Takeaways from Mary Meeker’s 2017 Internet Trends Report

Takeaways from Mary Meeker’s 2017 Internet Trends Report

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.

 

 

Full Report Here: