According to KPCB partner Mary Meeker’s 2016 Internet trends report India’s Internet user growth rate is four times the global user growth rate, . It said that Internet users grew by 40% to 277 million users in India during the year, up from 33% in the previous year as compared to a flat 9% global Internet growth rate to reach 3 billion Internet users. In fact, if India is excluded, the global Internet growth rate dipped to 7% for the year.
Here are some key takeaways from the report:
The average selling price of smartphones in India is at $158.Smartphone shipments and install base growth rate slowing down: The global smartphone shipments growth rate slowed down dramatically to 10% year-on-year (YoY) from 28% YoY after 5 years high growth
The smartphone install base growth rate also slowed down to 21% YoY from 31% YoY. In Asia, the install base growth rate declined to 23% YoY from 35% YoY.
Android markets grows: Android has increased its marketshare to just below 80%, despite declining average selling price
New Internet users are harder to come by, due to higher penetration in developed markets.
Google and Facebook account for 76% of the online advertising growth in United States and is growing. Google’s ad revenues grew by 18% YoY while Facebook’s grew by 59% YoY. Other players saw 13% YoY ad revenues growth.
Advertisers are still spending too much time and ad spends on legacy media channels than new media channels.
Many Internet retailers/brands have crossed $100MM mark in less than 5 years while brands like Nike took 14 years and Lululemon took 9 years. Video viewership is growing rapidly, with Facebook and Snapchat leading the way. However, online video ads aren’t effective: 81% of people surveyed mute video ads, while 62% were annoyed by brands forcing pre-roll ads. 93% consider using ad blockers. Advertisers and brands are finding their ways into camera-based storytelling or messaging. Eg- Branded geo-fenced filters on Snapchat or Branded Snapchat lenses & Facebook filters.
People shared almost twice as many photos in 2015 and almost half of it was on Facebook-owned properties. Monetization options are also evolving through platforms like Pinterest, OfferUp, Houzz. Messaging is dominated by Facebook and WeChat and is evolving from simple social conversations to increasingly become second home screens for users. In Voice recognition, 99% accuracy is a game changer and we are getting closer to it with more than 90% accuracy across most platforms. The usage of mobile voice assistants is also rising quickly with Google witnessing 20% of searches from voice and growing sales of Amazon Echo. It is also evolving as third party developers are building apps on these platforms.
Non-tech corporate incumbents are increasingly acquiring or investing in tech companies to transition to digital segment.