10 Key Points from Mary Meeker’s 2018 Internet Trends Report

by bold-lichterman

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.

This year, Mary Meeker gave the primacy of the output to the Conference Commercial Code organized by Recode, May 30 at Rancho Palos Verdes, California.

here is Video presentation by Mary Meeker, the report to Download, and 10 key points to remember:

10 Key Points from Mary Meekers 2018 Internet Trends Report

1605289882 749 10 Key Points from Mary Meekers 2018 Internet Trends Report

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.

DATA

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).

1605289883 199 10 Key Points from Mary Meekers 2018 Internet Trends Report

1605289884 332 10 Key Points from Mary Meekers 2018 Internet Trends Report

Source: Internet Trends 2018, Mary Meeker, Kleiner Perkins

MOBILE

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).

1605289885 190 10 Key Points from Mary Meekers 2018 Internet Trends Report

1605289885 133 10 Key Points from Mary Meekers 2018 Internet Trends Report

Source: Internet Trends 2018, Mary Meeker, Kleiner Perkins

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 …

1605289886 199 10 Key Points from Mary Meekers 2018 Internet Trends Report

1605289887 925 10 Key Points from Mary Meekers 2018 Internet Trends Report

Source: Internet Trends 2018, Mary Meeker, Kleiner Perkins

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):

1605289887 765 10 Key Points from Mary Meekers 2018 Internet Trends Report

1605289888 637 10 Key Points from Mary Meekers 2018 Internet Trends Report

Source: Internet Trends 2018, Mary Meeker, Kleiner Perkins

1605289889 390 10 Key Points from Mary Meekers 2018 Internet Trends Report

1605289889 253 10 Key Points from Mary Meekers 2018 Internet Trends Report

Source: Internet Trends 2018, Mary Meeker, Kleiner Perkins

VOICE COMMERCE

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.

1605289890 108 10 Key Points from Mary Meekers 2018 Internet Trends Report

1605289890 145 10 Key Points from Mary Meekers 2018 Internet Trends Report

Source: Internet Trends 2018, Mary Meeker, Kleiner Perkins

E-COMMERCE

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!

1605289891 547 10 Key Points from Mary Meekers 2018 Internet Trends Report

1605289891 582 10 Key Points from Mary Meekers 2018 Internet Trends Report

Source: Internet Trends 2018, Mary Meeker, Kleiner Perkins

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:

1605289892 912 10 Key Points from Mary Meekers 2018 Internet Trends Report

1605289893 91 10 Key Points from Mary Meekers 2018 Internet Trends Report

Source: Internet Trends 2018, Mary Meeker, Kleiner Perkins

SUBSCRIPTION

Massive adoption

Subscriptions to Netflix up 25%, The New York Times up 43%, Spotify up 48%.

GOOGLE, AMAZON

Trades converge

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).

1605289894 878 10 Key Points from Mary Meekers 2018 Internet Trends Report

1605289895 813 10 Key Points from Mary Meekers 2018 Internet Trends Report

Source: Internet Trends 2018, Mary Meeker, Kleiner Perkins

Amazon as an advertising platform, which is obvious to more and more advertisers who know that one in two searches is done on Amazon.

SIMPLICITY

A strong trend towards ever more simplicity. A winning recipe. See Square, Spotify.

PAYMENT

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).

1605289896 812 10 Key Points from Mary Meekers 2018 Internet Trends Report

1605289896 820 10 Key Points from Mary Meekers 2018 Internet Trends Report

Source: Internet Trends 2018, Mary Meeker, Kleiner Perkins

SOCIAL NETWORKS

  • 2 hours a day1605289897 308 10 Key Points from Mary Meekers 2018 Internet Trends Report

1605289898 978 10 Key Points from Mary Meekers 2018 Internet Trends Report

Source: Internet Trends 2018, Mary Meeker, Kleiner Perkins

  • 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)

1605289898 489 10 Key Points from Mary Meekers 2018 Internet Trends Report

1605289899 920 10 Key Points from Mary Meekers 2018 Internet Trends Report

Source: Internet Trends 2018, Mary Meeker, Kleiner Perkins

Among the things that annoy:

  • The return on investment of performance-based online advertising: cost per thousand (eCPM) is growing faster than CTR.

1605289900 686 10 Key Points from Mary Meekers 2018 Internet Trends Report

1605289901 444 10 Key Points from Mary Meekers 2018 Internet Trends Report

Source: Internet Trends 2018, Mary Meeker, Kleiner Perkins

This led Facebook to integrate the notion of Customer Life Time Value (LTV) into its Lookalike offer

1605289902 152 10 Key Points from Mary Meekers 2018 Internet Trends Report

1605289902 131 10 Key Points from Mary Meekers 2018 Internet Trends Report

Source: Internet Trends 2018, Mary Meeker, Kleiner Perkins

And finally, this slide: not a European Internet leader out of the top 20 in the world:

1605289903 492 10 Key Points from Mary Meekers 2018 Internet Trends Report

1605289904 687 10 Key Points from Mary Meekers 2018 Internet Trends Report

Source: Internet Trends 2018, Mary Meeker, Kleiner Perkins

To go further: the Video presentation by Mary Meeker, the report to Download and the key points of Recode.

The correspondant :

All about Visual Research with The Home Depot Best BuyLaurence 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.