Ema Linaker asks what Mary Meeker’s 2016 Internet Trends Report means for marketers
In 2010, the year Mary Meeker left Wall Street for the elite Silicon Valley venture capital firm Kleiner Perkins Caufield Byers (KPCB), she was named “one of the 10 smartest people in tech” by Fortune magazine. Which means we should all pay attention to the latest Internet Trends Report, one of the most eagerly anticipated reports of its kind in Silicon Valley.
A small but important aside before you delve in. Meeker’s report barely even acknowledges the existence of the Middle East, except to note that the birth rate is declining and life expectancy is increasing – no surprise there. We have one of the fastest growth rates in the world in the use of mobile technology and video; the report also notes that Saudi Arabia has a far lower debt-to-gross domestic product ratio than much of the ‘developed’ world. All of which puts MENA in something of a sweet spot between the so-called first world, where mobile technology penetration is slowing as it reaches saturation, and the so-called developing world, where economic circumstances, along with poor infrastructure and literacy rates are hindering growth.
Advertising is the foundation of the digital economy
Like it or not, the internet economy is fuelled by advertising, a sector that has gone from $0 to $60 billion in value in just 20 years – far faster than the uptake of radio and television advertising back in the heyday of those media.
Mobile advertising growth is insane
Internet advertising (particularly via mobile) continues to grow – especially with the use of video – but Meeker estimates that advertiser inertia translates to under-spending on mobile to the tune of $22 billion. That’s a huge untapped opportunity for players in the mobile ecosystem, and also highlights the real risks faced by traditional media; Meeker’s report does not even mention newspapers. This I believe is a clear signal that the future of traditional media as it stands is over.
Of course, the technology industry being what it is, this relentless advertising growth is accompanied by a rapid growth in ad-blocking services. Which in turn is driving other innovators to push the envelope in developing more innovative ad formats – a fantastic development for communicators, because it broadens our opportunities for creative output.
Messaging is massive
As mentioned earlier, messaging apps and platforms are growing rapidly in both the number of users they have and the amount of time being spent on them. WhatsApp is leading the charts, followed by Facebook Messenger, and then WeChat. All of which would seem to indicate that Mark Zuckerberg was far from crazy when he invested $18 billion to acquire WhatsApp.
A big part of the growth of messaging lies in the changes that have enabled the medium to grow beyond simple text communication. In consumer circles, emojis, stickers, and filters give users the ability to deliver much more expressive and personalised communication, and marketers even more platforms on which to build brand imagery. Business users are enjoying more professional services as part of evolving messaging platform ecosystems; WeChat, Facebook Messenger and Line offer businesses the opportunity to increase customer engagement, improve customer service and support e-commerce – all within a single platform. Additionally, Meeker noted, messaging apps are increasingly becoming the ‘second home screen’ for many users after their device’s home screen, meaning businesses and marketers must work with apps to stay in front of their customers.
The rise of the voice interface
Voice is also back at the forefront of communications (hello, next-generation telephone services). The report notes significant growth in the use of voice assistants like Siri (65 per cent of United States smartphone users now use voice assistants). Meeker predicts that voice will become the most efficient form of device input, largely because it supports today’s dominant mobile technology usage – it’s the ultimate hands-free communication channel. Voice lends itself to an ‘always on’ way of life and is in reality the most natural form of communication for humans, who can speak at 150 words per minute, but can type only an average of 40 words per minute.
Snapchat finally comes of age
I’ve been saying to marketers for a while now that they need to get to grips with Snapchat – it is the key consumer social platform of the future and this report serves to underscore my position, pointing to further resonance and growth for this powerful channel. Snapchat has more monthly minutes per visitor than any other platform besides Facebook – more users watched college football and MTV on Snapchat than on TV in the past year. In order to stay relevant, brands must understand how this vertical, visual, hyper-targeted platform works and how to match those capabilities to their offerings.
Visualisation commerce
Platforms that actively encourage visualisation of products in consumers’ homes and lives will drive them towards purchase behaviour. New platforms like Houzz and Offer-Up are prime examples of this; it’s an approach that lets users engage with products with a degree of closeness and personalisation that’s never been possible before – once the user sees an item of furniture in their home, or an outfit on their body, the likelihood to purchase increases exponentially.