TL;DR: 7 Takeaways for Marketing & Ad Folks from the KPCB Internet Trends Report
Hello Internet. Nate Poekert here. Despite the fact that I have worked with/at Day One Agency for almost 2.5 years, this is my official debut on the Day One Perspective (cue nervous cheers). I am a huge fan and supporter of short form content so I promise that the most copy you’ll read is probably going to be in this intro! Let’s get down to it.
Every year Mary Meeker creates a very large report about Internet Trends. When I say “large,” I really mean it. It’s 213 pages of charts and graphs ranging from Chinese consumerism to Uber expansions in Europe as well as how declining flamingo populations in Florida are creating increased Snapchat filter production (I may have made that last one up).
You are probably sitting here and thinking about 213 pages of information like…
So for your benefit, I have gone through and reviewed all 213 pages and have pulled out the most relevant key takeaways that pertain directly to marketers & advertisers.
Here we gooooo….
Our office is 100% iOS. Most advertising/marketing/public relations offices in NYC are probably the same. We often, as marketers, forget that a majority of the world is running on an Android device. While Apple consumers are statistically shown to have larger incomes and more spending power, global brands should always keep in mind when developing mobile products that the world runs — for the most part — on Android.
This is probably the most boring slide in my presentation (I promise the other stuff is way more interesting). That said, I included it because it really is something that brands should consider for future success and growth. The expansion of this slide is that birth rates are decreasing year-over-year throughout the world which means that despite the increase in online/internet sales, the number of potential consumers is decreasing. Can you actually picture your parents making a purchase over Twitter? Probably not. As debt continues to climb and the potential pool of high-spending consumers (ages 34–50) decreases, this creates both a problem and an opportunity for brands.
Brands that cannot innovate in the areas of production/operation/cost efficiencies could find themselves unable to compete with brands that are able to innovate and, thus, have more competitive pricing.
Technology, ease of payment, security and turn-key customer service are also key for brands who will be fighting in the next 10–15 years to compete with a smaller consumer pool. Phew. Did that make sense?
Ah. Finally something we recognize. Yay!
This is pretty self explanatory but I’ll give a brief text description. Right now, the amount of time people in the U.S. spend on their phone vs. their desktop computer does not equal the amount of ad spend on mobile vs. desktop. Simple, right? Maybe not, considering the CPMs & CPCs for mobile banners vs. desktop banners is still pretty large—but the increase in engagement scores should tell brands to start investing more in the mobile space.
I don’t really need to expand on this, but it’s something that you can show to your boss or say at a meeting to sound really smart.
This is a really good image to reference if you’re working for several industries and aspects of advertising/marketing. If you’re a media planner, this can give you good insight into differentiating CPMs and buys per platform. If you’re a social media strategist who’s all up in theSnapchat game and think that Facebook is over… newsflash… it’s not. Brand/Product/Category Managers, DYK that almost 55% of Pinterest users have said that clicking on a pinned product has led them to make a purchase? Who knew?
Note: While I was reading this report, all I kept thinking was that, technically, at 32yrs old, I am a millennial. But I also just recently started using Snapchat and constantly think I’m too old for it. Can we start using “Senior Millennials” for 27–34 and “Junior Millennials” for 18–26? Cool. Let’s all get on that.
Summarized: Millennials need answers and want them immediately (and in a place where they already spend a lot of their time). Older generations prefer the convenience and security of talking to someone on the phone. This is why companies like JetBlue have armies of employees who work remotely from their homes and spend all day answering customers over Twitter, as well as an army that works in traditional call centers.
This does make me think about the future, though. If I’m still tweeting customer service requests when I’m 52, what will the current 12 year old be doing at my age when he wants help? My prediction: Amazon Jeeves — an implant you put in your head that answers your questions when you just think of them. I could be right you know. Amazon invented a button that you attach to your sink to order toilet paper with one click and robots that can deliver it within an hour.
There are a number of slides that detail China’s huge economic growth in the digital/e-commerce space. One of the biggest takeaways that I found was that several countries in Asia are using messaging platforms like WeChat, Line and WhatsApp for sales conversions. Remember when Facebook & Twitter tried to set up payment platforms? It didn’t work in the U.S., but it did in Asia.
Customers will screenshot an image they see on Instagram and send a message to the brand’s corporate customer service name with the screenshot. The brand will then confirm if they do or don’t have the product (and size — if applicable) and request payment details. The customer will use the messaging app’s payment feature and confirm the payment. The brand will confirm and send receipt & shipment.
- There are way more Android users than you thought.
- Fewer babies means fewer future consumers. Think NOW about how you can be competitive in 10 years.
- Mobile ad spends vs. desktop ad spends don’t match up to consumption statistics. Invest in mobile before it gets oversaturated.
- Millennials are the largest percentage of population in the U.S. right now and in 5–10 years will have the most money to spend.
- People use Facebook almost as much as every other social media platform combined.
- The younger generation prefers Twitter/live chat for customer service while the older generation still prefers to talk on the phone.
- Asia is k-i-l-l-i-n-g it in the e-commerce space in terms of innovating the rate at which customers go from leads to conversions.
Thanks for reading!
— Nate Poekert
Writer’s Note: There were sections about Live Sports Viewing, Voice Recognition, Computers in Cars, The Auto Industry in General and a LOT more stuff about China that were not included. Just acknowledging that ;-)