Mary Meeker’s internet trends 2014 – part 1- summary

Mary Meeker’s annual internet trends publication is often seen as a deep resource from which to plan going forward. Although reflective in the sense it covers what has happened in the previous 12 months, Ms Meeker always does a solid job pulling together interweaving threads. This year is no exception although I can see of areas where the conclusions reached seem to be little more than confirmation of what we already hear on a daily basis with little of real controversy. Adding numbers to the mix is important and this is where Meeker shines.

Regardless, there’s a lot to take in all at once. For this story, we’re merely bullet pointing the highlights and then dissecting selected pieces in separate articles.

One thing to note – while Meeker’s analysis is global in some places there is a tendency for her to concentrate upon US specific data as reference points for certain conclusions.

  • Internet user growth has slowed below 10%, fastest growth in ‘difficult to monetize’ areas like Indonesia, Nigeria, India.
  • Smartphone growth continues at 205+ but is slowing, fastest growth in BRIC countries.
  • Mobile data traffic is up 81% year-over-year – largely accounted for by video of which 22% is represented by mobile usage.
  • Smartphones in use by 30% of global mobile phone users implying significant room for growth.
  • Print advertising ‘over indexed’ while mobile advertising represents a $30 billion opportunity in the US alone. This is further supported by the fact mobile apps account for 68% of total mobile spend.
  • Number of cyber attack groups grew 4x since 2013, now numbering some 300.
  • There may be something of a bubble in stock values but nothing like the 1999-2000 era.
  • US education spending ranked 4th in the world but results are subpar (rank 27th globally in math / 20th in science / 17th in reading) but online education has become global (examples given = Duolingo, Coursera)
  • Healthcare ripe for overhaul via digital technologies with 27% of US spend categorized as ‘waste,’ but patient engagement systems e.g. Redbrick, Teledoc, Mango Health and WellDoc showing impressive ROI
  • Image and video sharing rising rapidly
  • Apps as service layers where apps are surfaced as required via sensors and context not as discrete idle apps
  • Re-imagining content + content delivery mechanisms e.g. BuzzFeed (seen as leader in sheer numbers) using list articles, quizzes, how-to’s, some breaking, video and mobile.
  • General re-imagining of day to day services such as shopping, over night stays, taxi services, take away food services and home renovation driven by user experience.
  • Two-thirds of digital content created by users but use of sensor technology rising rapidly – 50% year over year.
  • There are now around 5 million Bitcoin wallets,  representing x8 year-over-year growth.
  • Global compute, storage and bandwidth costs all falling rapidly
  • 34% of data in ‘digital universe’ considered useful but ony 7% is tagged and less than 1% analyzed. In short, these are very early days for the ‘internet of things.’
  • Best use case for early data mining/analysis is seen in solving specific problems using pattern matching e.g. reduced fuel consumption with Nest.
  • Although traditional TV still dominates, consumption patterns changing with high growth in tablet and smartphone usage accompanied by emergence of higher quality advertising.
  • Microsoft is the number two globally trafficked property while Yahoo! is number four.
  • China is considered the mobile commerce innovation world leader.
  • Global internet leaders (Google, Facebook, Tencent, Alibaba) all investing heavily in M&A

Featured image via Joseph Rosenfeld

Den Howlett

Den Howlett

Dennis Howlett has been taking the buyer's perspective in analysing application vendor offerings for more than 22 years following a 20 year successful career in IT and finance related roles. 'Never knowingly under opinionated,' Howlett takes strong positions in the interests of getting to the truth of what drives customer value.
Den Howlett

@dahowlett

Disruptor, enterprise applications drama critic, BS cleaner, buyer champion and foodie trying to suck less every day.
Den Howlett