Our global strategists have digested and interpreted Mary Meeker’s latest 294 page 2018 Internet Trend Report and summarised their key take-aways and trends.
Gabriel Cheng, Vice President of Strategy & Innovation, Americas
- Messaging apps are becoming the new mobile hub for consumer’s on-demand lifestyle. They are increasingly the gateway for consumption and commerce, with transactions now beginning to take shape.
- Consumer product research now begins on YouTube and Amazon for unbiased reviews and walkthroughs. Amazon is considered a trusted source for reviews, price comparison and shipping cost even if purchase does not end up on Amazon.
- Mobile adoption + increased consumption = new content types. These are driving new ad opportunities with branded content, interactive video and voice-driven search. The perfect example is Amazon offering sponsored product ads through Alexa with a clear multi-billion dollar opportunity to expand into paid voice search ads.
Kenneth Wong, Strategy Manager, APAC
- Despite scepticism on internet payment security, mobile payment adoptions are on the rise, mainly contributed by the growth of the China Market (the likes of Alipay etc). The recent interest spike in digital currencies such as blockchain have also contributed in the rise of virtual currency.
- With the proliferation of apps and contents online, brands are beginning to focus more on personalising content to their most valuable consumers. Facebook news feed, Netflix recommended videos, Spotify playlist, are just examples of AI curated content to cater to each unique individual.
- GDPR – good or bad? Mixed feelings by consumers globally. China for instance, are more willing to share their data in exchange for benefits. China’s internet has always been a closed ecosystem, which could be the driving factor of consumers feeling more “secured” and “open” with their data.
Charlie Bloxham, Senior Strategist, EMEA
- An increasing number of brands are becoming subscription based – Spotify being one of the best with 45% of MAUs as subscribers. The combination of US household debt and lower personal savings, subscriptions are likely to become a much more competitive landscape as some customers are forced to choose between them.
- Google and Amazon are increasingly competing on each other’s turf. Google are improving how they sell products through Google whereas Amazon are increasing how they advertise products within Amazon. There is an increase in the acquisition cost as customer lifetime value becomes an even more important metric, meaning adverts need to improve in order to find the right customers and motivate them sufficiently to buy products.
- Global internet usage surpassed 50% of the world population in 2018. Mary Meeker claims that ‘when you reach 50% penetration in a market, growth becomes a lot harder to find’. This could see increased competition from brands delivering services through the internet or a focus on engagement & retention rather than reach.
