BI Intelligence, profile picture
Uploaded byBI Intelligence
PPTX, PDF59,453 views

Future of Digital 2014

The document discusses the rapid shift in media consumption from traditional outlets to digital platforms, especially mobile, highlighting how nearly 3 billion people are online. It details significant changes in advertising spend, with digital and mobile ad revenues growing, while print and television ad revenues decline. The document also emphasizes the importance of adapting to new technologies and trends, such as smartphone use and connected devices, to remain competitive in the evolving media landscape.

Embed presentation

Downloaded 631 times
1 / 122
2 / 122
3 / 122
4 / 122
5 / 122
6 / 122
7 / 122
8 / 122
9 / 122
10 / 122
11 / 122
12 / 122
13 / 122
14 / 122
15 / 122
16 / 122
17 / 122
18 / 122
19 / 122
20 / 122
21 / 122
22 / 122
23 / 122
24 / 122
25 / 122
26 / 122
27 / 122
28 / 122
29 / 122
30 / 122
31 / 122
32 / 122
33 / 122
34 / 122
35 / 122
36 / 122
37 / 122
38 / 122
39 / 122
40 / 122
41 / 122
42 / 122
43 / 122
44 / 122
45 / 122
46 / 122
47 / 122
48 / 122
49 / 122
50 / 122
51 / 122
52 / 122
53 / 122
54 / 122
55 / 122
56 / 122
57 / 122
58 / 122
59 / 122
60 / 122
61 / 122
62 / 122
63 / 122
64 / 122
65 / 122
66 / 122
67 / 122
68 / 122
69 / 122
70 / 122
71 / 122
72 / 122
73 / 122
74 / 122
75 / 122
76 / 122
77 / 122
78 / 122
79 / 122
80 / 122
81 / 122
82 / 122
83 / 122
84 / 122
85 / 122
86 / 122
87 / 122
88 / 122
89 / 122
90 / 122
91 / 122
92 / 122
93 / 122
94 / 122
95 / 122
96 / 122
97 / 122
98 / 122
99 / 122
100 / 122
101 / 122
102 / 122
103 / 122
104 / 122
105 / 122
106 / 122
107 / 122
108 / 122
109 / 122
110 / 122
111 / 122
112 / 122
113 / 122
114 / 122
115 / 122
116 / 122
117 / 122
118 / 122
119 / 122
120 / 122
121 / 122
122 / 122
A Research Service By Business Insider The Future Of Digital: 2014
intelligence.businessinsider.com Henry Blodget CEO & Editor-in-Chief Emily Adler Senior Research Editor Marcelo Ballvé Editorial Director Cale Weissman Reporter Hope King Reporter Nicholas Quah Research Associate John Greenough Research Analyst Jessica Smith Research Associate Tony Danova Senior Research Analyst Mark Hoelzel Research Analyst John Heggestuen Research Analyst Cooper Smith Senior Research Analyst BI Intelligence
There are now nearly 3 billion people online Source: International Communication Union, Google 0 1 1 2 2 3 3 1990 1994 1998 2002 2006 2010 2014E Billions Global Internet Population
Four billion to go Global Population Internet Population 0 1 2 3 4 5 6 7 8 1990 1994 1998 2002 2006 2010 2014E Billions Global Internet Population Source: International Communication Union, Google
Attention is shifting to digital, especially mobile Source: eMarketer, April 2014 45% 25% 17% 9% 7% 4% 37% 18% 11% 4% 2% 23% TV Online Radio Print Other Mobile US Consumer Media Consumption Share 2009 2010 2011 2012 2013 2014
This is a generational shift Source: Ofcom 0 10 20 30 40 50 60 70 80 90 100 Total Aged 16-24 Aged 25-34 Aged 35-44 Aged 45-54 Aged 55-64 Aged 65-74 Aged 75+ Digital Is Reaching The New Generation Top Five Media Mentions Among all Adults, 2013 Watch TV Read Newspapers/Magazines Listen To The Radio
One law of media…
Money follows eyeballs.
Ad spending is moving to digital (and mobile) Source: IAB, U.S. Census Bureau, Strategy Analytics, BI Intelligence estimates Offline All Other Online Mobile $0 $60 $120 $180 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 Billions U.S. Advertising
Print ads have fallen off a cliff Source: Newspaper Association Of America *Estimate $- $10,000 $20,000 $30,000 $40,000 $50,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* Millions Newspaper Ad Revenue (Print vs. Online) Print Online
Google is now bigger than all newspapers, magazines Source: Google, NAA, PIB $0 $10,000 $20,000 $30,000 $40,000 $50,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Millions Google vs. Magazine vs. Newspaper Ad Revenue, US Data, 2004-2013 Google (US) US Magazines US Newspapers
Google now dwarfs “big media” Source: Company Filings, BI Intelligence estimates $30 $18 $16 $14 $5 $5 $3 $2 $70 Time Warner Facebook CBS Viacom Gannett Yahoo AOL New York Times Google Billions Estimated 2014 Revenue Select Media Companies
Google is almost half the size of all global TV advertising $174 $70 Global TV Ad Revenue Google Billions Estimated 2014 Ad Revenue Google vs. Global TV Ad Market Source: Google, PWC
For many years TV folks have (rightly) laughed off digital concerns
Time to stop laughing.
Ratings are falling… Source: Nielsen 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 6 6.1 6.2 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 NielsenHouseholdRating (%OfHouseholds WithTVSetsWatching) Primetime Household TV Ratings Big 4 U.S. TV Networks Average
Pay TV subscriptions are dropping… Source: Leichtman Research Group Cable Satellite Telephone Total (800) (600) (400) (200) - 200 400 600 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 NetAdditionsInThousands Pay-TV Net Additions (US)
Facebook reaches more young people than free TV Source: Nielsen, January 2013 58% 73% 83% 89% 63% 68% 63% 42% Age 18-24 Age 25-34 Age 35-54 Age 55+ PercentReach Facebook vs. TV Daily Reach (US) Four TV Networks Facebook
Netflix now has more US subscribers than HBO Source: Netflix, SNL Kagan HBO Netflix 0 10 20 30 40 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 MillionsOfUSSubscribers Paid Domestic Subscribers — Netlix v. HBO
YouTube reaches more 18-34s than any cable network 0 200 400 600 800 1000 1200 1400 2010 2011 2012 2013 2014E Millions YouTube “Ratings”
Digital video revenue is no longer a joke… Source: BI Intelligence estimates, Company Filings Netflix YouTube Hulu $0 $2 $4 $6 $8 $10 $12 2006 2007 2008 2009 2010 2011 2012 2013 Billions Estimated Digital Video Revenue
iTunes and Netflix already dwarf small cable networks Source: News Reports, Company Filings iTunes Netflix AMC Networks $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 2007 2008 2009 2010 2011 2012 2013 Billions Cable Network vs. Digital Content Revenue 2007-2013
YouTube is closing in on broadcast-network revenue Source: News Reports, BI Intelligence estimates, Company Filings $- $2 $4 $6 $8 $10 $12 2007 2008 2009 2010 2011 2012 2013 Billions YouTube Ad Revenue vs. CBS Ad Revenue And AMC Networks Revenue CBS Ad Revenue YouTube Ad Revenue AMC Networks Revenue
