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Mary Meeker’S 2017 Internet Trends Report

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Enjoy.

 

 

Here’s a first look at the most highly anticipated slide deck in Silicon Valley. This year’s report includes 355 slides and tons of information, including a new section on healthcare that Meeker didn’t present live.

Here are some of our takeaways:

  • Global smartphone growth is slowing: Smartphone shipments grew 3 percent year over year last year, versus 10 percent the year before. This is in addition to continued slowing internet growth, which Meeker discussed last year.
  • Voice is beginning to replace typing in online queries. Twenty percent of mobile queries were made via voice in 2016, while accuracy is now about 95 percent.
  • In 10 years, Netflix went from 0 to more than 30 percent of home entertainment revenue in the U.S. This is happening while TV viewership continues to decline.
  • Entrepreneurs are often fans of gaming, Meeker said, quoting Elon Musk, Reid Hoffman and Mark Zuckerberg. Global interactive gaming is becoming mainstream, with 2.6 billion gamers in 2017 versus 100 million in 1995. Global gaming revenue is estimated to be around $100 billion in 2016, and China is now the top market for interactive gaming.
  • China remains a fascinating market, with huge growth in mobile services and payments and services like on-demand bike sharing. (More here: The highlights of Meeker's China slides.)
  • While internet growth is slowing globally, that’s not the case in India, the fastest growing large economy. The number of internet users in India grew more than 28 percent in 2016. That’s only 27 percent online penetration, which means there’s lots of room for internet usership to grow. Mobile internet usage is growing as the cost of bandwidth declines. (More here: The highlights of Meeker's India slides.)
  • In the U.S. in 2016, 60 percent of the most highly valued tech companies were founded by first- or second-generation Americans and are responsible for 1.5 million employees. Those companies include tech titans Apple, Alphabet, Amazon and Facebook.
  • Healthcare: Wearables are gaining adoption with about 25 percent of Americans owning one, up 12 percent from 2016. Leading tech brands are well-positioned in the digital health market, with 60 percent of consumers willing to share their health data with the likes of Google in 2016

Source: https://www.recode.net/2017/5/31/15693686/mary-meeker-kleiner-perkins-kpcb-slides-internet-trends-code-2017

 

The slide deck: https://www.slideshare.net/kleinerperkins/internet-trends-2017-report/7-KP_INTERNET_TRENDS_2017_PAGE

 

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My takes on the Ad side from this report.

 

  • 2015/206 - Facebook Advertising grew by 62% against Google's 20%
  • 2015/2016 - was the first time TV Ad spend and Internet Ad spend matched themselves, now internet due to surpass.
  • 56% of social media account managers consider Engagement the metric of measurement best for advertising sales.
  • 61% see that actually measuring ROI is the bigger problem over securing budget (38%) and making it business valuable (34%)
  • Desktop Adblockers most prevalent in Germany, Canada, USA, UK.
  • Mobile adblockers most prevalent in Indonesia (58%), India, China.
  • Ad measeurment tools are improving
  • Google shopping ads PLA account for over half of all retail paid click ads.
  • Facebook: of people that clicked on an ad in last 30 days 74% did not make a purchase.
  • Google location targeted ads: 99% accuracy tracking visits to 200MM stores globally (sh**!)
  • Mobile app reward considered most positive way to offer incentive based ads.
  • UGC content can generate 7x higher engagement than brand generated content on Facebook.
  • Google Assistant 70% requests are conversational language.
  • Ads are becoming like storefronts (FB browsable storefronts) and are becoming the transactional point as well.
  • 60% of customers want easier access to online support channels from organizations they have a relationship with.
  • 53% want people to respond quicker.
  • 82% customers stop doing business with a brand after a bad experience.
  • Chewy.com example of a brand that is leveraging user community to drive revenue growth.

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I scan her report every year to pick out points to research I've missed and to see where her synopsis of the year varies from mine. That said I'm also extremely cautious about her data and emphasis because I remember that she (as a Morgan Stanley analyst hyping on US national TV) blew a rather large data correction (dotcom bubble burst). I was totally out before she went from hype to caution. And nothing she has done since has changed my impression of her as being observant of what is while incapable or unwilling (at that time her 'business news' persona was in severe conflict of interest with her 'actual business' persona) to forecast.

A second point to keep in mind is that her data points are from the players, unaudited. This is not bad per se as those are often the only folks with the numbers but it is something to keep in mind as each source has it's own agenda.

And a third is that she doesn't include things in the pipeline but not yet 'real' so not appearing in her slide deck. Such as:
* Google Chrome set, in 2018, to block ads they aka Google don't like. In other words Google is going to set themselves, the web's 800lb ad delivery gorilla, up as the arbitrator of which ads on a site will be shown to Chrome browser visitors. Mmm... the time leading up to this and it's rollout should be interesting... popcorn!

* China's new cybersecurity law is now in effect. It is wide reaching but boils down in essence to data collected in China and/or about Chinese entities, including people, must be stored securely on servers within China and not shared outside China without permission. Illegal data loss/transference is not only open to hefty fines but loss of one's actual business or ability to do business in/with China.

The last point I need to make is that, given past efforts, well over half those writing/commenting on her report will get it (somewhat -> egregiously) wrong. They will look at her tea leaves and see what they have been saying all along, a very strange very human behaviour. So, my biggest caution is to not take third party reporting, especially conclusions, as true; rather that if you think they make an important point go read the source as a confirmation check.

 

All that said, I've read it (and it's precursor) for two decades now, as a high level synopsis of what 'is'; a snapshot in time.

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She also works for a venture capital company with a portfolio to push either directly or indirectly, seeing as we are stating the obvious ;)

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I also went through those slides in some depth. Always some juicy data to make the brain start ticking into hyperdrive.

 

I noted one of the same, but rather noted the reverse aspect of what was stated:

 

 

Facebook: of people that clicked on an ad in last 30 days 74% did not make a purchase.

 

So, if I read that rightly, 26% of all facebook ad clicks result in, or correspond with, a sale within 30 days. 26% is pretty darn massive. I'd take that as a conversion rate on any medium. Now, of course, the data may be skewed by poor use of retargeting where, in fact, the sale was made before the ad was even shown, but even so. 26% is impressive for any channel.

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I'd take that with a sea of salt, attribution in FB is really really sketchy at best and with the proliferation of usage the change for arbitrary over-writing of cookies is as easy as could be!

 

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