All you Need to know about Mary Meeker's Internet Trends 2017

Mary Meeker Report

Every Year, Mary Meeker publish report on Internet Trends and this year is no different. Last year's report's summary can be found here. Last year the focus was on China and India and this year is no different. But this year the focus is also on Gamification and Healthcare. 

If you want to know about what the 355 slides of this report contains, just go through this summary and by the end of it, I am sure you will have a fair idea that as a company or as an individual what all you need to focus upon this coming year in your internet marketing.

1) Global Internet Trends = Solid… Slowing Smartphone Growth


Global Internet Users = 3.4B…Flat Growth +10% vs. 10% Y/Y… +8% vs. 8% Y/Y (ex. India) 

Global Smartphone Shipments = Slowing +3% vs. +10% Y/Y

Global Smartphone Installed Base = Slowing +12% vs. +25% Y/Y

Global Smartphone Unit Shipments = Continue to Slow... @ +3% Y/Y vs. +10% (2015) / +28%(2014)

Mary Meeker Internet Trends


2)   Online Advertising (+ Commerce) = Increasingly Measurable + Actionable



Ad Growth = Driven by Mobile

Online Advertising = Growth Accelerating, +22% vs. +20% Y/Y... Mobile $ Desktop (2016) on Higher Growth, USA

Google + Facebook = 85% (& Rising) Share of Internet Advertising Growth, USA

Advertisers = Like Measurable Engagement Metrics But… Some Find Measuring ROI Challenging (as with Offline)

Ad Blocking = Growth Continues…Especially in Developing Markets… Users Increasingly Opt Out of Stuff They Don’t Want

Leading Online Ad Platforms = Providing More Ways to Target + Measure Ads (Google with Adwords, Facebook with Insights and Snapchat with Snap ads)


Ads that work:


Product Listing Ads (Google) = Driving Clicks to Product Pages

Targeted Pins (Pinterest) = Driving Product Discovery + Purchase

Contextual Ads (Facebook) = Driving Direct Purchases

Goal Based Bidding Ads (Snap) = Driving User Action

Geo-Targeted Local Ads (Google) = Driving Foot Traffic to Stores

Incentive-Based + Skippable Video Ads = Driving Positive Interactions

In-App Ads + Dynamic Creative (Vungle) = Driving Higher In-App Install Performance

In-Ride / In-Hand Recommendations (Uber + Foursquare) = Location + Route + Destination + Time of Day (+ an Offer)

Advertising Inefficiency = Increasingly Exposed by Data… Right ‘Ad’ @ Right Place / Time

Ø  Driven by Algorithms
Ø  Based on User-Typed Input (Words) = Big Business for Google
Ø  Based on User-Uploaded Input (Images) = Big Business for Snap


A lot of the future of search is going to be about pictures instead of keywords.

- Ben Silbermann, Pinterest Founder / CEO, 4/17


Emerging Retailers + Crafty Big Brands = Finding Ways to Make Collaborative Ad Creation (Social + UGC) Work for Them…

Effective UGC can generate 6.9x higher engagement than brand generated content on Facebook, per Mavrck, 2/17



Mary Meeker Internet Trends- Summary by Ankit Uttam

Brands + Influencers = Re-Distribution Driving Engagement

Influencers = Can Impact Followers

Ads = Becoming Targeted Storefronts

Ads / Content / Products / Transactions = Lines Blurring. Fast…



Mary Meeker Internet Trends- Summary by Ankit Uttam

Product Quality + Customer Support + Transparency Bars Rising = Owing to Social Media

Social Media = Can Provide Opportunity to Improve Customer Service…

Social Media = Can Drive Accountability…

Real-Time Online Customer Conversations = Rising Rapidly

Customers = Increasingly Expect to Understand How Things Work

Retailers Emerging With Especially Effective Strategies

Glossier = Skincare & Beauty Products... Content Marketing


Mary Meeker Internet Trends- Summary by Ankit Uttam


eCommerce A-Ha’s

If It Seems Like Package / Parcel Growth is Accelerating… It’s Because It Is, +9% Y/Y…

Apartment Building Lobbies Becoming Warehouses… Doormen Becoming Foremen


Mary Meeker Internet Trends- Summary by Ankit Uttam

Unwrapping Boxes… Becoming Entertainment

Eating Out is… Increasingly Eating In

Grocery Shopping… Getting Personal / Fast / Easy

Retail Store Closings May Break 20 Year Record While... Amazon Opens Retail Stores

