This post is on Mary Meeker’s 2014 Internet Trends Report published in late May. As the report covers a wide variety of topics about the Internet (almost everything), I’ve summarized the content that is related to the mobile advertising industry and added some of my own comments and Buzzvil insights.
1. Strong growth in smartphone adoption and mobile Internet use
- Smartphone users make up 30% of the 5.2B mobile phone user base globally: still lots of room for growth.
- The number of tablet users are growing faster than PCs ever did: +52% in 2013. It is now at 439M, which is equivalent to 28% of the 1.6B smartphone user base.
- Global mobile usage is now 25% of total web usage. (Asia 37%, Africa 38%, NA 19%, Europe 16%, Oceania 17%). Asia is surprisingly ranked second to Africa’s 38%. A part of the reason for this is that users in Africa have skipped PC usage and directly began using mobile devices.
- Smartphones are the preferred device for consuming content, over TV, PC, etc.
» Buzzvil Insight: Mobile advertising will continue to grow based on the fundamental growth of its user base.
2. A wide discrepancy between time spent on mobile and mobile ad spend
- Internet advertising is still growing at 16% YoY but mobile advertising shows 47% growth.
- Mobile advertising has a $30B+ opportunity in the U.S. due to its imbalance between time spent on mobile and mobile ad spend.
» Buzzvil Insight: Ad spend always follows people’s line of vision, even if it takes some time to get there. It is undeniable that the higher % of time users spend on mobile, ad spend will catch up correspondingly.
3. Global messaging services on fire
- WhatsApp, WeChat, LINE, KakaoTalk, Snapchat, and Viber have grown to over 1B users in less than 5 years.
» Buzzvil Insight: Speaking from the home country of two leading messaging services (LINE and KakaoTalk), we strongly believe in the potential of advertising on these platforms. LINE and KakaoTalk have already begun building advertising platforms for themselves.
4. Social media as a new major content distribution channel
- 4 major publishers – BuzzFeed, Huffington Post, ABC News, and Fox News – account for 100M daily interactions on Facebook.
- BuzzFeed has 130M+ UV and over 75% of them come from social media.
» Buzzvil Insight: Publishers who know what content is commonly liked and shared on social media know how to benefit from it. It’s evident that users do enjoy interesting content and are willing to share with their networks. Then, why not ads?
5. Music streaming services eat up the traditional music industry
- Music streaming services now threaten iTunes, suggesting this may be why Apple recently acquired Beats.
» Buzzvil Insight: Does this mean the return of radio-style advertising in the 21st century?
6. Mobile users love YouTube
- 40%+ of YouTube traffic comes from mobile
- Short-form videos with a duration of less than 7 minutes are most watched
- Users even enjoy watching ads, if they’re interesting
» Buzzvil Insight: The gap between advertising and content is becoming blurred these days. Some might see such advertising as deceptive, but if users know which are ads and choose to watch them, there’s no need to be worried. Additionally, there are proper forms which fit mobile user behaviors, such as videos under 7 minutes on YouTube. It’s important to dig deeper into the characteristics of devices and users and find the sweet spot.
After going through all the content, I am as optimistic as ever about the future of mobile advertising and I believe there are numerous remaining opportunities out there. You can view the whole presentation by Mary Meeker below. [embed]https://www.slideshare.net/kleinerperkins/internet-trends-2014-05-28-14-pdf[/embed]
The FOCUS series on our blog features specific projects and insights that we believe can change the rules of the game in the mobile industry. To learn more about Buzzvil’s core values, take a look on our website.
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