Dissecting Mary Meeker’s Presentation

Internet Trends- according to Mary Meeker

Fundamental Stats: The internet is growing at a rapid speed

Mobile device acceptance is steadily increasing, but not without its barriers.

  • US ranked 8th for Internet Usage Growth and penetrates 79% of the population.  While China was ranked 1st, only 38% of the population was penetrated.
  • US is ranked 1st for Mobile 3G subscribers, with a penetration of 64%.
  • Ipad, Iphone, and Ipod have revolutionized the world of mobile devices.  Android phone has increased even faster.
  • 29% of US adults own a tablet or eReader, increase of 2% from 3 years ago.
  • 10% of internet traffic is conducted from a mobile device.
  • Mobile apps are starting to gain popularity and mobile advertising is slowly following.
  • Benefits to mobile advertising:  % of time Spent in Media is higher than % of Advertising Spending
  • Negatives to mobile advertising: eCPM (cost per thousand impression) is 5x lower on Mobile ($0.75) v. (Desktop) $3.50

-ARPU (Average Revenue per User) is also 1.7 -5% lower on mobile

Google increases clicks, but reduces Cost per Click=Constraining Revenue Growth

Facebook drives users, but contains ARPU and= Constrains revenue growth.

  • Conclusion: Mobile monetization will soon surpass Desktop it just needs time.  It has a lot more going for it, than the Desktop ever did:

-Rapid user growth

-Apps

-Surplus of Innovative Developers

-Large amount of tech savvy Advertisers and Marketers

-Highly engaged users assisted by social and curation tools

-Development of new devices

Re-Imagination: They way people communicate is at a crossroads.  Calling for innovative approaches, redesigned devices, and the reinvention of almost everything! There are of course stats to back up these proclamations.

  • Everything is becoming instantaneous, sharable, and interactive
  • Goodbye landlines, hello Mobile
  • Goodbye Printed Encyclopedias, hello Wikipedia
  • A slow and hesitated goodbye to printed newspapers, hello online subscriptions
  • Students no longer bring a notebook and pencil to class they bring a laptop or ipad. Interior designers don’t spend their time poking themselves with pins on a cork board, they use Pinterest.  Researchers don’t bother going to the library, they download a book on their kindle….the list continues. 
  • Consumer Internet ‘White Space’-

Ear/Body: more evolved devices (Wireless Bluetooth, virtual computer mouses, Siri Spotify)

Car: 76% of Americans spend time in their car for roughly 52 min/ day.  They are largely untapped.

TV: 3 hrs are spent in front of the TV or other more sophisticated devices. Some of them also have internet.

One more Reinvention Worth Mentioning

  • Content Marketing on the platform Virurl.  Content is shared on social media platforms for a money incentive.

Economy:  Mixed emotions

  • Overall stock market is still a bit shaky
  • Consumer Confidence is slowly rising, but still below what is was for 30  years
  • Consumer Sentiment is slowly improving, but half still view it has ‘poor’
  • Global GDP is said to decline, seeing Europe’s situations

Made in the USA:

  • American made mobile operating systems  have increased 64% in a 5 year period
  • 2010: US ranked 6th for highest total Gov. Gross Debt

Bubble:

  • Recent IPO Superstar=LinkedIn
  • Public Market Investors are more weary than Private Investors
  • 2% of companies accounted for ~100% of net wealth creation of 1,720 Tech IPOs in USA (1980- 2002).* The Technology IPO Yearbook : 9th  Edition – 23 Years of Tech Investing, Morgan Stanley
  • Tech Cycle of Growth is on the upside

One disagreement with the Trends

  • About her point  cars being largely untapped.  It seems  this particular section of ‘whitespace’ is starting to be tapped into, but of course not as much as it could be.  Many people attach their mobile device that usually has Wi-Fi to their car.   They listen to music via iTunes or satellite radio or even utilize apps that help them navigate.

What categories of mobile applications do we imagine making the biggest leaps?

 1. Ads:  In time the landscape will drastically change. Advertisers will start catching on and seeing that their potential consumers are starting to spend more time on their mobile devices.

2. Ecommerce: Buying and selling of products and services.  The explosion of this is due to the ease of transactions, wider markets, and decrease in overhead expenses. Facebook just bought an ecommerce app named Karma. Other ecommerce apps include; Price Check by Amazon, Textonly, Blogger, Google Wallet. 

3. Augmented Reality:This is very up and coming.  An augmented reality app intertwines virtual data with the physical real world by utilizing the mobile device’s compass, camera, and GPS system. Some have been released on the Android, iPhones are still waiting. Some examples: TwittARound.  This app allows you to use the video component and see reality and then using the GPS show where people in the surrounding area are tweeting from.   Others are Layar, TAT Augmented ID, SREngine for iPhone

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