32 Highlights From Meeker’s 2017 Internet Trends Report – Inside Higher Ed (blog)

Amongst the technology rituals that I most look forward to each year is Mary Meeker’s annual Internet Trends Report.  


On the off chance that you don’t have the time or interest to go through all 355 slides, I have extracted the top 32 trends and data points that most caught my eye:


1.  3.4 billion internet users – 46% penetration.


2.  Global smartphone installed base – 2.8 billion.


3.  Americans spend 5.6 hours a day engaged on digital media.  3.1 hours on mobile and 2.2 hours on laptop/desktop.


4.  $73 billion spent on digital advertising, split between desktop and mobile.  (With mobile advertising growth accelerating).


5.  Global internet ad spending set to top TV spending this year – around $200 billion for each.


6.  Google $35 billion in ad revenues, Facebook just under $15 billion (but growing fast).  Everyone else took in under $25 billion in internet advertising.


7.  10 billion packages sent a year (USPS, FedEx, UPS) – growing about 10 percent a year.


8.  7,000 retail stores closing this year may break a 20 year record – while at the same time Amazon is opening physical book stores.


9.  ~$400 billion of online retail sales will occur in 2017, a sector that has been growing an average of 15% a year since 2010.


10.  Lots of slides on trends in gaming and eSports, that despite Meeker mentioning education in relation to gaming, are not very interesting to me.  (As I’m a non-gamer).


11.  Digital Leaders = Transforming Media With Better User Experiences + Lower Prices….Data + Scale


12.  Subscription and streaming make up 52 percent of recorded music revenues (total US market around $7 billion), up from 0 percent in 2004.


13.  Netflix has ~98 million paid global subscribers, while capturing almost a third of all home entertainment revenues in the US.


14.  Today, about 4-in-10 (37%) dollars spent on global IT infrastructure ($36 billion) goes to cloud spending, up from 2-in-10 dollars (21%) in 2013.


15.  Amazon (AWS) captures 57 percent of the public cloud market, followed by Microsoft (34%), Google (15%), and IBM (8%).


16.  The enterprise IT trends from 2000 to 2017 look like this:  


  •     Delivery Method:  On-Prem to Cloud-Based
  •     Pricing: Perpetual License to Subscription
  •     UX:  Generic to Personalized
  •     Intelligence:  Constrained to Unlimited
  •     Growth Engine:  Sales to Product
  •     Purchase Decision: Top-Down to Bottom-Up

17.  Design is increasingly the core of enterprise R&D.  One example is LinkedIn, where the designer-to-developer ratio in 2010 was 1-to-11.  In 2017 that ration was 1-to-8.


18.  There are 700 million mobile internet users in China.


19.  In 2016, $40 billion dollars was spent on online advertising in China, up from $10 billion in 2012.


20.  There are 355 million Indian internet users.


21.  India Internet Evolution = Leapfrogging + Re-Imagining


22.  ~80 percent of all web traffic in India is from mobile.  The global average is 50 percent, the US is under 40 percent.


23.  There are over 250 million K-12 students in India, compared to 50 million in the US.


24.  Tutoring in India is moving from offline private ‘tuition’ centers, to mobile self-paced learning.


25.  Lots of slides on healthcare, and the 25 year shift from machine-assisted/analog to technology-enabled / digital.


26.  87 percent of US office-based physicians use electronic health records (EHR), up from 21 percent in 2004.


27.  95 percent of hospitals offer patients digital data access to their healthcare information, up from 24 percent in 2012.


28.  Data Insight + Translation = Healthcare Delivery Could Change Faster with Consumer Engagement & Faster Innovation Cycles.


29.  The US federal budget in 2016 was about 3.85 trillion dollars.  Of that, 63%($2.4 trillion) goes to entitlement and mandatory spending (Social Security, Medicare, Medicaid, etc), 16% ($600 billion) to non-defense discretionary (education, law-enforcement, transportation, general government expenses), 15% ($584 billion) to defense, and 6% ($241 billion) to servicing the debt.


30.  Entitlement spending accounts for almost two-thirds (63%) of all federal spending, up from 45 percent in 1991.  


31.  In 2015, the US government debt was about $19 trillion, or 105 percent of GDP.  


32.  How economic growth drivers have evolved over time:


  •     Pre-18th Century: Cultivation & Extraction
  •     19th-20th Centuries: Manufacturing & Industry
  •     21st Century: Computer Power + Human Potential

For those of you who dived into the Meeker deck, what trends and data points would you add?


What does all this mean, if anything, to edtech and higher education?

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