Mary Meeker, legendary Morgan Stanley internet analyst and current partner at venture capital firm Kleiner Perkins Caufield Byers recently delivered her annual State of the Internet presentation at the Code conference in California. The Meeker Report offers crucial observations about internet trends based on hard data and research across all facets of the web, mobile, TV and social media. Here are 10 key insights from Mary that will affect the way marketers reach their audiences.
- While people are spending about 20% of their time using mobile, this medium receives only about 4% of total ad spend. Meeker calls this a $30 billion opportunity. (By comparison, people spend 38% of their time watching TV, but TV accouns for 45% of total ad spend.)
- The cost to store, process and transmit computer data, which drives digital development, has declined rapidly since the early 1990’s. Global computing costs have dropped an average of 33% a year since 1990, while global storage costs have declined an average of 38% annually since ’92. Global bandwidth costs have dropped 27% annually since 1999.
- Citing online services like InstaCart and Amazon Fresh, Meeker says same day local delivery will be the next big thing in grocery shopping.
- A new era of real time data that is easy to share is upon us. Sites like Pinterest, Fitbit, and My Fitness Pal, where users can upload, share and find content, already have hundreds of millions of users, and are growing rapidly.
- Consumers are multi-screening with greater frequency, with 84% of mobile users now engaging with their devices while watching TV.
- Media engagement actually rises among connected consumers. In fact a TV campaign, combined with exposure on Twitter, can nearly double purchase intent over a TV only ad. In a Nielson study cited by Meeker, 44% of tablet users are shopping while they watch TV, 12% are voting or sending comments to a live program and 14% are actually buying a product being advertised while they watch TV.
- Online viewership of TV programming continues to rise for all demographic segments. For example, Non-Millennials are now getting approximately 12% of their TV thru online channels while Millennials receive nearly 34% of their TV exposure online.
- Smart TVs are growing in popularity, but account for a small percentage of the total installed base of TVs. In fact, 39% of all TV shipments in 2013 were smart TVs, but smart TVs still account for less than 10% of all installed TVs.
- Linear TV channels are increasingly being replaced by apps. For instance, 52% of ESPN digital users now access ESPN content through a smartphone or tablet app.
- You Tube and Google are changing the digital ad model with Google’s True View’s pay per view platform, which only charges advertisers when a viewer chooses to watch an ad, and collects data to improve the user experience and increase the advertiser’s ROI>
You can find more insights in the full study at http://www.kpcb.com/internet-trends.