[Podcast] Dissecting Mary Meeker’s 2018 Internet Trends Report

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Every year, Mary Meeker releases an annual report that focuses on the most popular and interesting trends being seen in the broad spectrum of the "internet".

Jon and Nicole dove into the slide show and pulled out 20 slides to discuss.

On this episode of Shape the Conversation, they analyze the trends displayed on those slides and ask what the data means for the future of technology and humanity.

Show Notes

Mary Meeker's 2018 Internet Trends Report. Jon and Nicole cover the top 20 most interesting slides according to them. Click the links to follow along:

About the Hosts

Nicole Mears

Nicole is a former PPC analyst, department head, and product manager. She focuses on marketing and customer success.

Jon Davis

Spent years as a PPC consultant and agency analyst before focusing on making software.


[00:00:00] – Jon
Hey Nicole

[00:00:01] - Nicole
Hi Jon.

[00:00:03] - Jon
Ready for anther one?

[00:00:03] - Nicole
Let's do it.

[00:00:05] - Jon
All right.


[00:00:12] - Nicole
I'm Nicole Mears.

[00:00:13] - Jon
I'm John Davis.

[00:00:15] - Nicole
And this is our podcast, Shape the Conversation.

[00:00:18] - Jon
Nicole and I work together here with a great team that shape.io we're headquartered in Bend Oregon where we're recording from right now.

[00:00:27] - Nicole
So some background about us. We left our agency jobs as marketers to build software for digital advertising teams. We'll be talking about working in marketing and growing shape.io on this podcast.

[00:00:37] - Jon
Yeah, our goals to just talk about our experiences talk about what's worked for us not work for us. Tough lessons along the way and hopefully you can use some of what we talk about to shape your own conversation through the week. Why should you listen to us at all? Well we're a profitable software company. That's a good place to start always. We're outside of the Silicon Valley bubble. We did raise venture capital funding in 2015 but haven't raised any rounds since. And on this episode what we're going to be talking about Nicole?

[00:01:10] - Nicole
We'll be talking about Mary Meeker's 2018 internet trends report by Kleiner Perkins Caufield Byers and just so you guys know we're going to do our best to talk through the slides and our thoughts on the podcast but we also have a video with our audio and the slides up in case that's easier.

[00:01:27] - Jon
Yeah and we'll get you up on our YouTube channel here in the next few days. For now what we did was we each went through all, how many was there? 297 slides or something. Internet's a big place takes a lot of slides makes sense and had each of us go through and pick what we found the most 10 most interesting, not to many parameters around it but just 10 slides that stood out the most to us. Nicole went through picked 10. I went through picked 10 and how many were the same?

[00:02:02] - Nicole
None. Not a one.

[00:02:03] - Jon
I thought thered at least be three or four. But it shows how interesting this report is and why it garners the attention it does when Mary Meeker puts it out. So, all right Nicole Where do you start? These aren't necessarily your top ten just 10 of them will go through in chronological order at least Nicole's list and then we'll hit my 10. But you started with slide number 26. And what does that talk about?

[00:02:28] - Nicole
Slide number 26, It's titled "Voice = Product Lift Off". But it talks about Amazon Echo its install base and its skills. So in this slide we see that in 2015 Q2 the install base was in the low low millions and in Q4 2017 it had jumped up to 30 million people

[00:02:48] - Jon
And that's just in the U.S. just in the U.S.

[00:02:51] - Nicole
So the interesting correlation that you see is that Amazon Echo skills in 2015 jumped from 0 to 30000 in 2018. And so my kind of thing here is it really struck me because not only was there a 20 k increase in Ecos skills. Like seriously what can Alexa do that I don't know about that there's now 30

[00:03:13] - Jon
I was going to say, Do you have an Echo?

[00:03:16] - Nicole
I do. I have an Echo at home and I'm considering putting it in more rooms just so I can connect them and take over my house and make it all digital.

[00:03:22] - Jon
So you're already finding value? In it?

[00:03:24] - Nicole
Oh yeah, we love ours.

[00:03:26] - Jon
What is it what's the most common way you use it?

