One of my favourite annual Internet reports is out. It’s the KPCB report, from the Venture Capital company based in the US.
It’s 196 pages of fact-packed charts, and here are my favourites.
The US makes up ‘only’ 10% of the 2.8bn online users. 73% of the World has a phone, of which 40% are smartphones. So there are 2 billion smartphones.
The top 15 Internet companies (by capitalisation) consist only of American and Chinese companies.
The only company featuring in the top 15 companies in 1995 and 2015 is Apple, which has increased its capitalisation by over 190 times! The combined capitalisation of the top 15 has increased by 141 times.
ARPU (Average Revenue Per User) on Facebook is $9.36, based on advertising alone.
Global Internet Advertising is now $133bn, of which only 14% is spent on mobile – despite 2 billion smartphones that are used more than desktops (2.8 hours a day on mobiles compared to 2.4 hours a day on a desktop).
29% of the time, users watch vertical (portrait) videos. A user is 9 times more likely to complete a vertical video ad on Snapchat compared to horizontal. Is this because vertical ads are more creative? Does is matter when most of Snapchat’s users are kids who are too young to buy a product?
6 of the top 10 most used apps globally are messaging apps. At the end of the day, we still want to use a phone for communication! Unsurprisingly, messaging apps are evolving into purchasing apps – selling groceries, taxis and person to person payments. The audience sizes for these apps are massive, so even small percentages of users that adopt these extras can make the platform some money.
China has a population of 1.356 billion people. There are 1.301 billion mobile subscribers in China. 39% of them have smartphones.
Indonesia, Vietnam, Egypt, Iran, Thailand and South Africa have well over 100% mobile penetration (subscribers vs population – where population includes many children who aren’t old enough to have a phone. Yet.)
Men prefer to add Cars & Motorcycle images to Pinterest more than fashion photos.
In the USA, over half the Facebook users which log in each day, watch at least one video a day, and three-quarters of those are watched on a mobile device. Videos that automatically start playing probably have a lot to do with these stats.
In terms of % penetration, Snapchat and Instagram have overtaken Facebook for American teenagers – but Facebook is still at 74%! Their top rated social network is Instagram.
Hovering around the 80% mark, 18-34 year olds:
- Leave their phone on next to them 24×7
- Check their phone as soon as they wake up
- Spend more than 2 hours a day on it
Airbnb, Uber and Instacart have created next generation products by taking a poor consumer experience and delighting the customer. The most popular Internet companies have massively simplified the prior experience:
- Google – still a single search box
- Instagram – square pictures
- Tinder – quickly look through dozens of photos
- Snapchat – all media is forced as vertical
- Uber – invisible payment process
The drone market is growing 167% per year, and is now close to a two billion dollar industry with two-thirds of sales in the US and Europe.
In 69% of breaches, victim did not detect attack on own – they were notified by a third-party (like the press, law enforcement, etc.). This is forcing victims to disclose breaches outside their preferred terms / timing.
Encourage your children to stay in education. High-Skilled / Knowledge-Based jobs have doubled since 1983 while other jobs grew just a third.
50% of the US population receive government benefits (compared to 30% in 1983). 80% of Airbnb hosts rent their home to supplement income. 31% of Uber drivers have another full-time job!
9% of all retail sales are e-commerce transactions – so there’s still a big market share remaining
So you think Amazon are big? They are. But Alibaba is three times bigger in merchandise value sold.
So the Internet is big, Western companies are doing very well, and there’s still a lot more to potential business in China and India.
Here’s the full report: