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TREND BRIEFING




CULTURE, TECHNOLOGY &
ENTREPRENEURSHIP

ABAF TOUR, AUSTRALIA 2012


    Peter.Tullin@CultureLabel.com
    Simon.Cronshaw@CultureLabel.com

    @petertullin @culturelabel

    facebook.com/culturelabel
OUR BUSINESS PRINCIPLES:
CULTURAL ENTREPRENEURSHIP


CULTURE AND COMMERCE
BETTER TOGETHER


CULTURE MEETS CONSUMERS
ART WITHOUT WALLS


INNOVATIVE BUSINESS MODELS
GET ON WITH DOING IT
ABOUT CULTURELABEL
CULTURAL ENTREPRENEURSHIP
•   CultureLabel.com is a curated online
    marketplace for cultural and design
    products and art. Launched in 2009 with
    25 partners there are now over 650
    organisations and 20,000 products onsite

•   Named one of the UK’s Top 50 web design
    influences by Design Week

•   Our ecommerce technology powers
    online retail for organisations including
    Saatchi Gallery and Whitechapel

•   CultureLabel is a for-profit, privately
    financed enterprise. Our investors require
    commercial and cultural dividends

•   CultureLabel Agency works with cultural
    sector and commercial clients from the
    Houses of Parliament to Google on
    income generation, technology, product
    development and marketing projects

    www.CultureLabel.com/agency
INTRODUCING CULTURELABEL.COM
• Aggregating 650+ museums, galleries, theatres, festivals, artists,
  designers, music venues, craft makers and creative retailers

• Partners include Tate, V&A, Damien Hirst, Design Museum, Saatchi
  Gallery, Royal Academy, Whitechapel Gallery, Royal Collection,
  National Theatre, British Museum, Tracey Emin, Abbey Road Studios,
  Versailles, New Museum, NYC and the Royal Opera House
CultureLabel Trend Briefing
ECOMMERCE
THE ONLINE ART REVOLUTION
•   Own Art lets UK Taxpayers borrow from £100 to
    £2,000 spread over 10 months, interest free to
    buy art (APR 0% Representative)

•   CultureLabel partnered with Arts Council
    England & Creative Scotland to take the
    scheme online to grow ecommerce sales

•   Pilot project includes several thousands works
    of affordable art and craft from 500+ artists
    across 70 commercial and not-for-profit
    galleries and studios. Many organisations had
    never previously sold online. Partners Include
    Whitechapel, BALTIC and RSA

•   Artists range from established names,
    including Tracey Emin, Sir Peter Blake &
    Damien Hirst to emerging talent at the Royal
    College of Art

•   Latest developments include In-gallery iPads
    to promote online stores, new co-funded and
    marketing initiatives that have made the site
    page one on Google for key search terms
BUILDING A CONSUMER BRAND
REACHING THE MAINSTREAM WITH CURATED CULTURAL PRODUCTS & ART
CULTURAL ENTREPRENEURSHIP
INTELLIGENT NAIVETY


CONSUMER INSIGHT

              +   CULTURAL ASSETS

   =    OPPORTUNITIES


              +   RESOURCE ALLOCATION

              +   STAFF CULTURE

              +   MARKETING


   =    AUDIENCE DEVELOPMENT

   =    NEW COMMERCIAL INCOME


    THE COMMERCIAL AND CULTURAL
    DIVIDEND
TREND SCOUTING
A NEW CONTRACT: TREND SAFARI
    WHAT’S NEXT?

   Are we ‘making’ or ‘catching’ trends?

   •What are audiences up to (existing and
   potential)? An overview of selected
   consumer trends and what they mean
   for cultural organisations?

   •Which trends closely match our asset
   base allowing us to lead the way?

   •Where do we find our audiences?
TREND SCOUTING
THE KODAK EXPERIENCE

•   Not surprisingly, it is very hard to predict the
    future

•   It is as hard to make change happen if the
    model does not appear to be broken

•   Look what happened to Kodak, the inventors
    of the Digital Camera! Or Blockbuster vs Netflix

•   The pace of these changes are accelerating.
    Groupon reached a billion dollars (US) in less
    than 2-years. It took Apple 8-years

•   If it is not broken… Amazon.com is now the
    biggest library in the world. 5-years ago would
    you have believed eBooks would be the
    dominant format? Kindle only launched in
    November 2007. We should always be asking
    ourselves this question. If we did not exist,
    would we build us again?

•   How do we prepare for change as a
    constant?
LIBRARY OF BIRMINGHAM
REWRITING THE BOOK

•   £193 million capital project creating one of
    Europe’s biggest public libraries

•   What are the customer journeys for the
    public library going to be in the 21st Century?

•   Competitors to the ‘traditional’ public library
    model include Facebook, Google, Amazon,
    Publishers, Starbucks. GoodReads has over 7
    million members contributing reviews across
    250 million books. Amazon eBook sales
    overtook physical sales in July 2011. $9.6
    billion sales per annum by 2016 (3 x higher
    than now)

•   Vision to blur the digital and physical. A
    space where customers can encounter
    digital content and ideas

•   Experiential space Incorporating theatre,
    retail, catering. A new ‘living room for the
    city’
HOUSES OF PARLIAMENT
COMMERCIAL STRATEGY

How do you exploit the untapped commercial
potential of an iconic World Heritage Site, protect the
dignity of parliament and not disrupt a building which
is essential to the day to day business of state? This
was the challenge for CultureLabel. Some highlights:

•Balance is essential but it can be done. Royal
Collection generated £41,785,000 in 2011 (£12,093,000
in retail and catering)

•Structure - recommended Trust status

•Developing the brand

•‘Premium’ aggregated London Shop with high-street
presence utilising the Parliament estate

•Tiered offers

•Franchise catering, Corporate Hospitality,
Membership

•See www.parliament.uk for the full report
1.
     CONSUMER INSIGHTS
WHAT ARE AUDIENCES UP TO
(EXISTING AND POTENTIAL)?

                            TRENDS
NEVER EVEN VISITED
THE RISE AND RISE OF DIGITAL CULTURE


•   The web is already creating alternatives to
    the physical visit and the possibilities will
    only continue to grow

•   This will also create new revenue
    opportunities as many are created by or
    co-produced with major technology
    companies or well funded start-ups.

