Thought Starters: potential for micropayments, notifications and a closer look at WeWork

The following is a look through articles, infographics and opinion pieces highlighting interesting trends, developments and changes in the world you and I live in, with an emphasis on technology.

As the online media sector grapples with the impact of ad blockers on their business model, we’re likely to see growing interest in micropayments. Frédéric Filloux profiles Dutch platform Blendle and how their business model takes a collaborative approach with media operators:

“Blendle benefits from exceptionally favorable trade winds. The traditional advertising model is crumbling under the pressure of programmatic buying and of the pervasiveness of adblockers. In addition, Blendle also takes advantage of limitations in paywall models that mostly target the heavy, affluent users segment, but exclude the younger audiences that are Blendle’s main target (today two-third of Blendle users are under 35). From the legacy media perspective, this makes the paid-by-the-article system more attractive than ever.”

Figures from comScore in the US point to mobile and tablet app usage following the power law with a few apps monopolising consumers’ attention:Time spent per app

John Borthwick profiles the role of notifications as the smartphone becomes the centre of our digital lives:

“Right now we are witnessing another round of unbundling as the notification screen becomes the primary interface for mobile computing. It’s easy to get fixated with notifications as a feature — they are a feature for an app. But they are also part of this broader unbundling cycle and they are part of an architectural shift from pull to a push. It’s an interesting time.”

Steve Cheney looks at how Apple has used its expertise in microchips to carve out a competitive advantage in smartphones with potential to do the same in other market categories.

WeWork is positioning itself more as disruptive tech startup rather than traditional property company as a means of buttressing its market valuation. Nitasha Tiku takes a closer look and asks whether the company is really that different from more traditional commercial property providers:

“These slides show how easy it is to create a good-looking growth curve — not just for WeWork, but for all of its peers in the current tech climate. “You put together a model. It spits out whatever it spits out based on the inputs,” Sussman told BuzzFeed News. “I always say, ‘If you gave David Copperfield or Harry Potter Microsoft Excel, they could do even more amazing magic.’” The basis for WeWork’s five-year forecasts, he said, all rests on its assumptions. “Key metrics like membership growth, pricing, and square footage leased drive the whole model. Change those inputs and everything changes.” Input in, pivot out.”

On the topic of startups and their respective valuations, the following slide provides an interesting look at how Slack is miles ahead in terms of the value of each customer according to L2:

Valuations per user

Having grown up (at least initially) with the printed word, it’s fascinating to see the growth of YouTube as an information channel for the under 55s according to Ofcom research:

Sources used when looking for information online

The Pew Research Center has released figures looking at how social media usage has changed over the last 10 years. No great revelations but an interesting window into how usage has grown and how it does (or doesn’t) vary by age, gender, education and income:

Social Media vs Income

Corporate taxation (or the lack thereof) continues to pop up in the headlines with Facebook apparently paying out just £4,327 in tax UK despite giving out £35m in staff bonuses according to a Guardian report. Among the tricks of the trade are the use of offshore shore bases which The Economist highlights with FDI inflows:

FDI inflows as percentage of GDP

Using figures from the American Community Survey, the United States Census Bureau points to women overtaking men in having a bachelor degree or higher in the US (although pay equity looks much further off):

Comparison of Gender vs Tertiary Qualification in US

Whilst Britain’s role in Europe may be in question with talk of Brexit, English becomes increasingly dominant among languages taught in primary schools in the European Union according to the Pew Research Center:

Growing dominance of English language in Europe

The featured image is Dark Perimeter / Basic Primary Shapes by the Argentinian artist Elian Chali for Nuit Blanche in Brussels and published in StreetArtNews.

Thought Starters

A mixed collection of materials looking at societal trends, the role of technology and other content that has resonated with me.

The World Bank has combined population and GDP per capita statistics in a graph, providing an indication of current spending power as well as an indication of future opportunity.