[00:03:28] - Nicole
OK so this is kind of boring. We use it a lot for asking the weather and setting timers. But there's a lot of things that I know it can do. Like I said there's a lot of things know I can't do. So the interesting thing for me and I know Alexa isn't Google's assistant but you talked about how Google's assistant is now going to be able to book appointments and not even really let the person on the end of the phone call know that it's artificial intelligence. And so you just kind of think like how much more is that that base or that that it's base going to grow as these voices and have more products. And here's the thing. Like thinking about this eventually will this thing be able to cook dinner for me or will be able to clean my house and when I thought about is that if you have a Bluetooth enabled Roomba or you have a Bluetooth enabled and support Alexei can probably connect with those and start the process which is scary. Now we're headed toward robots.

[00:04:26] - Jon
I think we should do a whole episode on Amazon Echo assistant those how it might affect your day to day life but also start creeping into worklife a little bit more I know we just ordered our first echo here for the office to kind of help out. So I'm interested to see how it affects our flow too. All right let's jump to your next slide

[00:04:45] - Nicole
Slide 36. This is really just a message. It says "it's crucial to manage for unintended consequences. But it's irresponsible to stop innovation and progress". I just love the sentiment of the slide. It's something that I question every day when I'm thinking about our product. How do we avoid harmful unintended consequences? Autopilots a great example for us. It's a very very powerful feature that turns off campaigns when it nears their budget. At the end of the month and then turns them back on that start of a new budget cycle. But it can be difficult. It takes some time to learn it and there's unintended consequences that we've seen. How do we address that?

[00:05:23] - Jon
I do think in this case they're probably referring to facebook, a lot of the data scandal. Cambridge Analytica just pushing forward and not really seeing all the ways that Facebook potentially could influence stuff. I think this is tech in general it describes kind of the modern struggle well. I don't think you're ever going to stop tech or curb the progress because the free market likes great solutions and tech is often the best solution to a problem and so I think it is a great message because it means we need to be conscious of how we manage tech not. The question isn't any more like if tech will take over our lives and become more and more part of our lives I think that ship has sailed and it will. All right. Let's jump to your next one. This was one that I almost included on my list, but didn't.

[00:06:12] - Nicole
All right. Slide 163 is titled "Technology = Makes Freelance Work Easier to Find" and that freelance workforce is growing about three times faster than the total workforce. So I'm not going to go over the percentages here where you can see those slides that will post.

[00:06:27] - Jon
Yeah but freelance workers are growing at over a 3x pace from a total workforce like it says. Why do you think? Do you have any theories?

[00:06:37] - Nicole
I do I think the ease of connecting and networking to find jobs you know in some cases like our digital advertising world. You see these groups of peers are willing to pass along referrals whereas previously that had to happen on phone calls or emails, which were even, I mean like, that's still fast but not super fast. You know how these Slack communities, Reddit community, etc. that are passing all this along. So technology is really enabling that freelance work for forced to grow really really quickly. And you know I think we're seeing these more kind of like freelance environments or freelance kind of apps or technology that's enabling that even more.

[00:07:14] - Jon
Yeah. And this is also just USA data to look at and in my opinion there's one reason why this has really grown and that's healthcare cost. They get freelance employees being able to bring on a consultant pay a few months here and there not have to take them on a fully loaded employee pay benefits everything is another reason I think of pushing that freelance total up.

[00:07:39] - Nicole
That and you also have the ability to work on your own timeline and timeframe and I think that's becoming more exciting to people as well.

[00:07:49] - Jon
All right. Next one slide that 165.

[00:07:53] - Nicole
On-Demand workers. So there's 5.4 million which is a 23 percent growth over the last year I believe.

[00:08:00] - Jon
So real quick sorry sorry to cut in what is an on-demand worker? I was going through the slide and I didn't know and I didn't google it I just said I'm going to ask when we talk about it.

[00:08:10] - Nicole
An On-Demand worker or someone who in the moment you're going to ask to do a job. So you think about an Uber driver or maybe a task that person that someone who's using an app to connect with you to do a job that you want done right now.

[00:08:21] - Jon
Got it. Fiver. Maybe something like that. Got it got it got it got it Okay.