•   These digital encounters with culture are
    not better. Just different

•   Google Art Project is redefining how we
    experience visual art online

•   The VIP Art Fair is another example
SEARCH & DISCOVERY
VISUAL ART


•   Algorithm - includes sites like Art.sy that are
    seeking to be the Pandora or Last.fm of art

•   Curated - sites such as CultureLabel.com
    offer a handpicked curatorial service to
    consumers

•   Community - Saatchi Online or Red Bubble
    grows its audience by allowing any artist to
    create a profile and upload and list work.
    These use filters like ‘best selling’ for
    example to surface the more popular
    works. There is often still a layer of hand
    curation such as in the Threadless.com
    model for T-shirts
CONTENT
ON DEMAND CULTURE FOR YOUR SMART TV

•   Consumers have yet to buy the 3D hype
    but Smart TV penetration is growing rapidly
    as are the use of associated streaming
    devices such as PS3 or Xbox 360. Netflix and
    LOVEFiLM are both bringing content into
    our homes this way

•   Already people are pitching business ideas
    for niche content. What will rise for arts
    programming? For example, there is
    already DigitalTheatre.com and
    CurzonOnDemand.com is already offering
    a streaming service for arthouse lovers
    including films on show in its cinemas

•   It’s already big. 100 million people watched
    the Royal Wedding online

•   Integration of social, commerce and
    demise of linear programming are all
    happening as we speak
MULTI-CHANNEL CULTURE
ROYAL OPERA HOUSE


•   Taking content into cinemas but also 3D,
    DVD, BLURAY, CD, MP3 and online
    streaming

•   The purchase of Opus Arte brought the
    means of distribution in-house

•   Film4.0 is designed to make multi-platform
    the core on new production to discover
    new ways of making, marketing and
    distributing films and engaging new
    audiences online

•   See also V&A Channel and Tate Shots and
    the hugely successful NT Live
CONTENT
NEW MEDIA
•   Cloud by Troika at Heathrow, Terminal 5 has
    616,047 YouTube views and counting (as at
    12/07/11). Tate is producing cinematic trailers
    to exhibitions

•   30% of people who watch a YouTube video will
    share with a friend. 700 videos tweeted every
    min. 300 years of video viewed on Facebook
    every day

•   Using overlays on your videos so people can
    click through to your site is crucial

•   In the UK there is a YouTube non profit channel
    with free tools available

•   Where you are hosting content speed is crucial.
    1 second delay = 7% loss in conversions, 16%
    reduction in customer satisfaction. 2-3 seconds
    = amount of time people are willing to wait for
    a web page to load. 8 seconds = amount of
    time most users will give your site before
    deciding whether to stay                          Cloud, Troika, Heathrow,
                                                      Terminal 5, London
SOCIAL
ITS GOOD TO SHARE
•   The phenomonal rise of websites such as
    Pinterest, Svpply and Tumblr tap into a
    trend focused on discovery and self-
    expression where people want to ‘follow’,
    ‘share’ and ‘identify’

•   One-way communication is dead in the
    digital age and passive brands are at risk.
    Consumers are now curators; actively
    broadcasting, remixing, compiling,
    commenting, sharing and recommending
    content, products, purchases, experiences
    to both their friends and wider audiences

•   The Guardian says its Facebook App was
    the top generator of traffic at times in
    February 2012. Six months ago, Google
    provided 40% of traffic

•   Instagram socialises photographs and
    allows visitors and museums to share
    images. Brooklyn Museum has 10,299
    followers already (April 2012)
MONETISING SOCIAL
VIRTUAL LIVING

•   People are spending extraordinary
    amounts of time in these virtual worlds and
    social gaming experiences

•   The sale of virtual gifts and goods now
    exceeds $3 billion. That’s more than the
    entire confectionary spend of US cinema
    goers

•   Playmob has just raised £500,000 from
    NESTA for it’s giverboard software

•   Virtual product representations can also
    be used in eCommerce such as in the sale
    of art work in the Own Art online platform
DIGITAL TO PHYSICAL
TECH ENTREPRENEURS BLUR THE BOUNDARIES

•   Integration of online and offline retail technology
    such as eBay’s Xcommerce platform

•   CultureLabel has introduced touchscreen
    devices into venues such as the Saatchi Gallery
    and Barbican to enable Own Art purchases in-
    gallery allowing self-service and eliminating the
    need for paper-based applications. Interactive
    devices are now in multiple formats

•   Barcode scanning Apps by Amazon allows
    consumers to price check and order through
    their mobile

•   Google Goggles also leverages the collection as
    a potential trigger for purchase. Getty Museum
    partnership allows uses camera phone to identify
    art works

•   QR Codes are another way of getting additional
    content from physical or digital prompts such as
    from Google Books allowing new navigation or
    direct purchase such as Tesco Home Plus in
    Korea
MOBILE CULTURE
DIGITAL TO PHYSICAL



•   The Shopkick App transforms the high
    street into an “interactive world using your
    smartphone”. It already has over 3 million
    active users, over 1 billion offers viewed
    and $110 million sales driven in its first year
    of operation

•   History Channel created a Foursquare App
    to ‘push’ you facts and videos on locations
    you visit. The more locations you discover
    the closer you get to the coveted Historian
    badge. The History Channel has signed up
    more than 20 UK visitor attractions all of
    which are offering deals to Foursquare
    users. There were 100,000 check-ins in the
    first two weeks alone
DIGITAL TICKETING                                Somerset House / Courtauld
                                                            Gallery, London
           COURTAULD GALLERY

           •   Introduced use of ‘airline style’ 2D
               barcode tickets for the blockbuster
               Michelangelo exhibition

           •   Allows for sale of add-on merchandise
               such as catalogues

           •   Particularly effective with targeted
               discounting tactics such as 10% off
               exhibition merchandise alongside a ticket
               purchase. This this has driven up the
               average basket order considerably

 …and •IT’S area will continue to grow and grow
         This STILL ABOUT
QUALITY,as consumers seek convenience. Withyour
          INTEGRITY and
         Near Field Technologies, the ticket or
                      context…
         virtual credit card can be used to pay for
               things inside the venue. Eventbrite.com is
               one of the fastest growing dot com
               businesses in the world and is expected to
               file for an IPO this year
AUGMENTED REALITY
DIGITAL TO PHYSICAL



•   Holition uses Augmented Reality to
    demonstrate how accessories will appear
    on you

•   Working with designer-makers such as
    Hannah Martin

•   With on-demand production technologies
    this means you can produce a single proto-
    type for digital scanning so stock production
    risks are minimal

•   Allows the customer to shop from home
    rather than requiring the physical
    experience
THE NEW HOLLYWOOD
GAMING TAKES CENTRE STAGE
•   Call of Duty: Modern Warfare 3 made a billion dollars
    faster than Avatar the biggest movie ever - in just 16
    days (Avatar took 17 if you are interested)

•   Zynga has turned social gaming into a multi-billion
    business publishing Facebook titles such as Farmville

•   Moshi Monsters is the most popular virtual world for
    young people with 60 million users (70% of UK children)

•   App games account for 64% of time spent. They have
    created the market of the the $0.99 casual gaming
    title as opposed to the triple AAA $60 releases

•   Tate Trumps and Race Against Time are successful
    examples of creating a gaming experience to
    develop a playful interaction with art