Real GDP Per Capita and Share of Global Population

Gartner has updated its Hype Cycle which gives an indication of maturity and adoption of different technology platforms around the world.

Gartner Hype Cycle

American consumers are now faced with a growing array of video content through a range of platforms but consumer spending has actually decreased according to analysis from Liam Boluk.  In a world of all you can eat subscriptions such as Netflix and Amazon Prime, consumers are arguably choosing to spend their money elsewhere.

Entertainment Industry Ecosystem

Andreessen Horowitz has announced a $50 million investment in BuzzFeed, gaining mixed reactions from the news media.  Felix Salmon warns that comparing BuzzFeed to traditional media sources risks missing the business’ true potential.

The best way to think of BuzzFeed’s various products, then, is probably as a proof of concept: it’s a way to show advertisers that the company is able to reach a large, young, mobile, social audience in a multitude of different ways. The ability to reach those people is something of a holy grail for advertisers, who are therefore very willing to pay top dollar to anybody who can help them achieve their goal. The idea is that if BuzzFeed can reach a broad audience with its various editorial products, it can then sell that secret sauce to advertisers, and help them reach the same audience, using the same tools.

There’s been a lot of noise lately about the unbundling of mobile apps in Western markets with the launch of Foursquare’s Swarm and the splitting out of Facebook Messenger. Taylor Davidson warns against seeing this as a natural conclusion with app extensions, deep linking and notifications providing a countervailing force to this trend.

And as the platforms, hardware, and operating systems in mobile continue to change how people use their devices, don’t be surprised if the rationale behind unbundling shifts as well.

I think we think of unbundling as the end-state, but instead, it’s a process that leads to it’s reversal. Unbundling creates the incentives for rebundling.

The constant, as usual, is change.

We’ve seen strong growth from shared economy based enterprises such as Uber and Airbnb which use rating systems as a means of engendering trust on the part of consumers. Danny Crichton in an article for TechCrunch warns of the corrosive effect of these computational trust systems on wider society.

Our growing need to feel connected is confirmed by research from the US which found that 60% of US internet users were almost always connected.

Three in five internet users are almost always connected

British communications marker regulator Ofcom’s report The Communications Market 2014 is a treasure trove of insights into the UK market. Find below some key insights.

Reinforcing the earlier message of the always on lifestyle is the following graph looking at consumers engagement with media and communications during their waking hours.

Media Consumption Activity

Looking at how media and communications time is spent across different age cohorts provides clues as to how we can expect media to move in the future.

Media by Time

A similar analysis of internet consumption by device type points to the importance of smartphones for younger audiences.

Device usage internet

Providing further data on the UK market in the 4GEE Media Living Index which provides figures on mobile data usage from EE customers. Among the interesting data points are the following which point to the strong presence of Tango in the mobile messaging space and Soundcloud in audio streaming.

Instant Messaging Audio Analysis from Comscore points to Snapchat moving from outsider to well established member of the communications space in the US having long passed what Comscore considers critical mass in the 18-24 aged audience segment.

Snapchat PenetrationPew Research Center’s analysis of Twitter traffic provides an interesting breakdown of social communities and how they interact, converge and/or diverge. Something well worth considering when we see issues emerge that have the potential to bring us together or divide us.

Twitter CommunitiesMalcolm Gladwell’s look at organised crime among immigrant groups in the US point to this ‘career’ as being seen as an important enabler of upward mobility in what makes for an enjoyable read.

The point of the crooked-ladder argument and “A Family Business” was that criminal activity, under those circumstances, was not rebellion; it wasn’t a rejection of legitimate society. It was an attempt to join in.

If you find yourself in London between now and the end of August, do check out Lucy Sparrow’s The Cornershop in the Columbia Road area recreating various household goods in felt. You can find an interview with the artist over at Folksy.


The featured image is Beautiful Bridge #1 by Sabina Lang & Daniel Baumann in Recoleta, Buenos Aires.