Morgan Stanley: "Teenagers Don't Use Business Directories". Nothing New Except…

Morgan Stanley, the US research firm, released a report this week titled “How Teenagers Consume Media“. Written by a 15 year-old summer intern, the document explains what is relevant and what is not in today’s media/technology world from a teenager’s point of view.

Highlights:  

On newspapers: “No teenager that I know of regularly reads a newspaper, as most do not have the time and cannot be bothered to read pages and pages of text while they could watch the news summarised on the internet or on TV. ”  The intern adds that most of his friends do read the free newspapers like Metro.

On radio: “Most teenagers nowadays are not regular listeners to radio. ” They listen to online radio though.

On social networking: ” Most teenagers are heavily active on a combination of social networking sites. Facebook is the most common, with nearly everyone with an internet connection registered and visiting >4 times a week. Facebook is popular as one can interact with friends on a wide scale. On the other hand, teenagers do not use twitter.”

On directories: ” Directories Teenagers never use real directories (hard copy catalogues such as yellow pages). This is because real directories contain listings for builders and florists, which are services that teenagers do not require. They also do not use services such as 118 118 because it is quite expensive and they can get the information for free on the internet, simply by typing it into Google. “

On mobile phones: ” Mobile Phones 99% of teenagers have a mobile phone and most are quite capable phones. “

What it means: more anectodal than data-driven evidence, this report nonetheless confirms many things we take for granted now but it still holds a few surprises. The observation that teenagers don’t listen to radio regularly is, to a certain extent, a surprise to me. Radio used to play a very important social role when I was young but this might explain why we hear so much ’80s music on commercial radio these days. The industry don’t cater to youngsters. They’re trying to hold on to listeners from 20 years ago. A bit of a surprise on the cold reaction to Twitter as well but then again, they’re not prepared to build a second social graph after having spent so much time building one on Facebook.

On the other side, I’m not surprised at all by newspapers and business directories usage. I suspect very little teenagers (except for me!) used to read print newspapers in the past and Yellow Pages usage is usually driven by life events, most of them happening after you leave your parent’s house. So, no surprise there. I think what should concern directory publishers is two-fold. First, teenagers think that Google will provide them with the answers Yellow Pages used to provide to their parents on business searches. So, in effect, as Seth Godin said, “Google is the Yellow Pages”. Second, because they’re heavy users of Facebook, teenagers now bring their network of friends (their social graph) along with them wherever they go (including with their mobile device). That proximity enables easy word-of-mouth recommendations. So, what does that mean for publishers? It means they need to embed themselves wherever these kids will go for references as you might not be able to convince them to use your core web site.

Morgan Stanley: "Teenagers Don't Use Business Directories". Nothing New Except…

Morgan Stanley, the US research firm, released a report this week titled “How Teenagers Consume Media“. Written by a 15 year-old summer intern, the document explains what is relevant and what is not in today’s media/technology world from a teenager’s point of view.

Highlights:  

On newspapers: “No teenager that I know of regularly reads a newspaper, as most do not have the time and cannot be bothered to read pages and pages of text while they could watch the news summarised on the internet or on TV. ”  The intern adds that most of his friends do read the free newspapers like Metro.

On radio: “Most teenagers nowadays are not regular listeners to radio. ” They listen to online radio though.

On social networking: ” Most teenagers are heavily active on a combination of social networking sites. Facebook is the most common, with nearly everyone with an internet connection registered and visiting >4 times a week. Facebook is popular as one can interact with friends on a wide scale. On the other hand, teenagers do not use twitter.”

On directories: ” Directories Teenagers never use real directories (hard copy catalogues such as yellow pages). This is because real directories contain listings for builders and florists, which are services that teenagers do not require. They also do not use services such as 118 118 because it is quite expensive and they can get the information for free on the internet, simply by typing it into Google. “

On mobile phones: ” Mobile Phones 99% of teenagers have a mobile phone and most are quite capable phones. “

What it means: more anectodal than data-driven evidence, this report nonetheless confirms many things we take for granted now but it still holds a few surprises. The observation that teenagers don’t listen to radio regularly is, to a certain extent, a surprise to me. Radio used to play a very important social role when I was young but this might explain why we hear so much ’80s music on commercial radio these days. The industry don’t cater to youngsters. They’re trying to hold on to listeners from 20 years ago. A bit of a surprise on the cold reaction to Twitter as well but then again, they’re not prepared to build a second social graph after having spent so much time building one on Facebook.

On the other side, I’m not surprised at all by newspapers and business directories usage. I suspect very little teenagers (except for me!) used to read print newspapers in the past and Yellow Pages usage is usually driven by life events, most of them happening after you leave your parent’s house. So, no surprise there. I think what should concern directory publishers is two-fold. First, teenagers think that Google will provide them with the answers Yellow Pages used to provide to their parents on business searches. So, in effect, as Seth Godin said, “Google is the Yellow Pages”. Second, because they’re heavy users of Facebook, teenagers now bring their network of friends (their social graph) along with them wherever they go (including with their mobile device). That proximity enables easy word-of-mouth recommendations. So, what does that mean for publishers? It means they need to embed themselves wherever these kids will go for references as you might not be able to convince them to use your core web site.

118.com Launches US Version

It looks like the US version of 118.com is now available in soft launch. You can search for both business and residential data in the New York area and see web site thumbnails. The about us section says the site will offer ratings and reviews but I haven’t seen any yet. 118.com is owned by InfoNXX, a directory assistance supplier in various countries including The Number 118-118 in the UK, Le Numero (France), Il Numero (Italy), Die Nummer (Switzerland), and Conduit (Ireland).
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What it means: the web site is not really differentiated from other US local search site and the brand is not very well known in North America (118 is the equivalent of 411 in the UK and France). Is it the first volley before the introduction of a US-based free 411 service from InfoNXX?

Directory Assistance Ad Revenues: $462M in 2012

The Kelsey Group just released some data around future directory assistance advertising revenues.

“Annual U.S. revenues for advertiser-sponsored directory assistance, also referred to as free DA, will grow from $14 million in 2007 to $462 million in 2012, according to The Kelsey Group. (…) “We anticipate ad-sponsored directory assistance will morph into an audio ad business and a wireless play,” said Matt Booth, senior vice president and program director, Interactive Local Media, The Kelsey Group. “The combination of audio ads and wireless pay-per-call and text ads will drive superior per-call economics over time.”

What it means: Directory assistance (DA) has always been part of the directional media landscape but for the longest time, you could only do “known-name” searches. The introduction of enhanced content (including categories) within DA creates yet another media channel for consumers to find business information. For local media players who have embraced content digitization and/or pay-per-call, DA becomes a great distribution channel to promote their advertisers. For others, it might feel like more fragmentation is happening in the directional marketplace. I highly recommend embracing this channel as a way to reach more users on the move.