•   The Royal Opera House have recently launched an
    App called the Show Must Go On where the user goes
    behind the scenes as a venue manager to ensure a
    successful production as the title suggests

•   Serious Gaming helps solve real world problems
PERSONALISATION
CUSTOMISING CULTURAL EXPERIENCES


•   The Whitney Museum has introduced a
    membership scheme based around
    different interests

•   Commercial attractions such as the
    London Eye have created multiple
    personalised packages including Late
    Night, Champagne ‘Flights’ and
    themed capsules for weddings or in
    association with partners such as Green
    & Blacks for Easter

•   CultureLabel.com sells experiential
    products such as Afternoon Teas
    combined with tickets to major
    exhibitions at the British Museum
URBANOMICS
URBAN CONSUMERS

•   The dramatic growth of cities is giving rise to
    new forms of enterprise

•   Urban consumers tend to be more daring,
    more liberal, more tolerant, more
    experienced, more prone to trying out new
    products and services

•   Strong affinity with cultural audiences

•   CultureLabel.com has grown on the back of
    urban consumers that match this profile and
    it’s expansion strategy is based on reaching
    more urban consumers based on a range of
    predominantly urban creative producers

•   Love Art London have tapped into the
    experience angle

•   The High Line Park Art Programme


                                                      High Line Park, NYC
CULTURAL MASTERPLANNING
PLACE MAKING

•   Kinetica at Spitalfields is an example of a pop-up
    cultural space developed at private sector cost
    as part of a vision to build a 21st Century market

•   The MAKE building with artistic intervention by
    Claire Woods is one of the most viewed public art
    works in London

•   Cultural Branding of sites and place making is
    often driven by Private Sector consultancies such
    as FutureCity working with developers and
    architects to help them with planning gain (% for
    art), design differentiation, sustainable
    communities and place making

•   In the UK, the recession has greatly impacted
    such deals (especially outside of London). Some
    developers have sought to renegotiate on
    planning agreements to make developments
    financially viable. This makes it important these
    cultural interventions tick more than one of the
    boxes above to ensure they make the cut
SOCIAL - LITES
REDEPLOY THAT MARKETING BUDGET NOW!
•   They are all about discovery, as consumers
    become curators; actively broadcasting,
    remixing, compiling, commenting, sharing
    and recommending content, products,
    purchases, experiences to both their friends
    and wider audiences

•   Accelerated and amplified by the growth of
    social media

•   Secret Cinema is a business that has grown
    predominantly by word of mouth using social
    media and eschewing all typical marketing
    techniques as not cost effective

•   It has recently moved to take on the
    multiplex head to head with longer running
    screenings in entertainment venues in
    multiple locations with The Other Cinema
    venture

•   Tate now has 594,075 Followers and 358,073       Secret Cinema, Lawrence of
    Fans. A recent exhibition discount to fans saw   Arabia, Alexandra Palace
                                                     London
    10,000 redemptions
Frank’s Campari Bar,
PLANNED SPONTENEITY                                      Peckham, London
PERMANENT POP-UP CULTURE

•   Live a little! A reaction against self-control and
    negativity created by recession norms

•   Explosion of pop-up culture experiences is
    finding more and more innovative expressions
    and reaches the mainstream quicker than ever

•   People spend more on experiences making
    fewer more luxurious purchases

•   The Museum of Everything has grown from a
    Frieze fringe event into a major global brand
    with shows at Selfridges, Tate and most
    recently New York

•   Frank’s Campari Bar is one of the best
    examples of transforming neglected space
    into a cultural experience, in this case a multi-
    storey carpark in Peckham, London

•   See also Punchdrunk & You Me, Bum, Bum Train
OUT OF HOURS CULTURE
TARGETING NEW CONSUMERS

•   Sleepovers at the Natural History Museum

•   LATES sponsored by Apple, Sony etc. and
    Museums at Night sponsored by SKY

•   Somerset House Ice-rink by Tiffany

•   Gigs at Eden

•   Culture is key to the backdrop but the
    experience is the draw
2.
     CONSUMER INSIGHTS
WHICH TRENDS CLOSELY MATCH CULTURAL
ASSETS ALLOWING US TO LEAD THE WAY?

                           TRENDS
STORIFY
PURPOSE DRIVEN BUSINESSES

•   We are selling ‘products with soul’ and we
    need to tell their story in a compelling way

•   Consumers are seeking a deeper
    engagement, and want products to have a
    story they can relate to and this coincides
    with the rise of purpose driven businesses

•   Use of video, audio, design, animation,
    compelling copy and editorial, social
    integration i.e. All Saints

•   Crafted, operated by the Walpole Group
    brings together luxury brands with craft
    makers

•   Net-a-porter App uses the luxurious real
    estate of the iPad to create an online
    magazine experience

•   Kickstarter.com and Etsy are great examples
    of wildly successful commercial organisations
    that impact our sector                          New Museum, New York
PASSION BRANDS
BRAND EXTENSION


•   The V&A have taken the brand onto the
    High Street in an innovative way. The V&A
    Wine Bar combines an art bookstore and
    wine bar

•   The recession could accelerate this trend
    in Europe and the US as the new found
    power of global cultural brands could be
    further monetised and meet growing
    consumer demand and international
    opportunities in growth economies

•   Saadiyat Island in is perhaps the most high
    profile example to date incorporating a
    branch of the Louvre and Guggenheim. A
    careful balance will need to be struck
    however to protect the integrity of the
    brand
CULTURAL BRANDING
CO-PRODUCTION

•   Sponsorship evolved, often extremely
    collaborative such as the Sony PlayStation
    Series or Creators Project (Intel). No longer ‘lolly
    for logos’

•   Sony also worked with Punch Drunk to create a
    live adventure game for the launch of a PS3
    title called Resistance 3

•   Inspiration - Toshiba are working with The Louvre
    to light some of it’s most iconic features with its
    energy saving low-CO2 LED lighting
ARTIST AS BRAND
•   Launch of DamienHirst.com

•   Emin International at Spitalfields, London

•   Rob Ryan - Ryan Town & YSP collaboration

•   Zaha Hadid x Design Museum

•   Takashi Murakami x LVMH at Moca
CREATION
DIGITAL CULTURE

•   Sedition.com is the first online platform
    allowing you to buy and sell digital art from
    artists including Damien Hirst and Tracey
    Emin

•   David Hockney’s used the iPad to create
    works for his current blockbuster exhibition
    at the Royal Academy

•   Becks Green Box Project is an AR art tour

•   BMW Tate Performance Room

•   The Space (BBC, Arts Council England)
…heritage is so
  cool again…
3.
                        MARKETING
WHERE DO WE FIND
OUR AUDIENCES?

