Internet Trends by Mary Meeker (2017): Summarizing In-Sights
Internet trends by Mary Meeker from Kleiner Perkins Caufield & Byers delivered her annual rapid-fire internet trends report at Code Conference at the Terranea Resort in California. Mary also presents it as 30 min video here. It is 355 page slide deck and my intent is to complement video and summary on link above with some internal takeaways. Well it won't be really quick as this report is so rich in content :). Global internet penetration is 10% YoY excluding India. Global smartphone shipment is slowing down to 3%, although reports don't talk about it but in comparison IoT device shipment is increasing rapidly at 28%.
People are increasingly spending more and more time on internet and digital medium through mobile phones.
Ad block penetration growing faster on mobile in emerging markets.
Ben Silbermann Pinterest founder says "a lot of future of search is going to be about pictures instead of keywords".
Social platforms are driving the product discovery, purchase, channel and relevance (26% FB user clicks ads to make purchase)
Incentive based ads which offer some value and incentive to the consumer such as rewards and as well skippable video ads are driving positive interactions for the consumer. Consumer really want to be forced to watch full video ad.
Customer service survey says online access channels is the key. Example Sofi.com; Chewy.com (in the image) and UNTUCKit which has a combination of offline (trials) and online (shipping).
Lowe's and Google has come together to enable augmented reality in their store to enhance the store experience. Amazon has launched the all in one subscription store - completely online but Amazon is also going brick and mortar with Amazon GO.
Ads and ad based monetization is the focus for many of the tech giants such as Google and Facebook but the online commerce is rapidly growing with some exceptions of like of Amazon also going offline.
Gamification is one of the fastest growing trend for all purposes such as ads, campaign, commerce and branding. China is largest market with asia pacific leading ahead of other regions. Gaming tools can optimize learning and engagement
for the user and the player.
Immersive gaming tools = improved athlete experience. eSport evolution is leading to for deeper user experience.
Byron Reeves from Stanford University said "If you want to see what business leadership may look like in 3 to 5 years, look at what is happening in online games". Look at what Elon Musk, Hoofman and Zuckerberg has to say.
Customer are willing to pay for music, video and other media and survey on left list some of the rationale. .
Look at some of the stats from how Google search, Netflix and YouTube, and Spotify (20% music market share in av very short time) music streaming are performing with the right customer offering.
Image below shows some of major concerns enterprises and customers have while adopting cloud technology but however cloud adoption is rising very rapidly with user expecting a well designed product and developers getting a good head start to build real applications rather than worrying about managing infrastructure and OS.
India is an exception when it comes to growth of internet and mobile internet specifically.
India has leapfrog from hyper-local offline markets to online and D2C channels. From brick and mortar pharmacies to online health apps and deliveries.
Global smartphone growth is slowing: Smartphone shipments grew 3 percent year over year last year, versus 10 percent the year before. This is in addition to continued slowing internet growth, which Meeker discussed last year.
In 10 years, Netflix went from 0 to more than 30 percent of home entertainment revenue in the U.S. This is happening while TV viewership continues to decline.
Entrepreneurs are often fans of gaming, Meeker said, quoting Elon Musk, Reid Hoffman and Mark Zuckerberg. Global interactive gaming is becoming mainstream, with 2.6 billion gamers in 2017 versus 100 million in 1995. Global gaming revenue is estimated to be around $100 billion in 2016, and China is now the top market for interactive gaming.
While internet growth is slowing globally, that’s not the case in India, the fastest growing large economy. The number of internet users in India grew more than 28 percent in 2016. That’s only 27 percent online penetration, which means there’s lots of room for internet usership to grow. Mobile internet usage is growing as the cost of bandwidth declines. (More here: The highlights of Meeker's India slides.)
Healthcare: Wearables are gaining adoption with about 25 percent of Americans owning one, up 12 percent from 2016. Leading tech brands are well-positioned in the digital health market, with 60 percent of consumers willing to share their health data with the likes of Google in 2016