[00:08:26] - Nicole
So the jump is from five point four million in 2017 to six point eight so far in 2018. And we're not even halfway- well I guess we're halfway through the year right now. The interesting thing for me is to think about it like oftentimes you are someone with a full time job but you want to work in the moment. Like if I didn't have an infant, an 8 month old right now I might consider picking up some side jobs. And I think you're seeing a lot of that kind of expand. And again it goes back to technology just making it easier to pick up those jobs whereas that market didn't exist.

[00:08:57] - Jon
I wonder how many Uber drivers there are in the U.S. right now?

[00:09:00] - Nicole
I have no idea.

[00:09:01] - Jon
Me either. All right. Next slide 174.

[00:09:07] - Nicole
So this again connects with that last section or that last slide.

[00:09:12] - Jon
Yeah, speaking of Uber.

[00:09:13] - Nicole
So it says no Uber driver partner has ever told where or when to work and that this is kind of remarkable. They get to decide like I said when and where they work. But at the same time they're also able to not like choose when they don't want to work or where they want to work. So the interesting thing for me here is the point that worker autonomy simply doesn't really exist in other industries right now. You see this in Uber and it makes sense. But is there anywhere else that this could work. I don't know this like Uber may be a shiny unicorn.

[00:09:48] - Jon
Yeah I think, if you're looking at it on demand I think naturally those are kind of fit this bill. But I do think there is movement in software and tech generally a little bit more to this picking when you want to work if you want to go for a run of the middle of the day. It's all right people know you can have your laptop so I'm going to work from home today. We have a really fluid office kind of set up here. Nobody is required to spend hours, you on support sometimes have to and we have to make sure we have coverage during business hours and somebody is here. But I always like to think about the office as an option for people to come to and work. And that's where I think you know employers and people need to think that way and be treated the way they want to be treated a lot of people like being Uber drivers because they are their own boss setting their own schedule and being entrepreneurial and I think if you're going to have great people around you need to encourage that in everybody's life. That's part of your team.

[00:10:45] - Nicole

[00:10:47] - Jon
All right. Next one. Another text base slide here from Nicole really powerful data visualizations. Slide 202.

[00:10:56] - Nicole
Hey it makes it easier not to have to talk about the graphs.

[00:10:59] - Jon
Fair enough.

[00:11:00] - Nicole
All right. So this one is a quote from Sundar Pichai.

[00:11:05] - Jon
We really should know that.

[00:11:07] - Nicole
I know. My apologies for butchering that. But he's a CEO of Google. And this is from February of this year. And I'm just going to read the entire quote out which is "AI is one of the most important things humanity is working on. It's more profound than electricity or fire. We've learned to harness fire for the benefits of humanity. But we had to overcome its downsides to AI is really important but we have to be concerned about it." So again to me is like thinking about the idea that AI is more profound than electricity or fire is mind blowing. And also thinking about the fact that fire was invented a really long time ago but electricity really 125 years without it. Yeah maybe a little bit longer. Gosh becasue it's 2018.

[00:11:45] - Jon
Hold that thought for one of my slides that has data that will answer your question.

[00:11:50] - Nicole
But again how do we harness that for the benefit of humanity while overcoming the potential for abuse and inherent risk. AI is very scary but it's also incredibly exciting.

[00:12:00] - Jon
I mean Google and parent company Alphabet famously describe themselves now as an AI first company and I think AI is always a really tough one and that's another great topic to really dive deep on. But I think in a weird way AI like really close but also really far away. I think it's so hyped out in the press right now and it's such a buzz word that I think you've got a lot of companies out there touting solutions that maybe are a little bit smoke and mirrors like not true. A I and so I think some of it is a little bit of a facade right now. But there is a lot of obviously incredible work being done in AI at the same time the rate of innovation is so fast so I think it's just a really tricky one where I'm interested to see if you're just going to have major players like Google dominate the AI landscape or if it's going to be penetrate every single industry every single company everybody needs to have an AI strategy in some way in the next 10 years or is that five years. It's really tough to say. All right next one. Slide 205.

