High unemployment has created a steady supply of service providers to fill the ranks of LODE’s workforce. Millennials in addition to being avid consumers of LODE services, also possess work habits that are conducive to the flexibility that LODE service providers enjoy. These factors will further accelerate as LODE services move up market to higher-end professions, such as professional, creative and technical fields… The characteristic flexible hours that several LODE services offer could be form-fitted for a generation that doesn’t want to be told when to come to work.

Specifically, Meeker presented data showing that Millennials now constitute 44 percent of the on-demand (“1099 economy) workforce. This was just one part of her robust presentation (see all 197 slides here).

This has a great deal to do with the attributes millennials seek in a shifting definition of “work.” They value flexibility greater than salary, and many of them see themselves in jobs that have the flexible hours that are characteristic of LODE employment (i.e. Uber driver).

This means a few different things, all of which are supportive of continued LODE growth. Given that Millennials are increasingly taking over the ranks of the adult working public, their affinity for LODE jobs is supportive of the ongoing health of the sector’s supply side.

But it’s also supportive of demand. We’ve argued that LODE is tailor made for millennials as consumers. Bringing it all together, Millennials’ escalating presence on both supply and demand sides of the LODE equation indicates a growing and balanced marketplace.

_______

This post, along with ongoing LODE coverage, builds up to BIA/Kelsey NOW, a one-day conference taking place June 12 in San Francisco. We hope to see you there. 

The post Mary Meeker: 44 Percent of On-Demand Workers are Millennials appeared first on BIA/Kelsey - Local Media Watch.

Social Media’s place in the local marketing pantheon continues to be cemented in our SMB survey data.  More evidence came with Facebook’s announced 40 million SMB active Pages (2 million of those advertise). Twitter, Vine, Instagram and Meerkat are also localizing in different ways.

But what about Snapchat? It’s the fastest growing social media among Millennials — a behavior worth watching if you consider the generation’s influence and buying empowerment as it cycles into the ranks of the adult consumer population. But is there a local play?

This started to be answered when it localized the OurStories format — curated collections of snaps around a specific topic or theme. Local OurStories means that these themes can now have geo-specific relevance, such as a college campus, sports team, or event.

The latter has been the killer app for OurStories so far. This started with EDC and more recently caught fire at Coachella. These event-based OurStories not only have heavy engagement but lots of advertiser-friendly attributes, in being curated, Millennial-rich and massive (up to 25 million views).

Sponsored OurStories so far include Samsung and Heineken, making them much more oriented towards national brands than SMBs. Interestingly, this makes Snapchat’s competition for ad revenues less about social apps and more about another reach-based local media: television.

But the differentiating factor for OurStories could be the explicit location context. Consider the location targeting challenges that others face, such as mobile ad networks that defer to inaccurate or inferred location. We discussed this challenge recently with ThinkNear and xAd.

OurStories get users to make their location known as a natural part of the social-sharing process. This makes it a sort of location check-in a la Swarm, but with much deeper and more sustained engagement. The question is how Snapchat bottles that as a promotional vehicle.

So far that’s been all about big events, but could it apply to smaller pockets of localized promotions that have greater frequency? That would mean any business where location and temporal relevance matter. Think: flash sales, happy hours and any “perishable inventory.”

Most of all, Snapchat’s signature ephemerality is aligned with time-sensitive promotions, making it a “native” integration. It could join the list of social sharing tools that monetize the locality of the user experience. First for brands then potentially — as shown by Facebook and Instagram — for SMBs.

The post Social-Local Landscape: Are Snaps the New Check-in? appeared first on BIA/Kelsey - Local Media Watch.

All of the excitement and investment in the local on-demand economy (LODE) starts with its consumer demand. The consumer culture that’s been conditioned to expect everything on-demand has created a receptive marketplace to the “uberfication of everything.”

That conditioning has come partly from smartphones and the immediate intent that they help fulfill. It has also come from parallel trends in other media — such as on-demand entertainment through things like Neflix.

And this all resonates especially with millennials — a generation for which “on-demand” is practically a tagline. The result: the mobile device has become the remote control for the physical world, and nowhere has this played out more than in LODE.

A related excerpt from our LODE white paper is below. Consider it a primer for the discussion we’ll have on stage at BIA/Kelsey NOW. Let me know if you’d like to participate (mbolandATbiakelsey.com) and stay tuned for lots more coverage.

Next week’s excerpt: LODE’s Supply-Side Dynamics.

