial work environment.

“Bezos feels that social cohesion, can cloud the drive to the truth,” said Stone. “At [Amazon] meetings, people aren’t shy about what they feel. That plus the frugality of the company makes turnover high. I had plenty of people to talk to for the book, and some were still suffering from PTSD.”

But Bezos has importantly gained the trust of his board and investors that his long term view will lead to giant payoff. This comes amidst razor thin margins and reinvestment of profits in capital-intensive growth strategies. For example: continued buildout of fulfillment centers closer to major cities.

That trust has been earned through Bezos’ track record. With the exception of a few misfires (Fire Phone, anyone), he’s continually gone against the advice of colleagues and his board, and continually proved to be able to see around corners. The Kindle and AWS are a few examples.

“He is a CEO with enormous credibility and a board with patience,” said Stone. “Elsewhere we see Carl Ichan standing over the shoulders of [eBay CEO] John Donahoe and even Tim Cook. Not Amazon… he doesn’t go near Amazon.”

The post At ILM 2014: ‘Everything Store’ Author Brad Stone Pegs Amazon Both Missionary and Mercenary appeared first on BIA/Kelsey - Local Media Watch.

Amazon has been one of the biggest business phenomena of our time. At ILM 2014, Brad Stone, author of The Everything Store: Jeff Bezos and the Age of Amazon, unpacked the company’s unlikely navigation of the dot com boom, all the way up to its current work with mobile, fulfillment and yes, drones.

As a former New York Times tech reporter and current Bloomberg Businessweek Senior Writer, Stone has been covering Amazon and the progression of tech & e-commerce for the past 15 years.

“I figured if anyone can tell the story of this iconic company; and the way we shop, read and interact in the cloud, I could be the person to do it,” he told BIA/Kelsey Chief Analyst and VP Peter Krasilovsky on stage.

Through examining the tech giant, Stone began to view it in light of a construct that (Amazon investor) John Doerr has famously devised. This is to separate companies between missionaries and mercenaries.

The former are characterized by founders and cultures driven to change the world or solve big problems. The latter are driven primarily by financial gain. But missionaries often end up achieving greater economic payoff through a more passionate product focus, and are the companies Doerr invests in.

According to Stone, Amazon is both missionary and mercenary. It’s missionary tendencies can be found in the way that it has changed the way we shop, read and consume media. The mercenary side is apparent in its cutthroat business tactics in competition, and famously adversarial work environment.

“Bezos feels that social cohesion, can cloud the drive to the truth,” said Stone. “At [Amazon] meetings, people aren’t shy about what they feel. That plus the frugality of the company makes turnover high. I had plenty of people to talk to for the book, and some were still suffering from PTSD.”

But Bezos has importantly gained the trust of his board and investors that his long term view will lead to giant payoff. This comes amidst razor thin margins and reinvestment of profits in capital-intensive growth strategies. For example: continued buildout of fulfillment centers closer to major cities.

That trust has been earned through Bezos’ track record. With the exception of a few misfires (Fire Phone, anyone), he’s continually gone against the advice of colleagues and his board, and continually proved to be able to see around corners. The Kindle and AWS are a few examples.

“He is a CEO with enormous credibility and a board with patience,” said Stone. “Elsewhere we see Carl Ichan standing over the shoulders of [eBay CEO] John Donahoe and even Tim Cook. Not Amazon… he doesn’t go near Amazon.”

The post At ILM 2014: 'Everything Store' Author Brad Stone Pegs Amazon Both Missionary and Mercenary appeared first on BIA/Kelsey - Local Media Watch.

After months of rumors, Amazon has entered the increasingly crowded service pro referral space with a beta test in nine markets. According to a dedicated web site for the launch, service pros will pay Amazon 20 percent for services that cost $1000 or less, and 15 percent above that amount, as well as monthly subscription fees — although those fees are waived through June 2015. The 20 percent fees are comprised of 15 percent service platform fees, and 5 percent transaction fees.

The service is launching with a strong focus on consumer electronic installation and repair, fitting with sales on the Amazon site. Auto and bike services are also featured, with more categories likely to be added. All pros must undergo background checks, which will cost $50 (plus $40 per employee); have appropriate licenses, and carry insurance. All listings will also feature Yelp reviews as well.

Amazon will be competing against a number of other players in the space, including market leaders such as Angie’s List and Home Advisor; Pro.com, a new site launched by former Amazon exec Matt Williams; Serviz, a new site launched by former ReachLocal exec Zorik Gordon; and The Home Depot’s Red Beacon service.

http://

The post ‘Selling Services on Amazon’ Launches Beta in Nine Markets appeared first on BIA/Kelsey - Local Media Watch.

