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Mary Meeker’s 2018 Internet Trends report: Key takeaways

“Meeker’s report estimates that more than half the world’s population are Internet users, or roughly 3.6 billion.
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MOBILE SHIPMENTS NOT GROWING

2017 was the first year in which global smartphone shipments did not grow, Meeker notes. Meanwhile, the global average selling price of smartphones continues to decline, helping to drive adoption in less-developed markets.

Easy-to-use mobile products are also becoming pervasive. Mobile video usage is climbing, while China in 2017 had more than 500 million active mobile payment users.

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AMAZON EATS THE WORLD

Amazon’s e-commerce marketshare has expanded from 20 to 28 percent over the last five years. Additionally, Meeker posits that 49 percent of users begin products searches at Amazon, compared to 36 through traditional search engines.

Meanwhile, the installed base for the Amazon Echo grew from 20 million in the third quarter to 30 million in Q4.

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AI A GROWING ENTERPRISE PRIORITY

As internet leaders like Amazon and Google enable easier data processing and collection, AI service platforms will become increasingly relevant in business. AI is a small but rapidly rising spending priority for the enterprise, Meeker notes.

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TECH SECTOR GROWTH

Meeker estimates that technology companies made up 25 percent of US market capitalization as of April 2018, compared to 33 percent at the peak of the dotcom boom. Meantime, six technology companies — Amazon, Alphabet, Facebook, Intel, Apple, and Microsoft — were among the top 15 highest spenders for R&D and capex.

China currently houses nine of the world’s 20 largest internet companies by market cap, while the US is home to 11.

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Read the rest of Meeker’s full report here.”

MARY MEEKER’S TECH STATE OF THE UNION: Everything happening on the internet in 2018

http://www.businessinsider.com/mary-meeker-internet-trends-2018-full-slide-deck-2018-5

Here’s Mary Meeker’s essential 2018 Internet Trends report

2018-internet-trends-report

Want to understand all the most important tech stats and trends? Legendary venture capitalist Mary Meeker has just releasedthe 2018 version of her famous Internet Trends report. It covers everything from mobile to commerce to the competition between tech giants. Check out the full report below, and we’ll add some highlights soon. Then come back for our slide-by-slide analysis of the most important parts of the 294 page report.

  • Internet adoption: As of 2018, half the world population, or about 3.6 billion people, will be on the internet. That’s thanks in large part to cheaper Android phones and Wifi becoming more available, though individual services will have a tougher time adding new users as the web hits saturation.
  • Mobile usage: While smartphone shipments are flat and internet user growth is slowing, U.S. adults are spending more time online thanks to mobile, clocking 5.9 hours per day in 2017 versus 5.6 hours in 2016.
  • Mobile ads: People are shifting their time to mobile faster than ad dollars are following, creating a $7 billion mobile ad opportunity, though platforms are increasingly responsible for providing safe content to host those ads.
  • Crypto: Interest in cryptocurrency is exploding as Coinbase’s user count has nearly quadrupled since January 2017
  • Voice: Voice technology is at an inflection point due to speech recognition hitting 95% accuracy and the sales explosion for Amazon Echo which went from over 10 million to over 30 million sold in total by the end of 2017.
  • Daily usage – Revenue gains for services like Facebook are tightly coupled with daily user growth, showing how profitable it is to become a regular habit.
  • Tech investment: We’re at an all-time high for public and private investment in technology, while the top six public R&D + capex spenders are all technology companies.

Mary Meeker, analyst with Morgan Stanley, speaks during the Web 2.0 Summit in San Francisco, California, U.S., on Tuesday, Nov. 16, 2010. This year’s conference, which runs through Nov. 17, is titled “Points of Control: The Battle for the Network Economy.” Photographer: Tony Avelar/Bloomberg via Getty Images