Demand Side: A Remote Control for the Physical World

To start, LODE is fueled by a growing consumer need for on-demand access to anything. This is simply a cultural trend conditioned by mobility. Our smartphones — and soon to be wearables — have portability plus location awareness: A formula for immediate access to anything.

That basic capability has been furthered by app innovation. Lowered barriers to entry in the app economy have resulted in a flood of new services to connect buyer and seller in local markets. Authentication technology meanwhile creates a reputation-enforced system of safety and security.

These factors have come together to condition consumers to expect services to be brought to them wherever they are. It’s worth noting that this conditioning has been galvanized by usage trends elsewhere in technology — such as VOD consumption a la Netflix, Hulu, etc.

Indeed, LODE services literally and figuratively turn the smartphone into a sort of TV remote for the physical world. The metaphor caries though the device’s shape, as well as the physical action of pushing (tapping) buttons to summon physical world activity: A digital means to an analog end.

It’s a Millennial Thing

All of the above is then accelerated by a generation for which “on demand” is practically a tagline. Millennials — continuing to take over the ranks of the buying-empowered adult population — have a well-documented sense of entitlement and immediacy that’s fertile ground for LODE.

“An old economy business model that Millennials can’t relate to [is] an annual subscription for something you might not need,” said Urgent.ly’s Spanos. “Millennials expect everything now, and they turn to their phones for that.”

That goes for the basic principles of LODE in its access to immediate needs. But it also applies to an important aspect of LODE services in that they sometimes replace the need to own physical goods — a characteristic aversion of Millennials (with exceptions of course).

A 2014 report by The Intelligence Group called young people “the first generations of ‘NOwners,’ or those who prize access over ownership.” Ride sharing service Zipcar likewise reports that 61 percent of 18 to 34 year olds chose “experiences” over “possessions” in a December 2013 poll.

“They’re apprehensive about ownership, and they see access as a more experiential way of consumption,” said My Neighbor’s Benzing. “But there are also similarities to baby boomers, towards the end of life and no longer gathering things. They’re trying to unload and de-clutter.”

You Need Holes, Not a Drill

Beyond generational factors, there’s a cultural shift among several age groups, away from the blatant consumerism that defined the ’80s and ’90s. Survivors of subsequent recessions, including the housing crisis, have been conditioned to own less stuff.

This is a notable cultural shift when it comes to the mindset of making daily purchase decisions. A small home improvement project for example, is historically governed by a mindset to buy all of the necessary power tools, which are then used once and stored for years in a closet or garage.

However, a more economically attractive (and faster) outcome could come from renting the equipment or hiring an on-demand service provider to finish the job. This is supported by the always-surprising statistic that the average power drill is only used 13 total minutes in its lifetime.

Rachel Botsman cited this figure during a 2010 Ted Talk on the emerging area of collaborative consumption. “What you need is the hole, not the drill,” she continued. “So why don’t you rent the drill, or, even better, rent out your own drill to other people and make some money from it?”

The post The Local On-Demand Economy: What’s Driving its Demand? appeared first on BIA/Kelsey - Local Media Watch.

All of the excitement and investment in the local on-demand economy (LODE) starts with its consumer demand. The consumer culture that’s been conditioned to expect everything on-demand has created a receptive marketplace to the “uberfication of everything.”

That conditioning has come partly from smartphones and the immediate intent that they help fulfill. It has also come from parallel trends in other media — such as on-demand entertainment through things like Neflix.

And this all resonates especially with millennials — a generation for which “on-demand” is practically a tagline. The result: the mobile device has become the remote control for the physical world, and nowhere has this played out more than in LODE.

A related excerpt from our LODE white paper is below. Consider it a primer for the discussion we’ll have on stage at BIA/Kelsey NOW. Let me know if you’d like to participate (mbolandATbiakelsey.com) and stay tuned for lots more coverage.

Next week’s excerpt: LODE’s Supply-Side Dynamics.

Demand Side: A Remote Control for the Physical World

To start, LODE is fueled by a growing consumer need for on-demand access to anything. This is simply a cultural trend conditioned by mobility. Our smartphones — and soon to be wearables — have portability plus location awareness: A formula for immediate access to anything.

That basic capability has been furthered by app innovation. Lowered barriers to entry in the app economy have resulted in a flood of new services to connect buyer and seller in local markets. Authentication technology meanwhile creates a reputation-enforced system of safety and security.

These factors have come together to condition consumers to expect services to be brought to them wherever they are. It’s worth noting that this conditioning has been galvanized by usage trends elsewhere in technology — such as VOD consumption a la Netflix, Hulu, etc.

