Have you already checked out the Internet Trends Report 2016? This annual slide deck from the venture capital company KPCB is an excellent source for understanding where the online and mobile industry is moving. Out of the 200+ slides of the presentation, here are the key points that stood out for us from a payments perspective as well as additional reading materials:
- Slides 5-7: Internet user growth is slowing down globally but the rate is increasing in India. For digital merchants, this represents a significant challenge as a growing amount of their audience will be located in India, a market with extremely low access to traditional bank-based payments. To get a better understanding of the country, check out our India market report.
- Slide 10: In addition to India, Asia on a broader level has solidified its position in the mobile ecosystem. More than half of smartphone owners of the world are now located in the Asia Pacific region. For more stats on Asia, download our Asia market report.
- Slide 15: There is a huge disparity of users’ ability to buy smartphones, with phones being proportionally 10x cheaper to German consumers than those in Nigeria. This means digital companies focusing on emerging markets should seek out those device manufacturers who produce lower end phones as those are bound to have a higher reach in these markets.
- Slide 37-38: “Easy Growth Behind Us” sums up the challenges of today’s digital merchants, something which we also wrote about back in January on VentureBeat. With few users entering the mobile ecosystem in Western markets, merchants will need to move fast and enter emerging regions to continue growing.
- Slide 46-47: Online ads continue to be an annoyance and an increasing number of consumers are installing ad blockers to circumvent advertising. Microtransactions for digital publishing are one way to begin tackling this issue.
- Slide 86-89: Sports streaming is predicted to explode and mobile operators have the opportunity to grab a piece of this huge market.
- Slide 103: Messaging apps are becoming the central services hubs of the smartphone ecosystem. For mobile operators, working together with these OTT service providers is becoming a bigger necessity than ever before. Read more from our recent blog post as well as GSMA’s internet value chain report.
- Slide 174-175: While most digital companies want to enter China, another significant opportunity is to cater to Chinese tourists abroad. As KPCB points out, China is the biggest “outbound tourism spending country” with the most highly engaged smartphone payment solution users.
- Slide 184: Video and music entertainment is increasingly moving online, especially in Asia where there have been numerous new launches of streaming services over the past few months.
- Slide 187: Sadly no Indian companies can be found among the internet market leaders of 2016. Perhaps India’s upstream internet growth compared to the global trend will change this by 2017?
What other highlights does the Internet Trends Report contain for you this year? Let us know in the comments below!