Investment company Kleiner Perkins Caufield & Byers (KPCB) specializes in venture capital investments in Internet projects, green technologies and medical enterprises in the early stages of development. This representative of Silicon Valley is known for its participation in hundreds of startups, many of which have turned into successful and world-renowned enterprises. The KPCB investment portfolio at various times included Sun Microsystems, Amazon.com, Google, Zynga, and other projects.
Even many children can easily name the current leaders of the Internet industry, deserving the attention of investors. But to see the future giant of the online industry at the planting stage, a venture capitalist must literally be able to predict the future. It seems that KPCB and its expert Mary Micker own a real magic ball. KPCB not only finds promising investment targets, but also accurately predicts the direction of development of the Internet industry for several years in a row.
In particular, in 2010, Mary Meeker and KPCB saw the development prospects of developing countries ’Internet markets, and also predicted a change in the sales and advertising industry under the influence of the mobile Internet. In 2011, an investment company drew attention to content and content marketing.Two years ago, Mary Meeker noted that undifferentiated content (created without taking into account the needs of specific target groups) costs exactly 0 rubles and 0 kopecks. The KPCB expert also predicted that Google’s revenues in the coming years would surpass the total revenues of all American newspapers. Mrs. Meeker compared content with a commodity asset. As is known, enterprises that process and redistribute raw materials, earn more than companies that produce it. Therefore, Internet projects that aggregate and supervise content (for example, Google) have large revenues compared to those who create it (media).
In 2012, KPCB talked about the expansion of tablet PCs and mobile traffic. Mary Meeker noted that the advertising industry is adapting to new conditions, creating new products for mobile gadget owners.
This year, KPCB again used the magic ball to look into the future of the Internet industry in general and Internet marketing in particular. Below you will find a description of the most important trends, the knowledge of which will help you successfully develop your online and offline business.
- 2. iOS and Android took several years to revolutionize the market
- 3. Leaders change with technology.
- 4. Content explosion continues
- 5. Mobile Internet has huge growth potential.
- 6. The share of mobile traffic in developing countries is growing
- 7. Technological revolution
- 8. The share of developing countries in global GDP is growing.
- 9. Explosive growth in the amount of video content being created and published.
1. The growth potential of the mobile advertising market is $ 20 billion.
KPCB specialists compared the time taken by consumers to one or another channel for disseminating information with the costs of brands for advertising through these channels. The illustration shows that advertising budgets in print media have a large potential for falling, and advertising costs through a mobile channel have a huge growth potential. KPCB has estimated this potential at $ 20 billion.
Reason to think: Do you use the same channel that your audience prefers to publish marketing content?
2. iOS and Android took several years to revolutionize the market
In 2012, iOS and Android had a share of 88% in the market of operating systems for smartphones. And in 2005, their share was only 5%. Apple and Google took some 7 years to turn the mobile industry upside down.
Reason to think: Is your business ready for the next revolution in the mobile gadget market and the Internet industry as a whole?
3. Leaders change with technology.
Many leading manufacturers of stationary PCs retained leadership in the era of laptops. However, with the advent of tablets and smartphones, completely new leaders came to the market.
Reason to think: Leading manufacturers of desktops and laptops could not compete with manufacturers of tablets and smartphones. Is your business ready to become a leader due to technology development?
4. Content explosion continues
The amount of information created and published has grown 9 times over the past 5 years. It currently exceeds 2 zettabytes or 2 trillion gigabytes. All this data is stored in 500 sq. Files. Currently, more bits of information are stored in the digital space than there are stars in the universe.
Reason to think: Have you done a content audit for a long time? What is the ratio of effective content to useless in your organization? Many companies spend huge amounts of money on content that is never used.
5. Mobile Internet has huge growth potential.
More than 5 billion people on our planet use cell phones. Of these, only 1.5 billion use smartphones. Thus, the number of users of the mobile Internet should increase by 3-4 times, when all owners of cell phones will change them for smartphones.
Reason to think: did you use adaptive layout when creating your site?
6. The share of mobile traffic in developing countries is growing
In 2012, Chinese residents began to more often go online using smartphones rather than PCs. This confirms the high potential for developing mobile technologies in developing countries.
Reason to think: mobile technology has become available to people in developing countries.
7. Technological revolution
Technology changes completely every ten years. This process is gradually accelerating. Currently, we are at the beginning of the explosive growth in the popularity of mobile gadgets (smartphones and tablets). At the same time, the revolution of the worn gadgets (smart watches, glasses, etc.) begins. Who knows when the era of implanted gadgets will begin?
Reason to think: flexibility of marketing and business plans is becoming the norm. We are entering an era that experts have called the eternal beta. Planning cycles are getting shorter, complete information disappears, entrepreneurs and developers are forced to use trial and error to move forward.
8. The share of developing countries in global GDP is growing.
The share of China, India and other developing countries in global GDP will increase, while the share of the United States and Europe will decrease.
Reason to think: economic growth in China, India, Brazil, Russia and other developing countries will change global markets in the coming years. Is your company ready for this?
9. Explosive growth in the amount of video content being created and published.
The emergence of low-cost gadgets that allow you to shoot a relatively high-quality video, increase the bandwidth of Internet channels and the development of video hosting provided a rapid growth in the number of created and published video content.
Back in 2007, users every minute uploaded to YouTube less than 10 hours of video. In May of this year, they downloaded 100 hours of video every minute.
Reason to think: technical capabilities of the audience are growing, which increases the demand for video content. Does your project use this type of content for marketing purposes?
So, the online industry in general and Internet marketing in particular are changing rapidly. The development of mobile technology seems to be the most relevant trend of today. However, smartphones and tablets will become morally obsolete faster than laptops, after which they will give way to worn gadgets. What devices will come to replace the worn nobody knows, except Google technical director Ray Kurzweil. He promises that in the 30s of our century, gadgets will be embedded directly into the human brain.
Considering the work of the most important trends in the development of the Internet industry, you get the opportunity to repeat the success of Apple, Google, Samsung and other companies that have pressed the leaders of past eras through new technologies and marketing approaches. Just do not forget that in the era of the information explosion, innovative markets become traditional faster.
Adaptation of material 9 by Michael Brenner Internet Trends Charts