 PLATFORMS/CHANNELS
YOUTUBE
MUSIC

•   101 musicians from 33 countries chosen on
    YouTube to make up the YouTube symphony
    orchestra. In 2011 it converged on Sydney

•   YouTube extravaganza has become the most-
    watched live music concert on the internet
    displacing U2 with over 33 million views
LITERATURE
THE APP BOOK

•   Waste Land has been hugely commercially
    success making a return on the investment
    only 6 weeks after release

•   The partner is critical. It was produced by
    Touchpress, the team behind Wonders of the
    Universe, Elements and Biophilia

•   Audio innovation is also occurring with Apps
    like Papa Sangre
MARKETING & AUDIENCE
LITERATURE

•   The world’s largest bookseller Barnes & Noble is
    fighting back head on by taking the tech giants
    on at their own game. Produced their own device
    the Nook, recognising need to create an end-to-
    end ecosystem. Can mirror the Apple and
    Amazon offer + play to their offline strengths of
    their customer base with the advantage of face
    to face contact to help orientate them. Already
    established partnerships with 1,000 libraries

•   3M’s Cloud Library allows you to browse
    anywhere, read anywhere. With the 3M Cloud
    Library, patrons use personal accounts to access
    e-books on their devices. They can check out a
    book on an iPad, take notes while reading on a
    PC, and finish the book on an Android phone. The
    bookmark feature works across all devices, so
    readers never lose their place.

•   Kindle Fire is now a low cost alternative to the iPad

•   What does this mean for libraries?
PHYSICAL REAL ESTATE
OUTDIDE OUR VENUES

•   New Museum x Calvin Klein

•   Southbank Centre Food and Retail offer
    includes permanent fixtures such as Foyles
    Bookstore and pop-up offers such as
    Dishoom and the Vintage Festival curated
    by Wayne Hemmingway

•   National Theatre, UK uses its building as a
    billboard to take advantage of innovative
    new projection technologies for corporate     Dishoom, Southbank Centre,
    partners such as Travelex                     London
AFFILIATES
PRICING PANDEMONIUM AND THE DEAL HUNTER

•   Flash sales, member sales, group activated
    hyper local location based, dynamic pricing

•   Pride in ‘deal’ hunting

•   Stripped down offering for price sensitive
    consumers where economic uncertainty has
    become the new normal

•   Groupon is the best known exponent of
    Group Buying

•   VoucherCloud uses location to offer
    discounts to users of it’s App

•   Gilt.com and Fab.com incentivise members
    with timed flash sales
MADE FOR CHINA
JUST BEING YOURSELF IS NOT ENOUGH


•   It's where the money is. Western brands are
    still favoured over local ones in areas such as
    luxury goods but…

•   The combination of perceived quality with a
    bit of local tailoring, love or exclusivity can
    provide cut through

•   V&A has undertaken a marketing drive in
    Asia with dedicated websites

•   Chinese residents made 30 million+ overseas
    trips in the first half of 2011 alone, up 20%
    since 2010. In comparison, US citizens made
    only 37 million outbound air travel trips
    during the whole of 2010.

•   It just the beginning: The World Tourism
    Organisation has estimated that the total
    number of out-bound tourists from China will
    reach 100 million by 2020.
BEYOND THE WALLS
SEEKING OUT THE AUDIENCE                          Camp Bestival


•   BMW Guggenheim Lab

•   Grand Tour, National Gallery

•   Eurostar, National Gallery

•   Museum of Everything

•   Punchdrunk x Stella

•   Art on the Underground

•   Tate & The Great British Art Debate at Camp
    Bestival
NEAR FIELD COMMUNICATION
THE END OF CASH IS NIGH

•   You can already get on trains, pay for
    coffee using this technology

•   The take-up is already extremely
    widespread in countries such as Turkey and
    it is only a matter or time before the same
    can be said elsewhere

•   Google Wallet allows your phone to
    replace an assortment of cards from Credit
    to ID

•   Nokia has partnered with the Museum of
    London to explore multiple ways the
    technology could enhance the visit once
    you are past the entrance. The
    experiments will range from getting
    information on exhibits, buying tickets to
    future exhibitions, posting ‘Likes’ to social
    media platforms to retail and café
    vouchers

•   Integration with Reward Cards for data
MOBILE CULTURE
CONTENT
•   Mobile First design is a must now (yet fewer
    than half of US museums currently provide
    visitors with an opportunity to use mobile
    technology during their visits - AAM, Nov 2011)

•   In the UK, nearly the same number of searches
    for ‘art’ per month on mobile as desktop

•   There are 5.9 billion mobile subscribers - that's
    87 percent of the world population

•   How many of those phones are smart
    however? 1.2 billion of those subscribers
    browsing the web through their devices
    (accounts for 8.49 percent of global website
    hits and growing)

•   In 2012 more Android smartphones will be
    shipped than PCs and in 2013 Apple will reach
    the same milestone

•   “Tablets such as the iPad will outsell desktop
    and laptop PCs within a few years.” Tim Cook,
    CEO, Apple
MOBILE CULTURE
ECOMMERCE

•   2009 sales were $1.2 billion. In 2015
    predicted to be $119 billion. Online
    sales predicted to go from $210 billion
    to $1.4 trillion in the same period. 50% of
    Groupon’s business is expected to be
    from mobile in the next 2-years

•   51% of smartphone users more likely to
    purchase from a mobile-specific
    website, yet only 4.8% of retailers have
    a mobile site

•   Don’t forget social commerce which is
    largely being driven by mobile devices.
    This is estimated to reach $30 billion by
    2016. CultureLabel has just released an
    App that creates a Facebook shop for
    our members and over 100 partners
    activated this in the first week

•   We are never without a price
    comparison with barcode scanning
    Apps from eBay, Amazon etc.
THE CROWD
FUNDRAISING

•   Generation ‘G’ is an online-fuelled culture of
    individuals who share, give, engage, create
    and collaborate in large numbers

•   ‘Generation Go’ will also create new ideas and
    businesses in the creative and cultural industries
    space. How can we tap into them?

