In the Internet Queen’s “Spring Festival Gala-style report”, what are the things worth spending five minutes paying attention to?

Internet Queen Mary Meeker's annual Internet report has made industry insiders somewhat aesthetically fatigued, but in the current Internet market filled with revolutionary smoke, it can still inspire some inspiration and topics of conversation.

The Internet trend report released by Mikel this year maintained its usual lengthy style, with a total of 294 slides, covering trend interpretations in multiple aspects including mobile Internet, e-commerce, artificial intelligence, and online advertising.

To facilitate readers' self-reference, we have placed the links to the English original and Chinese versions of the report here.

To help readers understand the essence of the report within five minutes, we have extracted 30 highlights from the translated Chinese report as follows:

1. The Internet demographic dividend has peaked, and innovation + competition promotes product and service upgrades

2. The growth rate of global Internet users has slowed down: In 2017, the number of global Internet users reached 3.6 billion, a year-on-year increase of 7%, and the Internet penetration rate increased to 49% (the number of users in 2016 was 3.4 billion, and the penetration rate was 46%). Compared with the year-on-year growth of 12% in 2016, the growth rate of global Internet users has slowed down. After reaching 50%, the Internet penetration rate will rise slowly, and the demographic dividend will further decline.

3. Share of attention time spent on digital products: In 2017, the average time spent by each adult user in the United States on digital products reached 5.9 hours per day, a year-on-year increase of 4%. Among them, 3.3 hours were spent on mobile terminals such as mobile phones, 2.1 hours on computers, and 0.6 hours on other devices.

4. WiFi network penetration rate continues to grow rapidly.

5. Globally, online payments exceed offline payments, accounting for 60%, becoming the primary payment channel.

6. With the rise of digital currencies, the number of users of Bitcoin trading platform Coinbase has grown rapidly, nearly tripling in 2017.

7. Live video becomes a new source of content growth

8. The accuracy of machine learning speech recognition exceeds the human threshold (95%). The number of Amazon Echo smart speakers installed exceeds 30 million, with more than 30,000 skills.

9. Relying on personal data and big data, Internet platforms can provide consumers with more accurate personalized recommendations and services.

10. The proportion of US technology companies in the MSCI US company market capitalization continued to rise to 25%. At the same time, their R&D and capital expenditures also increased the most and grew the fastest, with the proportion of R&D and capital expenditures in revenue continuing to rise to 18%.

11. U.S. e-commerce as a percentage of retail sales continues to grow

12. Five major trends in e-commerce:

13. How users discover products: Evolution from search-driven to data-driven/personalized

Social media has gradually become an important channel for purchasing products. The way of searching for products has evolved, from the initial direct search on e-commerce websites, to product recommendations in the information flow, and then to personalized recommendations driven by the latest data. Thanks to the social power of WeChat and the closed business loop provided by mini programs, Pinduoduo has achieved explosive growth. As of March 2018, the cumulative number of users of Pinduoduo WeChat mini programs reached 230 million, and the MAU of the independent APP reached 140 million in March 2018. Pinduoduo, JD.com, Vipshop and others have all made efforts in WeChat mini programs, relying on social circles to enhance user stickiness and expand user coverage. We recommend following Mercedes-Benz Information, China Innovation Payment (Youzan), and Hanye Co., Ltd. (Quantum Cloud).

14. Social media facilitates more effective product discovery.

15. Online advertising value: Customer lifetime value becomes more important

16. Interpretation of Alibaba’s “New Retail Strategy”

17. Mobile advertising continues to grow. In 2017, the US Internet advertising revenue reached 88 billion US dollars, a year-on-year increase of 21%, which is basically the same as 22% in 2016. The proportion of time users spend on mobile terminals (29%) is higher than the proportion of mobile advertising expenditure in all media advertising (26%). Mobile advertising revenue has room for further growth ($7B space). Advertisers and users have higher requirements for content platforms and have put forward higher requirements for traffic fraud (threatening to reduce budget, etc.). Google/Youtube and Facebook invested tens of millions of dollars in 2017 and Q1 2018 to deal with it.

18. The advertising industry and the media are forced to declare war on fake news and online rumors

19. Consumption upgrade or consumption downgrade? The proportion of food and clothing declines

20. The wolf pack effect, the impact of e-commerce on consumer product prices, which product prices are most affected?

21. Consumerization of healthcare

22. Technological disruption and the transformation of work

23. The explosion speed of big data: The amount of global information is growing exponentially, from 12 ZB in 2015 to 47 ZB and 163 ZB in 2020 and 2025 respectively.

24. Big data will improve service prediction capabilities and customer satisfaction: The prediction accuracy of recommendation algorithms and AI is proportional to the size of the data set. The larger the data volume, the higher the prediction accuracy. In the 2017Q4 American Consumer Satisfaction Index (ASCI), Internet data companies with market capitalizations exceeding US$100 billion, such as Amazon (85), Google (82), Netflix (79), and Booking.com (78), all exceeded the US average (77). Toutiao's global monthly active users have increased significantly, with users spending nearly 80 minutes a day, far exceeding Snapchat and Instagram.

25. Consumers are willing to “trade privacy for benefits”, but…

26. Enterprise AI becomes the fastest growing enterprise IT spending in 2018

27. The Internet Era with Chinese Characteristics: Chinese Companies Occupy 9 of the Top 20 Internet Companies in the World

Changes in the global landscape of network leadership: In 2013, the United States accounted for 9 and China accounted for 2 of the top 20 Internet companies in the world. In 2018, China and the United States each accounted for half of the number (11:9). Alibaba, Tencent, and Ant Financial ranked 6th/7th/9th respectively. Chinese Internet companies have developed more rapidly, and the leading companies are showing a trend of concentration.

28. China is emerging as a leader in AI

29. What does technology want? Lifelong learning and online education trends

30. China Internet Trends in 2018

The mobile game market has further exploded. In 2018, the two most popular multiplayer team-based competitive games, Tencent's "Honor of Kings" (80MM+DAU) and "PlayerUnknown's Battlegrounds" (50MM+DAU), performed outstandingly. The revenue of game software in China exceeded that of the United States and ranked first. Since 2018, the average daily playing time of MMO/FPS games has declined (from the peak of 300 million hours in 2017 to more than 200 million hours recently). Tencent has strengthened cooperation with high-quality game CPs to fill the traffic decline of "Honor of Kings". It is recommended to pay attention to Tencent's ecosystem Century Huatong, *** World, Xunyou Technology, etc.

E-commerce: As the global e-commerce penetration rate continues to increase, China's e-commerce transaction volume accounted for 20% of the total retail sales in 2017, the total value of B2C e-commerce transactions reached US$480 billion, and mobile devices accounted for as much as 73% of GMV.

China is leading the world in shared mobility: China's shared mobility has grown rapidly, leading the world. In 2017, the market size increased by 96% year-on-year, and the shared bicycle market grew by nearly 1.5 times.