Thought Starters: Chinese digital media, iPhone’s dominance, Holacracy and Europe’s lagging digital innovation

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

We are seeing Chinese businesses increasingly innovate and excel, providing business models that set themselves apart from businesses in the West. Digital media and communications have been a particularly fertile ground illustrated by the following table which illustrates how diversified the revenue streams of Tencent and YY are compared to their American counterparts:

Tencent Facebook YY and Youtube Monetisation

Apple is carving an increasingly dominant place in the world’s smartphone marketplace in terms of market share and profit. Some critics have questioned whether Apple can continue this growth trajectory, but Ben Thompson provides a strong defence for why we’re not likely to see this train derailing in the near future:

Smartphone Marketshare

Closely tied to the issue of smartphone ownership is the penetration of different mobile browsers. Here again Akamai’s figures point to Apple’s Mobile Safari browser dominating globally:

Global Mobile Browser Share

Roger D. Hodge looks at the ups and downs of Zappos’ introduction of the Holacracy system for self-organisation. It’s a long article but provides a valuable window into the challenges (and some of the opportunities) of introducing radical organisational change:

Zappos' Models of Organisation

As we embed the internet in an more aspects of  our lives, countries’ digital readiness provides an increasingly important measure of future economic health. Tufts University created the Digital Evolution Index to measure the building of digital capacity and many European countries don’t come out particularly well according to Bhaskar Chakravorti and Ravi Shankar Chaturvedi:

Digital Evolution Index

One digital innovation with its roots in Europe is the blockchain platform Ethereum (although there’s definitely an argument for it being a global project). Vinay Gupta provides a valuable look at the development of blockchain and smart contracts within the wider context of the evolution of databases and the internet.

Christina Farr looks at the rise and fall of the home cleaning service Homejoy, providing important lessons for startups aiming for growth at all costs.

A lot of media attention has focused on the rapid rise in San Francisco property prices, so it’s interesting to see UBS’ comparison of how overvalued the city’s real estate is compared to other leading cities:

Global Real Estate Bubble Index

Eric Jaffe’s analysis of trends in working hours over the last 130 years points to a downward trend – lets hope that we see this trend continue without leaving us all unemployed:

Annual Hours of Work

The featured image is a mural in Covilhã, Portugal by Pantonio and published in StreetArtNews.

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

I have recently taken on full time work on top of other commitments, so I’m finding my time to blog is less than I have had in the past. Find below content recently that has caught my attention.

I’ve seen my own consumption of podcasts increase sharply over the last year, so it’s great to see NY Magazine profile this burgeoning media format:

“Radio has been saved the disruption that has happened to other media. It’s been frozen in time for 50 years,” Blumberg said. “Now that everyone is walking around with a radio in their pocket at all times, and now that all cars are going to be connected, the form can flourish again.”

Recent figures point to Facebook as doing a great job in muscling in on Youtube’s role as host of online video according to Comscore figures:

Online Video Comscore Benedict Evan’s Mobile is Eating the World presentation provides a valuable look at how mobile is coming to dominate the consumer technology landscape:

Evans’ view is further backed up by John Lewis whose recently released retail report points to mobile overtaking desktop for online traffic:

Mobile vs PC

There’s a looming battle in the US in the mobile payments space between Apple Pay and the retailer backed CurrentC. Reports that CurrentC has been hacked before it has fully launched and reports of the system’s poor user experience suggest it might be a one horse race:

When it comes to actually paying, the system gets even more cumbersome. CurrentC describes the process on its support site: You need to select a “Pay with CurrentC” option on the register, activate your phone, open the CurrentC app, enter a four-digit passcode, press the “Pay” button, “either scan the Secure Paycode that the cashier presents (default) or press the Show button at the bottom of your screen to allow the cashier to scan your Secure Paycode,” select the account you want to pay with, and then press a “Pay Now” button.

Whilst mobile payments is in its relative infancy at the moment, the indifferent attitude that many millennials have to cash points to this space as being increasingly important in years to come:

Currency_Figure

Ben Thompson looks at the media sector, analysing which elements are extracting the most value, drawing an analogy with the iPhone and its components manufacturers:

The Smiling Curve for publishing

John Kirk takes a critical look at market research and points to it as providing a much better source of insights in enhancing existing products rather than providing guidance on new product categories:

We’re very, very good at explaining why things won’t work. We’re not nearly as good at imagining creative new ways things might work.