•   Kickstarter appears to be able to help people
    raise big sums as well as small ones. In February
    2012 the platform broke the $1 million barrier for
    two projects. It has the potential to overtake the
    NEA as the key arts funder with over 10% of films
    at SXSW and Sundance funded this way

•   Text giving is also being used to connect with
    the passion of the visit

•   Sites such as Freelancer.com are allowing
    people to use the crowd to slash the cost of
    certain tasks. CultureLabel even crowd-sourced
    new products for Tate. The Public Catalogue
    Foundation and BBC tagged thousands of art
    works in the Your Painting’s initiative
CREATE A NEW BUSINESS MODEL
MICROFINANCE

•   Microfinance is another way to fund cultural
    output that has a commercial value. 691,072 Kiva
    lenders have provided $285 million in loans. The
    performance of these social entrepreneurs has
    been extremely strong to date with a 98.88%
    repayment rate

•   Cockpit Arts have taken another route by teaming
    up with Ingenious Media a Venture Capital Fund
    to provide business development finance for
    makers that are resident in their incubation centre

•   Larger sums have been raised through specialist
    ethical banks such as Triodos who have funded
    studio space development at ACME Studios in
    London

•   Commercial websites such as Saatchi Online have
    also raised substantial Venture Capital funding

•   CultureLabel benefitted from Venture Philanthropy
MOBILECULTURE2
                         JULY 17th 2012, UNIVERSITY OF THE ARTS,
                         LONDON

                         WWW.CULTURELABEL.COM/MOBILECULTURE




AN EVENT BY   SPONSORS   VENUE PARTNER              MEDIA PARTNER
THE CULTURE, BUSINESS
                         & TECHNOLOGY SUMMIT

                         SEPTEMBER 27th 2012, BLOOMBERG, LONDON

                         WWW.CULTURELABEL.COM/REMIX




AN EVENT BY   SPONSORS   ONLINE SPONSOR        MEDIA PARTNER
INTELLIGENT NAIVETY FREE EBOOK AT
   CULTURELABEL.COM/AGENCY

