2017 Internet trends.
Mary Meeker presented her comprehensive 355-page internet trends report at the annual Code conference this year. Meeker, a partner at Kleiner Perkins Caufield & Byers, delivered her highly anticipated report on the state of the internet based on vast amounts of data gathered.
Marketers and Silicon Valley will find this year’s report impressive with topics on interactive gaming, digital advertising, voice and computing, healthcare trends, Facebook and google domination, internet trends in India and China, mobile usage and more.
Here are key highlights from the report:
Advertising is moving online
Advertisers are moving from advertising on television to advertising on the internet. Google and Facebook dominated most of the internet advertising growth in America. Google and Facebook control 85 percent of the online advertising market. Facebook’s advertising revenue grew remarkably to 62 percent in 2016.
According to the report, global TV-ad spending reached less than $50 billion from 2010 through to last year, while internet-ad spending grew to more than $110 billion. This trend will continue with ad spending moving to social platforms such as Instagram, snap, twitter, YouTube and more. For the first time, we are seeing internet advertising surpass TV advertising.
Ad blocking continues to increase with nearly 400 million devices using ad blockers last year.
Voice and computing rises
Many online searches come from Voice rather than typing online queries. Twenty percent of mobile queries were made via voice in 2016, with an accuracy rate of about 95 percent. The expansion of voice computing stems from capabilities such as Google’s machine learning, which can understand words accurately. Voice is taking over typing and data is showing 70 percent of inputs to Google’s virtual assistant are in conversational language.
Interactive gaming is mainstream
Global gaming estimated revenues reached $100 billion in 2016, with China leading the market in interactive gaming. Meeker pointed out, Elon Musk, Reid Hoffman and Mark Zuckerberg are a few examples of Entrepreneurs who are into gaming. Interactive gaming has gone mainstream with 2.6 billion global gamers in 2017.
Smartphone usage slows down slightly
Global sales and shipments of smartphones slowed down to only three percent growth last year, compared to 10 percent in 2015 and 28 percent in 2014.
Internet usage growth did not increase
Internet growth slowed down globally. The number of hours people spent online in America slowed down to 4 percent last year, compared to a 6 percent increase in 2015. Time spent on the internet in the U.S. is still significant and averaged 5.6 hours online every day. Internet use on mobile devices has increased, with 55 percent of online activity conducted on mobile devices in America.
Social media consumption is steady
Time spent on digital medial will continue to see solid growth, especially on social media channels. Social media consumption on mobile devices increased to 3.1 hours spent per day, increasing from 2.8 hours in 2015. Mobile traffic on Facebook grew to 14 percent from 7 percent.
Malicious attachments and spam email are on the rise. Cloud computing is increasing risks of security and data vulnerabilities. Phishing emails grew to 350 percent since Q1 in 2015.
Streaming music and shows are in demand
Spotify and Netflix are gaining in popularity. Spotify accounts for 20 percent of global music revenue and Netflix viewing was up by 700 percent. People seem to be happy with subscription services.
eSports is increasing in popularity
eSports has become one of the world’s biggest spectator sports. Meeker’s report pointed out that the 2016 League of Legends Finals, attracted 20,000 spectators to the Staples Center and reached 43 million viewers online. eSports is exploding with viewing time up 40 percent this year. Millennials prefer eSports vs traditional sports.
India is the fastest growing economy and it comes as no surprise that the number of internet users in India grew more than 28 percent in 2016. Mobile internet usage is growing due to falling costs of bandwidth.
Tech companies are driving wealth creation in China, where paying for on-demand services such as livestreaming, bike sharing and taxis are increasingly popular.
In the U.S., 60 percent of tech companies were responsible for 1.5 million employees in 2016. These companies include titans such as Apple, Alphabet, Google, Amazon and Facebook.
Digital health trends
Wearables are becoming popular with an estimated 25 percent of Americans owning one. The digital health market will continue to see growth given that 60 percent of consumers don’t mind sharing their personal health data. Brands such as Google, Microsoft and Samsung are trusted brands and consumers are willing to wear trackers that gather their data.
For more insights, data, charts, analysis and trends, read Mary Meeker’s 2017 Internet Trends report.
Written by Shairoz Az – Communications