Indeed, LODE services literally and figuratively turn the smartphone into a sort of TV remote for the physical world. The metaphor caries though the device’s shape, as well as the physical action of pushing (tapping) buttons to summon physical world activity: A digital means to an analog end.

It’s a Millennial Thing

All of the above is then accelerated by a generation for which “on demand” is practically a tagline. Millennials — continuing to take over the ranks of the buying-empowered adult population — have a well-documented sense of entitlement and immediacy that’s fertile ground for LODE.

“An old economy business model that Millennials can’t relate to [is] an annual subscription for something you might not need,” said Urgent.ly’s Spanos. “Millennials expect everything now, and they turn to their phones for that.”

That goes for the basic principles of LODE in its access to immediate needs. But it also applies to an important aspect of LODE services in that they sometimes replace the need to own physical goods — a characteristic aversion of Millennials (with exceptions of course).

A 2014 report by The Intelligence Group called young people “the first generations of ‘NOwners,’ or those who prize access over ownership.” Ride sharing service Zipcar likewise reports that 61 percent of 18 to 34 year olds chose “experiences” over “possessions” in a December 2013 poll.

“They’re apprehensive about ownership, and they see access as a more experiential way of consumption,” said My Neighbor’s Benzing. “But there are also similarities to baby boomers, towards the end of life and no longer gathering things. They’re trying to unload and de-clutter.”

You Need Holes, Not a Drill

Beyond generational factors, there’s a cultural shift among several age groups, away from the blatant consumerism that defined the ’80s and ’90s. Survivors of subsequent recessions, including the housing crisis, have been conditioned to own less stuff.

This is a notable cultural shift when it comes to the mindset of making daily purchase decisions. A small home improvement project for example, is historically governed by a mindset to buy all of the necessary power tools, which are then used once and stored for years in a closet or garage.

However, a more economically attractive (and faster) outcome could come from renting the equipment or hiring an on-demand service provider to finish the job. This is supported by the always-surprising statistic that the average power drill is only used 13 total minutes in its lifetime.

Rachel Botsman cited this figure during a 2010 Ted Talk on the emerging area of collaborative consumption. “What you need is the hole, not the drill,” she continued. “So why don’t you rent the drill, or, even better, rent out your own drill to other people and make some money from it?”

The post The Local On-Demand Economy: What's Driving its Demand? appeared first on BIA/Kelsey - Local Media Watch.

Millennials sometimes get a bad rap for being the disinterested and out of touch generation. But BIA/Kelsey survey data actually pegs them as the most in-touch (literally). When it comes to smartphone, tablet, and social networking they blow their gen-x and baby boomer forbearers out of the water.

Millennials — those between 18-34 — use digital devices more than ever. According to BIA/Kelsey’s Consumer Commerce Monitor™ survey, 56 percent said that they have interacted with social media in the past 6 months at some point in the purchase funnel. 32 percent made purchases online.

Generation X — those between 35-54 — report that among types of local businesses, they rely heavily on social media for restaurant choices, but trust family and friends most for local shopping decisions. They also reported online search as their number one source for information on local shopping.

Baby boomers — those 55 and older — are more likely than other age groups to own printed yellow pages. However, yellow pages are not among their top five sources of information for local shopping (i.e. retail and product info). They’re also more likely than other age groups to shop in-person.

Many SMBs are still trying to understand how to deliver content to consumers at various age groups. All three age groups reported to have purchased more in store than online. Along with e-commerce efforts, it is essential that local businesses incorporate social strategies to get consumers into the store. It’s often forgotten that 93 percent of U.S. retail spending is done offline (as opposed to e-commerce).

Social campaigns are effective for SMBs to drive in store purchases when targeting both 18-34 and 35-54 year-old age groups. Marketing campaigns must include traditional media: 55 and older consumers use devices to inform local shopping decisions; but they’re more likely to use traditional media for local business information.

Learn more about Consumer Commerce Monitor here.

The post Millennials Are More Connected Than They Get Credit For (and Other CCM Takeaways) appeared first on BIA/Kelsey - Local Media Watch.

Millennials, those between the ages of 18-34, are making social e-commerce more prevalent than ever. According to our Consumer Commerce Monitor™ survey, 56 % of millennial local consumers said that they have interacted with social media in the past 6 months at some point in the purchase funnel and that 32% of all local purchases made in the last year were made online.