[00:13:13] - Nicole
So this slide is its title "Most Online Customer Share Data For Benefits" and in the U.S. 79 percent of us are willing to share personal data for clear personal benefit while 66 percent of us are willing to share online data with family and friends. It's crazy to me that almost 80 percent of us are willing to share personal data for clear personal benefit. Now it's it's pretty concerning when you have these stories about like Cambridge Analytica and ads being targeted to you based on your political preferences and how that's kind of influencing the decisions you make. But what I was thinking about is what is the actual percentage of daily active users Facebook has lost from everything I heard it wasn't wasn't huge but you know that was a couple of weeks ago now.

[00:13:57] - Jon
Q Q1 2018 Facebook added 48 million daily active users.

[00:14:05] - Nicole
Well and it's I mean that's that's my next example to give you an example here. I have friends that tell me all the time about how they see these ads on Facebook and they're like "Why am I seeing this?" or "this is super creepy". And yet every time I tell them how to hide that ad or how to you know mute that ad or how to even wipe out their preferences they say they never end up doing it. And that's because to them I think it's more useful to have ads that are contectually relevant to them even if it is slightly creepy sometimes than it is to completely wiped the slate clean and get really untargeted ads.

[00:14:38] - Jon
Yeah definitely. And that's the problem we're really close to thinking about advertising a lot and where Facebook fits into that picture. And I think we need to as marketers explore a little bit more of the mindset of the general public with our day to day and ask more people around us like how they're seeing those ads because you get a lot of interesting stuff when you ask your mom about Facebook's ad she sees in her impression of it. All right. Next slide here slide 218.

[00:15:08] - Nicole
So I kind of cheated on this one because it's actually 217 and 218 that I really want to talk about here. But with this slideshows is that today's top 20 worldwide Internet leaders. There's 11 in the U.S. and nine in China. And the interesting thing was is that in 2013 there were two Chinese public private Internet companies on that list. Now there are nine.

[00:15:30] - Jon
So what they're saying is that out of the top 20 Internet properties all of them are U.S.A. or China based.

[00:15:36] - Nicole
Yeah that's nuts to me.

[00:15:37] - Jon
It is right. Crazy.

[00:15:40] - Nicole
I don't really have anything other to say than that.

[00:15:41] - Jon
There's not too much else to say I think.

[00:15:43] - Nicole
The growth there was notable for me and also the split between US and China.

[00:15:48] - Jon
Yeah I think Internet wise it's interesting how little those economies really overlap. You know one of the Google really isn't that prevalent in China which is kind of a crazy thing to think about all these other social networks and search engines are really to just serve the Chinese market. And then even with just that their market values in the five to six hundred of billions of dollars without even being able to serve the global economy too much with their services just serving the Chinese market that's how big it is. That is crazy. All right. Next slide.

[00:16:27] - Nicole
233. So this one talks about lifelong learning and how the 33 million learners which is a growth of 30 percent according to Coursera. So in 2014 we were at ten million. 2017 We're now at about 33 million. The interesting thing for me I guess is just you know someone who tries to consume multiple books a month and continue learning more at least before I had my son. It's good to know that I'm not alone as a lifelong learner. The kind of the largest pops are in it the population's not pops. Sorry. Are in North America and Asia and the interesting thing for me is you see a lot of these top courses on this list. Machine Learning, neural networks, mathematical thinking, programming for everyone. It's I think it's highly indicative of where we're headed from an Internet trend.

[00:17:12] - Jon
Yeah and what we talked about freelance remote work being easier than ever. If you're an English speaker note that number seven on this list for the top courses that Coursera is seeing is English for career development. And I think that is a fascinating look into where we're headed with the global tech worker economy over the next few decades. All right. Nicole's last slide slide 290.

[00:17:41] - Nicole
All right. So this one talks about how 56 percent of the most highly valued tech companies were founded by first or second generation Americans. They've created jobs for 1.7 million people. This includes companies like Apple, Amazon, Google, Facebook, Oracle, paypal. I was just blown away by the number of companies and the companies that I didn't know were founded by first or second generation immigrants.