A look at the quality of life index by The Economist point to a rapidly narrowing gap between rich, emerging and poor countries:

Quality of Life The Economist takes a valuable look at Iran pointing to a country that is becoming less radical and more secular:

The regime may remain suspicious of the West, and drone on about seeding revolutions in oppressor countries, but the revolutionary fervour and drab conformism have gone. Iran is desperate to trade with whomever will buy its oil. Globalisation trumps puritanism even here.

I am a strong believer in the view that climate change is one of the major issues that needs to be addressed now if we’re to have a real chance of living comfortably on this planet going forward. The following graph from Bloomberg gives me some hope although the inconsistency of supply and issues of storage means that we’re not likely to see a wholesale switch to solar in the immediate future:

Solar Energy If you’ve ever wondered how hard it would be to pick up another European language, the following visualisation should provide a useful guide, found on Etymologikon:

LanguageI recently discovered the Earth View from Google Maps Chrome extension which provides a view of Earth each time you open a new tab – certainly beats the traditional blank screen:

Google Earth

The featured image is GoddoG’s piece from the Festival K-live in Sète, France.

Thought Starters

A mixed collection of materials looking at societal trends and the impact of technology on the way we live.

The European Commission has released the Sixth Report on Economic, Social and Territorial Cohesion. The title might not roll off the tongue but it provides a broad range of European statistics including health outcomes, the environment, human development, demographics, crime, the economy and education among other things:

Change in Population The Economist has created an index of where the best country to be born is by looking at a range of quality of life indicators. Care to move to Switzerland?

Where to be born

Retale have pulled together an interactive infographic using U.S. Bureau of Labor Statistics data to providers users with the opportunity to see how the activities of different audiences vary by demographic in the US:

Time Survey

JWTIntelligence has pulled together a report looking at changing family structures in the US. Among the trends highlighted is the evolving nature of the nuclear family, growth in solo living, multigenerational and silver families and the rise of friends as part of family type networks:

The Internet of Things has been getting a lot of attention from the technology sector. The Wall Street Journal looks to pour some cold water on things by pointing out the failure to institute common standards as providing devices interacting that aren’t from the same brand:

Without a common software standard, devices will remain locked into what the German industry experts calls “island solutions”– brands that have a portfolio of products that can talk with each other but won’t be compatible with other brands.

The number of apps available to smartphone and tablet consumers keeps on expanding, but the average consumer only users four according to research from Nielsen:

App Usage

The GlobalWebIndex continues to infographics providing a window into global consumers use of digital.  Recent releases have looked at where WhatsApp, Vine and Pinterest are making an impact:

WhatsApp

Zeynep Tufekci gives an impassioned defence of Twitter in its current form, pointing to the advantages of surfacing content by the human flock rather than an algorithm:

I honestly doubt that there is an algorithm in the world that can reliably surface such unexpected content, so well. An algorithm can perhaps surface guaranteed content, but it cannot surface unexpected, diverse and sometimes weird content exactly because of how algorithms work: they know what they already know. Yet, there is a vast amount of judgement and knowledge that is in the heads of Twitter users that the algorithm will inevitably flatten as it works from the data it has: past user behavior and metrics.

As Twitter broadens its offering to partners by integrating ecommerce functionality with consumers’ Twitter stream with the  trialling of a Buy now button. Whilst the trial is relatively limited in scope at this stage, we can presumably expect to see it rolling out more widely soon:

Research from AOL Platforms points to Youtube as having an important role in introducing products and closing the sale when compared to other social media:

Purchase Funnel

Facebook’s quarterly earning figures released in July pointed to the company as doing a good job of growing its revenues. Analysis from Neustar suggests this position may well continue given that Facebook’s network offering is proving a leader in terms of reach efficiency and average cost although its position is trumped by ad exchanges in the quality of its audience:

Cost Index Online Advertising

Facebook is looking to be more sensitive to consumers’ privacy concerns with the  launch of its  Privacy Checkup to help users better manage their privacy settings:

A report from PageFair points to a 69% increase in the number of consumers using adblock software in the US, raising concerns that online media may be increasingly threatened by declining ad revenues.

