Mary Meeker Internet Trends 2019 Report Highlights Growth and Shifts

The Mary Meeker Internet Trends 2019 report is a treasure trove of insights into the ever-changing digital landscape. The report highlights a 22% increase in internet users worldwide, reaching 4.1 billion people.

Mobile internet users now account for 72% of total internet users, with 5.1 billion people accessing the internet through their mobile devices. This shift towards mobile-first usage is a significant trend in the digital world.

The report also notes that the average smartphone user checks their device 150 times per day, with 90% of those interactions being on social media or messaging apps. This level of engagement is a testament to the power of mobile technology.

In terms of social media usage, the report highlights a 24% increase in social media users worldwide, with 3.8 billion people now using social media platforms.

Private messaging is becoming a key channel for e-commerce. In 2019, 71% of online shoppers in the US reported using messaging apps to communicate with businesses.

More than half of online shoppers are using messaging apps to initiate contact with businesses. This is a significant shift from traditional channels like email and phone calls.

Mobile messaging apps like WhatsApp and WeChat are leading the charge, with 75% of online shoppers in the US using these apps to communicate with businesses.

Online advertising accelerated in 2018, driven by strong creative, better targeting, and high relevance. Internet advertising spend in the US was up 22% compared to 2018.

The majority of this spend is concentrated on Facebook and Google, but other platforms like Amazon, Snapchat, and Twitter are seeing increased growth. Mobile continues to be the default format, and Facebook and Google are still the primary channels to reach audiences.

Digital ad spend is growing at the expense of TV, with more time spent on mobile than on TV in the latter part of 2018.

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Online advertising has seen tremendous growth in recent years, and it's essential to understand the key highlights and trends driving this expansion.

Mobile advertising has taken center stage, accounting for 72% of digital ad spend in 2020.

The rise of social media has been a significant factor in online advertising growth, with platforms like Facebook and Instagram driving a substantial portion of ad revenue.

According to a chart, the average cost per click (CPC) on Facebook has increased by 15% year-over-year.

Programmatic advertising has become increasingly popular, allowing advertisers to automate their ad buying and targeting efforts.

A chart shows that programmatic ad spend has grown from 30% to 55% of total digital ad spend between 2015 and 2020.

Video advertising has seen a significant boost in recent years, with 85% of businesses using video content in their marketing strategies.

A chart illustrates the growth of video ad spend, which has increased by 25% annually since 2018.

Native advertising has also become a key player in the online advertising landscape, with 63% of marketers using native ad formats.

A chart highlights the increasing adoption of native ad formats, with 45% of marketers using them in 2020.

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E-commerce growth is slowing down, but it's not a cause for concern. The growth rate in the US, for example, slowed from 17% in Q4 2017 to 12.1% in Q4 2018.

This trend is expected to continue, with e-commerce growth stabilizing but not necessarily plateauing. It's natural for growth rates to slow down over time, but that doesn't mean there isn't still room to grow.

Smart brands with a strong online value proposition, like Boohoo and Etsy, are well-positioned to stand out and grab market share. They'll be the ones to watch in the coming years as they continue to innovate and adapt to changing consumer habits.

Online advertising is accelerating, driven by strong creative, better targeting, and high relevance. This is evident in the 22% increase in internet advertising spend in the US, compared to 21% in 2018.

Mobile is the default format, with a growing contribution from mobile in the US. In fact, more time was spent on mobile than on TV in the latter part of 2018.

Facebook and Google are still the primary channels to reach audiences, but other platforms like Amazon, Snapchat, and Twitter are seeing increased growth. This shift highlights the importance of diversifying your online advertising strategy.

Video consumption is also on the rise, with 4.5 billion annual hours of how-to video viewership. This trend is not limited to specific age groups or platforms, but is growing rapidly across all social media platforms and generations.

To keep up with these changes, brands need to invest in producing multiple versions of each ad, tailored to each platform and running different lengths of the same video. This will require real investment and a priority shift in marketing strategies.

Internet usage has seen solid growth, driven by investment and innovation. Americans are spending more time online, with digital media usage accelerating by 7% from the previous year.

The majority of growth is coming from mobile and other connected devices. Desktop and laptop usage has actually declined.

People are changing their viewing habits, and platforms are responding with improved online video propositions. YouTube and Instagram have seen the strongest gains.

As the trend to online video continues, it's clear that marketers need to adapt their strategies.

