Amazon is quickly turning out to be the next Google. And surprisingly, Google could become the next Amazon!
This comes as an eyebrow-raising highlight from the Internet Trends Report 2018.
Legendary venture capitalist, Mary Meeker, took to the stage a week back at Recode’s CodeConference to release this year’s highly awaited Internet Trends Report. She unveiled a 294-page presentation that touched several topics ranging from e-commerce to education.
Here’s a quick look at some surprising and not-so-surprising finds.
1. Google and Amazon Swap Places
Mary noted that Google and Amazon are slowly edging into each other’s domains.
How? People are conducting more and more product searches on Amazon instead of search engines. In fact, 49% product searches are initiated on Amazon. Also, Amazon is better equipped to fulfill user queries with features like one-click purchasing etc. This is where search engines fall short since they direct users to other sites.
On the other hand, Google is expanding more towards e-commerce with Google Home ordering.
2. E-commerce Accelerates
E-commerce continued to grow at 16% year-over-year in 2017 compared to 14% in 2016. Amazon accounted for up to 28% of overall e-commerce sales in 2017. Social media has become a growing source of efficient product discovery. On the flipside, physical retail sales are declining.
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3. Subscription is Selling Like Hot Cakes
Product purchases are slowly giving way to subscriptions. Rising numbers in Netflix, Spotify, Peloton subscriptions are proof. These channels witnessed 25%, 48%, and 173% growth respectively last year! The reasons behind their success can be attributed to the level of personalization, experience, price structure etc. that they offer.
4. Voice to Replace Typing
With voice interfaces on the rise, they are set to become the next-gen’s substitute for typing. This is evident in people’s rapidly increasing interest in Amazon Echo. In the USA, its installed base grew by 10 million from the third to the fourth quarter in 2017.
Check out a few more highlights in this video.
5. Mobile Leap
It comes as no surprise that people spend a large part of their free time on their mobile phones. This has opened up a $7 billion mobile advertising opportunity for businesses.
China has been making the most of this shift to mobile:
- It ranks #1 in mobile payment adoption in the world
- China has 753 million mobile Internet users and is investing heavily in mobile video
6. Privacy Paradox
The increased requirement of consumer data to make usability improvements is creating a privacy paradox. Hence, companies are caught between collecting data to provide a smooth user experience and concerns about data privacy.
7. Little Growth in Internet Usage and Smartphone Shipment
Surprisingly, 2017 is the first year which witnessed no growth in smartphone shipment. Internet usage too fell almost flat with only a meager 7% growth. This is because over half of the world’s population is already online. As a result, there are fewer people to connect to.
You can read the complete slide-wise presentation here.
Clearly, a technology-powered future awaits us and it’s time you made the most of it especially as a growing business. If you need a hand with that, we are here to help.