[00:18:02] - Jon
What's an example of that?

[00:18:03] - Nicole
Let's see. Oh gosh I'm probably going to come off like an idiot here but like Texas Instruments were founded by first generation U.K. and second generation Swede.

[00:18:16] - Jon
Yeah I think it's still in my view. It's crazy how hard it is to immigrate to the US still with tech background or working at a tech company. I've got friends I went to college with that have been working for years to set up a situation or work for their company in a U.S. office. It's just too costly takes too much time and you need a lot of resources backing you to pull it off and these guys with college degrees are willing to come and add value pay taxes and it's really hard right now and I think it's something that obviously it's a big issue politically in the U.S. right now but is something that we really need to think hard about as a country is and the brain drain is a phrase they talk about this like people looking to start companies other places because it's so tough to bring people to work for you here.

[00:19:09] - Nicole
All right now on to Jon's slides.

[00:19:11] - Jon
All right. So I started my 10 slides with Slide 8. And to me this is if there was only one slide I could show to show the internet trends of 2018. This would be it, and in slide 8 shows that 50 percent of the population on Earth essentially uses the Internet. And that is an interesting tipping point I think in humanity

[00:19:39] - Nicole
In a matter of 9 years it's gone from 24 percent to 49 percent. What's it going to take to get to 75. How fast is that going to happen.

[00:19:50] - Jon
I don't know. I'm sure projections. It's still a pretty linear growth so it's going to continue. It just shows one incredible technology and how truly changed every facet of the globe and people's day to day life. And it's still kind of incredible right like there is half the world without access to the Internet. To me that's still kind of crazy.

[00:20:17] - Nicole
There's 50 percent of the world's minds that we aren't tapping for innovation and product development.

[00:20:22] - Jon
Definitely yeah

[00:20:23] - Nicole
Everyone's going to be developing a product but.

[00:20:25] - Jon
Yeah I think the most positive way to look at the Internet is as the world's hive mind and we essentially aren't plugging into half of the minds in the world. So for me I think for all the baggage and the negatives that tech and the Internet might come with it's push progress and it's push humanity in its overthrown dictatorships and crazy things over the years and I think we need to think about ways how do we get that other 50 percent connected in to the Internet and on the same page with the rest of us?

[00:21:03] - Nicole
Moving on, slide 32.

[00:21:04] - Jon
All right slide 32. I love the simplicity of this number. And this graph and it is Facebook's annualized revenue per daily user. So this is when it's all said and done how much revenue cash Facebook is bringing in per year. Per everyone that uses Facebook and that number is thirty four dollars. So if you think about the billions of billions of users they have it's all revenue but that number is up from sixteen dollars. So more than 2x from just 2015. So in three years with Facebook's targeting and advertising they've been able to 2X the modernization of people coming on the platform and you have to imagine those are actually in markets that are not the U.S. in a lot of cases so to be generating 2X actual US dollars off that is a pretty incredible stat and shows how he'd been able to monetize mobile which was the big question four or five years ago.

[00:22:07] - Nicole
You know you have some brilliant minds there just thinking about how to make more money off of Facebook users every day.

[00:22:12] - Jon
Yeah Facebook and their advertising I think is going to be a topic that's going to pop up on those podcasts a lot over the next few months especially as we going to bring in some experts and talk to people really shaping the policies in Congress to so that will be really interesting to see the Facebook story play out and chronicle it along the way. All right. Next slide. Oh yeah. And by the way Facebook has 1.449 billion daily active users. I know.

[00:22:43] - Nicole
I'm just shaking my head.

[00:22:44] - Jon
It's hard to comprehend. Like I said they added 48 million active users in Q1 of 2018. Think about any other app or any other service adding 48 million active users it would be the biggest story in tech about this new app that's growing at a crazy rate. All right. Next slide I jumped to is slide 68 and this talks about the transformation of Google and Amazon and how they kind of are mirror images of each other so this ad shows the Google there. They started as an ad platform and around late 90s-2000 with AdWords and they're slowly moving into becoming a commerce platform. So Google Shopping delivering products from Google directly ordering products from the cerpts kind of competing more directly with Amazon getting devices in your home to compete with the echo. So Google would prefer you to have you know your google home going in every room as opposed to your echo. But Google started with the ad platform moved to commerce. Amazon now has one of the biggest players in advertising. They've moved from pure commerce platform to an advertising platform. And I thought that was really just interesting how clear that two of the biggest companies on earth have kind of come from either sides of the spectrum and are now meeting in the middle.