Mary Meeker Internet Trends- Summary by Ankit Uttam


World’s Largest Offline Retailer (Wal-Mart)…Getting Aggressive Online



Mary Meeker Internet Trends- Summary by Ankit Uttam

Amazon Becoming a Leading Private-Label Supplier of…Baby Wipes + Batteries, USA

And Now We Have a New Kind of Store = A Subscription Store


Mary Meeker Internet Trends- Summary by Ankit Uttam


3) Interactive Games = Motherlode of Tech Product Innovation + Modern Learning


Global Interactive Gaming = Mainstream / Evolving Rapidly /Still Early Days…2.6B Gamers* vs. 100MM in 1995

Gen X + Millennials =Gamified Since Birth



Mary Meeker Internet Trends- Summary by Ankit Uttam



·      Gaming = Large + Broad + Growing Business…Revenue @ $100B, +9% Y/Y

·      Video Gaming =Most Engaging Form of Social Media



·      Gamification = Influencing Multiple Consumer Services

Mary Meeker Internet Trends- Summary by Ankit Uttam


Gamification = Influencing Multiple Businesses

Mary Meeker Internet Trends- Summary by Ankit Uttam

4)   Media = Distribution Disruption @ Torrid Pace


Digital Leaders = Transforming Media With Better User Experiences + Lower Prices…Data + Scale


Music = Why Streaming? Access / Choice / Discovery / Personalization / Mobile / Fewer Ads

Video = Why Cord-Cutting?  Lower Price + Convenience

Digital Evolution of Music + Video = Ramping Rapidly…

Spotify = Catalyst for Internet-Driven Evolution of Music Industry…0 to 50MM Paid Subscribers / 126MM MAUs in

Spotify = 20% of Global Music Industry Revenue vs. 0% in 2008

Netflix = Catalyst for Internet-Driven Evolution of Video Industry… 95MM Streaming Subscribers in 10 Years

Netflix Streaming = From 0% to 30% of Home Entertainment Revenue in 10 Years, USA

Generational Media Usage = Chasm Increasing… Shifts to Internet-Enabled Media Continue

Traditional Cable Conundrum = Channels + Consumer Prices + Programming Costs Rising… Subscribers Falling

Digital Subscriptions = Rising Owing to Massive User Experience Improvements… On-Demand / A La Carte Selection + Choice / Personalization / Payment Systems / 2-Way UGC / Mobile...
  
Mary Meeker Internet Trends- Summary by Ankit Uttam

5)   The Cloud = Accelerating Change Across Enterprises


1) Cloud Adoption = Reaching New Heights + Creating New Opportunities
2) Enterprise Software = Customer Expectations Mirroring Those of Consumer Apps
3) Security = More Applications, More Vulnerabilities

Public Cloud Adoption Trends = AWS Maintains Lead…Azure + Google Rising
   

Mary Meeker Internet Trends- Summary by Ankit Uttam


New Cloud Companies Emerging… Providing Elegant + Intuitive Experiences for End Users

Mary Meeker Internet Trends- Summary by Ankit Uttam



Security = More Applications, More Vulnerabilities


 6) China Internet = Golden Age of Entertainment + Transportation



     China Macro = Positive Trends

China Internet Users + Usage = Healthy User Growth… Usage Outpacing Users

China Mobile Internet Users = @ ~700MM, +12% Y/Y vs. 11% in 2015



Mary Meeker Internet Trends- Summary by Ankit Uttam

China Entertainment = Online Innovation Driving Robust User + Usage + Monetization Growth

China Online Gaming = Tencent + NetEase Driving Mobile Innovation + Revenue

China Live streaming = High Consumer Engagement + Willingness to Pay…

Mary Meeker Internet Trends- Summary by Ankit Uttam


China Livestreaming = Compelling Monetization


China On-Demand Transportation = #1 Global Market… Cars + Bikes

Mary Meeker Internet Trends- Summary by Ankit Uttam

Mary Meeker Internet Trends- Summary by Ankit Uttam

China Mobile Payment Infrastructure = Enabling Rapid Growth + Monetization of Internet Usage

China Mobile Payment Volume = +2x Y/Y to $5T+ Led by AliPay + WeChat Pay

China eCommerce + Advertising = Innovation + Growth

Alibaba = Massive Scale + Engagement + Innovation

JD.com = World Class Fulfillment + Delivery…91% / 58% Orders… Delivered Within 2 Days / 1 Day, Up from 68% / 47% Four Years Ago

