Mary Meeker Report Examines Major Internet Trends and the Video Marketing Boom

internet trends

Mary Meeker, the analyst from Morgan Stanley and partner in the venture fund, Kleiner Perkins Caufield & Byers, published an annual report on current Internet trends. As a leader in the video marketing space, Valoso takes this annual report, gives it an in-depth evaluation, and presents you with our findings in terms of video marketing.

Kleiner Perkins Caufield & Byers is one of the most famous funds out of Silicon Valley. These guys invested in Netscape, AOL, Sun Microsystems, Amazon, and Google among others. Obviously, a fund of this scale must stay top of all Internet tendencies. So, let’s check out the most exciting and relevant Internet trends 2017 and find out which strategies will bring your business success!

Supplies of Smartphones and the Spread of the Internet

One of the most prolific Internet trends is the decrease in growth in sales of smartphones in addition to steady desktop and laptop usage. The growth of smartphones is actually waning. This is interesting because one might think laptop and desktop habits would go down in the face of wide access to mobile devices. But this is not the case. Even though smartphone sales are down, the average smartphone usage in the US has grown to more than three hours a day. But the time spent using desktop devices has not fallen. This has led to an upward trend in worldwide Internet usage.

internet trends

Red curve is the growth in smartphone shipments from year to year

internet trends

Internet Advertising Trends

Advertising trends for 2017 deserve special attention. Internet advertising via mobile devices has seen phenomenal growth within the advertising market and this trend is projected to continue. In fact, according to Mary Meeker’s report, the volume of advertising in the US alone may see an increase of at least $1.6 billion.

internet trends

The main drivers of growth in mobile advertising are the Google and Facebook platforms. In the current year, Meeker expects that one of the most psychologically important barriers will be passed. The volume of Internet advertising should outstrip the TV advertising market.

internet trends

Meeker noted that text content is losing its positions both in the blogs sphere (Facebook and other platforms are now using Snap, where images and videos are used instead of text), and in search – voice assistants and various systems are gaining their momentum.

The Popularization of Ad Blockers

In Meeker’s opinion, one of the most important Internet trends in 2017 is the growing use of ad blockers. It has become so significant that ad blockers threaten to turn over the entire video advertising industry. Now in the US, more than 18% of users on the desktop and more than 1% on mobile platforms use ad blockers. These numbers are growing at such a rate that such practice may become ubiquitous in the foreseeable future.

internet trends

As we see in China, 1% of device owners use ad blockers in desktop browsers, with 13% on mobile platforms. And in Indonesia, the percentage of smartphones with ad blockers reaches 58%!

Attempts by users to protect themselves from unwanted advertising lead to the fact that more and more influence is acquired by mechanisms for placing contextual advertising. It takes into account the interests of users, the history of their behavior, and their purchasing data. It will lead to other emerging Internet trends, such as the unification of Uber and Foursquare. Meeker predicts that these companies will soon offer users an advertisement based on their location and travel history.

As Meeker notes, users increasingly prefer visual information (video and photo). Therefore, brands actively work with Instagram, Snapchat, YouTube, and other advertising platforms. The effectiveness of product announcements in Google, Pinterest, etc. is growing. Large companies develop solutions for analyzing user images, which will help advertisers understand the context of what is happening.

Internet Trends in the Video Gaming Market

The largest video gaming market in the world is the Asia-Pacific region. It accounts for 47% of the world’s gaming revenue. in second place – North America ( with 25%), and the third – Western Europe (17%). The total volume of the video game market in 2016, according to Newzoo, was $100 billion.

internet trends

The video gaming industry remains the most engaging platform for its users. On average, they spend 51 minutes a day playing games. Facebook is closer to this statistic than all social networks – the average active user spends 50 minutes a day playing video games in Facebook.

Meeker’s study showed that the number of spectators of cybersport projects around the world has increased by 40% since 2016. The growth rate in 2016 was 28%.

internet trends

The Main Takeaways from Meeker’s Report

  • Decreased sales of smartphones plus steady desktop usage
  • Internet advertising will outstrip the TV ad market
  • Increased preference for visual information
  • Popularization of the gaming industry

Experience shows that Meeker’s predictions tend to come true. We can take into account all these forecasts and adapt our marketing campaigns to above-described tendencies.

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  • The tendency to use ‘ad blockers will produce an increase in Content Marketing, you will see a reduction in the 20th Century style advertising, and marketing will become more niche orientated and we will all be grateful for this.

    • Brenna C

      Thanks for sharing your thoughts, Michael 🙂