1.
WhatMarketersNeed
toKnowin2014
TECHNOLOGY MACRO TRENDS

2.
Inthelastfouryears,we’ve
seentremendousupheavals
insocialchannels,mobile
adoptionacrosstheglobe,
andsoftwarethat’schanged
thewayweliveandwork.
Technologyhasreshaped
marketing.

3.
Toadapttothisnewworld,
marketersneedtofirst
understandit.Herearesome
ofthekeytechnologymacro
trendsthathaveredefined
ourindustry.

4.
Global

5.
Global internet users
reached 2.6B in 2013
but growth has
slowed to 9% from
11% in 2012.
United Nations / International Telecommunications Union, US Census Bureau, Euromonitor International.

6.
About 40% of the global
population now has some level
of Internet connection, with most
of that coming from developed
nations. The opportunity ahead
is going to be in emerging
markets.
WHY IT MATTERS

7.
China boasts 550M
internet users, with
80% of those
connected on mobile.
China Internet Network Information Center

8.
Marketers and technologists are
scrambling to figure out Chinese
social media and internet usage
as it’s grown rapidly and now
represents the largest
smartphone user base for any
individual nation.
WHY IT MATTERS

9.
From Jan-13 to
Mar-14, US
ownership of the 10
globally most
trafficked Internet
properties fell 33%
comScore: 1/13 and 3/14

10.
While the US still controls #1-4
Google, Microsoft, Facebook,
Yahoo, and Wikipedia, China
now owns #6-9: Alibaba, Baidu,
Tencent, Sohu, up from just one
site in 2013 (Tencent ). The
growth of China continues.
WHY IT MATTERS

11.
Storage costs fell
99.8% and
bandwidth costs
dropped 98.4% from
1999-2014
John Hagel, Deloitte,

12.
The infrastructure of the internet
is in computing costs, bandwidth
and storage. It’s difficult to
appreciate how much cheaper it
is to send and store data. What
changes when bandwidth and
storage are effectively zero?
WHY IT MATTERS

13.
Venture financing in
both number and
dollar amount is over
50% below the 2000
peak.
Thomson ONE. Funding per Financing ($MM) calculated as total venture financing per year divided by number of deals.

14.
With high profile IPO’s and
enormous valuations, it’s
reasonable to wonder if we’re
actually in another bubble. The
aggregate funding for startups in
2000 was $101B vs $24B in 2013,
which shows we’re actually far
from the first dot-com boom.
WHY IT MATTERS

15.
Mobile

16.
70% of mobile phone
users do NOT have a
smartphone.
Mary Meeker & KPCB Internet Trends 2014

17.
While a staggering 1.1B
smartphones were shipped in
2013, many were replacements.
Only 1.6B of the 5.2B mobile
phone users have smartphones.
WHY IT MATTERS

18.
Tablets are shipping
twice as many units
as Desktop PC’s
globally.
Morgan Stanley Research

19.
Tablets are a young technology
but gaining adoption at a fast
clip, with 80M units shipped in
Q4 of 2013 alone.
WHY IT MATTERS

20.
Tablet users represent
28% of smartphone
users and only 8% of
TV users globally.
KPCB estimates based on Morgan Stanley Research and ITU data

21.
The accelerated adoption of
tablets still has plenty of room to
grow: lots of people still haven’t
acquired even their first tablet
yet.
WHY IT MATTERS

22.
In Asia and Africa,
mobile usage is
already 37% of total
web usage.
StatCounter, 5/14

23.
Compared to North American
and Europe (19% and 16%
respectively) Asia and Africa are
truly mobile-first continents,
where a significant portion of
Internet traffic going through
smartphones.
WHY IT MATTERS

24.
Mobile is the most
consumed medium (over
TV) in Italy, Japan,
Canada, India, Germany,
UK, China, USA, Nigeria,
Indonesia, Brazil, and
Saudi Arabia.
Milward Brown AdReaction, 2014

