Mary Meeker's annual internet trends report is essentially the State of the Union or Super Bowl for the tech industry. But at 355 slides you may not have time to read it all. Here's our highlights!
Mobile Usage Drives Internet Growth
Internet usage remains steady at 10% and smartphone sales are down, indicating almost everyone who wants or needs a smartphone now has one.
U.S. adults now spend over 5.6 hours per day on the internet, including over 3 hours per day on mobile. Yet desktop usage has only declined slightly. This indicates mobile usage does not “replace” desktop usage but “adds” to internet usage. Since users continue to use a wide variety of devices, responsive web sites will continue to be important.
Mobile Usage Drives Digital Ad Growth
As mobile internet usage continues to rise, so does mobile ad spend. Mobile ad dollars now exceed desktop ads—and internet ads should pass dollars spent on television within six months.
However, even though people spend 28% of their media time on mobile, it only receives 21% of ad spend. That means there’s a $16 billion opportunity for more mobile ads.
Online ad growth has mostly centered on search and social, with Google and Facebook accounting for 85% of the total growth.
Online advertising and commerce is becoming increasingly measurable and actionable.
E-commerce grew 15% this year, and e-commerce shipping is expected to grow 9%. Brands have become increasingly more creative with their online ads to continue to push this trend.
For example, hyper-local or location-aware ads appear when users are near a store. They are driving foot traffic and influencing purchases.
Ads repurposed from content shared by users or social media influencers can drive 6.9 times higher engagement than content created by brands. So don’t wait to start that user- and influencer-generated content campaign.
Incentive-based and skippable video ads are driving positive interactions. And YouTube is losing mobile video share as Facebook and Snap grow, as well as streaming video services.
Image recognition and camera apps will allow ad platforms to know what you’re looking at and serve you more relevant ads. However, mobile ad-blocking skyrockets, especially in developing markets where data costs are high. Nearly 400 million people block mobile ads.
Voice search grows.
20% of mobile searches are now made with voice, and nearly 70% of them are natural or conversational language. This is good news for Google, who reports a 95% accuracy for decoding speech. This is notable since it is the established threshold for human accuracy.
Social Media important for customer service.
Finally, social media remains important—especially for customer service. 82% of customers stopped doing business with a company after a bad experience, up from 76% in 2014. And brands need to be prepared to respond via social channels. Customer service is also shifting to real-time online chat instead of phones, as users demand faster response times and wider access.
How will these trends affect your organization? If you don’t have a mobile-friendly website: get one. And start thinking about how you can use creative mobile advertising to drive purchases, visits—or whatever goal you have.
That's it for today, thanks for watching and tune in next time for more Braindrops from Click Rain.