After months of rumors, Amazon has entered the increasingly crowded service pro referral space with a beta test in nine markets. According to a dedicated web site for the launch, service pros will pay Amazon 20 percent for services that cost $1000 or less, and 15 percent above that amount, as well as monthly subscription fees — although those fees are waived through June 2015. The 20 percent fees are comprised of 15 percent service platform fees, and 5 percent transaction fees.

The service is launching with a strong focus on consumer electronic installation and repair, fitting with sales on the Amazon site. Auto and bike services are also featured, with more categories likely to be added. All pros must undergo background checks, which will cost $50 (plus $40 per employee); have appropriate licenses, and carry insurance. All listings will also feature Yelp reviews as well.

Amazon will be competing against a number of other players in the space, including market leaders such as Angie’s List and Home Advisor; Pro.com, a new site launched by former Amazon exec Matt Williams; Serviz, a new site launched by former ReachLocal exec Zorik Gordon; and The Home Depot’s Red Beacon service.

http://

The post 'Selling Services on Amazon' Launches Beta in Nine Markets appeared first on BIA/Kelsey - Local Media Watch.

Local’s 800 lb. gorilla is always Amazon. It has already had a huge impact on retail via showrooming. Now it has invaded Groceries, and is heading towards Services. Plus it wants to provide a full range of promotional and fulfillment services for SMBs via Amazon Offers, Amazon Web Services and other services.

At Leading in Local: Interactive Local Media, which is Dec. 3-5 at the SFO Hyatt, we’ll talk up and down Amazon and its impact on local with Brad Stone, the author of “The Everything Store: Jeff Bezos and the Age of Amazon.” (We’ll probably get some copies as door prizes for audience members). Stone, who won the Business Book of the Year award for The Everything Store, also serves as Bloomberg Businessweek’s senior writer in San Francisco.

The show itself continues to build and build — it is likely to be one of the biggest yet.

Some of the highlights of the two-and-a-half-day show — out of many — include a keynote from Pinterest VP Joel Meek; two sessions dedicated to Google and its transformation of local; a VC session with Mucker Labs’ Will Hsu and Comcast Venture’s Michael Yang; a keynote from YP CMO Allison Checchi; a keynote from Yodle CEO Court Cunningham as Yodle preps its IPO; and a dual keynote from Deseret Media’s Clark Gilbert and Chris Lee, taking the lessons of disruptive media to heart in their remaking of the media company. Gilbert and Lee recently did a briefing for the BIA/Kelsey analysts – it was, by far, the most enlightening briefing for us this year.

We’ll also be presenting a great deal of cutting-edge BIA/Kelsey research, including findings from our exclusive survey of top loyalty executives, where we have worked to see what is working, what is not and where the momentum lies. Great insights are coming in. The Cardlinx Association has partnered with us on the survey, and Cardlinx head Silvio Tavres will be co-presenting.

Author Brad Stone, Recipient of Business Book of The Year

The post New at ILM SFO 2014: Brad Stone, Author, ‘The Everything Store: Jeff Bezos and the Age of Amazon’ appeared first on BIA/Kelsey - Local Media Watch.

Local’s 800 lb. gorilla is always Amazon. It has already had a huge impact on retail via showrooming. Now it has invaded Groceries, and is heading towards Services. Plus it wants to provide a full range of promotional and fulfillment services for SMBs via Amazon Offers, Amazon Web Services and other services.

At Leading in Local: Interactive Local Media, which is Dec. 3-5 at the SFO Hyatt, we?ll talk up and down Amazon and its impact on local with Brad Stone, the author of ?The Everything Store: Jeff Bezos and the Age of Amazon.” (We?ll probably get some copies as door prizes for audience members). Stone, who won the Business Book of the Year award for The Everything Store, also serves as Bloomberg Businessweek?s senior writer in San Francisco.

The show itself continues to build and build — it is likely to be one of the biggest yet.

Some of the highlights of the two-and-a-half-day show — out of many — include a keynote from Pinterest VP Joel Meek; two sessions dedicated to Google and its transformation of local; a VC session with Mucker Labs? Will Hsu and Comcast Venture?s Michael Yang; a keynote from YP CMO Allison Checchi; a keynote from Yodle CEO Court Cunningham as Yodle preps its IPO; and a dual keynote from Deseret Media?s Clark Gilbert and Chris Lee, taking the lessons of disruptive media to heart in their remaking of the media company. Gilbert and Lee recently did a briefing for the BIA/Kelsey analysts ? it was, by far, the most enlightening briefing for us this year.

We’ll also be presenting a great deal of cutting-edge BIA/Kelsey research, including findings from our exclusive survey of top loyalty executives, where we have worked to see what is working, what is not and where the momentum lies. Great insights are coming in. The Cardlinx Association has partnered with us on the survey, and Cardlinx head Silvio Tavres will be co-presenting.