(Some) live sports are now being streamed Source: Ooyala 2014 34.5 7.1 3.5 42.8 11 17.1 10.5 16.9 2.6 4.1 2.8 5.1 Desktop Tablet Mobile Connected TV TimeSpentPerPlay InMinutes Time Spent Watching Online Video By Content Type Global All Live Events Sports VOD
TV now has to share attention with digital Source: Millward Brown, 2014 83 (55%) 65 (63%) 20 (45%) 68 (45%) 38 (37%) 24 (55%) Smartphone Laptop Tablet TimeSpentInMinutes (PercentageOfTotalTime) Daily Time Spent With Devices, While Watching TV Or Using The Device Independently Ages 16 - 44, United States Only Without TV With TV
So, eyeballs are leaving TV
But, so far, TV money is hanging in there
TV still massive, digital video still a blip Source: Nielsen, IAB $0 $20 $40 $60 $80 2007 2008 2009 2010 2011 2012 2013 Total TV Ad Spend (Billions) US Ad Spend, 2007-2013 TV Vs. Online Video TV Ad Spend Online Video Ad
So no worries in TV land?
Yes, worries.
It’s a generational shift — look what Millennials are doing Source: Ofcom TV TV TV Print Print Radio Radio Radio Computer 3 Computer Smartphone Smartphone All Adults Aged 75+ Aged 16-24 “Media you would miss most” Use A Smartphone Go Online On A Computer/Laptop/Netbook/Tablet Listen To The Radio Read Newspapers/Magazines Watch TV
Money follows eyeballs… Source: Mary Meeker, IAB, eMarketer 5% 38% 25% 12% 20%19% 43% 22% 10% 4% Print TV Web Radio Mobile 2013 U.S. Ad Spending vs. Consumer Time Spent By Media
So it’s only a matter of time.
What’s going on in digital?
Smartphone sales are still booming Source: IDC, Strategy Analytics, BI Intelligence estimates Samsung Apple Xiaomi Lenovo Huawei LG ZTE Coolpad Nokia Sony Motorola HTC BlackBerry Other - 50 100 150 200 250 300 350 2Q08 4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 Millions Global Smartphone Shipments By Vendor
PCs Tablets 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 Thousands Global Computer Shipments Tablets have carved out a chunk of PC sales Source: Gartner, IDC, Strategy Analytics, Company Releases
“Phablets” are replacing small smartphones Source: BI Intelligence estimates Phablets Tablets Smartphones (Non-Phablet) 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2006 2008 2010 2012 2014E 2016E 2018E Millions Global Annual Shipments By Device
Nearly half of TVs are now connected Source: Leichtman Research Group, BI Intelligence estimates 27.7 35.7 43.8 50.1 56.5 61.1 65.7 68.6 71.4 72.6 24% 31% 38% 44% 49% 53% 57% 60% 62% 63% 2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E U.S. Households With Connected TV Percentage Of Households; Number Of Households In Millions
“Wearables” are overhyped but growing Source: BI Intelligence estimates Smartwatches Fitness Bands And Other Activity Trackers Rest Of Wearables Market 0 20 40 60 80 100 120 140 160 2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2018E 2019E MillionsOfUnitsShippedAnnually Global Wearable Device Unit Shipments Forecast 35% CAGR We Are Here
Cars are increasingly connected Source: SBD, GSMA In-vehicle services Hardware Telematics service providers Telecom service providers € 0 € 5,000 € 10,000 € 15,000 € 20,000 € 25,000 € 30,000 € 35,000 € 40,000 € 45,000 2009A 2010A 2011A 2012A 2013E 2014E 2015E 2016E 2017E 2018E Millions Connected Car Revenue Forecast
300 million PCs are still sold each year Source: Gartner, IDC, BI Intelligence estimates Lenovo HP Dell Acer Other 0 20,000 40,000 60,000 80,000 100,000 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 Thousands Global PC Shipments By Manufacturer iPad released Windows 8 released
Should you be “mobile only?”
No!
It’s a “multi-screen” world Source: Gartner, IDC, Strategy Analytics, Company Filings, BI Intelligence estimates Personal Computers Smartphones Tablets Smart TVs Wearables 0 1 1 2 2 3 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E UnitsBillions Global Internet Connected Device Shipments
You should be “mobile, too.”
~60% of online devices are now smartphones or tablets Source: BI Intelligence estimates Personal Computers (Desktop And Notebook) Smartphones Tablets Smart TVs Wearables 0 1 2 3 4 5 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E NumberOfDevicesInUse(InBillions) Global Internet Device Installed Base
Other 8% Visit Websites 14% Games 8% Social Networking 15% Talk 26% Text 20% Email 9%Breakdown Of The Average Smartphone Owner's Daily Time-Spend On Average, U.S. Smartphone Owners Spend 58 Minutes Daily On Their Phones We spend an hour a day on our smartphones Source: Experian Marketing Services, May 2013
We spend ½ hour on tablet each time we use it Source: Google, August 2012 43 39 30 17 TV PC/Laptop Tablet Smartphone Average Minutes Spent Per Interaction By Device
More than ¼ of Internet traffic is mobile Source: StatCounter, BI Intelligence estimates 0% 25% 50% 75% 100% Dec-08 Jan-10 Feb-11 Mar-12 Apr-13 May-14 Global Internet Traffic Share Desktop Vs. Mobile
Mobile has extended the digital day to 18/7 Source: Google Analytics, Business Insider 9/1/12 9/15/12 9/29/12 10/13/12 10/27/12 11/10/12 11/24/12 12/8/12 12/22/12 1/5/13 Mobile Visits Desktop Visits
Each device has a different “prime time” Source: comScore, Telefonica, Macquarie Capital (USA), December 2011
Where are we in the mobile device cycle?
Developed mobile markets are nearing maturity Source: comScore 18% 72% 0% 10% 20% 30% 40% 50% 60% 70% 80% Jan 10 Jun 10 Nov 10 Apr 11 Sep 11 Feb 12 Jul 12 Dec 12 May 13 Oct 13 Mar 14 (asapercentageofthemobilepopulation) U.S. Smartphone Penetration
The action is now in China, India, and emerging markets Source: Mediacells via The Guardian 0 50 100 150 200 250 300 MillionsOfSmartphones Smartphone Sales In 2014 Will Be Driven By New Users In Emerging Markets Sales To New Smartphone Users In 2014 Smartphone Upgrades In 2014 Top 11 Markets Other Markets
China is already twice the size of the US market Source: China Internet Network Information Center Mobile Users Total Users US Users 0 100 200 300 400 500 600 700 June 06 Dec 06 June 07 Dec 07 June 08 Dec 08 June 09 Dec 09 June 10 Dec 10 June 11 Dec 11 June 12 Dec 12 June 13 Dec 13 June 14 MillionsOfInternetUsers Chinese Internet Users
Prices are dropping fast Source: BI Intelligence estimates $100 $150 $200 $250 $300 $350 2010A 2011A 2012A 2013E 2014E 2015E 2016E AverageSellingPrice Global Smartphone Average Selling Price Forecast
