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)
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
Brands + Influencers = Re-Distribution Driving Engagement
Influencers = Can Impact Followers
Ads = Becoming Targeted Storefronts
Ads / Content / Products / Transactions = Lines Blurring. Fast…
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
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
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
World’s Largest Offline Retailer (Wal-Mart)…Getting Aggressive Online
Amazon Becoming a Leading Private-Label Supplier of…Baby Wipes + Batteries, USA
And Now We Have a New Kind of Store = A Subscription Store
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
· Gaming = Large + Broad + Growing
Business…Revenue @ $100B, +9% Y/Y
· Video Gaming =Most Engaging Form of
Social Media
· Gamification = Influencing Multiple
Consumer Services
Gamification = Influencing Multiple Businesses
4) Media = Distribution Disruption @ Torrid Pace
Music = Why Streaming? Access / Choice / Discovery /
Personalization / Mobile / Fewer Ads
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...
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
New Cloud Companies Emerging… Providing Elegant + Intuitive Experiences for End Users
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
India Leadership = Digital-Focused Government Policies Rolled Out with Speed + Scope
India Entertainment Re-Imagined = Internet-First Shows Optimized for Mobile… Replacing Longer / Linear Programming Optimized for TV
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…
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
New Cloud Companies Emerging… Providing Elegant + Intuitive Experiences for End Users
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
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…
China Livestreaming = Compelling Monetization
China On-Demand Transportation = #1 Global Market… Cars + Bikes
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
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
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
India Software – Top Downloaded Android Apps
Amazon India
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…
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…
India Leadership = Digital-Focused Government Policies Rolled Out with Speed + Scope
India Entertainment Re-Imagined = Internet-First Shows Optimized for Mobile… Replacing Longer / Linear Programming Optimized for TV
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 InnovationDigital 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…
9) Global Public / Private Internet Companies
2017 Global Internet Market Capitalization Leaders = Most Extending Leads… Apple / Google-Alphabet / Amazon / Facebook / Tencent / Alibaba
2017 Global Market Capitalization
Leaderboard = Tech = 40% of Top 20 Companies…100% of Top 5…
Closing Thoughts:
Economic Growth Drivers = Evolve Over
Time
Original Mary Meeker's Report is Here.
Thanks for reading this article. Looking forward for your views below in the comment section about what tactice you are using in your marketing strategy. If you need my support to help you in some way, please reach out to me at contact@ankituttam.com