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Mary Meeker's 2017 internet trends report

News, 02 June 2017
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MENLO PARK, CA: Mary Meeker, a consultant with Kleiner Perkins Caufield & Byers, released her annual presentation on internet trends this week, which predicted that internet adspend would surpass spending on TV within the next six months.

That was just one important piece of information contained in a huge report of 355 slides, which Meeker presented at the Code Conference in California.

The mass of data also included the news that online advertising revenue in the US grew 22% in 2016, with much of the growth coming from mobile, which now generates more ad revenue than desktop.

Google and Facebook accounted for an astonishing 85% of all the digital advertising growth seen in the US in 2016, with Facebook's revenues leaping 62% year-on-year while Google saw year-on-year revenue growth of 20%.

Other takeaways from the report included the observation that American adults now spend 5.6 hours a day using digital media, including 3.1 hours via mobile devices and 2.2 hours on desktop and laptop.

Meeker also highlighted the rising global use of ad blocking software, especially in developing markets. India, for example, has a mobile ad blocking penetration rate of 28%, while in China it is 13%.

And looking at the challenges faced by social media advertisers, Meeker reported that measuring ROI (61%) is their top concern, although other problems include securing budget and resources (38%) and tying social campaigns to business goals (34%).

Elsewhere, she reported that global smartphone growth is slowing. The number of smartphone shipments increased by 3% in 2016, but this was down from 10% growth in 2015.

However, e-commerce, voice recognition, gaming and mobile entertainment are all on the rise, and Meeker noted that there are now 2.6bn gamers around the world compared to just 100m in 1995.

Another trend identified is the rise of extremely powerful US and Chinese internet companies, which may worry competition regulators, but not Meeker, who told the Financial Times in an interview that these firms are likely to step up their competition with each other.

"People don't spend enough time looking at how intense the competition is," she said. "The bet here is – we can't stop progress. Are we better off or worse off? So far, the data implies we are better off."

Data sourced from Kleiner Perkins Caufield & Byers; additional content by WARC staff

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