            PETER TULLIN
 PETER.TULLIN@CULTURELABEL.COM
           CO-FOUNDER

     TEL +44 (0) 207 749 6857

   @CULTURELABEL @PETERTULLIN

 FACEBOOK.COM/CULTURELABEL
AbaF’s CultureLabel Tour
#AbaFCultureLabel

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CultureLabel Trend Briefing

  • 1. TREND BRIEFING CULTURE, TECHNOLOGY & ENTREPRENEURSHIP ABAF TOUR, AUSTRALIA 2012 Peter.Tullin@CultureLabel.com Simon.Cronshaw@CultureLabel.com @petertullin @culturelabel facebook.com/culturelabel
  • 2. OUR BUSINESS PRINCIPLES: CULTURAL ENTREPRENEURSHIP CULTURE AND COMMERCE BETTER TOGETHER CULTURE MEETS CONSUMERS ART WITHOUT WALLS INNOVATIVE BUSINESS MODELS GET ON WITH DOING IT
  • 3. ABOUT CULTURELABEL CULTURAL ENTREPRENEURSHIP • CultureLabel.com is a curated online marketplace for cultural and design products and art. Launched in 2009 with 25 partners there are now over 650 organisations and 20,000 products onsite • Named one of the UK’s Top 50 web design influences by Design Week • Our ecommerce technology powers online retail for organisations including Saatchi Gallery and Whitechapel • CultureLabel is a for-profit, privately financed enterprise. Our investors require commercial and cultural dividends • CultureLabel Agency works with cultural sector and commercial clients from the Houses of Parliament to Google on income generation, technology, product development and marketing projects www.CultureLabel.com/agency
  • 4. INTRODUCING CULTURELABEL.COM • Aggregating 650+ museums, galleries, theatres, festivals, artists, designers, music venues, craft makers and creative retailers • Partners include Tate, V&A, Damien Hirst, Design Museum, Saatchi Gallery, Royal Academy, Whitechapel Gallery, Royal Collection, National Theatre, British Museum, Tracey Emin, Abbey Road Studios, Versailles, New Museum, NYC and the Royal Opera House
  • 6. ECOMMERCE THE ONLINE ART REVOLUTION • Own Art lets UK Taxpayers borrow from £100 to £2,000 spread over 10 months, interest free to buy art (APR 0% Representative) • CultureLabel partnered with Arts Council England & Creative Scotland to take the scheme online to grow ecommerce sales • Pilot project includes several thousands works of affordable art and craft from 500+ artists across 70 commercial and not-for-profit galleries and studios. Many organisations had never previously sold online. Partners Include Whitechapel, BALTIC and RSA • Artists range from established names, including Tracey Emin, Sir Peter Blake & Damien Hirst to emerging talent at the Royal College of Art • Latest developments include In-gallery iPads to promote online stores, new co-funded and marketing initiatives that have made the site page one on Google for key search terms
  • 7. BUILDING A CONSUMER BRAND REACHING THE MAINSTREAM WITH CURATED CULTURAL PRODUCTS & ART
  • 8. CULTURAL ENTREPRENEURSHIP INTELLIGENT NAIVETY CONSUMER INSIGHT + CULTURAL ASSETS = OPPORTUNITIES + RESOURCE ALLOCATION + STAFF CULTURE + MARKETING = AUDIENCE DEVELOPMENT = NEW COMMERCIAL INCOME THE COMMERCIAL AND CULTURAL DIVIDEND
  • 9. TREND SCOUTING A NEW CONTRACT: TREND SAFARI WHAT’S NEXT? Are we ‘making’ or ‘catching’ trends? •What are audiences up to (existing and potential)? An overview of selected consumer trends and what they mean for cultural organisations? •Which trends closely match our asset base allowing us to lead the way? •Where do we find our audiences?
  • 10. TREND SCOUTING THE KODAK EXPERIENCE • Not surprisingly, it is very hard to predict the future • It is as hard to make change happen if the model does not appear to be broken • Look what happened to Kodak, the inventors of the Digital Camera! Or Blockbuster vs Netflix • The pace of these changes are accelerating. Groupon reached a billion dollars (US) in less than 2-years. It took Apple 8-years • If it is not broken… Amazon.com is now the biggest library in the world. 5-years ago would you have believed eBooks would be the dominant format? Kindle only launched in November 2007. We should always be asking ourselves this question. If we did not exist, would we build us again? • How do we prepare for change as a constant?
  • 11. LIBRARY OF BIRMINGHAM REWRITING THE BOOK • £193 million capital project creating one of Europe’s biggest public libraries • What are the customer journeys for the public library going to be in the 21st Century? • Competitors to the ‘traditional’ public library model include Facebook, Google, Amazon, Publishers, Starbucks. GoodReads has over 7 million members contributing reviews across 250 million books. Amazon eBook sales overtook physical sales in July 2011. $9.6 billion sales per annum by 2016 (3 x higher than now) • Vision to blur the digital and physical. A space where customers can encounter digital content and ideas • Experiential space Incorporating theatre, retail, catering. A new ‘living room for the city’
  • 12. HOUSES OF PARLIAMENT COMMERCIAL STRATEGY How do you exploit the untapped commercial potential of an iconic World Heritage Site, protect the dignity of parliament and not disrupt a building which is essential to the day to day business of state? This was the challenge for CultureLabel. Some highlights: •Balance is essential but it can be done. Royal Collection generated £41,785,000 in 2011 (£12,093,000 in retail and catering) •Structure - recommended Trust status •Developing the brand •‘Premium’ aggregated London Shop with high-street presence utilising the Parliament estate •Tiered offers •Franchise catering, Corporate Hospitality, Membership •See www.parliament.uk for the full report
  • 13. 1. CONSUMER INSIGHTS WHAT ARE AUDIENCES UP TO (EXISTING AND POTENTIAL)? TRENDS
  • 14. NEVER EVEN VISITED THE RISE AND RISE OF DIGITAL CULTURE • The web is already creating alternatives to the physical visit and the possibilities will only continue to grow • This will also create new revenue opportunities as many are created by or co-produced with major technology companies or well funded start-ups. • These digital encounters with culture are not better. Just different • Google Art Project is redefining how we experience visual art online • The VIP Art Fair is another example
  • 15. SEARCH & DISCOVERY VISUAL ART • Algorithm - includes sites like Art.sy that are seeking to be the Pandora or Last.fm of art • Curated - sites such as CultureLabel.com offer a handpicked curatorial service to consumers • Community - Saatchi Online or Red Bubble grows its audience by allowing any artist to create a profile and upload and list work. These use filters like ‘best selling’ for example to surface the more popular works. There is often still a layer of hand curation such as in the Threadless.com model for T-shirts
  • 16. CONTENT ON DEMAND CULTURE FOR YOUR SMART TV • Consumers have yet to buy the 3D hype but Smart TV penetration is growing rapidly as are the use of associated streaming devices such as PS3 or Xbox 360. Netflix and LOVEFiLM are both bringing content into our homes this way • Already people are pitching business ideas for niche content. What will rise for arts programming? For example, there is already DigitalTheatre.com and CurzonOnDemand.com is already offering a streaming service for arthouse lovers including films on show in its cinemas • It’s already big. 100 million people watched the Royal Wedding online • Integration of social, commerce and demise of linear programming are all happening as we speak
  • 17. MULTI-CHANNEL CULTURE ROYAL OPERA HOUSE • Taking content into cinemas but also 3D, DVD, BLURAY, CD, MP3 and online streaming • The purchase of Opus Arte brought the means of distribution in-house • Film4.0 is designed to make multi-platform the core on new production to discover new ways of making, marketing and distributing films and engaging new audiences online • See also V&A Channel and Tate Shots and the hugely successful NT Live
  • 18. CONTENT NEW MEDIA • Cloud by Troika at Heathrow, Terminal 5 has 616,047 YouTube views and counting (as at 12/07/11). Tate is producing cinematic trailers to exhibitions • 30% of people who watch a YouTube video will share with a friend. 700 videos tweeted every min. 300 years of video viewed on Facebook every day • Using overlays on your videos so people can click through to your site is crucial • In the UK there is a YouTube non profit channel with free tools available • Where you are hosting content speed is crucial. 1 second delay = 7% loss in conversions, 16% reduction in customer satisfaction. 2-3 seconds = amount of time people are willing to wait for a web page to load. 8 seconds = amount of time most users will give your site before deciding whether to stay Cloud, Troika, Heathrow, Terminal 5, London
  • 19. SOCIAL ITS GOOD TO SHARE • The phenomonal rise of websites such as Pinterest, Svpply and Tumblr tap into a trend focused on discovery and self- expression where people want to ‘follow’, ‘share’ and ‘identify’ • One-way communication is dead in the digital age and passive brands are at risk. Consumers are now curators; actively broadcasting, remixing, compiling, commenting, sharing and recommending content, products, purchases, experiences to both their friends and wider audiences • The Guardian says its Facebook App was the top generator of traffic at times in February 2012. Six months ago, Google provided 40% of traffic • Instagram socialises photographs and allows visitors and museums to share images. Brooklyn Museum has 10,299 followers already (April 2012)
