The Internet revolution will allow people to go from an "asset-heavy" to "asset-light" lifestyle, with sweeping ramifications for business, according to a state-of-the-Internet presentation from investor Mary Meeker.
All you need for many situations is the clothes on your back and a charged mobile device, says the venture capitalist and partner at Kleiner Perkins Caufield & Byers. Digital media replace albums, CDs, and DVDs. Sharing services like Airbnb and Couchsurfing can replace dedicated hotel buildings. Instead of owning a car, people can use car-sharing services like Zipcar, Uber, and Hailo. Even full-time employment is replaced by freelancing.
The digital revolution will allow consumers to get what they want, when they want it, and make it easier for "crafty and flexible people" to make money, Meeker says in her Dec. 3 presentation, posted to SlideShare and embedded on the next page of this blog post.
If this is true, it's a huge deal for businesses that are in the business of selling stuff -- retailers, construction companies, car manufacturers, and all the B2B companies that are in the supply chain serving them.
It's also potentially a huge deal for lifestyles and the environment. We've all seen reports on how much Americans consume and own (a lot) compared with the rest of the world (less). Our houses alone are much bigger than houses in the rest of the world. The Internet might be balancing that out a bit. Or it might all be just a blip. Ask me again in another decade.
There are plenty of other meaty ideas in Meeker's presentation. Such as:
Using new forms of access, people will be able to fill in the "white space" now disconnected from the Internet, including car travel: 52 minutes per day by 144 million Americans, 76 percent of whom travel alone, Meeker says. Another white space: three hours daily spent in front of TVs. As a forerunner of this change, some 50 million America households have Internet-enabled TVs.
New Internet technologies mean big changes for business, of course. In the latest example, mobile devices and tablets accounted for 24 percent of online shopping on Black Friday in 2012, versus 6 percent two years ago.
But business is struggling to catch up, in some ways. For example: Ad spending. While consumers spend 10 percent of their time with mobile devices, mobile accounts for just 1 percent of ad spending, a $20 billion US opportunity. The lag in overall Internet ad spending is much smaller: Advertisers spend 22 percent of their budgets on Internet ads, while consumers spend 26 percent of their time online.
On the other extreme, consumers spend 7 percent of their time on print, but advertisers spend 25 percent of their budgets on that medium.
I wouldn't say that advertising online is the cheapest way to go. As others have said, it largely depends on the server that you're choosing to go with. Sometimes, there are bidding wars for prime advertising spots. Some also offer pay-per-click ads which might end up being costly, especially if you end up getting a lot of clicks but poor conversion into sales.
I'd like to see her thoughts on the inevitable push-back, something we're already seeing in some areas. There are getaways, for example, that ban all electronic devices as part of their R&R offering. The National Park Service in the U.S. saw, I believe, record visits this year--partly because they offer an affordable vacation during the economy, but also because people wanted an unplugged holiday. We've also seen the ongoing success of Small Business Saturdays. Of course, SMBs use technology, too, but this movement is designed to help smaller businesses compete against the giants.
People traveling alone is something cities struggle with. Some cities shut-down areas to traffic; others allow only vehicles with three or more travelers; others give financial rewards or penalize drivers. But Americans continue to drive themselves to their offices. I don't know whether this is a mindset, a dislike of the inconveniences associated with public transportation (where it's available) or ride-sharing, or something completely different. I'm delighted, though, that more organizations are adopting teleworking. We have the tools to do the jobs remotely, as well as the tools to appease some managers' nerves about worker oversight.
Yes @shehan I agree with you on this tech spend in Gen Y is on the up and businesses need to realize and adjust to the trends particularly in retail. More hightech stocking stuffers on the shelves this year and they are flying off.
If the product / service is aimed at the younger generation or the corporate world, Internet advertisements would be best because they are already hooked into the net, surfing websites. A few of these pages that you have the ad on, could give you a link to your own website as well. Result, a greater number of "hits" on your website!
Even if the Internet ad can be displayed as very comprehensive compared to other media, it is definitely much cheaper than most. Internet Ad Packages are offered as low as $ 10.00 for a period of one month, or by a set amount of "hits", depending on the advertiser you go with.
I am not convinced yes the younger generation are not "tied" down by possieions but as they grow up they will acquire the "keeping up with the jones" mentality. They are buying a lot of tech and I agree homes/cars and large purchases of this type are not on the radar yet but i believe it will come in time
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