The Meeker Report

Image from Medium.com

Every year, venture capitalist Mary Meeker releases a lengthy report on the state of digital marketing. Grab the full report and access an archive  here: https://www.bondcap.com/report/itr19/#view/1

Summary from Medium here, and some 2019 highlights via Recode:

  • E-commerce is now 15 percent of retail sales. Its growth has slowed — up 12.4 percent in Q1 compared with a year earlier — but still towers over growth in regular retail, which was just 2 percent in Q1.

  • Internet ad spending accelerated in the US, up 22 percent in 2018. Most of the spending is still on Google and Facebook, but companies like Amazon and Twitter are getting a growing share. Some 62 percent of all digital display ad buying is for programmatic ads, which will continue to grow.

  • Customer acquisition costs — the marketing spending necessary to attract each new customer — is going up. That’s unsustainable because in some cases it surpasses the long-term revenue those customers will bring. Meeker suggests cheaper ways to acquire customers, like free trials and unpaid tiers.

  • Images are increasingly the means by which people communicate, as technology developments like faster wifi and better phone cameras have encouraged a surge in image taking. More than 50 percent of Twitter impressions now involve posts with images, video or other media; Twitter used to be text-only.

  • The number of interactive gamers worldwide grew 6 percent to 2.4 billion people last year, as interactive games like Fortnite become the new social media for certain people. The number of people who watch those games — rather than participate — is swelling, too.

  • Health care is steadily becoming more digitized. Expect more telemedicine and on-demand consultations.

Regarding the rising cost of customer acquisition in particular, the report cites the effectiveness of free trials or “freemium” tiers of service that can effectively get new customers in the door and convert to loyal subscriptions or users. The other driver highlighted was recommendations – the ability to deliver personalized, curated products and content to potential customers, a la personal stylist companies like Stitch Fix or Trunk Club.

Why it’s hot: It’s worth a read as it’s often a source of intelligence on the client-side, and may help to explain why certain topics of conversation suddenly seem to be cropping up in client interactions. It may help you uncover some blind spots during planning and is a good starting point for hypothesizing with data.