iPhone sales growth has slowed (iPhone 6 will help) Source: Company Filings 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 0 10,000 20,000 30,000 40,000 50,000 60,000 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 YoYSalesGrowth UnitSales(Thousands) iPhone Sales Unit Sales YoY Growth
Chinese companies sell ~25% of smartphones in world Source: Canalys, IDC, Strategy Analytics, BI Intelligence, Company Reports 0 10 20 30 40 50 60 70 80 90 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 Millions Selected Local Manufacturers From China Global Quarterly Smartphone Shipments Xiaomi Huawei Lenovo ZTE Coolpad
Global tablet growth has hit a wall Source: IDC, Strategy Analytics, BI Intelligence estimates Year-Over-Year Growth -100% -50% 0% 50% 100% 150% 200% 250% 300% 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 Global Tablet Shipments Quarterly Year-Over-Year Growth Sequential Growth
(iPad now experiencing “negative growth”) Source: Apple -50% 0% 50% 100% 150% 200% 0 5,000 10,000 15,000 20,000 25,000 30,000 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 YoYSalesGrowth UnitSale(Thousands) iPad Sales Unit Sales YoY Growth
Why have tablet sales cratered?
1. Long upgrade cycle 2. Phablet cannibalization 3. Need keyboard for serious input 4. Price
What about the platform war?
We have a winner!
Apple is strong in the US, where it’s a two-horse race Source: comScore Android Apple BlackBerry Windows Phone Other 0% 20% 40% 60% 80% 100% Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 US Smartphone Platform Market Share
But, globally, it’s an Android world
~85% of smartphones run Google’s Android Source: IDC, Strategy Analytics, BI Intelligence estimates Android iOS Microsoft BlackBerry Other 0% 25% 50% 75% 100% 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 ShareofGlobalUnitShipments Global Smartphone Market Share By Platform
~65% of tablets run Android Source: BI Intelligence estimates Android Apple Amazon BlackBerry Nook Windows 0% 25% 50% 75% 100% 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 Global Tablet Market Share By Platform
~70% of all new computing gadgets run Android Source: Gartner, IDC, Strategy Analytics, Company Filings, BI Intelligence estimates Android Windows Apple BlackBerry Other 0% 20% 40% 60% 80% 100% 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 Global Computing Platform Market Share
Android used to lag Apple badly with app developers.
Not anymore.
Android “fragmentation” problem is improving Source: Google Other Froyo Gingerbread Honeycomb Ice Cream Sandwich Jelly Bean Kit Kat 0% 20% 40% 60% 80% 100% 9/15/12 11/15/12 1/15/13 3/15/13 5/15/13 7/15/13 9/15/13 11/15/13 1/15/14 3/15/14 5/15/14 7/15/14 Jelly Bean And Kit Kat Are Now ~80% Of Android
Android now more popular with developers than iOS Source: Developer Economics, Q3 2014 Android 42% iOS 32% BlackBerry 10 3% Windows Phone 10% Other 13% Mobile Developers' Main Platform
Android will soon overtake iOS in app revenue Source: Jana, App Annie, BI Intelligence estimates $0 $1 $2 $3 $4 4Q13 2Q14 4Q14E 2Q15E 4Q15E 2Q16E Billions Estimated App Revenue Apple App Store Vs. Google Play
Android is catching up to iOS in developer payouts Source: Jana, App Annie, BI Intelligence estimates Apple App Store Google Play $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 3Q13 4Q13 1Q14 2Q14 Billions Estimated App Developer Payout Apple App Store And Google Play
Android now generates more global ad traffic than iOS Source: Opera Mediaworks Android iOS BlackBerry Symbian Other 0% 20% 40% 60% 80% 100% 2Q12 4Q12 2Q13 4Q13 2Q14 ShareOfTraffic Global Mobile Ad Traffic Share By Platform
The key digital media trends…
Mobile Social Native Video Programmatic
Most digital growth is now mobile Source: comScore, April 2014 Smartphone 131 Smartphone 442Tablet 11 Tablet 124 0 200 400 600 800 1000 1200 Dec-10 Dec-13 BillionsOfMinutes Time Spent By Digital Platform Per Month U.S., December 2010 Vs. December 2013 1,040% Growth 237% 7% Desktop 401 Desktop 429
Messaging apps are exploding Source: Company Statements, News Reports, BI Intelligence estimates 0 100 200 300 400 500 600 Oct-10 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Millions The Messaging Wars — MAUs For Top Apps (Monthly Active Users - Global)
Social networks and sharing are exploding Source: BI Intelligence estimates based on data from company filings, comScore, Global Web Index, Totem and news reports Facebook Twitter Tumblr Instagram Snapchat Google Plus LinkedIn Pinterest Vine 0 500 1,000 1,500 2010 2011 2012 2013 2014E Millions Social Network MAUs (Global)
Mobile video is booming… Source: Cisco, 2013 0 1 2 3 4 5 6 7 8 2011 2012 2013 2014 2015 2016 2017 MillionsofTerabytesPerMonth Global Mobile Video Traffic Will Continue To Surge
Mobile video has enabled the rise of the YouTube stars Source: Company Filings 35 million viewers 8 million viewers 1 million viewers
Social and music are now mostly mobile Source: Company Filings Pandora Facebook Twitter 0% 25% 50% 75% 100% 2008 2009 2010 2011 2012 2013 Mobile Usage: Pandora, Twitter, Facebook
Mobile is driving all of Facebook’s growth Source: Company Filings Advertising (Non-Mobile) Mobile Advertising Payments And Fees $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 Q1 10 Q3 10 Q1 11 Q3 11 Q1 12 Q3 12 Q1 13 Q3 13 Q1 14 Q3 14 Billions Facebook Revenue By Segment (Global)
Mobile is now a third of eCommerce traffic Source: Monetate PC Tablet Smartphone 0% 25% 50% 75% 100% 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 Ecommerce Website Traffic By Device
PayPal powers $30 billion in mobile payments *PayPal counted a small portion of Braintree’s transaction volume as its own in the last 12 days of Q4 2013.Source: PayPal PayPal Mobile Braintree Mobile* $0 $5 $10 $15 $20 $25 $30 $35 2008 2009 2010 2011 2012 2013 U.S.DollarsInBillions PayPal Mobile Transaction Volume (Including Braintree 2013)
Venmo is (finally) replacing friend-to-friend payments Source: PayPal, BI Intelligence $81 $105 $141 $194 $314 $468 $700 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 MillionsOfDollars Venmo Payment Volume
Ad growth is mobile, social, video, native, programmatic Source: BI Intelligence estimates based on data from BIA/Kelsey, IAB, IDC, and Magna Global Note: Formats overlap. Mobile includes all ad formats that appear on mobile. -0.4% 15.1% 2.3% 42.6% 18.0% 34.7% 35.7% Desktop Display Desktop Video Desktop Search Mobile Social Native Programmatic Advertising Revenue Growth (US) CAGR 2013 - 2018
