[CR] Digital Channels: Another vision of the platforms war! (2/2)

Soichi NAKAJIMA, Senior Consultant for the Innovation Business Unit, IDATE


In the Internet world we now think at the platform level. Platforms play a great impact in the tourism industry. Hotel chains offer booking platforms.

How is the tourism industry evolving in the Internet era ? More than words I prefer to show you insightful Slideshares presented by the consultant (to be viewed on New Generation Platforms)

Slideshare Soitchi 1

 Click on the image to get the entire Pwt presentation

The market is divided between traditional tourism platforms and newcomers on this market. Booking.com aims to put the customer in direct contact with hotels to ease their choice and the final step: book.

The non-traditional room provider Airbnb came to disrupt and change the way rooms are sold. Airbnb focus on giving a wide array of room providers all over the world. The other disrupter expected to take its share is Google. It expects to bring new concepts.

Overview of Internet companies where the market is in the hands of American and Chinese companies.

Soitchi 2

Peter VERHOEVEN, Managing Director Europe, Middle East, Africa, Booking.com

We are in front of an ocean of opportunities. For 10 rooms available booking.com is selling 8 rooms. Previously named booking.nl, the company began a few years ago thinking about new ways to sell rooms. 19,000 are transacted over the platforms. This European startup is changing consumer trends.

Peter Verhoeven

But what made us successful? We're striving to get a real focus on accommodation. Booking made sure to have all the required resources, reminding itself to be always technology driven. Their motto in mind: transparency wins. Three catalysts have been identified to trigger action: price / location / peer reviews. Experience has an harnessing power. Everything you see today are the result of beta testing. 1,000 experiments are done everyday. Small test experimentation, data driven, always with the customer in mind made the result we have today.

86% of global travellers are likely to book using a smartphone. ⅓ bookings on booking.com come via a mobile device. We need to stay relevant. The customer wants instant confirmation and be part of the chain value. An hotel with 10 to 15 rooms located in the mountains wants to be present at an internet worldwide level. A lot of potentiality lies ahead.

Booking Airb 2

Alex SCHLEIFER, Head of Design, AirBnB

We are dedicated to offer a platform presenting technical layers between guests, hosts and supplier transactions. We target to build a community where people?16 million travellers, can make friendships.

Europe now counts more than 50% of those travellers. Airbnb is present in 191 countries. France is a huge marketplace for Airbnb. Every trip on Airbnb is unique. The company is becoming good at matching and wants to speed up the sense of community. Their will is to customize and establish deep human contacts.

Alex Schleifer is mission driven and reminds their motto ‘Belong anywhere’. Create an environment and technology adapted to make it happen. He manages to change the way we look at travel.

What did you deeply transform?Community is a movement.The city as a whole is forward thinking. ‘You need to work with guts to make it happen’. Airbnb pays taxes in cities where people are hosted.

 Technology is one step, the next is people and engagement. We facilitate human to human interactions. There’s place for everyone in that competition.

 Alex S Airb

WEN Rui, Director of national Business Development, Youku Tudou

Youku Tudou is one of the largest video websites in China and was one of the first to produce its own content. Investments in linear television tend to have reached a plateau in China, and by 2016 investments in digital media will exceed those of TV for the first time.

Web-based content acts as an incubator. The power of the fan community is strong. The anchor for a web show offered to host a 4-hour show every 31 December for the next twenty years. Tickets to the show were sold for 1,000 USD each. 6,000 tickets were sold in the first 10 minutes.

We are also creating video commerce solutions that enable viewers to buy the items they see on-screen directly.

"The future of online video websites is about collaborating". And not being opposed to traditional producers.

Why do we consume TV? We crave belonging. TV engages us, it reaches millions of people in no time.

Mobile has implied time shift, liberated audiences. Youku Tudou is the Chinese Netflix founded in 2005. We entered a new era of Online Video Marketing. Our top priority is to get traffic to get more investors to get more advertisers.

The company targets to be N°1 across three screens: PC, phone, TV. Youku Tudou has:

  • the power of video
  • user loyalty
  • time spent

In 2012, Youku acquired Tudou. Now they have merged.

‘We are connectors. We produce good content for our audience. We make revolutionized changes.’

IP (Intellectual Property) is a real issue as for song, movie, web based content. IP can be monetized and licensed to generate even more IP products. The company wants to explore things that have never been seen before.

Rui Wen presents Youku Tudou has a real beehive ‘Swiss knife’ dedicated to give customized and branded content to our audience.


Interview from Rui Wen 

And what if partnerships were the way forward for digital transformation?

Carlo d’ASARO BIONDO, President EMEA strategic relationships, Google

Dynamic disrupters are becoming more influential than the CAC 40. Google has and opens campuses all over Europe.. Frontiers of industries collapse. A structure has been created devoted to partnerships.

What’s the value we are bringing to customers?

Time is of people working together, transparently.

A quick look of another project underway launched by Alphabet: Google car.

How can we collaborate with car companies?

The era of companies doing things alone is now changing. We want to answer to a specific need and create from scratch. Standing still in a moving world is impossible. We make a wise and careful use of data.





World Internet Markets



Senior Consultant at IDATE


The e-commerce worldwide revenues will rise from 818 billion EUR in 2012 to 1 319 billion EUR in 2016

Our ongoing tracking of the main Internet markets – Search, Social Networking, Video, e-commerce, Mobile apps, Online advertising – for fixed and mobile access is a very helpful source for a better understanding of the World of Internet. You can find some of our results for the e-commerce below.