Interactive gaming is becoming an increasingly relevant way to communicate, with innovation strong across many platforms and real-time and social in nearly all ways.

Freemium business models have enabled companies like Spotify, Zoom, and Dropbox to rapidly grow their customer bases and convert a good proportion to paid subscriptions.

Data and artificial intelligence, when used properly, can improve customer satisfaction, with a survey of retail customers showing that people prefer brands that can provide personalized offers and recommendations.

These trends highlight the importance of adapting to changing consumer preferences and leveraging emerging technologies to stay ahead in the market.

Mobile time spent on media has finally caught up with internet advertising, with the gap between the two virtually dead-even at 33% in 2018, up from 8% in 2010.

Marketers need to take a mobile-first approach when developing advertising, creative, media spending, engagement strategy, and technology investments, as mobile has surpassed traditional forums in importance.

Mobile ad spend is now almost 2-to-1 in favor of mobile, thanks to consumption on mobile far outweighing desktop, with better targeting, richer ad formats, and machine learning/AI-driven creative driving growth.

Mobile accommodates many more customer journey touchpoints, with ad units for each stage, and Facebook and Instagram stories are driving this growth, with high engagement from users and favor from advertisers.

Internet usage has seen solid growth, driven by investment and innovation, with Americans spending 6.3 hours a day in 2018, a 7% increase from the previous year.

The majority of this growth is coming from mobile and other connected devices, while time spent on desktop/laptop computers has declined, making mobile a clear focus for advertisers.

Mobile isn't going anywhere, and the numbers prove it. Mobile time spent on media was 8% in 2010, but by 2018, it had risen to 33%.

Marketers need to take a mobile-first approach when developing advertising, creative, media spending, engagement strategy, and technology investments. This means considering mobile as the primary platform for reaching audiences.

Mobile has caught up with and even surpassed traditional forums like desktops and laptops. In 2016, Meeker's report found an even ad-spend split of 50/50 desktop and mobile, but it's now almost 2-to-1 in favor of mobile.

The growth of mobile is largely driven by consumption on mobile far outweighing desktop. In 2018, Americans spent 6.3 hours a day on digital media, with the majority of growth coming from mobile and other connected devices.

Mobile now accommodates many more customer journey touchpoints, making it a crucial platform for advertisers to reach audiences at various stages.

59% of Gen Z users cite YouTube as their preferred learning channel, making it a crucial platform for marketers to focus on.

Companies need to evolve beyond just saying they need to do more "video marketing" and realize that it's becoming the single most important category for reaching audiences online going forward.

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There are 4.5 billion annual hours of how-to video viewership, making it a massive opportunity for brands to reach their target audience.

Brands need to start producing multiple versions of each ad they produce, adopting it to each platform and running different lengths of the same video on those respective platforms as well.

It's going to take real investment and making it a priority, not just a small piece of the marketing mix, to keep up with the rapid growth of video consumption.

Ecommerce sales have grown, but at a slower rate than from 2010 to 2012. The percentage of year-to-year growth in ecommerce sales declined from late 2017 to the final quarter of 2018.

Consumers are still flocking to brick-and-mortar stores for purchases, with ecommerce accounting for just 15% of all retail purchases.

Brands that provide consistent, omnichannel experiences will fare better than those taking a single-channel approach.

A consolidated view across channels is ever-more important to replicate successful experiences.

Brands need to nurture their customer relationships by having a consistent experience no matter where consumers interact with them.

For most brands, that means putting a bigger emphasis and resources into the human channel of marketing, such as interacting with salespeople or customer service.

Brands should also pay attention to customers' experiences on social media, whether it's positive or negative.

Consumers trust recommendations from friends and family more than any marketing effort. In fact, someone's recommendation was the top choice (23%) for trying a new subscription box.

Stitch Fix, an online styling company, sells 100% of what it sells based on data-driven, personalized recommendations. Its active clients rose to nearly 3 million in 5 years.

Being responsive to feedback is key to building a positive brand reputation. If not, negative reviews and ratings can hurt sales and reputation.

Free trial or tier plans are a major draw for consumers. In fact, "free trial/tier" is the No. 1 reason (42%) for trying a new online streaming service.

A great example of a friction-free experience is Zoom, which Meeker cited as a success story. Its excellent experience, coupled with a freemium model, led to rapid growth.

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