Mobile is a “green field” Source: eMarketer $1 $1 $1 $3 $10 $12 $1 $1 $1 $3 $15 $30 $1 $1 $1 $4 $19 $46 Latin America Middle East and Africa Eastern Europe Asia-Pacific Western Europe North America Annual Mobile Ad Spend Per Mobile Internet User By Region 2011 2012 2013
Social is booming Source: BI Intelligence estimates, BIA/Kelsey Non-Mobile Mobile $- $2 $4 $6 $8 $10 $12 $14 $16 2013 2014E 2015E 2016E 2017E 2018E Billions FORECAST: Social Media Advertising Spend (US)
“Display” ad spending is still respectable, but… Source: Company Filings, BI Intelligence estimates Google Other Yahoo AOL Microsoft $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2Q06 4Q06 2Q07 4Q07 2Q08 4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 Total Display Advertising Revenue (Millions) US Display Advertising, 2006-2014 (Quarterly)
Growth is shifting to “native”… Source: BI Intelligence estimates, IAB $1.0 $1.3 $1.9 $2.7 $3.9 $5.7 $0.8 $1.0 $1.3 $2.0 $2.7 $3.4 $2.9 $5.6 $7.5 $9.2 $10.7 $11.9 $0 $5 $10 $15 $20 $25 2013 2014E 2015E 2016E 2017E 2018E Billions Native Advertising Revenue (US) Desktop And Mobile Native-Style Display Sponsorship Social
And “programmatic” Source: BI Intelligence estimates, Magna Global, IDC $6 $8 $12 $18 $23 $28 2013 2014E 2015E 2016E 2017E 2018E AdSpendInBillions FORECAST: Programmatic Ad Spend (U.S.)
Google is still the digital advertising king Source: Company Filings Note: Based on GAAP revenue. Google Facebook Yahoo AOL $0 $4 $8 $12 $16 $20 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Billions Digital Advertising Revenues (Global)
Google’s YouTube dominates digital video and video ads Source: Company Filings, BI Intelligence estimates YouTube Tremor YuMe TubeMogul $0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 RevenueInMillions Global Digital Video Advertising Revenue (Select Companies)
Google’s Chrome browser is crushing Firefox and IE Source: StatCounter Other Safari Firefox Internet Explorer Chrome Opera 0% 10% 20% 30% 40% 50% 60% 2010 2011 2012 2013 2014 Global Web Browser Usage Share
Google’s Android has peak-Windows-like market share Source: IDC, Strategy Analytics, BI Intelligence estimates Android iOS Microsoft BlackBerry Other 0% 20% 40% 60% 80% 100% 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 ShareofGlobalUnitShipments Global Smartphone Market Share By Platform
Google 93% Bing 3% Yahoo 2% Other 2% Europe Search Market Share Oct. 2014 In Europe, Google has peak-Windows-like search share Source: StatCounter
Basically, Google is swallowing the world… Source: Google, 2014 Is An Estimate $- $10 $20 $30 $40 $50 $60 $70 2009 2010 2011 2012 2013 2014E Billions Google Global Annual Revenue
(And people are noticing!) Source: StatCounter
(For Microsoft, DOJ attack was the beginning of the end) Source: StatCounter
Have Google and Facebook won?
Not necessarily.
Money follows eyeballs.
Search click growth is finally decelerating Source: Google 20% 23% 26% 31% 26% 25% 17% Q1 13 Q3 13 Q1 14 Q3 14 Google Paid Clicks Growth Global, Year-Over-Year
US desktop search queries are now shrinking Source: comScore Note: Explicit user initiated search queries only. 10% 12% 14% 10% 7% 4% 0% -3% -5% -7% -8% -7% -7% Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Total Monthly Search Query Growth U.S., Year-Over-Year; Desktop Only
“No one uses Facebook anymore” — Gen Z-er Source: Piper Jaffray 42% 33% 27% 23% 27% 30% 31% 27% 12% 17% 27% 30% Fall 2012 Spring 2013 Fall 2013 Spring 2014 The Most Important Social Networks To US Teens Percent Of Respondents Who Say The Network Is Most Important Facebook Twitter Instagram
Why do teens love Instagram? 0 50 100 150 200 250 300 2010 2011 2012 2013 2014E Millions Instagram “Because parents see that camera icon and think it’s a photo app. They don’t know it’s a social network.”
What’s Tumblr for? 0 50 100 150 200 250 300 350 2010 2011 2012 2013 2014E Millions Tumblr “Fandom. And depressed and creepy people.”
What about phone calls? Do people talk anymore? 0 200 400 600 800 2010 2011 2012 2013 2014E Millions WhatsApp “No. Everyone has phone numbers, but they’re for texting.”
Digital is the medium for the new generation. Digital will grow for decades.
So, what’s next?
Connected cars — we spend 1.2 hours a day in them Source: Bureau Of Labor Statistics 8.8 hours 7.6 hours 2.5 hours 1.2 hours 1.1 hours 1.1 hours 1.7 hours 0 12 24 Average Daily Time Spent Per Person U.S. Employed Citizens ages 25 to 54 Other Household Activities Eating And Drinking In The Car Leisure And Sports Sleeping Working
Wearables (someday) Source: BI Intelligence estimates Smartwatches Fitness Bands And Other Activity Trackers Rest Of Wearables Market 0 20 40 60 80 100 120 140 160 2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2018E 2019E MillionsOfUnitsShippedAnnually Global Wearable Device Unit Shipments Forecast 35% CAGR We Are Here
Smartwatches, like Apple Watch, should do okay Source: BI Intelligence estimates Total Smartwatch Market Apple Watch 0 20 40 60 80 100 120 140 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E Millions Apple Watch Annual Shipments Forecast 2015-2020
Fitness bands will remain niche Source: NPD Group, BI Intelligence estimates; Annual Data From April Through March Fitbit Jawbone Nike Other - 500 1,000 1,500 2,000 2,500 3,000 3,500 2010-2011 2011-2012 2012-2013 2013-2014 ThousandsOfFitnessBandsSold Fitness Band Hardware Annual Unit Sales By Device Maker, US Only
“Internet of Things” — 20B connected devices by 2020 Source: BI Intelligence estimates Enterprise Government/Infrastructure Home - 5 10 15 20 25 2014E 2015E 2016E 2017E 2018E 2019E BillionsofDevices Estimated Number of Installed IoT Devices by Sector
We’ll fill our houses with smart devices Source: ABI Research, TechNavio, Pike Research, BI Intelligence estimates Smart Home Energy Smart Home Security Smart Appliances Other Systems 0 500 1,000 1,500 2,000 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E Millions Global Connected Home Device Shipments By Device Category
And companies will buy them by the billions Source: BI Intelligence estimates - 1 2 3 4 5 6 7 8 9 10 2014E 2015E 2016E 2017E 2018E 2019E BillionsofDevices Global Enterprise Device Growth Five-Year (2014-2019) CAGR 49%
Gain access to all BI Intelligence reports, forecasts, charts, and data. Click here to sign up for a trial membership.
Thank You! intelligence.businessinsider.com

