10 Key Points from Mary Meeker’s 2018 Internet Trends Report
Every year, all of Silicon Valley scrutinizes the publication of ” Internet Trends »The report which serves as a compass for the entire Tech, AdTech and Commerce industry, published by the legendary venture capitalist Mary meeker, partner at Kleiner Perkins Caufield & Byers. No fuss. 294 slides worth gold. All the most important statistics and technology trends.
The pace is accelerating. A banality, but this year, this is more true than ever. Globalized innovations and competition lead to the creation of better products and services all over the world which, in return, promote new uses by consumers, and new ways of monetizing these uses, for businesses.
It is at the heart of everything. At a time :
- personal – collected during these taps / clicks / navigations made by the consumer, more and more often on his smartphone
- and collective (anonymized) to improve the customer experience.
Examples cited by Mary Meeker: Waze, to facilitate traffic in real time (100MM + users), UberPOOL, to share your ride (+ 20% growth), Nextdoor, for recommendations and local service requests (17 MM + users).
Always more time spent on your smartphone
American adults spend more time online: 5.9 hours per day in 2017 (+ 4% vs. 2016). This increase is due to mobile phones: more than half of digital time (3.3 hours) is spent on a smartphone (vs. 3.1 hours in 2016).
When it comes to regulation, if people are spending more and more time on Internet media and services – most of them free – it is because they perceive a certain value from it. It would not be about breaking the machine. As one of the slides summarizes: Data …
Followed by the following slides by the fact that data generates customer satisfaction, and that a significant volume of data is fundamental to improve the service or product, as well as the predictive capacity of artificial intelligence (AI):
Speech recognition is now 95% accurate. Enough to make remote order taking on mobile, before, for example, coming to pick up your order at a point of sale, as is increasingly practiced in fast food restaurants.
The craze for voice-controlled speakers continues: 30 million American homes are now equipped with Amazon Echo (Q4 2017). There are 30,000 Amazon Echo skills.
13% of US retail
- E-commerce continues to grow. E-commerce sales were up + 16% in the US in 2017 (vs. + 14% in 2016). Amazon alone captured the largest share of the pie: + 28%. As a result, store sales declined. But they nevertheless remain at a more than substantial level: 87% of total Retail!
E-commerce = Mobile, Personalized, Local, Real Time
With a customer more often on his smartphone than on his computer, E-commerce is Mobile. But also Interactive, Personalized (the user of the mobile application discovers in his Promotions tab those intended for him), Local and Updates in real time. Mary Meeker takes Instacart as an example:
Subscriptions to Netflix up 25%, The New York Times up 43%, Spotify up 48%.
Big techs compete with each other on all fronts. Google, an advertising platform, is transformed into a commerce platform via Google Home Ordering. While Amazon enters head-on as a powerful player in advertising ($ 4B + 42% Y / Y = Ad Revenue).
Amazon as an advertising platform, which is obvious to more and more advertisers who know that one in two searches is done on Amazon.
A strong trend towards ever more simplicity. A winning recipe. See Square, Spotify.
Precisely, when it comes to payment, when we ask people about the channel used to make their last 10 daily transactions, 60% are made online! (40% in store).
- 2 hours a day
- Social networks: more and more adept at generating sales
The social network is a place of discovery (78% of people questioned have already discovered a product on Facebook), which now offers the tools to go as far as selling: 55% of people questioned have bought a product online after the have discovered online (including 11% immediately after discovering it online).
- Social Networks: redirection channel to E-commerce
Referral marketing: Mary Meeker estimates that social Commerce now represents 6% of e-commerce site traffic (vs. 2% in 2015)
Among the things that annoy:
- The return on investment of performance-based online advertising: cost per thousand (eCPM) is growing faster than CTR.
This led Facebook to integrate the notion of Customer Life Time Value (LTV) into its Lookalike offer
And finally, this slide: not a European Internet leader out of the top 20 in the world:
The correspondant :
Laurence Faguer is a marketer and entrepreneur “go-between” France and USA, founder of Customer Insight.
At the request of French companies, she identifies in person innovations in Digital, Mobile and Retail in the United States, before they are known in France, then helps them to successfully transpose these successful strategies in the US
Laurence is US expert for FrenchWeb who resumes from time to time the publication of articles on her blog.