Changing consumer landscape creates a $50 billion digital opportunity

At this year’s CM Summit, Mary Meeker shared an updated presentation on her 2010 Internet Trends.   As always, Meeker’s presentation was jammed with thought provoking statements and facts that every marketing professional needs to pay attention.  In particular,the following caught my eye as things every Brand Manger and Marketer needs to keep in mind:

The difference in Media Time Spent vs Advertising Spend creates a $50 billion global opportunity: As consumers spend more time with Internet / Mobile, there is still a major gap vs advertising spend.  There is a huge opportunity to shift dollars, especially at the expense of print (12% of media time but a whopping 26% of ad spend).   But shifting theese dollars will require average online CPM’s to move upwards since they are still well below other media CPM’s.

Mobile Internet is ramping up faster than desktop Internet did: In fact, Morgan Stanley is predicting that for the first time ever, Smart Phone shipments will outpace Basic Cell Phones in 2011.  This is driven by the fact that 2010 will be a “Mainstream” tipping point as 3G penetration crosses over 20% globally.  Additionally, the number of Mobile App and Mobile Search users both doubled from 2009 to 2010.  Search was the single most used Mobile Browser feature, greater than Social Networking (#2) and News (#3).

Google’s Android will soon pass the iPhone in shipments: Estimates show that Android shipments in Q2 2010 will likely exceed iPhone for the first time-ever.  Most marketers I know have iPhone envy and aren’t even thinking about developing for Android.  Looks like that will have to change…fast.

These are just a few of the highlights from a great presentation.  Take the time to read it.  Your head will be spinning with opportunities and thoughts afterwards.

Where is the “World Wide Web” headed in the future? [video]

What if you asked folks like Tim Berners-Lee, Chris Dixon, David Weinberger, and Nova Spivack to explain the future of the Internet?  Or had them explain concepts such as the Semantic Web or Linked Data?   Or gave Clay Shirky the chance to talk about what he considers to be “one of the deepest questions in all of Western Philosophy?

Well Kate Ray, a student at NYU, did just that as she worked to produce a short documentary entitled Web 3.0.  Only 14 minutes in length, this is a must watch video for any marketer trying to wrap their mind around where things are headed in this digital world we are living.  Very cool stuff.

Credit to Mitch Joel for pointing me to this video.

The State of the Internet [video]

Everyone loves a good video that captures interesting facts & figures.  In this latest take, digital agency JESS3 animated a video  that shows “The State of Internet” with a good collection of recent stats.

JESS3 / The State of The Internet from Jesse Thomas on Vimeo.

Long-term potential of the Global Online Media Landscape

Over the weekend, I finally had a chance to read the Nielsen Global Online Media Landscape.  An easy read at 20 pages, the report covers six broad topics including: 1.) Internet Audiences, 2.) Online Video, 3.) Social Media, 4.) Mobile, 5.) Online Display Advertising, and 6.) E-Commerce.

While I highly suggest any Brand Manager read the entire report, here are the nuggets that jumped out to me:

While 2009 will not be a banner year for online advertising revenues, the longer-term prospects for the global online medium continue to be bright: In 2009, online will once again outperform all other media.  China will likely be fl at to down, partially due to the global slowdown but more importantly because it will be hard to match the Olympics-related surge during 2008. The U.S. and Japan will be fl at to up slightly. There will be pockets of significant (25+%) growth, but it will be limited to small-to-mid sized advertising countries such as Brazil, and throughout Eastern Europe and Southeast Asia.

Digital Content / Online Video are among the fastest growing areas of the Online Media Landscape: When you consider these facts, it is no wonder that the TV industry is struggling to find direction:

  • The number of American users frequenting online video destinations has climbed 339 percent since 2003.
  • Time spent on video sites has shot up almost 2,000 percent over the same period.
  • In the last year alone, unique viewers of online video grew 10 percent, the number of streams grew 41 percent, the streams per user grew 27 percent and the total minutes engaged with online video grew 71 percent.
  • One of the more interesting trends in online video is the increasing attraction to long form videos: the total minutes spent watching long-form (average of six-to-eight minutes) is considerably more than minutes spent on short-form, and has grown about 20% in the fi rst two months of 2009.

The impact of Social Media cannot be ignored by marketers: Brands such as Motrin and Domino’s have learned the hard way the impact of Social Media.  It is no wonder when you consider these facts:

  • There are 87 percent more online social media users now than in 2003, with 883 percent more time devoted to those sites.
  • In the last year alone, time spent on social networking sites has surged 73 percent.
  • In February, social network usage exceeded Web-based e-mail usage for the first time.
  • Social networking plays a prominent role with Mothers aged 25-35 with at least one child at home. In addition to e-mail, they are 85% more likely to spend time with Facebook compared to the average online consumer.

Mobile is finally taking its rightful place in the spotlight: Marketers have anticipating the “year of mobile” for almost a decade.  It appears that in 2009, Mobile is finally starting to live up to its potential:

  • In the U.S. today, nearly 50 million mobile subscribers access the Web via their devices on a monthly basis. In the U.S., the mobile Internet audience grew 74% between February 2007 and February 2009.
  • While historically US has been behind in mobile adoption, the US is now one of the leading markets for mobile Internet penetration, with more than 18% of subscribers accessing mobile Web.  This is the highest penetration of mobile subscribers among the markets Nielsen reports mobile Internet adoption.
  • Penetration of smartphones doubled between Q4 2007 and Q4 2008, from 7% of U.S. mobile subscribers to 14%. Penetration of faster 3G devices now stands at 37% of handsets in use in the U.S
  • iPhone users are unique in their use – a hint at the mobile media behaviors of users of next-gen phones to come.  iPhone users, for instance, are more than four times as likely as a typical subscriber to use mobile Internet, six times as likely to use mobile applications and six times as likely to consume mobile video.
  • 12 million U.S. mobile subscribers access their social networks over their phone. At the end of 2008, Facebook was just slightly ahead of MySpace in terms of unique mobile users: 7 million compared to 5.7 million. Mobile usage of social networking sites grew 260% during 2008 in the U.S.