China Online Advertising Revenue = +30% Y/Y @ $40B


7) India Internet = Competition Continues to Intensify…Consumers Winning


India Economy (GDP) = Fastest Large Grower… +7% Y/Y @ #7 Global GDP Rank

Mary Meeker Internet Trends- Summary by Ankit Uttam

India Internet Users = +28% (2016-June) vs. 40% Y/Y Growth… @ 27% Penetration…355MM Users…#2 Behind China

India = #1 Global Market (ex-China) Android Phone Time Spent… Google Play Downloads ; USA (2016), per App Annie

India Smartphone + Data Costs = Declining But Still High for Majority of India’s 1.3B Citizens

India Internet = Fierce Global Battleground (Hardware / Carriers / Software / Commerce

India Mobile Hardware (2012-Q1:17) = Intense Competition with Massive Share Shifts
Mary Meeker Internet Trends- Summary by Ankit Uttam

India Wireless Consumer Data Prices = -48%+ in Last Year as… Incumbent Carriers Responded to Jio’s Low Pricing

India Broadband Subscribers* = +85% Y/Y (Q1:17)…Accelerating… Reliance Jio Rose to 39% Share vs. 0% (Q3:16) Owing to Low Price Launch

Mary Meeker Internet Trends- Summary by Ankit Uttam

India Software – Top Downloaded Android Apps



Mary Meeker Internet Trends- Summary by Ankit Uttam



Amazon India



Mary Meeker Internet Trends- Summary by Ankit Uttam

India Internet Usage = Rising Owing to… Cheaper / Faster Access

India Leadership = Digital-Focused Government Policies Rolled Out with Speed + Scope

India Mobile Usage = A Global Leader vs. Desktop Usage… ~80% of Internet Usage on Mobiles…

India Identity = Aadhaar + eKYC – Digital Authentication for 1B+ People… Use Growing Rapidly @ 16MM Authentications per Day (3/17) vs 3MM Y/Y…

India Identity = India Aadhaar Digital IDs Have Broad Coverage… @ 82% of Population (1.1B People) vs. Zero 6 Years Ago…#1 in World…

Mary Meeker Internet Trends- Summary by Ankit Uttam

India Bandwidth = Reliance Jio High-Speed Bandwidth Ramp… @ 108MM Sign-Ups* in 7 Months...72MM Converted to Paying Subscribers

India Payments = Online Leader Paytm Ramping Users Rapidly… Bolstered by Uptake of Online + Offline Commerce…



Mary Meeker Internet Trends- Summary by Ankit Uttam



India Leadership = Digital-Focused Government Policies Rolled Out with Speed + Scope


Mary Meeker Internet Trends- Summary by Ankit Uttam


India Entertainment Re-Imagined = Internet-First Shows Optimized for Mobile… Replacing Longer / Linear Programming Optimized for TV


Mary Meeker Internet Trends- Summary by Ankit Uttam


India Macro…


Demographics = Bad & Good & Other Challenges =
1) Job Creation
2) Business Basics
3) Education
4) Logistics
5) Gender Disparity


8) Healthcare @ Digital Inflection Point

Digitization of Healthcare = Virtuous Cycle of Innovation

Digital Inputs = Rapid Growth in Sources of Digital Health Data

Wearables = Consumer Health + Wellness Data Capture Rising Rapidly

Consumers = Willing to Share Health Data

Proliferation of Health Apps = Rapid Rise of Empowering Data in Consumer Hands

Electronic Health Record (EHR) Adoption = Broad + Centralized Accumulation of Data

Increasing Digitization of Inputs = Healthcare Data Growing at 48% Y/Y

Rise in Inputs + Data = Medical Research / Knowledge Doubling Every 3.5 Years

Data Insight + Translation = Healthcare Delivery Could Change Faster With Consumer Engagement & Faster Innovation Cycles

Evolution of Genomics = Case Study in Virtuous Cycle of Innovation… Input…Data Accumulation… Insight…Translation…




Mary Meeker Internet Trends- Summary by Ankit Uttam

9) Global Public / Private Internet Companies

2017 Global Internet Market Capitalization Leaders = Most Extending Leads… Apple / Google-Alphabet / Amazon / Facebook / Tencent / Alibaba





Mary Meeker Internet Trends- Summary by Ankit Uttam

2017 Global Market Capitalization Leaderboard = Tech = 40% of Top 20 Companies…100% of Top 5…

Mary Meeker Internet Trends- Summary by Ankit Uttam


Closing Thoughts:


Economic Growth Drivers = Evolve Over Time


Original Mary Meeker's Report is Here.



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