More Related Content

PDF
Mobile Is Eating the World (2014)
bya16z
 
PDF
2013 11 mobile eating the world
byBenedict Evans
 
PDF
The China App Index: Photo-Sharing via WeChat Sparks Viral Growth (June 2013)
byWandouLabs
 
PDF
2013 05 BEA - ’Mobile is eating the World’
byBenedict Evans
 
PDF
Marketing to the Mobile Elite
byAndrew Savory
 
PPTX
THE FUTURE OF RETAIL: 2014
byBI Intelligence
 
PDF
Location based services nz
byRichard Fraser
 
PDF
Umeng insight report china mobile internet 2012 review final
byUmeng
 
Mobile Is Eating the World (2014)
bya16z
 
2013 11 mobile eating the world
byBenedict Evans
 
The China App Index: Photo-Sharing via WeChat Sparks Viral Growth (June 2013)
byWandouLabs
 
2013 05 BEA - ’Mobile is eating the World’
byBenedict Evans
 
Marketing to the Mobile Elite
byAndrew Savory
 
THE FUTURE OF RETAIL: 2014
byBI Intelligence
 
Location based services nz
byRichard Fraser
 
Umeng insight report china mobile internet 2012 review final
byUmeng
 

What's hot

PDF
Internet Trends 2014 - Redesigned
byEmiland
 
PDF
99 Facts on the Future of Business
byremoved_98c8d4827eb0208c4db118838b8f6010
 
PDF
U.S. Technology Funding -- What's Going On?
bya16z
 
PDF
50 Stunning Mobile Statistics
byVala Afshar
 
PDF
JWT: 10 Mobile Trends for 2014 and Beyond (May 2014)
byJ. Walter Thompson Intelligence
 
PDF
Activate Tech and Media Outlook 2016
byActivate
 
PDF
The Multiscreen Dayparting Playbook
byBBDO
 
PDF
50 Amazing Facts About Mobile
bySIXTY
 
PDF
Internet Trends @ Stanford - Mary Meeker
byAnish Kanaran
 
PDF
Mobile Trends 2018 by Omelyanenko Nataliia
byNatali Omelyanenko
 
PDF
Mobile future in_focus
byEduardo Liviano
 
PDF
OgilvyRED - Dollars and Sense of Connectivity
byOgilvy
 
PDF
The 2015 U.S. Mobile App Report by ComScore
byVictor Kong
 
PPTX
The Mobile Only Internet Generation
byOn Device Research
 
PDF
Mobile and the Path to Purchase
byPlanimedia
 
PDF
What mobile technology is becoming
byRaimo Van Der Klein
 
PDF
Vietnam Mobile Market 2015 Outlook
byAppota Group
 
PDF
2015 YEAR IN REVIEW: MOBILE
byMonika Mikowska
 
PDF
New Technology 2016 L01 Introduction
byÓlafur Andri Ragnarsson
 
PPT
LinkedIn Demographic Data Jun08
byErick Schonfeld
 
Internet Trends 2014 - Redesigned
byEmiland
 
99 Facts on the Future of Business
byremoved_98c8d4827eb0208c4db118838b8f6010
 
U.S. Technology Funding -- What's Going On?
bya16z
 
50 Stunning Mobile Statistics
byVala Afshar
 
JWT: 10 Mobile Trends for 2014 and Beyond (May 2014)
byJ. Walter Thompson Intelligence
 
Activate Tech and Media Outlook 2016
byActivate
 
The Multiscreen Dayparting Playbook
byBBDO
 
50 Amazing Facts About Mobile
bySIXTY
 
Internet Trends @ Stanford - Mary Meeker
byAnish Kanaran
 
Mobile Trends 2018 by Omelyanenko Nataliia
byNatali Omelyanenko
 
Mobile future in_focus
byEduardo Liviano
 
OgilvyRED - Dollars and Sense of Connectivity
byOgilvy
 
The 2015 U.S. Mobile App Report by ComScore
byVictor Kong
 
The Mobile Only Internet Generation
byOn Device Research
 
Mobile and the Path to Purchase
byPlanimedia
 
What mobile technology is becoming
byRaimo Van Der Klein
 
Vietnam Mobile Market 2015 Outlook
byAppota Group
 
2015 YEAR IN REVIEW: MOBILE
byMonika Mikowska
 
New Technology 2016 L01 Introduction
byÓlafur Andri Ragnarsson
 
LinkedIn Demographic Data Jun08
byErick Schonfeld
 

Viewers also liked

PPTX
Front office revenue management & it’s application in the hotel
byMudit Grover
 
PDF
Airline Revenue - Case Study and Industry Analysis
byFrank A.
 