  • 20. MONETISING SOCIAL VIRTUAL LIVING • People are spending extraordinary amounts of time in these virtual worlds and social gaming experiences • The sale of virtual gifts and goods now exceeds $3 billion. That’s more than the entire confectionary spend of US cinema goers • Playmob has just raised £500,000 from NESTA for it’s giverboard software • Virtual product representations can also be used in eCommerce such as in the sale of art work in the Own Art online platform
  • 21. DIGITAL TO PHYSICAL TECH ENTREPRENEURS BLUR THE BOUNDARIES • Integration of online and offline retail technology such as eBay’s Xcommerce platform • CultureLabel has introduced touchscreen devices into venues such as the Saatchi Gallery and Barbican to enable Own Art purchases in- gallery allowing self-service and eliminating the need for paper-based applications. Interactive devices are now in multiple formats • Barcode scanning Apps by Amazon allows consumers to price check and order through their mobile • Google Goggles also leverages the collection as a potential trigger for purchase. Getty Museum partnership allows uses camera phone to identify art works • QR Codes are another way of getting additional content from physical or digital prompts such as from Google Books allowing new navigation or direct purchase such as Tesco Home Plus in Korea
  • 22. MOBILE CULTURE DIGITAL TO PHYSICAL • The Shopkick App transforms the high street into an “interactive world using your smartphone”. It already has over 3 million active users, over 1 billion offers viewed and $110 million sales driven in its first year of operation • History Channel created a Foursquare App to ‘push’ you facts and videos on locations you visit. The more locations you discover the closer you get to the coveted Historian badge. The History Channel has signed up more than 20 UK visitor attractions all of which are offering deals to Foursquare users. There were 100,000 check-ins in the first two weeks alone
  • 23. DIGITAL TICKETING Somerset House / Courtauld Gallery, London COURTAULD GALLERY • Introduced use of ‘airline style’ 2D barcode tickets for the blockbuster Michelangelo exhibition • Allows for sale of add-on merchandise such as catalogues • Particularly effective with targeted discounting tactics such as 10% off exhibition merchandise alongside a ticket purchase. This this has driven up the average basket order considerably …and •IT’S area will continue to grow and grow This STILL ABOUT QUALITY,as consumers seek convenience. Withyour INTEGRITY and Near Field Technologies, the ticket or context… virtual credit card can be used to pay for things inside the venue. Eventbrite.com is one of the fastest growing dot com businesses in the world and is expected to file for an IPO this year
  • 24. AUGMENTED REALITY DIGITAL TO PHYSICAL • Holition uses Augmented Reality to demonstrate how accessories will appear on you • Working with designer-makers such as Hannah Martin • With on-demand production technologies this means you can produce a single proto- type for digital scanning so stock production risks are minimal • Allows the customer to shop from home rather than requiring the physical experience
  • 25. THE NEW HOLLYWOOD GAMING TAKES CENTRE STAGE • Call of Duty: Modern Warfare 3 made a billion dollars faster than Avatar the biggest movie ever - in just 16 days (Avatar took 17 if you are interested) • Zynga has turned social gaming into a multi-billion business publishing Facebook titles such as Farmville • Moshi Monsters is the most popular virtual world for young people with 60 million users (70% of UK children) • App games account for 64% of time spent. They have created the market of the the $0.99 casual gaming title as opposed to the triple AAA $60 releases • Tate Trumps and Race Against Time are successful examples of creating a gaming experience to develop a playful interaction with art • The Royal Opera House have recently launched an App called the Show Must Go On where the user goes behind the scenes as a venue manager to ensure a successful production as the title suggests • Serious Gaming helps solve real world problems
  • 26. PERSONALISATION CUSTOMISING CULTURAL EXPERIENCES • The Whitney Museum has introduced a membership scheme based around different interests • Commercial attractions such as the London Eye have created multiple personalised packages including Late Night, Champagne ‘Flights’ and themed capsules for weddings or in association with partners such as Green & Blacks for Easter • CultureLabel.com sells experiential products such as Afternoon Teas combined with tickets to major exhibitions at the British Museum
  • 27. URBANOMICS URBAN CONSUMERS • The dramatic growth of cities is giving rise to new forms of enterprise • Urban consumers tend to be more daring, more liberal, more tolerant, more experienced, more prone to trying out new products and services • Strong affinity with cultural audiences • CultureLabel.com has grown on the back of urban consumers that match this profile and it’s expansion strategy is based on reaching more urban consumers based on a range of predominantly urban creative producers • Love Art London have tapped into the experience angle • The High Line Park Art Programme High Line Park, NYC
  • 28. CULTURAL MASTERPLANNING PLACE MAKING • Kinetica at Spitalfields is an example of a pop-up cultural space developed at private sector cost as part of a vision to build a 21st Century market • The MAKE building with artistic intervention by Claire Woods is one of the most viewed public art works in London • Cultural Branding of sites and place making is often driven by Private Sector consultancies such as FutureCity working with developers and architects to help them with planning gain (% for art), design differentiation, sustainable communities and place making • In the UK, the recession has greatly impacted such deals (especially outside of London). Some developers have sought to renegotiate on planning agreements to make developments financially viable. This makes it important these cultural interventions tick more than one of the boxes above to ensure they make the cut
  • 29. SOCIAL - LITES REDEPLOY THAT MARKETING BUDGET NOW! • They are all about discovery, as consumers become curators; actively broadcasting, remixing, compiling, commenting, sharing and recommending content, products, purchases, experiences to both their friends and wider audiences • Accelerated and amplified by the growth of social media • Secret Cinema is a business that has grown predominantly by word of mouth using social media and eschewing all typical marketing techniques as not cost effective • It has recently moved to take on the multiplex head to head with longer running screenings in entertainment venues in multiple locations with The Other Cinema venture • Tate now has 594,075 Followers and 358,073 Secret Cinema, Lawrence of Fans. A recent exhibition discount to fans saw Arabia, Alexandra Palace London 10,000 redemptions
  • 30. Frank’s Campari Bar, PLANNED SPONTENEITY Peckham, London PERMANENT POP-UP CULTURE • Live a little! A reaction against self-control and negativity created by recession norms • Explosion of pop-up culture experiences is finding more and more innovative expressions and reaches the mainstream quicker than ever • People spend more on experiences making fewer more luxurious purchases • The Museum of Everything has grown from a Frieze fringe event into a major global brand with shows at Selfridges, Tate and most recently New York • Frank’s Campari Bar is one of the best examples of transforming neglected space into a cultural experience, in this case a multi- storey carpark in Peckham, London • See also Punchdrunk & You Me, Bum, Bum Train
  • 31. OUT OF HOURS CULTURE TARGETING NEW CONSUMERS • Sleepovers at the Natural History Museum • LATES sponsored by Apple, Sony etc. and Museums at Night sponsored by SKY • Somerset House Ice-rink by Tiffany • Gigs at Eden • Culture is key to the backdrop but the experience is the draw
  • 32. 2. CONSUMER INSIGHTS WHICH TRENDS CLOSELY MATCH CULTURAL ASSETS ALLOWING US TO LEAD THE WAY? TRENDS
  • 33. STORIFY PURPOSE DRIVEN BUSINESSES • We are selling ‘products with soul’ and we need to tell their story in a compelling way • Consumers are seeking a deeper engagement, and want products to have a story they can relate to and this coincides with the rise of purpose driven businesses • Use of video, audio, design, animation, compelling copy and editorial, social integration i.e. All Saints • Crafted, operated by the Walpole Group brings together luxury brands with craft makers • Net-a-porter App uses the luxurious real estate of the iPad to create an online magazine experience • Kickstarter.com and Etsy are great examples of wildly successful commercial organisations that impact our sector New Museum, New York
  • 34. PASSION BRANDS BRAND EXTENSION • The V&A have taken the brand onto the High Street in an innovative way. The V&A Wine Bar combines an art bookstore and wine bar • The recession could accelerate this trend in Europe and the US as the new found power of global cultural brands could be further monetised and meet growing consumer demand and international opportunities in growth economies • Saadiyat Island in is perhaps the most high profile example to date incorporating a branch of the Louvre and Guggenheim. A careful balance will need to be struck however to protect the integrity of the brand
