2012 is the Year of Mobile, and KPCB’s 2012 Internet Trend Report Proves It

Earlier this week at the D10 conference, Mary Meeker and Liang Wu from Kliener Perkins Caufield Byers (KPCB) released their 2012 Internet Trends report.

If you haven’t seen it, heard about it or read a review, you have surely been offline or really busy with work while the rest of the mobile industry was celebrating!  While the report covered many elements surrounding today’s Internet growth, it also provided an in-depth look at incredible growth and impact of mobile in the United States and across the globe.

Global Internet Usage

In 2011, global Internet users increased 8% to a total of 2.3B with 1.1B (18%) of those users accessing a 3G network.  U.S. usage is startling.  More than 79% of Americans are now connected to the Internet with 64% connected via 3G.  What is even more exciting is looking at the amount of Internet traffic coming in directly from mobile phones.

In 2009, 1% of the world accessed the Internet via mobile phones.  Today more than 10% of global Internet traffic is via the phone.

Android vs. iPhone

At the end of 2011, there were 6.1B mobile phone subscribers, 953MM subscribed to smartphones.  So who wins the Apple iOS vs. Android war?  Android, who enjoys a much wider global mobile penetration trounced Apple with global cumulative unit sales 4x higher than the iPhone.

The Power of Tablets

The overall mobile market grew by 37% thanks to strong tablet sales by Apple’s iPad (3x the sales of iPod and iPhones).  U.S. Tablet and eReaders sales increased from 2% in 2009, to a startling 29% of Americans owning one in 2012.

Mobile Commerce

So what does this mean to mobile commerce?  As more and more consumers turn to their phones as their primary means for web connectivity, mobile commerce grew 15%, and now represents 8% of all U.S. e-commerce.

Global mobile monetization grew from $0.7B in 2008 to a staggering $12B in 2012 with apps representing 71% of revenues, 29% generated from mobile advertising.

This is very interesting indeed.  While Mary Meeker was very careful to note that we are experiencing a lag between consumer and brand adoption the report also pointed out that 10% mobile users are accessing the Internet yet only 1% of U.S. ad spend goes to mobile (vs. the expected 10% usage = 10% spend) 

Mobile Advertising

Currently the mobile eCPMs (cost per thousand impressions) are as much as 5x lower on mobile ($0.75) vs. desktop ($3.50), but Meeker believes this is temporary.  If we look to other markets like as trend we can see where online advertising is heading.  Japanese Mobile game maker GREE, for example, is now getting as much as $24 per registered mobile member vs. Zynga who is currently receiving $5 per registered mobile member.

Meeker is very clear to note that she believes big mobile monetization is coming soon and even possibly surpassing desktop monetization in less than three years.  She notes several advantages that mobile monetization has going for it:

  • Rapid user growth
  • App sales (44% of all apps are free; 56% of apps priced at an average of $3.77)
  • Rapid growth of mobile commerce (including payment systems)
  • Large number of mobile developers
  • Smarter mobile marketers
  • Ultra useful utility app development
  • Highly engaged user base
  • Rapid acceptance of all mobile interfaces including tablets, smartphones, eReader, etc.
  • Company business models will adapt to consumer’s shift from desktops to mobile
  • Strong global sharing of successful technologies and programs

So what does this report mean for the mobile marketing industry?

As mobile usage by consumers continue to skyrocket and with mobile advertising still in nascent stages, the number one way to drive ROI through mobile phones (feature and smartphones alike) is through mobile messaging.

If you are familiar with the social media industry, you know now that for years, social media managers were recommending that brands get on Facebook.  Many brands did early, resulting in strong fan bases and engagement.  Now that Facebook has changed the path of brand discovery, now tying brand visibility to advertising spends, those brands entering the fray now are finding it much harder to compete with more established pages.

This is exactly what is happening in the mobile messaging space.  Early adopters such as Bloomingdale’s, Charlotte Russe, Glee, Pretty Little Liars and more are already seeing a full range of ROI from mobile marketing programs.  The longer brands take to enter into the mobile messaging market, the longer it will take for them to catch up to the competition and to start enjoying the highest ROI in the mobile marketing industry.

Click here to read the full report containing 100+ pages of charts and, even more fun, visual examples of how this shift is occurring. If you already read the report, what do you think?  What are your predictions for the future of mobile monetization?


About Mogreet
With all of the clutter and confusion about mobile marketing and MMS message marketing on the internet, this blog is to help you with news and tips in mobile marketing. About Mogreet We help brands & agencies communicate via mobile messaging - in vibrant video, images, & audio MMS. Text MMS to 21534 for a live MMS demo. Msg&Data rates may apply.

One Response to 2012 is the Year of Mobile, and KPCB’s 2012 Internet Trend Report Proves It

  1. TJ Kirgin says:

    Even scarier is that less than 2% of all websites are mobile compatible. I don’t think companies realize how hard it is to navigate tiny font and having to zoom in and around. Daily we’re ( http://www.anchormobile.net/ ) working on making mobile sites for companies and the list of those seeing it’s potential is growing, but I think it should be trending faster.

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