20 Highlights from Meeker’s Tech State of the Union Report
Each year Mary Meeker of Kleiner Perkins Caufield & Byers publishes a comprehensive report outlining everything happening in the technology space. We went through all 355 slides, and picked 20 highlights that we thought you should know. If you’re interested in the full report, click here to see it.
State of Tech Highlights
1) Daily dose of tech
People now spend an average of 3.1hrs on mobile and 2.2hrs on a desktop/laptop per day
2) Steady gains in online advertising
Online advertising has accelerated into a $73 billion industry in just the US alone
3) Mobile advertising shift
When it comes to the big 5 advertising mediums, mobile is the only source which we spend the least amount of marketing dollars on in comparison to the actual time we spend.
Naturally as online advertising grows, adblocking software will be on the rise. Here are the desktop vs mobile stats for the countries who use the most adblocking.
5) Viewer perceptions of incentive based video ads
Mobile app rewards were seen as the most effective video ads (68% positive), while mobile app pop-ups ads were seen as the most ineffective (81% negative).
6) Big brands are leveraging UGC
Businesses are starting to incorporate user generated content into their social media strategies, especially on Instagram.
7) Voice-based technologies
Voice-based technologies such as the Amazon Echo are hitting substantial growth numbers.
8) Voice Recognition Accuracy
Google’s machine learning voice-based back-end has successfully exceeded the 95% human accuracy threshold. Exciting times are ahead now that technology has finally caught up with what our expectations are.
9) Customer’s want real-time service
Online chats and text messaging are on the rise, and becoming the norm for how customers want to communicate with your brand when they have an enquiry. Companies are responding to these chats at a faster rate, and decreasing the wait time for their customers.
10) Apartment building’s turning into warehouses
There were over 10 billion packages and parcels delivered in 2016. Building managers and landlords are now looking to expand their storage space in order to accommodate the overwhelming number of deliveries.
11) Historic numbers in retail closures on the way
E-commerce has impacted the way we shop, so much so that the number of retail shop closures may break a 20 year record in 2017 (currently sitting at 7,000 retail unit closures).
12) E-commerce leading the way
The e-commerce industry almost hit the $400 billion number last year, growing at an impressive rate of 15%.
13) Interactive games = tech innovation
Global interactive gaming is evolving rapidly and considered to be in the early days of growth. Currently there are an estimated 2.6 billion gamers in comparison to 100 million in 1995. E-sport competitions are now selling out major stadiums around the globe. Large prize pools are attracting gamers from all over the globe. The prize pool for DOTA 2 alone was $20.8 million in 2016.
14) Gaming demographics
Digital games have been making an impact on our lives since their emergence in the 1970’s. Gaming is now a well-balanced all ages market.
15) Video gaming = most engaging form of social media
People are now spending more time with video games than Facebook or any other social channel.
16) Gaming tools are improving human performance
Athletes use virtual reality to get an edge on their competition. They are experimenting with running new potential plays, and able to analyse multiple in-game scenarios at a faster rate than before. Gamification is now widely used in a variety of industries including: education, healthcare training, fitness, combat, dating, social media, finance, restaurants, and more.
17) There’s a powershift happening in video streaming
It’s crazy and exciting how fast new technology can cause a massive powershift. Just look at what’s happened in just 4 years with video streaming in the graph below.
Fixed-access Video Traffic Share Leaders
18) Finding Balance: Developer / designer ratio
It’s common knowledge that advancements in technology are directly correlated with the number of developers and engineers on your team, however the number of designers needed to to succeed has often been overlooked. In the past seven years, there’s been a increase in the number of designers required to feed the development team.
19) Alarming numbers of spam and scams
There’s been a 350%+ increase in network breaches due to email spam and phishing. Cyber threats are rising with over 10 million identities exposed in just 15 headline breaches in 2016.
20) Tech companies leading the way
Tech companies now account for 40% of the top 20 and 100% of the top 100 companies on the Global Market Capitalization Leaderboard in 2017.
This massive shift has been largely due to expansion towards new sectors. Most of the successful tech companies have evolved into a variety of sectors which are a long way from where they originally started. Diversification is key to sustaining continual growth in the tech world.