[00:24:09] - Nicole
For me it's interesting to think about like does that market become smaller as companies become even more pay to play. So are we. You know what happens with Google home ordering only refers you to advertisers? Is that going to happen or are we going to put any limitations prevent that from happening?

[00:24:24] - Jon
Yeah I think it'll be fascinating to see how those battles play out. Google has Nest the Google home with the assistant now everybody knows kind of the the game is OK can we get a device in your home you're going to use and anybody in your family can call out to an endpoint. Is that going to run on our platform or the other guy's platform and Google and Amazon are really the only two right now that have the entire infrastructure in place to deliver that kind of experience.

[00:24:53] - Nicole
Now you've got that Apple homepod I think it'd be interesting to battle them all against each other and see which ones come out superior.

[00:24:59] - Jon
Maybe we'll do that. We'll get all three for the office and play around with them and do reviews or something. All right jump my next slide that is slide 96. So this is kind of break down a bunch of bar graphs of the percentage of time somebody spends consuming this media channel versus the percentage of overall advertising spend that goes to this media channel. So for instance print has about 4 percent of overall the overall attention of people and that's way down from years ago but they still have 9 percent of overall percentage of the advertising spend. Radio they're in a deficit. They still consume 13 percent of people's attention but only 9 percent of the advertising dollars. TV is the biggest player they've 36 percent of people's attention is kind of consumed by TV and they get a pretty even 36 percent of the advertising spend too. What this slide really points out is mobile. Mobiles the big one where everybody is on the phone now obviously spending more time than ever on mobile. 29 percent of people's attention is on your mobile phone. Mobile is approaching television in terms of reach and owning people's attention but they only consume 26 percent of the advertising dollars so there's still a 3 percent gap between what mobile is garnering in terms of attention and what people are monetizing right now and that's where I think mobile continues to be one of the biggest stories in advertising space because of that. How can you crack that nut. It's a smaller screen. Where can I get the ad.

[00:26:43] - Nicole
Absolutely. This really isn't surprising to me from a digital perspective. It's just a little bit sad to me as a former print journalist praise is it's the worst. And going down.

[00:26:57] - Jon
I'm worried especially the trickle down effect of local newspapers and what that means in terms of society. But that's again maybe a podcast for another day. All right my next slide was the very next slide Slide 97. This is one for me that I flipped to immediately whenever Mary Meeker releases this report and I try to see where it's at. And this is raw growth in Internet advertising spend. And the graph shows that advertising continues to grow at 21-22 percent year over year. The last three years and total is up to you know 88 billion dollars of ad spend and this might just be us numbers just us now or so and the big growth here again is mobile. Yeah, they break the bar graph into two desktop and mobile. Desktop is actually accounts for less Internet advertising spend today than mobile does. And I think that's an interesting stat too especially us as B2B marketers trying to use that like you know desktop is just it's getting less of the attention you need to be thinking about mobile and how your blog looks that your website works there how you can convert customers that way.

[00:28:20] - Nicole
Absolutely. Interestingly coming from kind of our background in PPC and digital advertising, what's interesting to me is we've been hearing since 2009 it feels like we've been hearing every year is the year of mobile but if you look at this trend and how it's progressed since 2009 with 2014, 15, 16, 17 really being the massive growth from 50 to 60 to 73 to 88 million. Yeah I mean every year has been the year of mobile even though it's getting really annoying hearing that.

[00:28:46] - Jon
Yeah definitely. And for me all the negativity you might hear about Internet advertising digital advertising I think this continues to show that it gets the best results. You know the free market determines where they're going to put their advertising dollars. This is money coming from television coming from other channels being put into digital channels and there's only going to be more and more money flowing into that funnel for marketers and businesses to optimize and think about. All right. Next slide for me this is the one when we are talking about electricity earlier I said to keep in mind for later slide 144 and this is the new tech adoption curve. So what stood out for you here first when you were looking through this one?

