Mobile phone use now accounts for nearly a quarter of the time consumers spend with media, yet mobile accounts for just 8% of ad spending, according to a new report by US Venture Capital firm Kleiner Perkins Caufield & Byers. The lag between mobile phone use and mobile ad spending was one of the key statistics in KPCB’s 2015 Internet Trends report, which looks at how mobile phones and the internet are fundamentally reshaping how consumers engage with the media. Here are six major trends identified in the report: 1. Internet and smartphone growth is strong, but slowing The KPCB report shows that while use of the internet and smartphones continues to grow, the growth rate is slowing compared to previous years. Currently, around 2.8 billion people use the internet globally. However, the number of new people signing up is slowing. The growth rate was just 8% in 2014, compared to 10% in 2013 and 11% in 2012. Aside from India, where the number of connected users surged 33%, the growth rate for the internet in most major economies is slowing. It was just 7% in China during 2014, 4% in Brazil, 2% in the USA and flat in Japan. Similarly the number of smartphones globally reached 2.1 billion in 2014. However, again, the growth rate was slowing, increasing by 23% in 2014, compared to 27% in 2013 and a massive 65% in 2012. While the growth rate has already slowed in the US (9%) and Japan (5%), it remains much faster in China (21%), India (55%) and Brazil (28%). 2. Mobile phones are now used by 5.2 billion people globally One of the standout trends in the report has been the breathtaking growth in mobile phone use over the past 20 years. According to the report, just 1% of the world’s population – around 80 million people – owned a mobile phone in 1995. Since then, the number of mobile phone users has surged to 5.2 billion. Just under three quarters (73%) of the humans alive anywhere on Earth now have a mobile phone of some description. However, of the world’s mobile phone users, just 40% have made the upgrade to a smartphone, while a remarkable 60% still use feature phones. This suggests there is still a lot more growth to come for the smartphone market globally – especially in emerging markets. 3. More people have mobile phones than internet access Compared to the 73% penetration rate for mobile phones, only 39% of the world’s population (around 2.8 billion people) have some form of internet access. The number of people online is fairly evenly spread between Asia excluding China (28%), China (23%), Europe (19%), the US (10%) and the rest of the world (21%). However, this represents a huge change from just 20 years ago. Back in 1995, there were only around 35 million internet users globally, with 61% in the US, 22% in Europe, 12% in Asia (excluding China) and just 5% in China and the rest of the world. 4. We’re spending more time online than ever before The figures show we’re spending more time than ever before on the internet – and the main device we now use is the mobile phone. In 2008, the average adult in the US spent an average of just 2.7 hours a day. Most of that time – 2.2 hours per day, or around 80% of all internet use – was conducted from a desktop PC or a laptop. By contrast, just 12% of internet time on average (0.3 hours) was spent on a mobile phone, and 9% (0.2) was spent on other connected devices. By contrast, in 2015, the amount of time the average American spends on the internet has nearly doubled to 5.3 hours per day. Most of that time – 51% of all time spent online – is now from a mobile phone. Interestingly, while the length of time each day people spend access the internet from a desktop or laptop computer has increased slightly to 2.4 hours, the percentage has fallen to just 42% of the total. 5. Ad spending hasn’t caught up with mobile internet use While the growth in mobile phone use has been epic in recent years, advertising spending hasn’t yet caught up. The report compared the percentage of time Americans spend each time with each media form, compared to the percentage of advertising money spent on each medium. The report found the percentage of ad spending on radio, TV and internet were roughly in line with the amount of time consumers spend with those media. For radio, both modal and ad share stands at 11%, TV’s ad share is 41% compared to 37%, while the internet claims 24% modal share and 23% ad share. One of the big outliers in terms of ad spending is mobile. While mobile now accounts for nearly a quarter of mobile time (24%), it gets just 8% of ad spending. The other big outlier is print. Today, it accounts for a measly 4% of media consumption time, yet claims a remarkable 18% of media ad spending. 6. The rise of mobile means more time spent on vertical screens With a few notable exceptions, such as the BlackBerry Passport, most smartphone screens are held vertically while in use. This sets them apart from computer monitors or TVs, which are typically horizontal in their orientation. The report notes that as recently as 2010, most of the time media consumers spend staring at a screen was spent with a horizontal screen. However, the explosion of mobile phone use means that consumers in the US now spend 29% of their time with a vertical screen, with the share of horizontal screens falling to 71%. Do you know more on this story or have a tip of your own? Raising capital or launching a startup? Let us know. Follow StartupSmart on Facebook, Twitter, and LinkedIn.
