5th June 2015 11:06
As you’d expect from a venture capital firm, the deck is also full of a wide range of data related to media and tech markets; as well as evolving consumer behaviours.
Here are five key slides about market developments to note:
1) 9/20 of largest Internet companies come from Asia. 6 of them from China.
As you’d expect, this includes the eCommerce giant Alibaba, as well as the ISP Tencent and the B2C retailer JD.com. Last year Forbes noted that 85% of JD.com’s revenues are from selling consumer electronics.
However, none of these tech giants come anywhere close to Apple in terms of revenue.
41.6% of total 2014 revenue generated by the world’s top twenty internet companies comes from Apple.
2) Apple is the great survivor. It is the only company from 1995 whose market cap means they still sit in the Top 15 of public internet companies.
In contrast, many of their cohorts from the class of ‘95 are gone, if not forgotten. Or, at the very least, they now sit much lower on the food chain…
This table shows you how quickly markets can change as they mature. In the space of just two decades, the major public players have changed beyond recognition.
What’s also notable however is the lack of diversification.
Whilst the top tech companies in 2015 have seen their market value soar, numbers 10-15 (Salesforce.com, JD.com, Yahoo!, Netflix, LinkedIn and Twitter) all have lower market caps than number 15 on the 1995 list (iLive).
3) Internet advertising has more than doubled in the past five years
Despite the great recession, the global growth in internet users has seen advertising dollars flow online. After a slow start, mobile advertising is now gaining momentum, up by 34% year-on-year.
Interestingly, desktop advertising is still growing too. Just not as fast.
4) Mobile is the primary source of internet traffic in most emerging markets
Mobile accounts for three-quarters of internet activity in Nigeria and nearly two-thirds in India (the subject of more detailed analysis in the report).
In established markets like Japan (30%), the UK (23%) and US (22%) this percentage of consumption is much lower.
This suggests that desktop usage is still pretty resilient, or that data traffic is often being delivered over other mechanisms like Wi-Fi.
5) Mobile eCommerce is popular in India, China and Brazil.
Over 40% of eCommerce sales in India are conducted via mobile, dropping to (a still significant) 33% in China and 20% in Brazil. The UK and France lead the way among older, more established, mobile markets, with similar mCommerce levels to Brazil.
Outside of these countries, mobile is used for less than one in five eCommerce sales.
Meeker’s presentation suggests that markets like China are often more innovative in this space, with the subtext and that Western media companies can learn a lot from them.
Given the explosion in mobile subscriptions which she also highlights, the opportunity to close this gap between mCommerce and desktop driven eCommerce, is one which many companies should be considering.
To find out more, view the full “2015 Internet Trends Report” presentation here.