1

THE AGE OF THE CONSUMER

How Trends In Digital Lifestyle Define Business Models

Three Major Trends In Digital Living

2

INFORMATION

(OPEN) ACCESS

CONSUMER CONTROL

C

O

N

T

E

N

T

T

E

C

H

N

O

L

O

G

Y

INFORMATION Enabled By Technology

There Are Now Nearly 3 Billion People Online

4

Global internet population

Source: International Communication Union, Google

0

500

1.000

1.500

2.000

2.500

3.000

3.500

(mil

lio

ns)

The Majority Are Under 34

5

Age breakout of global internet users

26,5% 26,7%

20,4%

13,7% 12,7%

15-24 25-34 35-44 45-54 55+

Source: comScore (November 2014)

ACCESS

Messaging Apps Are Exploding

7

Top apps (monthly active users – global)

Source: Company Statements, News Reports, BI Intelligence estimates

0

100

200

300

400

500

600

okt.10 apr.11 okt.11 apr.12 okt.12 apr.13 okt.13 apr.14

Mil

lio

ns

Attention Is Shifting To Digital, Especially Mobile

8

US consumer media consumption share

45%

25%

17%

9%

7%

4%

37%

18%

11%

4% 2%

23%

TV Online Radio Print Other Mobile

2009 2010 2011 2012 2013 2014

Source: eMarketer, April 2014

And The Shift Is Generational

9

Younger audiences prefer digital to traditional media

13

32 34

48 58

68 69 47

36 26

17 7

2 3 18

15

20 15 14

11 13 4

4 8 7 8 12 2 1 4

3 9

Aged 16-24 Aged 25-34 Aged 35-44 Aged 45-54 Aged 55-64 Aged 65-74 Aged 75+

Read newspapers/magazines

Listen to the radio

Go online via computer/laptop/ netbook/ tablet

Use a smartphone

Watch television

Source: Ofcom Adults’ Media Use And Attitudes Report (April 2014) Q: Which of the following media would you miss most?

The First Smartphone Generation

10

Demographics of cell phone internet usage (among cell phone owners, % in each group who use their phone to go online)

Source: Pew Research Center, Cell Internet Use 2013

85%

73%

51%

22%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

18-29 30-49 50-64 65+

Phablets Leading The Race

11

Global annual shipments by device

Phablets

Tablets

Smartphones (Non-Phablet)

0

200.000.000

400.000.000

600.000.000

800.000.000

1.000.000.000

1.200.000.000

1.400.000.000

1.600.000.000

1.800.000.000

2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2018E 2019E

Source: BI Intelligence Estimates

Younger Demos Dominate Social

12

Average daily time spent with select social networks amongst US internet users by age

Source: Cowen And Company (Twitter/Social User Survey 2014)

0

10

20

30

40

50

60

Facebook Tumblr Instagram Pinterest Twitter Snapchat LinkedIn

Age 18-29

Age 30-44

Age 45-60

Age 60+

CONTROL Consumer Now In Control

Shift To Demand Pricing Over Controlled Pricing

14

BUSINESS INSIDER The New Generation Of Business People

From Humble Beginnings

16

FOUNDED IN

2 0 0 7

~2,100

PAGE VIEWS t h e f i r s t

d a y

3 people in a loading dock

Fastest-Growing Digital Business News Sites

17

#1 business news site amongst legacy competitors

Source: Comscore US (000)

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

45.000

50.000

(00

0)

Business Insider.com

Forbes.com

WSJ.com

CNNMONEY.com

Bloomberg.com

CNBC.com

Economist.com

FT.com

A Successful Digital Model

18 Source: Google Analytics

Explosive growth across all platforms

November ‘09 August ‘15

MOBILE + TABLET

59%

19% YoY Tablet Growth

Of All Uniques

72% YoY Mobile Growth

438MM+ Global Pageviews

65.8MM+ Global Uniques

113MM+ Global Visits

40% YoY Growth

Tablet

Mobile

Desktop

19

Mobile is how digital natives are

consuming content.

Business Insider Mobile Shifts

20

Mobile overlapping desktop traffic

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2011 2012 2013 2014

% W

ebsi

te T

raff

ic

Mobile Website Traffic Desktop Website Traffic

Source: Google Analytics, Businessinsider.com (2010 – 2014)

Business Insider Strong Video Growth

21

37.8 Million+ Streams / Month Of Original Content

Source: Ooyala

1.4 mil

4.4 mil

2 mil

4.4 mil

12.3 mil

19.8 mil

30.9 mil

37.8 mil

0

5.000.000

10.000.000

15.000.000

20.000.000

25.000.000

30.000.000

35.000.000

40.000.000

22

Social is how they’re discovering it.

Social Is Becoming Everyone’s Front Page

23 Source: Cassandra Report by Noise | The Intelligence Group

Content Discovery Driven By Social

24

Unique users across all Business Insider properties

Source: Google analytics (September 2015). Reflects all BI properties including Tech Insider

36%

28%

16% 15%

5%

SOCIAL ORGANIC SEARCH REFERRAL DIRECT OTHER

Content Discovery Driven By Social

25

Unique users across all Business Insider properties

Source: Google analytics (September 2015). Reflects all BI properties including Tech Insider

36%

28%

16% 15%

5%

SOCIAL ORGANIC SEARCH REFERRAL DIRECT OTHER

Content Discovery Driven By Social

26

Unique users across all Business Insider properties

Source: Google analytics (September 2015). Reflects all BI properties including Tech Insider

36%

28%

16% 15%

5%

SOCIAL ORGANIC SEARCH REFERRAL DIRECT OTHER

Content Discovery Driven By Social

27

Unique users across all Business Insider properties

36%

28%

16% 15%

5%

SOCIAL ORGANIC SEARCH REFERRAL DIRECT OTHER

Source: Google analytics (September 2015). Reflects all BI properties including Tech Insider

Open Model Drives Scale

28

Concluding Themes

29

• Open or Niche. Not much in-between.

• Platforms driving access (distribution is disrupted)

• The emergence of the ‘prosumer’

• Opportunity (not just disruption)

• Consumers are in control, at greater scale

• Mobile bridges gap between physical and digital

APPENDIX

And An Important Source Of News

31

Is social media an important source of news and current affairs?

Source: Cassandra Report by Noise | The Intelligence Group

60% 21%

19% Yes

No

Neither agreenor disagree