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- [ ANALYSIS ] Internet Trends Report 2016
[ ANALYSIS ] Internet Trends Report 2016
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