25.
TV is not going away, but the
game has changed and
marketers still don’t spend as
much time on mobile as is
warranted by the time
consumers spend on it.
WHY IT MATTERS

26.
97% of global
smartphone operating
systems (Android, iOS,
Windows) are built by
companies with US
headquarters.
IDC, 2013

27.
While there has been significant
growth across the globe in
internet users and internet
companies, the core technology
powering one of the most
important internet devices
(smartphones and tablets) are
still owned by the US.
WHY IT MATTERS

28.
Google’s Average
Revenue Per User
($45/yr) is 6x
Facebook and 12x
Twitter.
SEC Filings & Comscore. ARPU = Average Revenue per User, defined as annualized revenue per Monthly Active User (MAU). Google
ARPU is calculated using Google’s gross revenue & Comscore unique visitors.

29.
While platforms are not all
created equal, the fact that
Google makes so much per user
bodes well for still maturing
Internet Giants like Facebook
and Twitter.
WHY IT MATTERS

30.
Americans spend 4x
more time on mobile
devices (20% of total
media consumption)
compared to newspapers
and magazines.
Advertising spend based on IAB data for full year 2013.

31.
Despite the incredible time spent
on mobile devices, print pulls
19% of total ad revenue, vs 4%
for mobile. That’s a $30B gap that
Mary Meeker of KPCB believes
will eventually get closed.
WHY IT MATTERS

32.
Mobile apps
generated $26B in
2013, more than 2x
the revenue of mobile
ads.
Global Mobile App revenue per Strategy Analytics; Global Mobile Advertising revenue per PWC

33.
Given the fact that mobile
continues to struggle to convert
time spent into ad dollars, it’s
possible that revenue from
subscriptions, virtual goods, and
downloads is where the most
opportunity is for mobile.
WHY IT MATTERS

34.
Social

35.
The social referral
half-life of a tweet is
6.5 hours, a Facebook
post: 9 hours.
Shareaholic, 3/14. SimpleReach, 5/14.

36.
There is always more content in
the stream. Your content has to
stand out and it probably needs
to be re-shared multiple times to
get its full reach.
WHY IT MATTERS

37.
Top Twitter news
publishers are BBC and
NYTimes while top
Facebook news
publishers are
BuzzFeed and
Huffington Post.
NewsWhip - Spike, 4/14

38.
Nothing shows the differences
between platforms than what
kinds of content is popular there.
The audience on Facebook
prefers more consumer/lifestyle
content while Twitter users
prefer more professional /
“important” news.
WHY IT MATTERS

39.
6 global mobile
messaging services
(WhatsApp, Line,
WeChat, KakaoTalk,
Snapchat and Viber) now
total over 1B users in less
than 5 years
Publicly disclosed company data for 2013. Note: Snapchat messages / day = # of snaps sent and #

40.
Compared to North American
and Europe (19% and 16%
respectively) Asia and Africa are
truly mobile-first continents,
where a significant portion of
Internet traffic going through
smartphones.
WHY IT MATTERS

41.
SoftwareisEatingthe
World

42.
Only 1.3B music
tracks were sold in
2013, versus 118B
tracks streamed.
Nielsen & Billboard 2013 US Music Report, 1/14

43.
This the first year on record
where digital music track sales
have fallen. Spotify, Pandora, and
other music streaming services
have completely taken over
digital music.
WHY IT MATTERS

44.
Bitcoin wallets grew
by 800% in 2013 to
reach 5M globally by
March 2014.
CoinDesk

45.
Cryptocurrency is a real thing
and only getting bigger. Those
wallets are split across five major
companies.
WHY IT MATTERS

46.
70% of 4-year college
grads had to borrow
money, with the
average debt around
$30k/
The Institute for 25 College Access & Success, 2014. Consumer Financial Protection Bureau. ‘Voice of the Graduate,’ McKinsey / Chegg.

47.
Post-secondary education is
expensive and underperforming.
33% of grads don’t feel their their
education prepared them well for
employment. Can you imagine a
product that put you into 5 figure
debt with such a low rating?
WHY IT MATTERS

48.
Education technology
companies Coursera,
Khan Academy, and
Duolingo boast
userbases of 7M, 10M,
and 25M respectively.
Duolingo, Coursera, Kahn Academy Company Data

49.
Major educational platforms are
emerging as the poor ROI on
college pushes students to seek
new opportunities to learn and
prepare for the job market.
WHY IT MATTERS

50.
Eventbrite sold over
58M tickets to 1M
events (60% growth)
in 2013.
Eventbrite Company Data

51.
Traditional ticketing companies
like Live Nation have stalled out,
selling just under 150M tickets
each year for the past 3 years.
Technology driven companies
like Eventbrite are hot on their
tails.
WHY IT MATTERS

52.
Grubhub had 39M
meal orders to just
29k restaurants in
2013.
Grubhub Company Data

53.
Not only is online food ordering
a totally commonplace thing, but
the amount of leverage
marketplace companies hold
over their suppliers can be
immense (1345 : 1 ratio of meals
to restaurants)
WHY IT MATTERS

54.
Sensors,Data,and
Analytics

55.
There are 1.8B images
shared every single day
on just 5 platforms (FB,
Instagram, Snapchat,
WhatsApp, Flickr).
KPCB estimates based on publicly disclosed company data, 2014 YTD data per latest as of 5/14

56.
Visual content are coming to
dominate our digital experiences,
which means that high quality
image are going to key part of
every marketer’s arsenal.
WHY IT MATTERS

57.
The iPhone 5s (2013)
contains five sensors.
The Galaxy 5s (2014)
contains ten.
Publicly available data from Apple & Samsung, and third party reviews

58.
While wearables get a lot of the
attention when it comes to real-
time, personal analytics, we can’t
forget that smartphones are
actually the most prevalent and
powerful sensors today.
WHY IT MATTERS

59.
AppDynamics, an
app performance
monitoring company,
has tracked 500B
web/mobile
transactions
AppDynamics Company Data

60.
We’ve been generating tons of
data, but most of it hasn’t been
analyzed. Data mining and
organization tools are growing
quickly to help businesses and
consumers make sense of their
data.
WHY IT MATTERS

61.
Nest has helped
consumers save 2B
Kilowatt hours via
smart thermostat
controls since 2011.
Based on Nest comparison of actual schedules and set points to a hypothetical (holding constant temperature)

62.
The data analytics can be tied
directly into responsiveness –
resulting in seriously powerful
outcomes.
WHY IT MATTERS

63.
TVandVideo

64.
YouTube’s top six stars
have between 6M and
26M subscribers and
all have seen 50%+ Y/
Y growth.
YouTube, 5/14

65.
New mediums produce new
stars despite the unfair
advantage existing players have
because the context, style, and
audience is different.
WHY IT MATTERS

66.
Spectator Gaming is a
new genre of video,
with the leader, Twitch,
reporting 12B minutes
of video game footage
watched by 45M users
in April 2014.
Twitch Company Data. Qwilt, 4/14

67.
Video games are not a massive
medium in of itself, but as with
most popular things, watching
people perform signals the
cultural significance (and
marketing opportunity) in video
games spectators.
WHY IT MATTERS

68.
TV viewers who
simultaneously use
Twitter have up to 100%
higher rates of ad recall,
brand favorability, and
purchase intent.
Twitter x TV Study, Millward Brown Digital, 12/13

69.
It doesn’t have to be either or.
Television is still an important
medium that can be enhanced
via integrated social campaigns
on mobile platforms.
WHY IT MATTERS

70.
Millennials spend 3x as
much time watching
Online TV compared to
non Millenials.
Verizon Digital Media Study, 3/14

71.
TV producers and networks have
to adapt to the fact that Millenials
want far more control over the
content they consume and the
way they consume it.
WHY IT MATTERS

72.
Percolate is the world’s leading content marketing platform
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Want to learn more?
Contact learn@percolate.com for more information
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