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There are 2.3 billion Internet users globally; Mobile accounts for 10% of Internet traffic
Mary Meeker, partner at Kleiner Perkins, has come out with her latest Internet slides that capture the trends in Internet and mobile. Once again, Meeker always provides great stats that put things into perspective. My personal favorite that she often reports is the percent of companies that account for all the wealth creation. In her current slides, it shows that 2% of companies account for 100% of all wealth creation of 1720 tech IPOs in the US from 1980 to 2002.
Here are 10 highlights with some of my favorite slides (one above and a couple below) about how technology has changed how we window shop to learn.
1) There was 2.3 billion Internet users in the world in 2011. More than half a billion, or 513 million, are in China. Some 245 million are in the U.S., while 121 million are in India. Of the 663 million users added around the world, 215 million came from China. (Slide 5)
2) Android phone adoption has ramped up 4x faster than the iPhone. (Slide 10)
3) Smartphone adoption has massive upside. Under one billion, or 953 million, people have smartphones. There are 6.1 billion mobile phone subscriber in the world. (Slide 11)
4) iPads are exploding. Just under a third, or 29% of US adults own a tablet or e-reader, up from 2% three years ago. (Slide 12)
5) Mobile Internet traffic exploding. Mobile accounts for 10% of Internet traffic in 2011, up from 1% in 2008. (Slide 14)
6) There's material upside for mobile advertising spend. About 10% of media consumption is spent on mobile devices, but only 1% of advertising is spent on mobile ads. Unfortunately, the eCPM (effective cost per thousand impressions) is 75 cents on mobile vs $3.50 on desktops. (Slide 19) Additionally, Zynga has an ARPU (average revenue per user) of $25 on the desktop, five times more than its mobile ARPU of $5. (Slide 20)
7) Google is seeing its clicks rise because of mobile. But it's CPC (cost per click) is dropping because a click on a mobile device is worth less than the desktop. (Slide 21)
8) Facebook is also seeing revenue constrained as it adds more mobile users. Facebook had 488 million active mobile users in Q1 2012, up 69% from the year-ago period. That's translated into annualized ARPU of $4, up 1% from a year ago, but down from $4.59 in Q4 2011. Total advertising revenue growth is slowing down. It was up 37% in Q1, up 44% in Q4 2011, up 77% in Q3, up 83% in Q2, and up 87% in Q1 2011. (Slide 22)
9) Mobile revenue doesn't have to be dismal, however. GREE has shown that it can generate a mobile ARPU of $17. (Slide 23)
10) After 25 years, mobile surpassed landlines in 2002. (Slide 30). After 244 years, Encyclopedia Britannica goes out of print in 2012. After 305 years, newspaper advertising revenue was surpassed by the Internet in 2010. (Slides 30-32)
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