[00:29:34] - Nicole
Okay so my biggest point on this is why did it take 75 years plus for 25 percent of adoption of a dishwasher.

[00:29:44] - Jon
So to describe the the chart it gives a breakdown of how many years it took the United States to get to 25 percent adoption of a certain technology. So they have electricity, telephone, car, dishwashers Nicole said, the radio. And then how long it took to get to 25 percent of the US using it. So the dishwasher took 80 years from when it was invented. Now it does say it was invented in 1887. What type of dishwasher are we talking about in 1887. It can't be that impressive. I'm thinking you know not until the 50s or 60s did you ever really have a dishwasher where you're only going to your neighbor like OK that's that I want one of those.

[00:30:26] - Nicole

[00:30:28] - Jon
But for me what stood out was the difference between something like the dishwasher and the Internet. So the internet took less than ten years from really it's kind of more mainstream like offering to reach this 25 percent penetration. The mobile phone was still it was in that same time range under 10 years personal computer for reference just over 15 years. But for me this just shows how the rate of society is changing and the other thing I look at this chart I go through dishwasher, radio, air conditioning, washer, refrigerator, television, and computer, mobile phone, internet. What's the next what's the next word that goes with that. That to me is fascinating is it. Ai ai is that even like categorize lable as a tech in that way. What that next it is is what all of Silicon Valley and people are trying to think about.

[00:31:33] - Nicole
I mean if you refer back to the last things we've talked about maybe it's voice search but that's again that's not really a product in it's you know maybe it's the home assitent.

[00:31:42] - Jon
Yeah I think that's what makes it interesting if you could describe right now. You know a lot of people would want to ask you a lot of questions about it. Next slide for me slide 146 and this I think they reput the graph from Slide 8 there where they've got and just general Internet penetration that is now 50 percent like we talked about but they add another line and that other line is the global penetration of social media. And so social media about 14 percent of the world was using social media in 2010. That number 2017, 33 percent of the world is using social media and the line with overall Internet adoption going from 24 percent to 49 percent. They're running almost in parallel. And why that's interesting to me is that it means that pretty much everybody that starts using the Internet start using social media

[00:32:41] - Nicole
Yeah, see and my takeaway from here was like Let's talk about the people in the middle though like Who are the 16 percent that are not on social media.

[00:32:48] - Jon
Well that's over- this is overall penetration globally. So I see what you mean those 16 percent are the same maybe that were back then. Yeah I wonder where that you know who that is that's not on Twitter maybe what is the demographic there is that older people like how worried to be on social media with all the data stuff out there. It would be interesting to pry down in that delta and that 16 percent but it does show that people who start using the Internet kind of today they use social media.

[00:33:21] - Nicole
It's absolutely impressive.

[00:33:24] - Jon
All right. My next slide this is another kind of like top level-ish sort of slide to look at, Slide 191 and it goes through the American Customer Satisfaction Index scores of Amazon, Google, Facebook, Netflix, and booking.com and Amazon, their customer satisfaction index, 85 percent well above the U.S. average Google's 82 percent well above the U.S. average and even Facebook's customer satisfaction index 72 percent. Netflix 79. What this tells me is like you hear so many bad things sometimes about these companies and there are new overlords and on and that maybe some of the data gathering stuff they're doing. No doubt I think there are a lot of maturing to do and though improved but for the most part like Google's an incredible product. Amazon is an incredible product and experience. And 85 percent of people are you know when push comes to shove they're like No I'm satisfied with Amazon.

[00:34:33] - Nicole
Yeah. Again to me it's the interesting point is It's also the reverse too. Who are the 15 percent who are they are not happy with Amazon 18 percent not happy with Google.

[00:34:44] - Jon
Yeah they're just never get to be happy with anything.