PPT
BUSINESS INTELIGENCE
byUNEMIGrupo6
 
PPT
Revenue Management Hotelero
byJuan Mi Llompart
 
PPT
BEST PRACTICES IN REVENUE MANAGEMENT
byMihran Kalaydjian
 
PPTX
Revenue management in practice
byAvailpro
 
PPTX
Digital audio formats
byamels_john
 
PPTX
Business inteligence am
byMarichuySanti
 
PPTX
Chapter 13: Revenue Management
byNicole Hay-Walters
 
PPTX
Revenue Management: Yieldable versus Priceable
byJDA Software
 
PDF
Business inteligence
byKeopx
 
PDF
¿Qué es el Revenue/ Yield Management?
byJaime @jaimechicheri López-Chicheri
 
PDF
Infinite Dial 2016
byEdison Research
 
PDF
Mastering The Fourth Industrial Revolution
byMonty C. M. Metzger
 
PPTX
Sales Data v. Sales Intelligence
byInsideView
 
PPT
Sistemas Bussiness
byJmenendezm
 
PPTX
Business intelligence (BI)
bypaulina230
 
PPTX
business intelligence
byJosue Ruiz
 
PDF
02 business inteligence neurowork - why floss 2009
byNeurowork
 
PPTX
Expo informatica gerencial
byAmbbar Zammar
 
Front office revenue management & it’s application in the hotel
byMudit Grover
 
Airline Revenue - Case Study and Industry Analysis
byFrank A.
 
BUSINESS INTELIGENCE
byUNEMIGrupo6
 
Revenue Management Hotelero
byJuan Mi Llompart
 
BEST PRACTICES IN REVENUE MANAGEMENT
byMihran Kalaydjian
 
Revenue management in practice
byAvailpro
 
Digital audio formats
byamels_john
 
Business inteligence am
byMarichuySanti
 
Chapter 13: Revenue Management
byNicole Hay-Walters
 
Revenue Management: Yieldable versus Priceable
byJDA Software
 
Business inteligence
byKeopx
 
¿Qué es el Revenue/ Yield Management?
byJaime @jaimechicheri López-Chicheri
 
Infinite Dial 2016
byEdison Research
 
Mastering The Fourth Industrial Revolution
byMonty C. M. Metzger
 
Sales Data v. Sales Intelligence
byInsideView
 
Sistemas Bussiness
byJmenendezm
 
Business intelligence (BI)
bypaulina230
 
business intelligence
byJosue Ruiz
 
02 business inteligence neurowork - why floss 2009
byNeurowork
 
Expo informatica gerencial
byAmbbar Zammar
 

Similar to Future of Digital 2014

PDF
7 predictions about the future of media
bynschenck
 
PDF
Future of Digital: The Next Big Thing
byFilipp Paster
 
PPT
C R M Day 2 Online
byguestf468424
 
PPTX
New, Next, Beyond: Making Sense of Change
byArena UK
 
PDF
Ben Fox Discusses the Past, Present and Future of Advertising
byBen Fox
 
PDF
IGNITION - NEXT BIG THING
byShawn Venasse
 
PDF
Business Insider - NOAH15 Berlin
byNOAH Advisors
 
PPTX
Ignition 2012 deck future of digital final
byjftello
 
PDF
7 predictions about the future of media
byJuan Candela
 
PDF
7 predictions about the future of media by BI Intelligence
byPeter Osicka
 
PDF
7 predictions about the future of media
byEzhilarasan Natarajan
 
PDF
7 predictions about the future of media
byIshraq Dhaly
 
PDF
7 predictions about the future of media
byBeth Duvall-Fischer, HCS
 
PPTX
Business insider screens are proliferating
byBabbel
 
PDF
Business insider digital media strategies
byCatchTalk.TV
 
PDF
Democratized Content is King
byCognizant
 
PDF
TV in 2017 and beyond
bySimon White
 
PDF
The Digital Revolution: A Look Throu gh the Marketer’s Lens
byHabemus Digital Consultants
 
PPTX
iMedia October Breakthrough Summit: New Frontiers A: “The Death of Touch”
byiMedia Connection
 
PDF
DG Converged Video
byMediaMindGlobal
 
7 predictions about the future of media
bynschenck
 
Future of Digital: The Next Big Thing
byFilipp Paster
 
C R M Day 2 Online
byguestf468424
 
New, Next, Beyond: Making Sense of Change
byArena UK
 
Ben Fox Discusses the Past, Present and Future of Advertising
byBen Fox
 
IGNITION - NEXT BIG THING
byShawn Venasse
 
Business Insider - NOAH15 Berlin
byNOAH Advisors
 
Ignition 2012 deck future of digital final
byjftello
 
7 predictions about the future of media
byJuan Candela
 
7 predictions about the future of media by BI Intelligence
byPeter Osicka
 
7 predictions about the future of media
byEzhilarasan Natarajan
 
7 predictions about the future of media
byIshraq Dhaly
 
7 predictions about the future of media
byBeth Duvall-Fischer, HCS
 
Business insider screens are proliferating
byBabbel
 
Business insider digital media strategies
byCatchTalk.TV
 
Democratized Content is King
byCognizant
 
TV in 2017 and beyond
bySimon White
 
The Digital Revolution: A Look Throu gh the Marketer’s Lens
byHabemus Digital Consultants
 
iMedia October Breakthrough Summit: New Frontiers A: “The Death of Touch”
byiMedia Connection
 
DG Converged Video
byMediaMindGlobal
 

Recently uploaded

PDF
5G Explained! A High Level Overview [Introduction]
byLuciano Motta
 
PDF
Skills to Pass the UiPath Agentic Automation Associate (UiAAA) Certification
byUiPathCommunity
 
PPTX
AI in Marine Insurance Future of Smarter Risk, Faster Claims & Safer Shipping...
byAutomationEdge Technologies
 
PPTX
AI and Digital Transformation Solutions.
byBuildingblocks
 
PPTX
Dell poweredge-customer-presentation.pptx
byhungungphu123
 
PPTX
apidays Australia 2025 | Building AI RAG Applications with No Code.pptx
byapidays
 
