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Internet Trends Summary

Core Content

The document presents an analysis of internet trends as of May 2012, focusing on growth, re-imagination of traditional services, economic implications, and the evolving landscape of mobile and digital technologies.

Main Points

1. Internet Growth

• Global Internet Users: Reached 2,250 million by 2011, with a 8% year-over-year growth rate.
• Top 10 Countries by Internet Users:
  • China: 513 million users, 12% growth
  • India: 121 million users, 38% growth
  • Indonesia: 55 million users, 22% growth
  • Philippines: 34 million users, 44% growth
  • Nigeria: 45 million users, 51% growth
  • Mexico: 42 million users, 19% growth
  • Russia: 61 million users, 3% growth
  • USA: 245 million users, 1% growth
  • Iran: 37 million users, 48% penetration
  • Turkey: 36 million users, 49% penetration

2. Mobile Adoption

• Global Mobile 3G Subscribers: Reached 1,098 million in Q4:11, with a 37% growth rate.
• Mobile Penetration: Only 18% of total mobile subscribers had 3G access.
• Smartphone Growth: Mobile subscriptions outpaced desktop, indicating a significant shift in user behavior.
• Mobile Monetization:
  • Rapid user growth
  • App + in-app monetization (44% of apps are free, 56% priced at an average of $3.77)
  • Growth of mobile commerce and payment systems
  • Large number of innovative developers
  • Broad base of sophisticated advertisers and marketers
  • Highly engaged consumers supported by social and curation tools
  • Rapid acceptance of two device platforms: smartphones and tablets
  • 'Essential utility' and ultra useful apps being created
  • Potential for mobile monetization in the USA to surpass desktop within 1-3 years based on patterns from Japan

3. Economic Trends

• Mixed Trends with a Negative Bias: The economy shows a mix of growth and challenges.
• Ad Revenue Growth:
  • Global internet ad revenue grew from $55 million in 1995 to $73 billion in 2011.
  • Ad revenue per user increased from $9 to $49.
  • Global internet users increased from 6 million to 1.5 billion.

4. 'USA, Inc.'

• Tech Excitement: There is a lot to be excited about in the tech sector.
• Other Areas of Concern: There are areas outside of tech that are of concern.

5. Bubble or Not?

• The document questions whether the tech sector is in a bubble, highlighting the potential for continued growth in mobile and digital services.

Key Information

• Mobile Growth: Mobile adoption is still in its early stages, with significant potential for further expansion.
• Monetization Shift: Mobile monetization is showing more promise than early desktop monetization due to user engagement and new business models.
• Re-Imagination of Services: The internet is reimagining nearly everything, from communication and entertainment to services like calling a cab and buying food.
• Technological Evolution: The evolution of mobile devices and their integration into daily life is reshaping traditional industries and services.
• Future Potential: The potential for mobile to surpass desktop in monetization is highlighted, based on insights from developed markets like Japan.

Summary of Re-Imagination Across Industries

Communication

• Then: Dedicated devices with limited functionality and range.
• Now: Push-to-talk features via apps like Voxer, enabling voice messages, pictures, text, and location sharing.

Navigation

• Then: Physical maps and radio reports.
• Now: User-generated digital maps and live traffic data via Waze.

News and Information

• Then: Delayed reporting by dedicated journalists.
• Now: Real-time citizen reporting via platforms like Twitter, with global reach.

Calling a Cab

• Then: Long lines and limited taxi availability.
• Now: Uber provides one-tap calls, location awareness, and electronic payments.

Food Service

• Then: Permanent store locations.
• Now: Kogi Food Truck leverages social media for real-time location updates and instant deals.

Cash Registers

• Then: Large, cumbersome machines.
• Now: Square offers a simple, elegant tablet-based solution with email receipts and touch signing.

Marketplaces

• Then: Street fairs with tents and pickup trucks.
• Now: Etsy provides an integrated platform for listings, advertising, payment, and inventory management.

Manufacturing

• Then: Mass production of standardized items.
• Now: Customized and personalized designs via platforms like Zazzle and Shapeways, using 3D printing technology.

Instant Gratification

• Then: Standardized products from mass production.
• Now: A shift towards personalized and on-demand services.

This summary highlights the transformative impact of the internet and mobile technologies on various sectors, emphasizing growth, user engagement, and new business models.