  • Ecommerce vs Brick & Mortar: Ecommerce growth quickens as now 13% of all retail purchases happen online and parcel shipments are rising swiftly, signaling big opportunities for new shopping apps.
  • Amazon: More people start product searches on Amazon than search engines now, but Jeff Bezos still relies on other surfaces like Facebook and YouTube to inspire people to want things.
  • Subscription services: They’re seeing massive adoption, with Netflix up 25%, The New York Times up 43%, and Spotify up 48% year-over-year in 2017. A free tier accelerates conversion rates.
  • Education: Employees seek retraining and education from YouTube and online courses to keep up with new job requirements and pay off skyrocketing student loan debt.
  • Freelancing: Employees crave scheduling and work-from-home flexibility, and internet discovery of freelance work led it to grow 3X faster than total workforce growth. The on-demand workforce grew 23% in 2017 driven by Uber, Airbnb, Etsy, Upwork, and Doordash.
  • Transportation: People are buying fewer cars, keeping them longer, and shifting transportation spend to rideshare, which saw rides double in 2017.
  • Enterprise: Consumerization of the enterprise through better interfaces is spurring growth for companies like Dropbox and Slack.
  • China: Alibaba is expanding beyond China with strong gross merchandise volume, though Amazon still rules in revenue.
  • Privacy: China has a big opportunity as users there are much more willing to trade their personal data for product benefits than U.S. users, and China is claiming more spots on the top 20 internet company list while making big investments in AI.
  • Immigration: It is critical to a strong economy, as 56% of top U.S. companies were founded by a first- or second-generation immigrant.

Mary Meeker’s 2018 internet trends report: All the slides, plus analysis

Here’s a first look at the most highly anticipated slide deck in Silicon Valley.

“It’s that time of year again, when Mary Meeker unloads her highly anticipated internet trends report for the Code Conference crowd in Rancho Palos Verdes, Calif. This year, the Kleiner Perkins Caufield & Byers partner released 294 slides in rapid succession, covering everything from smartphone behavior in the U.S. to tech company competition in China.

Update: You can also read a transcript of Meeker’s remarks here.

Here are some takeaways:

  • 2017 was the first year in which smartphone unit shipments didn’t grow at all. As more of the world become smartphone owners, growth has been harder and harder to come by. The same goes for internet user growth, which rose 7 percent in 2017, down from 12 percent the year before. With more than half the world online, there are fewer people left to connect.
  • People, however, are still increasing the amount of time they spend online. U.S. adults spent 5.9 hours per day on digital media in 2017, up from 5.6 hours the year before. Some 3.3 of those hours were spent on mobile, which is responsible for overall growth in digital media consumption.
  • Despite the high-profile releases of $1,000 iPhones and Samsung Galaxy Notes, the global average selling price of smartphones is continuing to decline. Lower costs help drive smartphone adoption in less-developed markets.
  • Mobile payments are becoming easier to complete. China continues to lead the rest of the world in mobile payment adoption, with over 500 million active mobile payment users in 2017.
  • Voice-controlled products like Amazon Echo are taking off. The Echo’s installed base in the U.S. grew from 20 million in the third quarter of 2017 to more than 30 million in the fourth quarter.
  • Tech companies are facing a “privacy paradox.” They’re caught between using data to provide better consumer experiences and violating consumer privacy.
  • Tech companies are becoming a larger part of U.S. business. In April, they accounted for 25 percent of U.S. market capitalization. They are also responsible for a growing share of corporate R&D and capital spending.
  • E-commerce sales growth is continuing to accelerate. It grew 16 percent in the U.S. in 2017, up from 14 percent in 2016. Amazon is taking a bigger share of those sales at 28 percent last year. Conversely, physical retail sales are continuing to decline.
  • Big tech is competing on more fronts. Google is expanding from an ads platform to a commerce platform via Google Home Ordering. Meanwhile, e-commerce giant Amazon is moving into advertising.
  • People are spending more on health care, meaning they might have to be more focused on value. Meeker asks: “Will market forces finally come to health care and drive prices lower for consumers?” Expect health care companies to offer more modern retail experiences, with convenient offices, digitized transactions and on-demand pharmacy services.
  • The speed of technological disruption is accelerating. It took about 80 years for Americans to adopt the dishwasher. The consumer internet became commonplace in less than a decade.
  • Expect technology to also disrupt the way we work. Just as Americans moved from agriculture to services in the 1900s, employment types will again be in flux. This time, expect more on-demand and internet-related jobs to predominate.
  • Internet leaders like Google and Amazon will offer more artificial intelligence service platforms as AI becomes a bigger part of enterprise spending.
  • China is catching up as a hub to the world’s biggest internet companies. Currently, China is home to nine of the world’s 20 biggest internet companies by market cap while the U.S. has 11. Five years ago, China had two and the U.S. had nine.
  • Immigration remains important for U.S. tech companies. More than half of the most highly valued tech companies in the U.S. are founded by first- or second-generation immigrants. Uber, Tesla, WeWork and Wish all have first-generation founders.

Here are all the slides:

Stephen

Posted on: May 31, 2018, 10:57 am Category: Uncategorized