PPTX
Storage-and-HCI-Positioning-update-sales.pptx
byhungungphu123
 
PDF
LUXHUB: a detailed look at 2025...and fast forward to 2026
byalexandrekeilmann1
 
PDF
apidays Australia 2025 | User Brainpower vs. AI Blind Spots in API Docs
byapidays
 
PDF
Router-DHCP-Printer-SharingRouter-DHCP-Printer-Sharing
byarbendi2160
 
PPTX
API Gateway Architecture - Technical Report 2026
byPowersoft2026
 
PDF
Kubernetes Cloud Native Indonesia Meetup - January 2026
byPrasta Maha
 
PPTX
Apache Kafka 101 for Techies in IT dep.pptx
byamulyareddyk97
 
PDF
Agentic AI Roadmap 2026: Mastering Autonomous AI Workflows and Systems
byAeafat Ahmed Mubin
 
PPT
Database Management Systems: Basics, History, Data Models, etc.
byParithi Thamizh
 
PPTX
Spacecraft Guidance Quick Research Guide by Arthur Morgan
byArthur Morgan
 
PPTX
Advance Computer Architecture Lecture 4.pptx
byBottshikanBottshikan
 
PPTX
Single Cell Protein from Methane or Methanol - Process development research c...
byJohn Downs
 
PPTX
Understanding-Search-Algorithms_09-12-25.pptx
byshaikmahammedtauheed
 
DOCX
Mathematical reviewer gor mmw in theofern
byyeojlevantinojesalva
 
5G Explained! A High Level Overview [Introduction]
byLuciano Motta
 
Skills to Pass the UiPath Agentic Automation Associate (UiAAA) Certification
byUiPathCommunity
 
AI in Marine Insurance Future of Smarter Risk, Faster Claims & Safer Shipping...
byAutomationEdge Technologies
 
AI and Digital Transformation Solutions.
byBuildingblocks
 
Dell poweredge-customer-presentation.pptx
byhungungphu123
 
apidays Australia 2025 | Building AI RAG Applications with No Code.pptx
byapidays
 
Storage-and-HCI-Positioning-update-sales.pptx
byhungungphu123
 
LUXHUB: a detailed look at 2025...and fast forward to 2026
byalexandrekeilmann1
 
apidays Australia 2025 | User Brainpower vs. AI Blind Spots in API Docs
byapidays
 
Router-DHCP-Printer-SharingRouter-DHCP-Printer-Sharing
byarbendi2160
 
API Gateway Architecture - Technical Report 2026
byPowersoft2026
 
Kubernetes Cloud Native Indonesia Meetup - January 2026
byPrasta Maha
 
Apache Kafka 101 for Techies in IT dep.pptx
byamulyareddyk97
 
Agentic AI Roadmap 2026: Mastering Autonomous AI Workflows and Systems
byAeafat Ahmed Mubin
 
Database Management Systems: Basics, History, Data Models, etc.
byParithi Thamizh
 
Spacecraft Guidance Quick Research Guide by Arthur Morgan
byArthur Morgan
 
Advance Computer Architecture Lecture 4.pptx
byBottshikanBottshikan
 
Single Cell Protein from Methane or Methanol - Process development research c...
byJohn Downs
 
