The oracle has spoken!
The 2016 edition Internet Trends report by Mary Meeker, partner at the Silicon Valley venture capital firm Kleiner Perkins Caufield & Byers throws some interesting insights on contemporary Internet growth trends-such as the fact that Internet user growth remains consistent led by acceleration in India, while smartphone user and shipment growth have slowed, app-powered carpooling has become mainstream, and that typical mobile users around the world have about 33 apps installed on their phones but spend 80% of that time in one of three apps: Facebook, Facebook-owned WhatsApp, or Chrome!
Here is a quick look at some of the insights from the report:
3 Bn People Are Online Now But Y/Y Growth Remains Consistent At 9% Barring India Which Grew At 40% Y/Y
Today out of 7 Bn people on the planet, 3 Bn are online. But year-over-year, growth in the number of people connected to the Internet has remained consistently at 9%. The only exception has been India which has posted 40% Y/Y Internet user growth compared to 33% a year ago.
India now has 277 Mn citizens online, and has surpassed US to become the second-largest online population right after China.
Due to high penetration in developed countries, acquiring new internet users is becoming difficult in less developed countries due to barriers such as low literacy, low income level, infrastructure problems, among others.
Average Cost of Acquiring A Smartphone In India Is 10.1% Of Per Capita Income
China and India have also grown to become the two largest smartphone markets in the world, powering smartphone sales collectively in the Asia-Pacific region, and capturing 52% of the global smartphone market as of 2015.
That’s huge given the fact that global smartphone sales are now tapering off. As per the report, the global smartphone market grew by a mere 10% Y/Y in 2015 compared to 28% in 2014.
81% of smartphone shipments in 2015 were Android phones while only 16% were iOS. The graph shows that sales of the iPhone have been slowing, and according to Meeker’s projections, they’ll go into decline by the end of 2016.
Still in developing countries, people are spending a significant amount on acquiring a smartphone. Cost of acquiring a smartphone in India is $158 or 10.1% of a citizen’s average annual income. In China it is $243 or 3.3% of per capita income, in Ethiopia it is $262 or almost 47.6% of per capita income.
Google And Facebook Make Up 76% of Digital Advertising In US
- It is not a surprising insight from the report that Google and Facebook make up the vast share of digital advertising in the US. Together, they have garnered a 76% share of US Internet ad growth, and it is rising.
- Overall US Internet advertising grew by 20% from 2014 to 2015 mainly owing to mobile ads, which grew 66% Y/Y compared to desktop ads, which only grew by 5% Y/Y.
- Interestingly while globally too, internet advertising particularly via mobile continues to grow, but so does ad-blocking, which calls for development of more innovative ad formats.
The World Is Going Visual (Video And Images) In Communication
- As per the report, in communication on social platforms, video and images shared are growing as a means of storytelling; creators, consumers, and advertisers are taking part. This is much evident from the growth of user-shared video views on Facebook and Snapchat globally.
- Similarly, the number of photos shared daily on social platforms such as Facebook, Snapchat, Whatsapp crossed 3 Bn in 2015.
- Additionally, monetization options for images are increasing as people are using image based platforms like Pinterest to find/shop for products.
Voice Will Become Our Choice For Commanding Technology
- Messaging platforms are posting a strong growth in user base with Whatsapp, Facebook Messenger, and WeChat emerging as leaders.
- Also messaging has evolved from simple, expressive conversation to business-focused use cases, with Asian platforms often leading the way. More efficient and often more convenient than typing, voice-based interfaces are ramping quickly and creating a new paradigm for human-computer interaction.
- Interestingly an average global mobile user has 33 apps on his phone, out of which he uses 12 apps daily!
- Voice is becoming the new way to interact with technology, setting a new paradigm in human computer interaction. As person to machine voice interaction accuracy increases, voice will readily become our choice for computing input.
- Similarly, mobile voice assistance and voice based search is increasing rapidly on account of improvements in technology.
Reimagining Transportation: UberPOOL Rides Now Account For 20% Of All Uber Rides Worldwide
- Transportation is being re-imagined, as the rise of car computerization, autonomous driving, and sharing impacts and changes the way we go mobile. One of the changes is rise of shared private rides becoming more common. In less than two years, app-powered carpooling has become mainstream. As per the report, UberPOOL rides now account for 20% of all Uber rides worldwide.
- This points to the fact that people might not be interested in owning a car, but just getting a ride.
Internet Companies Rule, But Data Privacy Remains A Concern
- The report notes that internet companies like Google, Facebook, and Amazon are getting bigger and aggressive.
- Data now is being generated by a multitude of devices, fostering many business opportunities.
- Yet privacy breaches remain an issue, as is evident from major events around the privacy debate.
- Equally alarming is the threat of cybercrime, which can affect billions globally.
- Consumer’s top concerns remain about selling of their data, access, and identifying him as an individual.
Checkout the complete report: