Kleiner Perkins venture partner, Mary Meeker, presented her 2017 Internet Trends report at the Code Conference in California a few weeks ago. Recode calls Meeker’s report "the most anticipated slide deck of the year," and TechCrunch says, “Meeker’s annual Internet Trends report is essentially the state of the union for the technology industry.” At Skyhook, we look forward to this annual report as it not only informs but validates many of the trends we see everyday.
We broke down a few key takeaways that impact us most:
Location-Based Advertising is Becoming More Targeted and Accountable
Although this trend comes as no surprise to us at Skyhook, we’re pleased that the rest of the industry is finally recognizing the need for more targeted and accountable location-based advertising. To fully appreciate the urgency, consider this: based on Skyhook’s location filtering for DSPs, we’ve found that up to 80 to 90 percent of location data used in mobile advertising is inaccurate. Advertisers need to prioritize precision because when it comes to location, ‘close enough’ is not acceptable – and ‘bad location’ can’t be substituted for real, accurate location. Matt Kojalo, Skyhook’s VP of advertising products, predicts 2017 is the year that advertisers’ knowledge and understanding of location (and value for precise location) will hit its stride.
Retail Stores Are Struggling
With online shopping on the rise, retailers are facing an unprecedented struggle to survive. But if there is one thing retailers can learn from Amazon and other digital players going brick like Warby Parker and Bonobos, it’s that without a data-driven strategy, you’ll fail. We’re starting to see more retailers catch on, experimenting with new ways to use customer data such as location insights to fuel strategy and help boost sales at physical stores. Yet many retailers still don’t fully understand the power of data. What our years of experience have taught us is that data is the key component, and if traditional retailers want to stay competitive in a world of ecommerce, capturing and leveraging customer behavioral insights is the key.
The Age of Connected Intelligence is Here
In her 2016 Industry Trends report, Meeker confirmed that the shift toward connected intelligence was already in motion, and this year’s report illustrates the growing importance of connected intelligence and emphasizes its advancing influence on marketing. According to new research from Parks Associates, over 442 million connected consumer devices – including connected entertainment, mobile, health and smart home devices – will be sold in 2020. This means the need for location-based capabilities is greater than ever because as GeoMarketing points out, “location technology is at the heart of connected intelligence.”
The Number of Consumers Using Digital Health Tools, Like Wearables, is Increasing
According to Meeker’s report, shifts in consumer sentiment are creating a prime market for digital health, and wearables are gaining traction just as consumer health and wellness data capture is rising rapidly. For reference, there were 102 million wearables shipped in 2016, up from 82 million in 2015 and just 26 million in 2014. In fact, a quarter of all Americans own a wearable device. Health-related app downloads are also growing. The number of health and fitness app downloads grew five percent YoY in 2016 in the US, and 15 percent YoY in the rest of the world. Meeker reports that the most popular of these apps are fitness apps, followed by disease and treatment apps. She also notes that consumers are more open to sharing data with companies that create meaningful digital health products. These findings are on par with Skyhook’s own research. In our recent wearables study, health and fitness was cited as the primary reason to own a wearable device by both wearable owners and skeptics.
Still want more Meeker? Watch the video of her impressive presentation here.