Mary Meeker Report 2017
- Author: Zachary Reyes Jun 01, 2017,
Jun 01, 2017, 20:10
Thanks to affordable smartphones and cheap data tariffs, internet data consumption in India has increased at a staggering rate over the previous year and continues to increase paving the way for the biggest digital revolution in the country's history, says Kleiner Perkins Caufield Byers' (KPCB) Internet 2017 Trends report.
Meanwhile, growth in online advertising is accelerating, at least in the U.S. Digital advertising rose 22 percent to $73 billion previous year, up from 20 percent in 2015 and 15 percent in 2014.
Meeker said as the digital service market in India is expected to increase rapidly, both USA and Chinese internet giants regard it as "a global priority". The report pins the growth of online ads on improved methods to measure their efficacy, and more dollars chasing the rapid rise in phone usage. Geo-targeted ads from Google are driving foot traffic to stores, according to one slide, and contextual ads are driving direct buys on Facebook with 26% of Facebook users who clicked ads in March making a purchase, according to another.
India has the world's second biggest Internet user base at 355 million, despite having only 27 percent penetration. What was interesting this year was that 56 out of the 355 slides were devoted to India, talking about the user growth, Android market battle, consumer usage, government policies, and challenges.
Internet ad spend eclipsed TV ad spend: Meeker found that global ad spend in 2016 for both the internet and TV hit about $180 billion, with internet spending expected to grow faster than TV in 2017.
Just as mobile has finally bested the desktop in advertising cash, Meeker predicts that in the next six months, the amount of money spent on online ads globally will surpass that of TV advertising. Growth was negative at -3 per cent in 2016, but it has picked up to 6 per cent by the first quarter of 2017. Spending on public and private clouds previous year rose to $36 billion, up 37 percent since 2014.
While critics believed that Jio would not be able to turn free hoarders into paid subscribers post Q1 2017, it turns out that 72 million customers out of their 108 million sign-ups are now paying for Jio data.
Reliance Communications, in January a year ago, had sold spectrum in nine circles to Reliance Jio for over Rs. 4,000 crore and agreed to share spectrum in another 17 circles. Facebook had 1.28 billion daily active users with average revenue per user of $4.23 world-wide and $17.07 in the USA and Canada as of the first quarter.
Data costs fell 10 percent in a single quarter (Q2 2016) from $3.50 (Rs. 225) to $3.15 (Rs. 203) for 1 GB.
The report also highlighted the pro-digital policies that have been implemented since Prime Minister Narendra Modi was elected, which includes Banking for All (Jan Dhan Yojana).
- India also lags behind several countries in ease of doing business and infrastructure rankings.