While social media may not have the critical significance of mobile, it is becoming increasingly crucial for ecommerce success. If SMBs are ever going to fully commit to goals of social ecommerce, they must integrate the strategy at all points of the consumer purchase funnel. According to our CCM survey data, 49% of millennial consumers reported using social media more often now than they did in the past year for local shopping.

Social networks are strongest as sources of retail influence and product discovery. Roughly a quarter of U.S. social network users have made a purchase on a retail web site after clicking from a social network in the past year, according to a report from Javelin Strategy & Research. According to our CCM survey, 66% of all millennial consumers go to Facebook when they used a social network for local shopping, followed by YouTube (20%), Google+ (16%) and Twitter (14%). Also, 59% of millennial consumers also ranked Facebook as the number one choice for local shopping. Social media was rated the most influential in these top five verticals among millennial local shopping habits:

Source: BIA/Kelsey’s Consumer Commerce Monitor™ (CCM), 2013.

The future of social e-commerce looks promising for small businesses if they can get it right. Let’s take a look at some quick facts about what SMBs are currently doing to capture millennial shoppers. According to our Local Commerce Monitor survey:

— 52% of all SMBs have a Facebook Business Page utilized for advertising or promotion. Followed by 25% of SMBs using Google+ and 24% using Twitter.

— 38% of SMBs use their Facebook pages to acquire new business and customers. Another 27% use it as an awareness and promotion tool.

— 85% of SMBs listed social media as a future marketing priority.

Many SMBs are still trying to understand how best to deliver content to millennial consumers via their social media and ecommerce channels while also reaching new prospects. Advertising on social channels like Facebook, Twitter and Pinterest can be the communication channels needed to garner attention. While there is some debate about the overall value of social advertising, it is hard to argue that it offers some of the best targeting available to business owners; especially when their target audience is spending an increasing amount of time on social media.

The post SMBs to Marry Social Media and E-commerce Strategies to Win Millennials appeared first on BIA/Kelsey - Local Media Watch.

Mobile M&A activity continues … except this time it’s a mobile ad network on the buy side. Following Google’s $750M AdMob acquisition, and Apple’s $275M Quattro acquisition, the largest remaining independent ad network, Millennial Media, will acquire mobile analytics firm TapMetrics for an undisclosed amount.

TapMetrics will allow Millennial to offer developers more comprehensive revenue management dashboards. This will be chock-full of application analytics such as feature and version adoption, device access types, user feedback, and crash reports.

Overall, this can be viewed as a very developer-centric move. As ad networks increasingly compete to build networks of app developers, this will help Millennial to provide better incentives. The carrot for developers here is a tool to better optimize and monetize their apps.

Speaking of analytics, this is a good chance to mention Millennial’s latest in its line of monthly SMART reports. It takes a year-end look at some of the biggest trends and lists of ’09. See the collage of data below and download the report here.

Click to expand image

The post Millennial Media: Better Analytics Through Acquisition appeared first on BIA/Kelsey - Local Media Watch.

Mobile ad network Millennial Media is out with its latest monthly (December) Scorecard for Mobile Advertising Reach & Targeting (SMART).

Most notable from the findings was that Entertainment was dethroned as the top mobile ad spending category by Portals & Directories. These include online portals such as AOL and Microsoft, trying to plant a stake in mobile and buy traffic to get the ball moving.

Another fast moving category on the list was Travel, moving from 10 to 8. This was one of the focal points of this month’s report and the drill down of travel spending categories was likewise offered (chart below).

Other highlights include (Millennial’s emphasis):

• U.S. Mobile Web: Decreased slightly to 66.6M users, according to Nielsen (Nov.)

• Special Section: Travel Knows Mobile. Millennial Media Knows Travel: For the first time since S.M.A.R.T was first published in March 2009, Entertainment was not the top advertising vertical.  Portals and Directories took the top slot in Q4. Telecom, Finance, Entertainment and Dating round out the top 5.

• Engagement: Average monthly page views per user increased to 125 in December from 113 in November, and average user session times increased from 5:02 to 5:09 (min:sec).
• Devices: Samsung represented approximately 23 percent of our network impression share in Q4. But the iPhone was the leading smartphone on our network with 41 percent of our network U.S. impressions.

The SMART report is similar in concept to AdMob’s monthly reports in that it highlights spending and activity on Millennial’s network. As such, it’s not directly representative of all mobile activity and spending, but valuable data nonetheless to view directionally and over time. Past coverage is here (scroll).

The post Millennial SMART Report: Portals & Directories Claim Top Mobile Spending appeared first on BIA/Kelsey - Local Media Watch.