Online shoppers: penetration varies depending on country

  • Between 60% to 80% penetration for USA, the UK, France, Germany, South Korea.
  • Italy and Spain lag behind, largely due to lack of market maturity. Conversely, Japan leads with over 80% penetration. China is expected to show the highest growth.
  • Worldwide it is a battle between Amazon and eBay, with strong local players in Asia such as Japan’s Rakuten

Proportion internet users shop online

E-commerce revenue: clear leaders in USA and China

  • USA the clear leader. the UK, France and Germany leaders in the EU. EU-27 total sales comparable to US.
  • In Asia, China leads and is expected to show impressive growth, closing the gap with the United States.
  • E-commerce already very well-established in Japan, so little room for growth.


Revenue per online shopper: Europe in good stead

  • EU-5 reporting strong sales, with the UK, France and Italy having a higher per-user e-commerce revenue than the USA, and Germany and Spain not that far behind.
  • Asian figures significantly lower, especially in South Korea and China, although Japanese figures comparable to USA and the EU-5.

Share of m-commerce: Japan and South Korea clear leaders

  • m-commerce in Japan and South Korea has by far the biggest share of e-commerce sales, due to the maturity of the mobile Internet in these two countries.
  • m-commerce in the US and the EU-5 still fledgling, but will develop apace with the mobile Internet.


Senior Consultant at IDATE

> Visit our website for more information on our World Internet observatory updated half-yearly.


World Internet Usages & Markets


Senior Consultant - DigiWorld Institute by IDATE


The turnover of e-commerce: 1.34 trillion EUR in 2016


IDATE has just published its new edition of “World Internet Usages & Markets” report. This report provides data and forecasts on Internet services markets – usage and revenue, by country and region. It covers Europe, North America and Asia, and analyses both the major trends in each segment and the market’s key players.

“The revenues of key services (online search, video-sharing, social networking and e-commerce) will experience double-digit growth, reaching more than EUR 108 billion for online advertising in 2016.” comments Soichi Nakajima, Project Leader and senior consultant at IDATE. “This solid growth will nevertheless be limited in 2012 by fears of a recession. E-commerce is another industry heavyweight, with smaller margins but with an estimated turnover of over EUR 1,300 billion by 2016” 

The Internet economy

The revenues from the Internet economy considered in IDATE’s recent study are of three types:

  1. Revenues related to advertising, which in 2011 accounted for almost EUR 53 billion worldwide;
  2. E-commerce, with a global turnover of EUR 717 billion in 2011, and operating margins obviously much lower than advertising;
  3. Revenues from fee-based services and content. This study focuses exclusively on feebased video services, which generated a turnover of EUR 3.7 billion in 2011.
  1. The Online advertising market

The online advertising market is highly concentrated around a few support websites. Google accounted for nearly 50% of global income from online advertising in 2011 (almost EUR 27 billion). Facebook is still not terribly strong in this market, earning just over 3 billion EUR in 2001, only slightly less than Yahoo! whose income is tumbling. In order to better compete with Google, Microsoft and Yahoo! but also Facebook and Microsoft have in fact joined forces, strengthening the oligopolistic effect. Google, Facebook, Microsoft and Yahoo! are also major players in most national markets, with the exception of China – where Baidu and QQTencent reign supreme – and South Korea (NHN/Naver,Daum…).

The online advertising market is more fragmented upstream of the value chain: the advertising segment is rather dispersed, and the search marketing solutions, made affordable through high automation, make this advertising medium accessible to a large number of advertisers, even modest ones (SMEs). All major support websites (portals such as AuFeminin, news portals, ISPs, etc.) seek to develop their own advertising activity on the fixed Internet.

  1. The E-commerce market

The turnover of e-commerce will continue to grow steadily, with double-digit growth rates, reaching more than EUR 1,340 billion in 2016. E-commerce still represents only 1% to 8% of retail sales and its growth will be fuelled by several factors:

  • An increasing number of Internet users (particularly in China) 
  • An increasing number of Internet users shopping and paying online, particularly in countries where e-commerce is still relatively incipient, such as Italy and Spain
  • An increase in the average annual purchase volume per buyer
  • On the other hand, new sales strategies, including the integration with social networks or localised bundled offers (such as the successful Groupon website, which offers attractive local discount coupons whose validity is subject to a sufficient number of buyers).
  • Lastly, unlike advertising, e-commerce seems more immune to the financial crisis as consumers turn to the Web to find the best prices.

              Revenues of e-commerce by region, in 2011 and 2016 (million EUR)

Source: IDATE, in "World Internet Services Market", December 2011

  1. Revenues from fee-based services

Although the Internet economy is dominated by advertising revenues associated with free services, some players are able to charge consumers for value added services or digital content (as streaming or download).

Online video in particular is a major segment of online content, with a strong monetization potential through fee-based services, particularly with fixed access, and will continue to grow to represent a market of over EUR 12 billion in 2016 in OTT distribution (especially in relation to connected TVs). 

The Emerging M-Commerce

Mobile commerce has emerged with the purchase of media content (ringtones, music, etc.). It will develop with other types of digital assets, such as travel and event ticketing. Physical assets are following, already representing more than 40% of m-commerce activities in Japan. M-commerce is particularly well represented in Japan, where it reached over EUR 10 billion in 2011. The other markets, still far behind Japan, should experience growth rates above 50% per year. 

Market growth will be driven by different factors:

  • Deployment of broadband mobile networks (3G and LTE)
  • The spread of smartphones with easy browsing capabilities on mobile websites, and payment solutions adapted to the device
  • Commercial strategies of online merchants, promoting the use of mobile services as an extension of their standard (i.e., fixed) website. EBay reports EUR 2 billion in revenues from mobile consumers in 2010, or 1.5% of its total turnover

Further information about DigiWorld Insitute by IDATE activites & researches : www.idate.org

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Contact :

Soichi Nakajima - Project Manager - s.nakajima@idate.org

Jeremy George - j.georges@idate.org - Tel +33 (0)6 10 607 808