NEW MEDIA INSIGHTSFOR LOCAL ADVERTISERS

As she does every year, Mary Meeker, a partner of Kleiner Perkins Caufield Byers (KPCB), presented her Internet Trends 2017 report at the Code Conference May 31st. The report continues to grow in size – 213 pages last year to 355 this year – simply because the Internet and all its technologies, associated companies, users and advertisers – and its influence on essentially everything – also continue to grow.

Media Group Online can’t share all the detailed data and analysis from Ms. Meeker’s report, but we are dedicating two of this month’s New Media Insights Reports to the content that is important to you and your prospects and clients.

We invite you to access, read, study and share with your prospects and clients the complete PDF at:

http://dq756f9pzlyr3.cloudfront.net/file Internet+Trends+2017+Report.pdf

The Big Earth PictureIt would be a mistake to think that global Internet trends don’t affect you and your prospects and clients in your local market. The following trends indicate the increasing interconnectivity of almost all countries and humans, which is very influential today, and will be even more so during the future.

» Global Internet users totals 3.4 billion people, or a 46% penetration of the world’s population. Growth is flat, however, at a 10% increase, compared to 10% last year.

» Global smartphone shipments are increasing at a lower rate, 3% today, compared to a 10% last year.

» Global smartphone installed base is increasing at a comparable lower rate; however, it is still robust, at 12%.

It’s likely, although Ms. Meeker didn’t provide any data or analysis, that the flat or lesser growth in these categories is because Internet and smartphone penetration is close to 100% among the global population that has access to these services. People living in the remotest corners of the globe and places, such as North Korea, are where the future penetration will occur.

MARY MEEKER REPORT, PART 1

Sources: Recode Website, 6/17. Prepared: June 2017© 2017 Media Group Online, Inc. All rights reserved.

American’s Internet UsageAs global Internet usage has registered flat growth, usage in the US had a solid 4% increase, YOY. According to Ms. Meeker’s report, engaging with the Internet on mobile devices was responsible for all of that increase, and has been for a number of years.

The following table shows desktop/laptop has declined and flattened during the period, other devices have increased marginally, but mobile has increased 287.5%, and accounts for 55.3% of the total usage.

Opportunity MissedOne of the most interesting slides in Ms. Meeker’s entire deck is a comparison of the percentage of time spent in media (traditional and digital) vs. the percentage of advertising spending.

What it reveals is that 28% of total 2016 media consumption was in the mobile channel, but 21% of total media ad spending occurred there. This 7% gap means mobile usage is increasing faster than ad spending in the channel, creating a $16 billion opportunity.

Google (Alphabet, parent company) and Facebook don’t seem to be missing their opportunities. Non-Google and Facebook advertising on the Internet increased a nice 9% from 2015 to 2016; however, Google’s increased 20%, from approximately $29.5 billion to $35.5 billion, while Facebook had a whopping 62% increase from approximately $8 billion to $13 billion.

Time Spent Per Adult User Per Day with Digital Media in the US, 2011–2016

YEAR TOTALDESKTOP/

LAPTOPMOBILE

OTHER DEVICES

2016 5.6 hours 2.2 hours 3.1 hours 0.4 hours

2015 5.4 hours 2.2 hours 2.8 hours 0.4 hours

2014 5.1 hours 2.2 hours 2.6 hours 0.3 hours

2013 4.9 hours 2.3 hours 2.3 hours 0.3 hours

2012 4.3 hours 2.5 hours 1.6 hours 0.3 hours

2011 3.7 hours 2.6 hours 0.8 hours 0.3 hours

KPCB, May 2017

% of Time Spent in Media vs. % of dvertising Spending in the US, 2016

MEDIUM TIME SPENT AD SPENDING

Print 4% 12%

Radio 9% 9%

TV 38% 38%

Internet 20% 20%

Mobile 28% 21%

KPCB, May 2017