State of the internet

The State of the InternetMarch 5th, 2013

Tuesday, March 5, 13

State of the Internet • Chris Reilly • unleashed-online.com

Agenda

• Interesting Times

• Follow the Money

• Top 3 Trends in 2013

• Device Diversity

• Social Monetization

• Data and The Display Ecosystem

• Policy Developments



Interesting times

• I grew up with the internet

• We are witnessing the printing press being developed

• Twitter = web page for all = social revolution

• The internet has afforded me incredible opportunities - Nethercutt @ 14

• From novelty to career to company with 6 employees

• Let’s peel back the layers



Interesting times









Interesting times







2083Tuesday, March 5, 13


Interesting times








State of the Internet • Chris Reilly • unleashed-online.comTuesday, March 5, 13


Interesting times









Interesting times









Interesting times









Interesting times









Interesting times









The State of the InternetMarch 5th, 2013





2012 Online Advertising Spending (US) - via emarketer

$1.56

$17.58

$2.60$1.71 $1.82

$8.68

$2.93

Email SMS Lead Gen

Directories Sponsorships Rich Media

Video Banner Search

$0.23$0.22

follow the money.




$1.90

$19.75

$2.71$1.90 $2.03

$9.60

$4.14

Email SMS Lead Gen


Video Banner Search

$0.23$0.23




$2.28

$21.73

$2.81$2.09 $2.38

$10.27

$5.75

Email SMS Lead Gen


Video Banner Search

$0.24$0.24



Why Search Matters

Intent = Advertiser Value



Search Clicks are Valuable



Search Clicks are Valuable



Top Search Clicks

1. Insurance (example keyword: “auto insurance price quotes”)2. Loans (example keyword: “consolidate graduate student loans”)3. Mortgage (example keyword: “refinanced second mortgages”)4. Attorney (example keyword: “personal injury attorney”)5. Credit (example keyword: “home equity line of credit”)6. Lawyer7. Donate8. Degree9. Hosting10. Claim11. Conference Call12. Trading13. Software14. Recovery15. Transfer16. Gas/Electricity17. Classes18. Rehab19. Treatment20. Cord Blood

$277



Search engines make money when people search



Deals are made to ensure search revenue

$137 Million/YearPaid By Google

to Mozilla Foundation



Deals are made to ensure search revenue

$1 Billion+/YearPaid By Google

to Apple



Ways to ensure search share

• Build your own browser (Chrome, Internet Explorer

• Build your own smartphones (Google/Motorola, WinMo, etc)

• Build your own operating system

• Install search bars

• Give away tablets

• Free email accounts



Devices are a proxy to more than searches

•Homepage advertising value

•App economy

•Media sales





Lock In



Winner Take All

•Books

•Music

•Games

•Apps

•Movies

•Bandwidth Deals



Platform Wars for Ads, Media, and Apps

•Google

•Microsoft

•Apple

•Amazon

•Losers: Palm, Blackberry, Symbian



Same Players for Cloud Computing (mostly)

•Google Apps, AppEngine, Drive

•Microsoft Dynamics, Azure, Office360

•Amazon EC2, S3, and much more

•Salesforce, Heroku, Database.com, etc



Microsoft and WA state

Worldwide97,106USA57,325Puget Sound (Washington State)41,442



Desktop Search Share



Mobile Search Share



take a deep breath



Three Top Trends in 2013

•Device Diversification

•Social Media Monetization

•The Rise of Data and Display




Connected TVs



‘Retina’ Displays



Mobile



Mobile•Happening at an alarming pace

•Poor Mobile Experience is a turn off

•Responsive Design is King

•Apps easier to develop - Trigger.IO

•Standalone mobile websites still have a place



Social Media Monetization




http://globalwebindex.net/thinking/social-platforms-gwi-8-update-decline-of-local-social-media-platforms/








Payola is the new normal

• Facebook has 22 ad formats and 17 targeting dimensions

• 10-16% of page posts are seen by their fans

• New newsfeed will likely benefit advertisers

• Twitter Promoted Tweets

• LinkedIn is promoting content as well

• No ads on Google+... yet



Social Ads Work



Social Ads Work



The Rise of Data and Display

1999“If we can just get a million eyeballs...”







$10-50CPM

$.10-5CPM










Business Travelers'>Expedia > Business Travelers 10.39X

Offline CPG Purchasers > Brand Segment > Kraft > Oscar Mayer 4.92X

Canada>Resident of > Canada 4.64X

Finance > Household Income > $60,000-$99,999 > $90,000-$99,999 6.42X

Finance > Household Income > $30,000-$59,999 > $30,000-$39,999 6.3X



Data and Privacy

•Misunderstood by consumers

•Pending legislation could stop most ad-tech

•Browsers are taking independent action



Internet Access and Piracy

•Is the web a Luxury Item or a Human Right?

•Tyrannical governments limit web access

•ISPs are self-policing against piracy



Intellectual Property and Antitrust Regulations

•Patent law is changing next week

•Secondary patent market - NPE and R&D

•Antitrust in our era



Now What??????????????

1. Get a better mobile presence NOW

2. Budget for social ads if social media is important to your business

3. Advocate for an open internet



Q&A Time

?Tuesday, March 5, 13


Classes

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Documents

State of the internet