June 02, 2016   |   Read Online

In this Report Analysis series I look at various security reports and pull out the main points.

This doesn’t replace a complete and detailed read of these reports, but at least you’ll get exposed to some of the key takeaways that you might not otherwise have seen.

This particular report was just spectacular. Highly recommended.

REPORT: Internet Trends Report 2016

• Global internet users at 3 billion, 9% Y/Y growth
• India just passed the US to become the number two country (behind China) for internet users
• Growth of global smartphone users is slowing dramatically after 5 years of high growth
• Global GDP growth slowing
• China has invested more in infrastructure like roads in the last 6 years than the previous 30
• Global debt is rising faster than GDP
• You should read Capital in the 21st Century if you haven’t
• Population growth is slowing and lifespans are rising
• Global birthrates down 39% since 1960
• Global life expectancy up @ 72 years, up 36% since 1960
• Easy economic growth behind us
• Adjusting to slower growth + higher debt + aging populations creates risks and opportunities for businesses that innovate, create efficiency, lower prices, and create jobs. Internet can be at the core of that
• Google + Facebook at 76% of internet advertising growth (and growing)
• Google has shown online advertising works, but many video ads are ineffective because people mute ads, use ad blocking software, or hate the brand because ads are annoying–There are ways to break through with video ads by being authentic, entertaining, emotional, personal/relatable, useful, giving control to the viewer, being silent, or don’t interrupt
• Ad blocking is skyrocketing
• Each generation has different core values and expectations based on shared experiences
• Millennials are globally minded, optimistic, and tolerant
• Millennials are focused community service and self-development
• Millennials see technology as integral, and are early-adopters who move technology forward
• Millennials earn to spend
• Commerce went from Corner/General Stores (1800s) to Supermarkets (1930s) to Discount Chains (1950s/60s) to Wholesale Clubs (1970s/80s) to eCommerce in the 1990s
• Millennials are 27% of the population and are the largest generation
• Millennial spending power will rise significantly in the next 10 to 20 years
• Internet is 10% of retail sales in 2015, less than 2% in 2000
• For retail, technology and media and distribution are blending
• Products become brands
• Brands become retailers
• Retailers become products / brands
• Retailers come into homes
• Physical retailers become digital retailers
• Digital retailers become data-optimized physical retailers
• Connected product users can benefit from notifications and viral sharing
• Internet-enabled retailers / products / brands on the rise
• Always-on connectivity + hyphr-targetted marketing + images + personalization
• Hyper-customization to particular consumers
• Stitch Fix 99.99% of shipments are unique
• Data on users + data on items + constantly improving algorithms = higher customer satisfaction and 100% of purchase from recommendations
• Video + Image communication continues to rise
• Generation Z (ages 1-20) communicate with images
• Millennials communicate with text
• Millennials want to be discovered
• Millennials are focused on now
• Millennials are optimists
• Millennials are tech savvy (2 screens at once)
• Gen Z are five screens at once
• Gen Z are curators and collaborators
• Gen Z are future focused
• Gen Z are realists
• Gen Z wants to work for success
• Video went from Live -> On-Demand -> Semi-Live -> Real-lilve
• Smartphone usage becoming Camera + Storytelling + Creativity + Messaging/Sharing
• Branded Snapchat lenses (Taco Bell, Gatorade, Iron Man)
• Facebook Live is the new paradigm
• Chewbacca video was most popular live video ever, with 153MM views, mentioned Kohl’s twice and made them the top app download on the app store
• Live sports watching with your friends (social)
• Live broadcast + Analysis + Scores + Replays + Notifications + Social Media Tools
• Image sharing services on the rise
• Messaging moving from simple social conversation to having more expression
• Emojis, Snapchat lenses
• Business moving to messaging
• Threads are powerful because they provide context
• Customer service adopting messaging platforms
• Not just customer service, but also purchasing
• Gen Y prefers social media and web chat for support
• Mobile home screens are like the portals of Internet 1.0
• Messaging leaders want to change that
• Voice as the new Human-computer interaction
• 1830 to 2015 = Touch 1, Touch 2, Touch 3, VOICE
• Voice is fast, easy, semantic, low cost, great for IoT, requires natural language recognition and processing
• When speech recognition hits 99%, everyone will start using it constantly. From 95% to 99% is a massive leap
• Accuracy and latency are the primary metrics for voice interface adoption
• Next frontiers are recognition in heavy background noise, catching accents, catching pitch, etc.
• The computing interface is moving to the microphone
• Hands and vision free is the primary use case for voice interaction
• Car innovation returning to US via technology / self-driving cars
• Millennials driving far less
• Cars becoming under-utilized
• Shared rides will be 20% of rides in around 2 years
• What if cars are the most advanced computer you own, makes you cash by ride sharing, gives you safety paybacks from insurance, safer due to automation, drives and parks itself, makes you want to commute so you can be more productive
• China is winning in many internet metrics
• China Internet users at 668 million, at 7& Y/Y growth and 49% penetration
• China’s eCommerce companies gaining retail share faster than USA counterparts
• 31% of WeChat users purchase via WeChat (2x Y/Y)
• China has a powerful travel app called Ctrip
• China leads the world in mobile payments (WeChat)
• Data as a platform
• The number and type of data generators is increasing rapidly
• Data is the next big wave, i.e., leveraging unlimited connectivity to collect, store, aggregate, correlate, and interpret the data for the purpose of improving people’s lives and enabling enterprises to operate more efficiently
• 4 Billion data records breached since 2013
• Do people care about privacy, or simply WHO has their data?

This summary is nice, but if you liked it you should really consume the slides as well. They’re spectacular, and the visuals add a lot of content that doesn’t translate well to text bullets.

REPORT: Internet Trends Report 2016

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