Author Brad Stone, Recipient of Business Book of The Year

The post New at ILM SFO 2014: Brad Stone, Author, 'The Everything Store: Jeff Bezos and the Age of Amazon' appeared first on BIA/Kelsey - Local Media Watch.

Amazon has been reported to be prepping a local services marketplace test in one market. If the article is accurate, this effort won’t necessarily be adopted into a nationwide product — Amazon frequently tests product concepts — but should be watched with interest.

Amazon Marketplace — or whatever its final branding — would complement existing Amazon services in local, including Amazon Local, a Groupon-like deals entity now in dozens of markets; and Amazon Fresh, which is providing grocery delivery service in Seattle, San Francisco and southern California. (Amazon also touches the local marketplace via Amazon Web Services and Amazon Payments, both of which provide digital infrastructure support for local merchants.)

If launched, Amazon Marketplace would fit into the company’s mission of making it easier for consumers to make informed decisions on purchases and to buy goods and services. It would also help source deals at the local level for Amazon Local. Amazon may be frustrated at the difficulty of sourcing deals through third parties, and the expense of a local sales force, which is mostly used to sell to local retailers. As described, Marketplace would be an automated product.

It could also fit into Amazon’s growing advertising business, which has made a big play via Kindle Offers and much more importantly, Product Listing Ad tiles at the top of search pages — monetizing photo search for the first time. Amazon made $600 million from advertising in 2013, but hasn’t yet gone into local advertising, which represents a new frontier.

According to the Reuters article, the initial effort for Amazon Marketplaces would focus on hiring local services, rather than goods. Yelp and Angie’s List are the biggest players in the space, but may have less than 10 percent of the overall market.

Amazon may seek to implement the infrastructure for Marketplaces from Pro.com, a new, 30 person service that includes 15 ex-Amazon employees. Pro.com has raised $3.5 million, including funds from Amazon CEO Jeff Bezos. The service matches contractors with consumers and providing job estimates. But Bezos has never sold his personal investments to Amazon (unlike Oracle’s Larry Ellison and AOL’s Tim Armstrong). It seems especially unlikely because Bezos is only a minority investor in the company.

In any case, Amazon’s launch of a services marketplace would be somewhat ironic. In April, the Bezos-owned Washington Post discontinued a service which is almost exactly like what has been described for Amazon Marketplace — Service Alley. (The greatest irony of this is that Service Alley was built — pre-Bezos — on top of TeachStreet, a start up that Amazon purchased in an acqui-hire, and then discontinued).

The post Is Amazon Testing a Local Marketplace? appeared first on BIA/Kelsey - Local Media Watch.

Living Social CEO and co-founder Tim O’Shaughnessy announced today on the company blog that he is stepping down. He will stay until a new CEO is found and installed — a process that he “hopes” will be completed during the first half of 2014. O’Shaughnessy previously worked at AOL, and transformed Living Social from its origins as a book review site.

O’Shaughnessy’s departure follows Groupon founder’s Andrew Mason’s departure last year, and marks an end of the founder’s era in the prepaid deal space. While we believe that prepaid deals are now a permanent part of the local marketing arsenal, the question remains whether there is a real future for the pioneer companies as they morph their models from high commission daily deals to shopping arcades, local targeting and business services.

Many, of course, have written off Living Social as a viable entity. The company sustained massive losses of $650 million in 2012 and $499 Million in 2011. Moreover, in a major loss of faith, Amazon wrote off most of its investment in the company. At the end of 2012, The Wall Street Journal cheekily suggested that it was one of the brands that would surely go extinct during the year.

Besides the losses, which were largely attributable to an expensive sales infrastructure, the company suffered major issues in 2013, including executive turnover; a multiple day outage; and having all its customers passwords hacked.

The company may choose to brand or merge with another entity that wants a head start in this space, such as a bank. But we see signs of life in many respects, including a deeper focus on mining their customer lists; efforts to morph beyond daily deals to coupons and other factors leading to deeper merchant relationships; mobile-oriented service, such as card linked offers; an enhanced focus on national advertising; retailer ties with companies such as Pier1 Imports, Macy’s, Reebok and OfficeMax ; and a pruning of unproven business areas, such as local events.

Last year, the company raised $110 million — including funds from many of its longtime investors –to get over the bumps. It also got additional money by selling South Korea’s T-Mon service for $260 Million to Groupon, and closed or sold several other international properties.

As O’Shaughnessy notes in his letter: “We now have the most stable and healthy business that we have ever had, and the luxury of having hundreds of millions of dollars in the bank to take us to the next level.”

We have more commentary on Living Social in this recent article by Steven Overly in The Washington Post.

Living Social CEO Tim O’Shaughnessy

The post Living Social CEO Tim O’Shaughnessy to Step Down: End of an Era appeared first on BIA/Kelsey - Local Media Watch.