A report full of valuable information to know the Internet up to now and the future "Internet Trends 2018"

A report full of various information and opinions on the world Internet such as "net advertisement", "e-commerce", "Chinese net business"Internet Trends 2018"As a venture investor and Internet analystMary MakerMr. announces.

2018 Internet Trends - Kleiner Perkins Caufield Byers
http://www.kpcb.com/internet-trends



◆ Diffusion of the Internet
The number of Internet users in 2018 finally reached approximately 3.6 billion people, about half of the world population. Internet users' rate of increase fell from 12% to 7%. Due to the penetration rate of the Internet exceeding 50%, the penetration rate has reached its peak, and Mr. Miker analyzes that there is something more difficult to further spread the Internet from here.


The reason why the Internet has been widespread is that the performance of smartphones has been improving year by year, while the high-end models such as iPhone X and Galaxy S9 / S9 + also come out, the average selling price of smartphones keeps falling . Cost reduction means expanding the share of smartphones in the developed country markets.


One of the reasons is that the Wi-Fi network is also expanding globally, and the rapid penetration rate that we are showing from 2010 to 2011 has not faded.


Especially in China, the mobile phone market is explosively growing and its size has more than five times compared to 2012.


◆ Internet usage situation
Times of use by people connecting to the Internet are also on the rise, and American adults spend 5.9 hours per day on digital media in 2017 in adults. Approximately 3.3 hours of the time are spent on mobile.


Also, as game players such as net games and Twitch became flourishing, streaming playback of movies became commonplace. For example, Twitch's streaming time has increased to about five times over the past six years.



Net service market is growing in scale, Facebook has 2.2 billion, Pinterests 200 million, Spotify 170 million and Netflix 125 million users.


Internet companies provide better services at a lower price based on enormous personal information, which makes users increasingly utilize services that have gained value, and organizations that are cracking down are required to properly use personal information by companies Today's Internet industry is supported by the existence of the three, saying to guarantee, but in reality private information is too enormous and confused. What is important is to manage unintended consequences such as leakage of personal information, and Miker says that stopping innovation and progress is irresponsible.


◆ Expansion of technology companies
Technology companies account for 25% of the market capitalization of the US · MSCI.


Of the top 15 companies in R & D and capital expenditure, six are Amazon, Google (Alphabet), Intel, Apple, Microsoft, Facebook technology companies, all of which are positive growth rates.


The average growth rate of technology companies has reached 9%, and the growth rate is higher than other research and development industries such as energy system and health care system.


◆ Ecommerce (e-commerce)
Ecommerce growth is accelerating and has expanded to account for 13% of total retail sales.


In addition to digital credit card payment transactions, transactions using virtual currencies are also increasing. The number of virtual currency trading company · Coinbase users has increased to 4 times from January 2017.


Social media is indispensable as a means to find products on the Internet. Looking at cases where e-commerce transactions were reached from social media such as Facebook and Twitter, in 2015, about 2% of the total e-commerce market rose to 6% in the first quarter of 2018 It is. There are many brands and retailers who use social media to get on this wave of rapid growth. In particular, Facebook's click-through rate has risen significantly in the past year and shows that Facebook is also growing in demand as an advertising medium.


In particular, Amazon's momentum in the e-commerce market is tremendous, its share is 28%, an increase of 8 points from 2013.


In addition, 49% of consumers use Amazon when searching for products, and 36% of search engine users such as Google and bing are users. From here, Mika points out that Amazon, which is originally a commerce platform, has evolved to the advertising platform and Google, which was the advertising platform, has evolved into a commerce platform.


Internet advertising business market is also expanding year by year, reaching $ 88 billion (about 9 trillion yen) in 2017. With the spread of smartphones in particular, advertisements for smartphones have finally exceeded half of Internet advertising expenditures.


◆ Rise of China
In China, 20% of all domestic retail sales are attributed to e-commerce, and unprecedented rapid growth in the world. Mr. Miker argues that China tends to place more emphasis on convenience than privacy, compared to the United States, which is boosting the competitiveness of Chinese companies.


Of the top 20 companies that lead the Internet in the world, nine companies are Chinese enterprises, which means that China is growing as the hub of the world's largest internet company.


In China, offline retailers are making various attempts to counter the online market. For example, Belle, a leading shoe retailer in China, grasps where goods are located in stores by embedding chips in shoes. In addition, we can detect people's movements inside the store and accurately predict when customers will buy shoes at what timing. Furthermore, by scanning foot and shoes, we can also find out what kind of shoes are suitable for customers.


Mail order site born in China · Alibaba handles billions of transactions each month and has built an ecosystem that comprehensively deals with commerce platform · logistics · payment. It is pointed out that the market is expanding rapidly even outside China, and in fact, although the market size is higher than Amazon, about 8.4% of Alibaba's sales are attributable outside China, rising from 7.9% in the previous year It is.


Especially in China, the market for streaming playback services for smartphones is rapidly growing. According to statistics on smartphone usage purpose in China in March 2018 total usage time of smartphone is 3.2 billion hours, of which the time spent on movie viewing is 22% of the total, from March 2016 the use time Has increased greatly.


Among them, the viewing time is rapidly increasing, not a long movie like a TV program or a movie, but a short movie whose playing time ends in a few seconds. It is said that Tik - Tok and other applications are affecting this.



Also, it is reported that the streaming playback service of long movies in China has grown to such an extent that its budget exceeded that of TV stations in 2017.


◆ Machine learning and data processing
The accuracy of speech recognition by Google machine learning exceeds 95%, and in 2017 the smart speaker market expanded significantly. For example, in the third quarter of 2017 Amazon Echo users were 20 million users increased to more than 30 million in the fourth quarter. In addition, Amazon Alexa's skills also exceeded 30,000 in 2018 and has been exploding in recent years.


Data collection and optimization have been done for more than 50 years. In the early 1950s the government decided to introduce the mainframe and it was also used by many government organizations such as Social Security · National Aeronautics and Space Administration (NASA) · US Internal Revenue Service (IRS), private companies such as Wal-Mart and Visa It was.


Such data collection, optimization and sharing are accelerating again as computer progresses. In 2006, Amazon's Amazon Web Service (AWS) came out, in 2007 Apple announced the iPhone and the spread of consumer mobile devices began.


Due to the emergence of mobile devices such as smartphones, the amount of data that must be collected and optimized is increasing at a rapid pace. You can understand that by looking at Apple's growing scale. Data is a factor that satisfies customers. What appears there is data analysis by cloud computing and AI.


Algorithm of AI performance by machine learning became more refined by enormous data. The three major brands of Amazon, Microsoft, and Google are fierce competition on the platform of artificial intelligence. Amazon provides AWS, Microsoft Azure, Google Google Cloud as cloud services that form the foundation of research and development of the artificial intelligence platform. Among them, the AWS of Amazon which is deployed since 2006 as well, and AWS holds about 50% of worldwide revenue.


However, data sharing creates multifaceted challenges. Mr. Miker likes this relationship like this cartoon that "I do not love you because I do not like you" seems to be a relationship between data and consumers. 79% of consumers on the Internet share personal information for personal benefits such as shopping. However, if the profit obtained by sharing personal information is not as expected as expected, 64% will take action to delete a specific application. In other words, Miker argues that users can not be fixed unless data management is considered.