Mary Meeker’s Internet Trends report is one of the most eagerly anticipated collections of facts Globally.
Here we summarize the 355 page 2017 Internet Trends Report into key takeaways:
GLOBAL INTERNET TRENDS
- Solid Internet users growth numbers, but slowing Internet user growth at a flat rate of 10% yoy
- Global Smartphone shipment growth rate is slowing at 3% yoy
- People are spending more and more time online. >3 hours a day per user. The maximum increase has been on Mobile devices.
ONLINE ADVERTISING
- More measurable and actionable than ever.
- Mobile advertising is growing at 22% yoy
- Internet Ad Spend has crossed the TV Ad Spend
- Ad blockers have been rapidly growing both on desktop and Mobile. Users increasingly opt out of stuff they don’t want.
- Advertisers are increasing Ad efficiency. Right [email protected] time.
E-COMMERCE
- Online retail sales accelerating in USA at 15% yoy
- Real Time online customer conversions are rising rapidly.
- Personalized recommendations, augmented reality are boosting sales.
- Retail stores closing at a record high.
- Amazon is becoming a leading supplier of consumer products like baby wipes and batteries in the USA.
GAMES
- 2.6 Billion gamers, Revenues at $100 B growing 9% yoy. Still early days.
- Average age of a gamer is 35 years
- Machine Learning fine tuning the difficult to keep the users engaged.
- Daily time spent on Games is more than the Facebook ecosystem.
- Gaming Development tools and platforms are growing rapidly and speeding up the game development process.
- Online multiplayer gaming is evolving rapidly
- Esports are expanding the gaming ecosystem by engaging fans/spectators
MEDIA
- Size of Catalog and New music discovery are most important to users
- Free Trial and Ad free are the top two paid service conversion mediums
- Subscription and Stream > Download and play > Physical media
- Videos ramping up across all social media platforms
- Digital subscriptions are rising owing to massive user experience improvements.
CLOUD
- Private and Public Cloud adoption is rapidly increasing against private data centers.
- AWS is the largest cloud service provider with ~57% market share. Azure, Google, and IBM follow. Also growing rapidly.
- Data Security, cost uncertainty and vendor lock in biggest concerns to not to migrate to the cloud.
- Enterprise software migrating from On-prem to cloud and mobile based solutions. More emphasis on design and user experience than ever.
- Cyber threats and security issues rising. 94% of the Cloud apps are not enterprise ready.
INDIA
- 355 Mn Internet users, 28% growth, and 27% penetration. Strong Growth.
- #1 market for Android users time spend and Google play store downloads
- Smartphone cost and wireless data cost declining rapidly.mMontly data consumed 9x yoy.
- Broadband subscribers growing at 85% yoy
- 80% of Internet used is on mobile. Global average is 50%
- Government supporting online. Aadhar, eKYC, Payments.
- Paytm registered users at 215 Million.
- UPI monthly transaction volume at $359 Million. Leadership focussed on pro Digital policies.
- Indian Entertainment: Mobile time spent is 7x of TV
- #1 in K12 school system enrolled students @ 250 M. High demand for after school education. Low average age of schooling.
- <20% Insurance penetration with high demand. 90% expenditure is out of pocket.
- Online Health hubs and marketplaces for Direct to the consumer and hyperlocal fast emerging.
CHINA
- China’s service sector contributes to 52% of the GDP led by technology companies.
- China has ~700 Mn Internet users growing at 12% yoy. 30% yoy growth of Internet usage outpacing user growth.
- Ecommerce + Games fueling the Internet spend time.
- China #1 market in the world for game revenues
- China is #1 globally with 67% market share for on-demand market transportation.
- Mobile payment volume > $5000 B. Alipay 54%, WeChat 40% market share.
- E-commerce strong growth @24% yoy. @681 B GMV ,71% Mobile
- B2C Ecommerce at 15% of retail sales, growing faster than peers globally.
- China online advertising revenue growing 30% yoy @ $40 B
HEALTHCARE
- Rapid growth in Sources of Digital Health Data. Consumer Health and wellness data growing rapidly ~48% yoy.
- ~25% Americans own a wearable, 12% yoy
- Health and Fitness App Downloads, 5% yoy in the US, 15% growth yoy ROW
- Medical Research and knowledge doubling very 3.5 years
- Accumulation of Genomic data has led to 19x increase in genomic knowledge
- Healthcare is at a Digital Inflection point globally.
COMPANIES
- 40% of top 20 companies globally are tech companies, up from 20% in 2012. Combined market cap $7200 B
- Global tech Financing is strong, M&A robust growth.
- Compute Power and Human potential are the biggest growth drivers in this day and age.
