Mary Meeker, Internet guru at venture capitalist Klein, Perkins, Caulfield, Byers, presented her top 7 Internet trends for 2016 at the Code Conference. Meeker is renowned for the accuracy of her analysis and is well worth following.
Trend 1: Internet advertising continues its dramatic growth
Internet advertising’s growth rate continued to accelerate in 2015. The rise was fueled by 66% increase in mobile advertising revenue. Facebook’s and Google’s ad sales also climbed significantly. Video ads are gaining traction, particularly on mobile platforms. But Mary predicts ad blocking will become a major hurdle to future digital advertising growth.
Trend 2: The Internet continues to ramp up as a retail channel
E-commerce now accounts for 10% of U.S. retail sales. Meeker says Internet-enabled retailers are using a new business model that is bolstered by always-on connectivity, hyper-targeted marketing, images, and personalization. The driving force for their new product introductions is intent-based marketing via Facebook, Twitter, Instagram, and Google.
Trend 3: Communication is reimagined over social media platforms
The use and sophistication of video and images on social platforms continue to rise. Generation Z (1 to 20 years old) are communicating with images, not text. User-shared videos are gaining in popularity as the smartphone camera is used for storytelling, creativity, and message sharing. Facebook and SnapChat are averaging 8 billion video views per day. Mary says advertisers are exploring exciting new monetization strategies as visual communication on social media drives user engagement and purchasing.
In our next post, we’ll explore Mary’s other four Internet trends.