Mary Meeker's Marketing Report 2016

It is the time of the year when Mary Meeker, the voice of internet prognosis, presents her annual findings, as she has been doing since 1995. Here is a snapshot of what I found relevant;
1. At 277 million Users -India Passed USA to Become #2 Global User Market Behind China.
2. Global Smartphone Unit Shipments Slowing Dramatically = +10% vs. +28% Y/Y - Bad news especially for Apple
3. 2015 Share: iOS = 16% | Android = 81%
4. New Internet Users = Continue to be Harder to Garner Owing to High Penetration in Developed Markets (Per McKinsey)
5. Smartphone Cost in Many Developing Markets = Material % of Per Capita Income... 15% (Vietnam) / 10% (Nigeria) / 10% (India) / 6% (Indonesia) (per McKinsey)
What it means is MORE BAD NEWS FOR APPLE because @ $158, India already has among the lowest average smartphone prices in the world, with only Bangladesh among the surveyed countries lower at $123. At the same time, the cost of a smartphone in India, as a percentage of gross national income per capita, is among the highest in the world. What that means is simple – enough Indians can’t and won’t pay Apple-level prices for their smartphones. 
Online Advertising:
1. USA Internet Advertising Growth = Accelerating, +20% vs. +16% Y/Y... Owing to Mobile (+66%) vs. Desktop (+5%)
2. Google + Facebook = 76% (& Rising) Share of Internet Advertising Growth, USA (Google and FB Investors smiling)
3. Video Ads that Work = Authentic / Entertaining / In-Context / Often Brief
4. But online advertising still has a long way to go as advertisers still spend a lot on legacy media.
Retail Channels:
1. Evolution of Commerce Over Past ~2 Centuries, USA = Stores --> More Stores --> Malls --> E-Commerce
2. New / Emerging Retailers Optimize for Generational Change = J.C. Penney --> Meijer --> Walmart --> Costco --> Amazon --> Casper
3. Physical Retailers Become Digital Retailers... Digital Retailers Become Data-Optimized Physical Retailers
4. Many Internet Retailers / Brands reached $100MM in Annual Sales* in less than 5 Years while it took Nike = 14 Years / Lululemon = 9 / Under Armour = 8**
RE-IMAGINING COMMUNICATION:
Messaging:
1. Messaging = Evolving Rapidly
2. Messaging Continues to Grow Rapidly... Leaders = WhatsApp / Facebook Messenger / WeChat
3. Messaging Platform Evolution = More Tools for Simple Self-Expression
4. Asia-Based Messaging Leaders = Continue to Expand Uses / Services Beyond Social Messaging (Wechat, Kakao and Line)
5. Messaging Secret Sauce = Magic of the Thread = Conversational
6. Messaging Platforms = Millions of Business Accounts Helping Facilitate Customer Service & Commerce
7. Best Ways for Businesses to Contact Millennials = Social Media & Chat... Worst Way = Telephone
8. Average Global Mobile User have ~33 Apps in their mobile...12 Apps Used Daily... 80% of Time Spent in 3 Apps
9. Messaging Apps = Increasingly Becoming Second Home Screen
Images:
1. Images = Monetization Options Rising
2. Image-Based Platforms Like Pinterest = Often Used for Finding Products / Shopping
3. Image-Based Platforms Like OfferUp = High (& Rising) Engagement Levels & Used for Commerce
4. Image-Based Peer-to-Peer (P2P) Marketplace OfferUp = Ramping Faster than eBay @ Same Stage
Videos:
1. Visual (Video + Image) Usage Continues to Rise
2. Millennial Social Network Engagement Leaders = Visual... Facebook / Snapchat / Instagram...
3. Generation Z (Ages 1-20) = Communicates with Images
4. User-Shared Video Views on Snapchat & Facebook = Growing Fast (Bad News for Youtube and Google)
5. Real-Live is now Facebook Live --> New Paradigm for Live Broadcasting
6. Video Evolution = Accelerating Live (Linear) --> On-Demand--> Semi-Live --> Real-Live
Voice:
1. Re-Imagining Voice = A New Paradigm in Human-Computer Interaction
2. Voice = Should Be Most Efficient Form of Computing Input
3. As speech recognition accuracy goes from say 95% to 99%, all of us in the room will go from barely using it today to using it all the time. Most people underestimate the difference between 95% and 99% accuracy – 99% is a game changer... No one wants to wait 10 seconds for a response. Accuracy, followed by latency, are the two key metrics for a production speech system
4. Voice as Computing Interface... Hands & Vision-Free = Expands Concept of ‘Always On’
5. iPhone Sales May Have Peaked in 2015... While Amazon Echo Device Sales Beginning to Take Off?
Source: Mary Meeker's INTERNET TRENDS 2016 Report (Read Full Report)
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