Adobe recently released its U.S. Mobile Benchmark Report providing a range of charts shedding light on how users and marketers are taking advantage of mobile. Among the interesting statistics is the use of GPS location data and use of beacon technology:

Location Data

Another interesting data point to emerge from the Adobe presentation is the flatlining of tablet’s share of page views. This provides further ammunition to some commentators’ arguments that tablets are getting squeezed between phablets (smartphones with screen size between 5.01 to 6.9 inches diagonally) and PCs:

Tablet vs Mobile Usage

The growing importance of phablets is given further credence by Flurry’s recently released figures which point to growing market share and TECHnalysis Research’s forecast for forecasted sales in the coming years:

Unit Forecast by Sales notebooks desktops tablets smartphones phablets
Unit Forecast by Sales notebooks desktops tablets smartphones phablets

Apple’s launch of the iPhone 6 and 6 Plus is likely to provide a boost to its smartphone marketshare.  Samsung on the other hand is likely to find itself increasingly squeezed between Apple above and a growing array of Chinese based manufacturers (Xiaomi, Lenovo, Huawei, Coolpad etc) at the mid to lower end:

Smartphone Market Share

Amazon’s Fire Phone was released with much fanfare in late July but the fact that it’s now dropped the price by $200 suggests it hasn’t been a winner among consumers.

Putting this all in perspective is Benedict Evans’ valuable blog post looking at Amazon’s failure to post a substantial profit despite its large revenues:

Amazon Revenue vs Income

Evans points to Amazon’s willingness to reinvest any potential profits back into the business. Some of these investments aren’t going to be an immediate success, but others such as the Kindle have enabled Amazon to gain a market leading position:

Amazon Profit Model

Reddit gets strongly criticised by T.C. Sottek following its failure to take action on the release of nude celebrity photos:

Reddit, he wrote, is “not just a company running a website where one can post links and discuss them, but the government of a new type of community.” So, then, what type of government is Reddit? It’s the kind any reasonable person would want to overthrow.

Tim Harford looks at how we can improve our forecasting, pointing to better understanding probabilistic reasoning, working collaboratively and being open minded as key contributors:

Masha Gessen looks at how the Russian population is being squeezed between declining birth rates and falling mortality rates, pointing towards a loss of hope as a key contributor:

If this is true—if Russians are dying for lack of hope, as they seem to be—then the question that is still looking for its researcher is, Why haven’t Russians experienced hope in the last quarter century? Or, more precisely in light of the grim continuity of Russian death, What happened to Russians over the course of the Soviet century that has rendered them incapable of hope?

The featured image at the top of the page is a PARKER by GoddoG and DelwooD in Biarritz and found on GoddoG’s Flickr stream.

Messages that Resonate

This is the first of an irregular series of posts looking at communications which have caught my attention. This will complement Thought Starters which will look more at trends, strategies and ideas.

A recent trip to a local hospital made me acutely aware of the dehumanising experience that these institutions provide, despite the best efforts of the staff. Dignity Health is looking to reposition itself as a more humane experience with KindVines.  Consumers are being encouraged to submit Vines  that show moments of human kindness in their community.

Kind Vines

Another brand doing interesting things with Vine is Lowe’s with its Fix in Six campaign which provides six second DIY tips. It shows you less can be more sometimes.

NOMOS Glashütte’s video Look over the watchmakers’ shoulders provides a great example of how beautifully long form video can be used to increase the perceived value of a brand.

American furnishings retailer CB2 is looking to use Pinterest plus a dose of consumer feedback to decide how to decorate a New York apartment.

The election of Tony Abbott as Australian Prime Minister has reinforced some of my more negative associations of the land down under. So I was intrigued to see NAB recruit locals to offer live commentary of that most quintessential of Australian events the Aussie rules final. A great way of reflecting the diversity of Australia where 27% of the population are born overseas.

UNICEF has a campaign to promote access to  clean water by asking consumers to download an app and not touch their smartphones. For every 10 minutes you don’t touch your phone, sponsors will donate one day of clean water to UNICEF.

Amazon’s move to enable ecommerce functionality within consumer’s Twitter stream may not be groundbreaking for Chinese consumers but it does provide an example of expanding what brands can do in social media.

Optic Square in Thailand provide a great example of using the characteristics of an out of home environment to add impact to a creative execution.

Providing something of an antidote to the world of marketing is Honest Slogans which looks to give a more consumer centric view of the brands many of us live with.

Perrier

Feel free to chip in with campaigns that have caught your attention lately.

The featured image is a mural by French artist Mist and was photographed by Big Addict for StreetArtNews.