[00:34:46] - Nicole
Maybe. Well and it's really funny because I've heard Stand up somewhere and I'm totally commandeered this joke but the jokes been made that just because I buy one baby gate for my house I haven't become a baby gate connesuire and yet Amazon will pester me via e-mail via products they recommend for like weeks to buy more baby gates already have enough. I'm done. That being said I'm not one of those 50 percent who are not happy with Amazon. I'm very happy with my experience of Amazon.

[00:35:12] - Jon
Yeah and I think even there like you could. It's the Catch 22 of these platforms today are right like the more data you give them the more information they give them the better they work like. It is creepy that Google knows where you are every second of every day because you have the location settings on your phone turned on. But at the same time that's also a really useful piece of information they can use to deliver you a good experience. I've been accused definitely before as like a Google apologist in all ways but that is a fact. Like the more they know about you the better service they can deliver and I think this slide shows that they're delivering great service. However they might be getting there maybe they need to improve. But you know all in all Google, Amazon pretty impressive what they're offering to the market. Another company that I'm always impressed with what they're offered to the market is the next slide here. Slide 267 and this goes through Slack's crazy growth pretty much and they're kind of move 2013 to small teams to 2017 servicing small teams, large teams, medium teams, all sorts of teams. Everybody's using Slack from police organizations I read an incredible article that talked about a police force using Slack and how it helps them and their daily active users. So right now slack has just under 8 million daily active users closed in 2017. I guess a few months back stats are probably above 8 million now and 34 percent of those are paying customers. So these are people that you know are delivering revenue to slack and I think you'll be interesting to see as slack moves toward a position where they might be able to IPO get a little more information on the financials. But it shows the workplace is changing no doubt about that.

[00:37:06] - Nicole
Yeah, and this slide is titled the "Consumerization of the Enterprise Software Business Model" and so it's it's really interesting again from a product standpoint to think about is there anything we can learn from slack that we can apply to our business to do that, that massive growth scale.

[00:37:19] - Jon
Yeah. And to me too it shows the kind of the meaning of B2C and B2B is a little like the way people buy It's a little more similar now than it was four or five six years ago. And I think Slack a good example of that they acted very much like a bee to see. But now one of the biggest productivity software is in the B2B workspace. All right, my last slide, slide 280 and this is the United States of America Income Statement over the last 50 years. So what stood out to you and Nicole here looking at this graph.

[00:37:53] - Nicole
One very small green blip from 1986 to 2000 ish when we were positive but the USA has had net losses for 45-50 years.

[00:38:05] - Jon
And I definitely don't pretend to understand all the macro economic conditions and forces at play here with this but it is interesting to just see generally if you looked at the USA as a business if we're generating a profit or a loss you can see we've never generated losses at a higher rate than we did through 2008 to 2012 and even still 2016. The United States we lost over 500 billion dollars from a pure PNL perspective. Now there's a lot of bond securities everything in there. But if you look at dollars in dollars out to the USA income statement you know we need to maybe find some ways to turn the tide here and that's what I think we're all in this together. And be interesting to see where those red bars go over the next few decades.

[00:39:01] - Nicole

[00:39:03] - Jon
All right. So I think that pretty much sums up the internet trends of 2018 report, huh. Anything else?

[00:39:08] - Nicole
No, I don't really think we have a finishing takeaway here because we have so many takeaways that we talked about. But you know we'd be interested to see if you have any slides that really stood out to you. And again you're going to help you shape your conversations about digital advertising this week or in the future.

[00:39:23] - Jon
Yeah and definitely keep an eye on the blog we'll get the video version of this up too with the slides in the background so you can visualize it as we're talking about it as an option too but we'll get it in normal podcast form obviously if you listened to it, made this far there. We'll have all the details notes our contact information e-mails in the show notes and thanks so much for listening and talk to you guys next week. And do we have a better outro yet Nicole?

[00:39:48] - Nicole
Other than over and out. I like over and out.

[00:39:51] - Jon
Me too. Alright.

[00:39:53] - Nicole
Over and out.

[00:39:54] - Jon
From Bend Oregon.




This episode was produced by Max Bettendorf.

A big thanks also to 🎼 Music Flow Teaching for the intro and outro music, if you are in Central Oregon you should look them up for in-home creative music lessons.🎼)

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