  • 35. CULTURAL BRANDING CO-PRODUCTION • Sponsorship evolved, often extremely collaborative such as the Sony PlayStation Series or Creators Project (Intel). No longer ‘lolly for logos’ • Sony also worked with Punch Drunk to create a live adventure game for the launch of a PS3 title called Resistance 3 • Inspiration - Toshiba are working with The Louvre to light some of it’s most iconic features with its energy saving low-CO2 LED lighting
  • 36. ARTIST AS BRAND • Launch of DamienHirst.com • Emin International at Spitalfields, London • Rob Ryan - Ryan Town & YSP collaboration • Zaha Hadid x Design Museum • Takashi Murakami x LVMH at Moca
  • 37. CREATION DIGITAL CULTURE • Sedition.com is the first online platform allowing you to buy and sell digital art from artists including Damien Hirst and Tracey Emin • David Hockney’s used the iPad to create works for his current blockbuster exhibition at the Royal Academy • Becks Green Box Project is an AR art tour • BMW Tate Performance Room • The Space (BBC, Arts Council England)
  • 38. …heritage is so cool again…
  • 39. 3. MARKETING WHERE DO WE FIND OUR AUDIENCES? PLATFORMS/CHANNELS
  • 40. YOUTUBE MUSIC • 101 musicians from 33 countries chosen on YouTube to make up the YouTube symphony orchestra. In 2011 it converged on Sydney • YouTube extravaganza has become the most- watched live music concert on the internet displacing U2 with over 33 million views
  • 41. LITERATURE THE APP BOOK • Waste Land has been hugely commercially success making a return on the investment only 6 weeks after release • The partner is critical. It was produced by Touchpress, the team behind Wonders of the Universe, Elements and Biophilia • Audio innovation is also occurring with Apps like Papa Sangre
  • 42. MARKETING & AUDIENCE LITERATURE • The world’s largest bookseller Barnes & Noble is fighting back head on by taking the tech giants on at their own game. Produced their own device the Nook, recognising need to create an end-to- end ecosystem. Can mirror the Apple and Amazon offer + play to their offline strengths of their customer base with the advantage of face to face contact to help orientate them. Already established partnerships with 1,000 libraries • 3M’s Cloud Library allows you to browse anywhere, read anywhere. With the 3M Cloud Library, patrons use personal accounts to access e-books on their devices. They can check out a book on an iPad, take notes while reading on a PC, and finish the book on an Android phone. The bookmark feature works across all devices, so readers never lose their place. • Kindle Fire is now a low cost alternative to the iPad • What does this mean for libraries?
  • 43. PHYSICAL REAL ESTATE OUTDIDE OUR VENUES • New Museum x Calvin Klein • Southbank Centre Food and Retail offer includes permanent fixtures such as Foyles Bookstore and pop-up offers such as Dishoom and the Vintage Festival curated by Wayne Hemmingway • National Theatre, UK uses its building as a billboard to take advantage of innovative new projection technologies for corporate Dishoom, Southbank Centre, partners such as Travelex London
  • 44. AFFILIATES PRICING PANDEMONIUM AND THE DEAL HUNTER • Flash sales, member sales, group activated hyper local location based, dynamic pricing • Pride in ‘deal’ hunting • Stripped down offering for price sensitive consumers where economic uncertainty has become the new normal • Groupon is the best known exponent of Group Buying • VoucherCloud uses location to offer discounts to users of it’s App • Gilt.com and Fab.com incentivise members with timed flash sales
  • 45. MADE FOR CHINA JUST BEING YOURSELF IS NOT ENOUGH • It's where the money is. Western brands are still favoured over local ones in areas such as luxury goods but… • The combination of perceived quality with a bit of local tailoring, love or exclusivity can provide cut through • V&A has undertaken a marketing drive in Asia with dedicated websites • Chinese residents made 30 million+ overseas trips in the first half of 2011 alone, up 20% since 2010. In comparison, US citizens made only 37 million outbound air travel trips during the whole of 2010. • It just the beginning: The World Tourism Organisation has estimated that the total number of out-bound tourists from China will reach 100 million by 2020.
  • 46. BEYOND THE WALLS SEEKING OUT THE AUDIENCE Camp Bestival • BMW Guggenheim Lab • Grand Tour, National Gallery • Eurostar, National Gallery • Museum of Everything • Punchdrunk x Stella • Art on the Underground • Tate & The Great British Art Debate at Camp Bestival
  • 47. NEAR FIELD COMMUNICATION THE END OF CASH IS NIGH • You can already get on trains, pay for coffee using this technology • The take-up is already extremely widespread in countries such as Turkey and it is only a matter or time before the same can be said elsewhere • Google Wallet allows your phone to replace an assortment of cards from Credit to ID • Nokia has partnered with the Museum of London to explore multiple ways the technology could enhance the visit once you are past the entrance. The experiments will range from getting information on exhibits, buying tickets to future exhibitions, posting ‘Likes’ to social media platforms to retail and café vouchers • Integration with Reward Cards for data
  • 48. MOBILE CULTURE CONTENT • Mobile First design is a must now (yet fewer than half of US museums currently provide visitors with an opportunity to use mobile technology during their visits - AAM, Nov 2011) • In the UK, nearly the same number of searches for ‘art’ per month on mobile as desktop • There are 5.9 billion mobile subscribers - that's 87 percent of the world population • How many of those phones are smart however? 1.2 billion of those subscribers browsing the web through their devices (accounts for 8.49 percent of global website hits and growing) • In 2012 more Android smartphones will be shipped than PCs and in 2013 Apple will reach the same milestone • “Tablets such as the iPad will outsell desktop and laptop PCs within a few years.” Tim Cook, CEO, Apple
  • 49. MOBILE CULTURE ECOMMERCE • 2009 sales were $1.2 billion. In 2015 predicted to be $119 billion. Online sales predicted to go from $210 billion to $1.4 trillion in the same period. 50% of Groupon’s business is expected to be from mobile in the next 2-years • 51% of smartphone users more likely to purchase from a mobile-specific website, yet only 4.8% of retailers have a mobile site • Don’t forget social commerce which is largely being driven by mobile devices. This is estimated to reach $30 billion by 2016. CultureLabel has just released an App that creates a Facebook shop for our members and over 100 partners activated this in the first week • We are never without a price comparison with barcode scanning Apps from eBay, Amazon etc.
  • 50. THE CROWD FUNDRAISING • Generation ‘G’ is an online-fuelled culture of individuals who share, give, engage, create and collaborate in large numbers • ‘Generation Go’ will also create new ideas and businesses in the creative and cultural industries space. How can we tap into them? • Kickstarter appears to be able to help people raise big sums as well as small ones. In February 2012 the platform broke the $1 million barrier for two projects. It has the potential to overtake the NEA as the key arts funder with over 10% of films at SXSW and Sundance funded this way • Text giving is also being used to connect with the passion of the visit • Sites such as Freelancer.com are allowing people to use the crowd to slash the cost of certain tasks. CultureLabel even crowd-sourced new products for Tate. The Public Catalogue Foundation and BBC tagged thousands of art works in the Your Painting’s initiative
  • 51. CREATE A NEW BUSINESS MODEL MICROFINANCE • Microfinance is another way to fund cultural output that has a commercial value. 691,072 Kiva lenders have provided $285 million in loans. The performance of these social entrepreneurs has been extremely strong to date with a 98.88% repayment rate • Cockpit Arts have taken another route by teaming up with Ingenious Media a Venture Capital Fund to provide business development finance for makers that are resident in their incubation centre • Larger sums have been raised through specialist ethical banks such as Triodos who have funded studio space development at ACME Studios in London • Commercial websites such as Saatchi Online have also raised substantial Venture Capital funding • CultureLabel benefitted from Venture Philanthropy
  • 52. MOBILECULTURE2 JULY 17th 2012, UNIVERSITY OF THE ARTS, LONDON WWW.CULTURELABEL.COM/MOBILECULTURE AN EVENT BY SPONSORS VENUE PARTNER MEDIA PARTNER
  • 53. THE CULTURE, BUSINESS & TECHNOLOGY SUMMIT SEPTEMBER 27th 2012, BLOOMBERG, LONDON WWW.CULTURELABEL.COM/REMIX AN EVENT BY SPONSORS ONLINE SPONSOR MEDIA PARTNER
  • 54. INTELLIGENT NAIVETY FREE EBOOK AT CULTURELABEL.COM/AGENCY PETER TULLIN PETER.TULLIN@CULTURELABEL.COM CO-FOUNDER TEL +44 (0) 207 749 6857 @CULTURELABEL @PETERTULLIN FACEBOOK.COM/CULTURELABEL