A year ago, SmartCompany listed the top new technologies set to race into 2014. Well, another year has come and gone, and a new group of technologies are emerging over the horizon. So what new technologies should you look out for in 2015? It’s time to gaze again into the crystal ball and take a look at six technologies you should keep an eye on in 2015: 1. Make-or-break time for smartwatches Over the past year, both in the form of devices running Google’s Android Wear platform and the Apple Watch, the tech giants have made big bets on smartwatches. However, so far consumers have been a bit ambivalent. Sure, smartwatches can bring notifications to your clockface and apps on your wrist, and being able to do a voice search with Google without pulling out your phone or tablet is nifty. On the other hand, a majority of the people inhabiting the planet already carry a far more powerful device with a larger screen in their pocket or handbag, in the form of a smartphone. So the real question now is whether consumers will embrace this new technology. Over the next year, entrepreneurs and innovators will either come up with a “killer app” for the smartwatch that drives it into the mainstream, or else the technology will be remembered as a flash-in-the-pan tech fad. Either way, the next 12 months will be crucial to the long-term prospects of this much-hyped technology. 2. Mobile payments and tickets Another technology rapidly approaching the critical make-or-break point is mobile payments. These days, from “touch and go” chip-and-pin credit cards to public transport tickets, there are a growing number of smartcards that are based on a technology called near-field communications (NFC). Over recent years, a growing number of smartphones have embedded these chips, allowing the “tap to share” features on Samsung Galaxy and Microsoft Lumia smartphones. NFC technology received a surge of mainstream attention with its inclusion on iPhone 6, which uses the chip as part of its Apple Pay payment platform. Of course, the great thing about NFC is that you don’t need to be tied into a proprietary walled garden platform such as Apple Pay. Potentially, all of the smartcards in your wallet could potentially be replaced with an app on a smartphone with an NFC chip. Since we’re now at the point where just about every flagship smartphone has NFC, we’re also at the point where it’s plausible for consumers to replace a wallet full of cards with a phone full of apps. Whether consumers embrace the convenience over the next year will be interesting to watch. 3. Multi-device app development The number of tech gadgets on offer to consumers is greater than ever before. A couple of decades ago, the average consumer just had a desktop or laptop in their study at home, and a second on their work desk. Today, a consumer could potentially use a smartwatch, a smartphone, a tablet, a desktop or laptop computer, a smart TV (or a set-top box or games console) and an in-car entertainment system in the course of a single day – and all of them run apps. Where Apple, Google and Microsoft once created operating systems for single devices, they’re now creating app platforms and ecosystems for devices. With Mac OS X Yosemite and iOS 8, Apple added a feature called Handoff that allows users to pass activities from one device to another. With Windows 10, Microsoft will allow a single app to run across a range of devices, including everything from smartphones and tablets to Xbox game consoles, PCs and servers. Meanwhile, with 5.0 Lollipop, Android apps can now run on Chromebooks. Not only that, but Google has created a range of versions of Android for different devices, including cars (Android Auto), wearables (Android Wear), and TVs (Android TV). For businesses, what this means is that consumers are likely to increasingly expect their apps, websites and online services to work seamlessly across a range of different devices and contexts. 4. Health tech The interesting thing about many of these devices is they have potential therapeutic benefits for people with otherwise debilitating medical conditions. Others could be used as a preventative tool to warn users about possible health risks. For example, Google Glass can potentially overlay graphics for people with poor vision highlighting potential risks and dangers. Cloud platforms can be used to collate health records and readings from a range of different devices and sources. Robotics can be applied to help people with limited mobility carry out everyday tasks. The great news is that there are a range of Australian businesses already doing some great research in this area. A great example is Eyenaemia, a new technology, developed by Melbourne medical students Jarrel Seah and Jennifer Tang, which allows users to diagnose anaemia by taking selfies with their smartphones. The technology has grabbed the attention of none other than Microsoft co-founder Bill Gates himself. “I could see a future version for Eyenaemia being used in developing countries, especially with pregnant women, since anaemia contributes to nearly 20% of deaths during pregnancy,” Gates says. As of August, a health-tech startup group in Melbourne has already managed to attract close to 1000 entrepreneurs and medical professionals to some of its meetings, and a similar group in Brisbane is attracting around 100. Health tech is an area Australia could become a world leader in over the coming years – if the investment and political will is there. 5. Plastic OLED displays A year ago, low production yields put a limit to the production volumes of curved or flexible screen devices. The first curved screen displays appeared on smartphones such as Samsung’s Galaxy Round and the LG G Flex, and at some curved-screen TVs at the International CES trade show. However, prices were high and volumes were limited. It required specialist types of glass, such as Corning’s bendable Willow Glass, to make. The situation is set to change over the coming year thanks to a new technology called called P-OLED (plastic-organic light emitting diode). P-OLED works by sandwiching a layer of organic material, which lights up on receiving an electrical charge, between two sheets of plastic. Along with the organic material, there’s a thin grid made up of a transparent material that conducts electricity (known as an active matrix) that can deliver a charge to each individual pixel. Unlike LCD displays, which require a backlight, all of the light is generated by the organic material, meaning P-OLED displays are thinner as well. It is also thinner than glass AMOLED displays. LG Display, one of the top three display manufacturers worldwide alongside Japan Display (Sony, Toshiba and Hitachi) and Samsung, says we should expect to see bendable tablets next year, with rollable TVs and foldable laptops screens in 2017. 6. Rise of the Chinese tech giants This last one is not so much a new technology, per se, as it is a potential tectonic shift in the tech industry landscape. During 2014, Xiaomi overtook Apple as China’s second-largest smartphone maker and – according to some figures – overtook Samsung as its largest. By the end of the year, it was the world’s third largest smartphone maker by volume, trailing only Samsung and Apple. But while Xiaomi attracted most of the attention, it’s far from the only Chinese electronics maker set to make an impact over the coming years. Lenovo became the world’s largest PC maker by buying IBM’s PC division in 2005, and has recently completed its purchase of Motorola from Google. Huawei, the world’s largest telecommunications equipment maker, is also making its consumer electronics play. In their shadows are a range of other brands, such as Coolpad and ZTE. But it’s not just device makers that are having an impact. Look no further than the record-setting $US231.4 billion ($A258.8 billion) IPO of Chinese e-commerce giant Alibaba. In conclusion From health tech to mobile payments, there are a range of technologies that will potentially have a big impact on Australian small businesses over the next year. But perhaps the most important thing for businesses will be to make sure your consumers have a seamless digital experience across all of them. This article originally appeared at SmartCompany.
Microsoft revealed its Surface tablet yesterday, and the reaction so far has been decidedly mixed.
Software giant Microsoft has revealed its Windows 8 software to developers in a new preview build, as the company attempts to battle against both Google and Apple in both the desktop computer and smartphone categories.
A Swedish technology company has unveiled the world’s first laptop computer controlled by the human eye, bringing a whole new meaning to the phrase “keeping an eye on it”.
The Consumer Electronics Show is gadget heaven. Every year major manufacturers pull out some of the most powerful (and wacky), pieces of technology for attendees and have the chance to show off some of the most impressive and futuristic pieces of hardware ever seen; it's the biggest tech event of the year.