Our summary of Mary Meeker’s internet trend report 2018

Not had chance to watch/read Mary Meeker’s 2018 internet trends report? We’ve made a summary of our favourite points.

Our summary of Mary Meeker’s internet trend report 2018

You can see the full version here - as well as full details on the stats and sources. 

There were no real shockers, but previous trends are certainly ramping up…

DIGITAL GROWTH

  • 49% of the world’s population are now internet users – growth among users will be harder to find
  • Smartphone penetration is at 0% growth
  • Usage is growing though – US adults spend an average of 5.9 hours per day consuming digital media, up 4% year-on-year and up from 2.7 hours in 2008. Mobile makes up the biggest chunk of this at 3.3 hours (up from 0.3 in 2008).

KEY TRENDS

  • Digital payments are expanding – 60% of people’s everyday transactions are made digitally
  • Digital currencies are still emerging - and still growing
  • Rise of local neighbourhood networks is driving IRL connections
  • Messaging is still growing fast
  • Mobile video adoption is growing – average global daily mobile video viewing rose above 30 minutes in 2018
  • Voice has lifted off with Google reaching 95% word-accuracy, and Amazon’s installed Echo base reaching 30 million in the US at the end of 2017
  • New content types - Twitch has grown to an average of 16 million daily streaming hours globally as new video content types emerge (Tyler ‘Ninja’ Blevins has more than 7 million Twitch followers)
  • Lifelong learning – driven by a need to keep pace with digital. Education content usage is ramping fast with 1 billion daily learning video views on YouTube. TED’s channel subscribers have grown by 6 million since 2013 and Crash Course’s have increased by 7 million. 

ECOMMERCE & ADVERTISING

  • Ecommerce acceleration continues with 16% growth year-on-year in the US. It now accounts for 13% of all retail sales (from 5% 10 years ago)
  • Proliferation of tools means end-to-end ecommerce can be set up easily from a smartphone, from payment solutions to building an online store, fraud prevention and delivery. Trade in ‘storefronts’ now growing on Shopify
  • Amazon’s share of the ecommerce market in the US is up to 28% from 20%
  • Ecommerce related ad revenue is rising at Google, Amazon and Facebook
  • Social media is driving product discovery and purchase – 78% of US adults under 34 have discovered a product through Facebook and 59% through Instagram. 55% bought online after social discovery
  • Social referrals to ecommerce sites up 6% YOY, click-through rate from Facebook now at 3%. Cost of social ads is rising at a faster rate than click-through, however, as competition grows
  • Product and price discovery often now video-enabled and driven by user-generated content, see rise of Taobao with 1.5 million active content creators
  • Gamification is becoming more popular - see Wish (300 million users) and hourly ‘spin’ deals and Pinduoduo, where you refer friends to reduce prices
  • This is driving importance of Customer Lifetime Value as the Cost of Customer Acquisition rises with LTV/CAC an increasingly important metric (hence FB’s introduction of LTV into analytics tools). 

DATA & PERSONALISATION

  • Personalisation and subscription are now defining the retail experience – via services like Stitch Fix
  • Mobile shopping is now a form of entertainment – global app sessions spent ‘shopping’ grew 54% ahead of 43% growth in media/entertainment 2017 vs 2016
  • Data gathering, sharing and optimisation is being driven by increased social media interactions and messages, and also sensors placed in a range of ‘things’. Global shipments of MEMS Sensors up 2 billion since 2016. 
  • Volume of information created worldwide is ‘ramping at torrid pace’
  • Privacy is a paradox - companies that use more of our data score higher for customer satisfaction (Amazon and Google score 85% and 82% respectively in American Customer Satisfaction Index)
  • Growth in search data for ‘near me’ – up 900% from 2015 to 2017, and ‘for me’ up 60%. 
  • Consumers more likely to protect data when benefits not clear – 64% have deleted/avoided certain apps in the last 12 months in the US due to privacy concerns
  • China users more willing to share data for benefits – 38% would share, compared to 16% in the UK. Data volume is fuelling significant rapid growth and scale of AI in China versus US
  • Personalisation is flipping to a ‘bottom-up’ approach. There’s a rise of real-time, real people data to power navigation, transport, social and local news, such as Waze Drivers app (100 million plus users) and Nextdoor Recommendation