Understanding-Search-Algorithms_09-12-25.pptx
byshaikmahammedtauheed
 
Mathematical reviewer gor mmw in theofern
byyeojlevantinojesalva
 

Future of Digital 2014

  • 1.
    A Research ServiceBy Business Insider The Future Of Digital: 2014
  • 2.
    intelligence.businessinsider.com Henry Blodget CEO &Editor-in-Chief Emily Adler Senior Research Editor Marcelo Ballvé Editorial Director Cale Weissman Reporter Hope King Reporter Nicholas Quah Research Associate John Greenough Research Analyst Jessica Smith Research Associate Tony Danova Senior Research Analyst Mark Hoelzel Research Analyst John Heggestuen Research Analyst Cooper Smith Senior Research Analyst BI Intelligence
  • 3.
    There are nownearly 3 billion people online Source: International Communication Union, Google 0 1 1 2 2 3 3 1990 1994 1998 2002 2006 2010 2014E Billions Global Internet Population
  • 4.
    Four billion togo Global Population Internet Population 0 1 2 3 4 5 6 7 8 1990 1994 1998 2002 2006 2010 2014E Billions Global Internet Population Source: International Communication Union, Google
  • 5.
    Attention is shiftingto digital, especially mobile Source: eMarketer, April 2014 45% 25% 17% 9% 7% 4% 37% 18% 11% 4% 2% 23% TV Online Radio Print Other Mobile US Consumer Media Consumption Share 2009 2010 2011 2012 2013 2014
  • 6.
    This is agenerational shift Source: Ofcom 0 10 20 30 40 50 60 70 80 90 100 Total Aged 16-24 Aged 25-34 Aged 35-44 Aged 45-54 Aged 55-64 Aged 65-74 Aged 75+ Digital Is Reaching The New Generation Top Five Media Mentions Among all Adults, 2013 Watch TV Read Newspapers/Magazines Listen To The Radio
  • 7.
    One law ofmedia…
  • 8.
  • 9.
    Ad spending ismoving to digital (and mobile) Source: IAB, U.S. Census Bureau, Strategy Analytics, BI Intelligence estimates Offline All Other Online Mobile $0 $60 $120 $180 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 Billions U.S. Advertising
  • 10.
    Print ads havefallen off a cliff Source: Newspaper Association Of America *Estimate $- $10,000 $20,000 $30,000 $40,000 $50,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* Millions Newspaper Ad Revenue (Print vs. Online) Print Online
  • 11.
    Google is nowbigger than all newspapers, magazines Source: Google, NAA, PIB $0 $10,000 $20,000 $30,000 $40,000 $50,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Millions Google vs. Magazine vs. Newspaper Ad Revenue, US Data, 2004-2013 Google (US) US Magazines US Newspapers
  • 12.
    Google now dwarfs“big media” Source: Company Filings, BI Intelligence estimates $30 $18 $16 $14 $5 $5 $3 $2 $70 Time Warner Facebook CBS Viacom Gannett Yahoo AOL New York Times Google Billions Estimated 2014 Revenue Select Media Companies
  • 13.
    Google is almosthalf the size of all global TV advertising $174 $70 Global TV Ad Revenue Google Billions Estimated 2014 Ad Revenue Google vs. Global TV Ad Market Source: Google, PWC
  • 14.
    For many yearsTV folks have (rightly) laughed off digital concerns
  • 15.
    Time to stoplaughing.
  • 16.
    Ratings are falling… Source:Nielsen 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 6 6.1 6.2 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 NielsenHouseholdRating (%OfHouseholds WithTVSetsWatching) Primetime Household TV Ratings Big 4 U.S. TV Networks Average
  • 17.
    Pay TV subscriptionsare dropping… Source: Leichtman Research Group Cable Satellite Telephone Total (800) (600) (400) (200) - 200 400 600 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 NetAdditionsInThousands Pay-TV Net Additions (US)
  • 18.
    Facebook reaches moreyoung people than free TV Source: Nielsen, January 2013 58% 73% 83% 89% 63% 68% 63% 42% Age 18-24 Age 25-34 Age 35-54 Age 55+ PercentReach Facebook vs. TV Daily Reach (US) Four TV Networks Facebook
  • 19.
    Netflix now hasmore US subscribers than HBO Source: Netflix, SNL Kagan HBO Netflix 0 10 20 30 40 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 MillionsOfUSSubscribers Paid Domestic Subscribers — Netlix v. HBO
  • 20.
    YouTube reaches more18-34s than any cable network 0 200 400 600 800 1000 1200 1400 2010 2011 2012 2013 2014E Millions YouTube “Ratings”
  • 21.
    Digital video revenueis no longer a joke… Source: BI Intelligence estimates, Company Filings Netflix YouTube Hulu $0 $2 $4 $6 $8 $10 $12 2006 2007 2008 2009 2010 2011 2012 2013 Billions Estimated Digital Video Revenue
  • 22.
    iTunes and Netflixalready dwarf small cable networks Source: News Reports, Company Filings iTunes Netflix AMC Networks $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 2007 2008 2009 2010 2011 2012 2013 Billions Cable Network vs. Digital Content Revenue 2007-2013
  • 23.
    YouTube is closingin on broadcast-network revenue Source: News Reports, BI Intelligence estimates, Company Filings $- $2 $4 $6 $8 $10 $12 2007 2008 2009 2010 2011 2012 2013 Billions YouTube Ad Revenue vs. CBS Ad Revenue And AMC Networks Revenue CBS Ad Revenue YouTube Ad Revenue AMC Networks Revenue
  • 24.
    (Some) live sportsare now being streamed Source: Ooyala 2014 34.5 7.1 3.5 42.8 11 17.1 10.5 16.9 2.6 4.1 2.8 5.1 Desktop Tablet Mobile Connected TV TimeSpentPerPlay InMinutes Time Spent Watching Online Video By Content Type Global All Live Events Sports VOD
  • 25.
    TV now hasto share attention with digital Source: Millward Brown, 2014 83 (55%) 65 (63%) 20 (45%) 68 (45%) 38 (37%) 24 (55%) Smartphone Laptop Tablet TimeSpentInMinutes (PercentageOfTotalTime) Daily Time Spent With Devices, While Watching TV Or Using The Device Independently Ages 16 - 44, United States Only Without TV With TV
  • 26.
    So, eyeballs areleaving TV
  • 27.
    But, so far,TV money is hanging in there
  • 28.
    TV still massive,digital video still a blip Source: Nielsen, IAB $0 $20 $40 $60 $80 2007 2008 2009 2010 2011 2012 2013 Total TV Ad Spend (Billions) US Ad Spend, 2007-2013 TV Vs. Online Video TV Ad Spend Online Video Ad
  • 29.
    So no worriesin TV land?
  • 30.
  • 31.
    It’s a generationalshift — look what Millennials are doing Source: Ofcom TV TV TV Print Print Radio Radio Radio Computer 3 Computer Smartphone Smartphone All Adults Aged 75+ Aged 16-24 “Media you would miss most” Use A Smartphone Go Online On A Computer/Laptop/Netbook/Tablet Listen To The Radio Read Newspapers/Magazines Watch TV
  • 32.
    Money follows eyeballs… Source:Mary Meeker, IAB, eMarketer 5% 38% 25% 12% 20%19% 43% 22% 10% 4% Print TV Web Radio Mobile 2013 U.S. Ad Spending vs. Consumer Time Spent By Media
  • 33.
    So it’s onlya matter of time.
  • 34.
    What’s going onin digital?
  • 35.
    Smartphone sales arestill booming Source: IDC, Strategy Analytics, BI Intelligence estimates Samsung Apple Xiaomi Lenovo Huawei LG ZTE Coolpad Nokia Sony Motorola HTC BlackBerry Other - 50 100 150 200 250 300 350 2Q08 4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 Millions Global Smartphone Shipments By Vendor
  • 36.
    PCs Tablets 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 1Q08 3Q08 1Q093Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 Thousands Global Computer Shipments Tablets have carved out a chunk of PC sales Source: Gartner, IDC, Strategy Analytics, Company Releases
  • 37.
    “Phablets” are replacingsmall smartphones Source: BI Intelligence estimates Phablets Tablets Smartphones (Non-Phablet) 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2006 2008 2010 2012 2014E 2016E 2018E Millions Global Annual Shipments By Device
  • 38.
    Nearly half ofTVs are now connected Source: Leichtman Research Group, BI Intelligence estimates 27.7 35.7 43.8 50.1 56.5 61.1 65.7 68.6 71.4 72.6 24% 31% 38% 44% 49% 53% 57% 60% 62% 63% 2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E U.S. Households With Connected TV Percentage Of Households; Number Of Households In Millions
  • 39.
    “Wearables” are overhypedbut growing Source: BI Intelligence estimates Smartwatches Fitness Bands And Other Activity Trackers Rest Of Wearables Market 0 20 40 60 80 100 120 140 160 2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2018E 2019E MillionsOfUnitsShippedAnnually Global Wearable Device Unit Shipments Forecast 35% CAGR We Are Here
  • 40.
    Cars are increasinglyconnected Source: SBD, GSMA In-vehicle services Hardware Telematics service providers Telecom service providers € 0 € 5,000 € 10,000 € 15,000 € 20,000 € 25,000 € 30,000 € 35,000 € 40,000 € 45,000 2009A 2010A 2011A 2012A 2013E 2014E 2015E 2016E 2017E 2018E Millions Connected Car Revenue Forecast
  • 41.
    300 million PCsare still sold each year Source: Gartner, IDC, BI Intelligence estimates Lenovo HP Dell Acer Other 0 20,000 40,000 60,000 80,000 100,000 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 Thousands Global PC Shipments By Manufacturer iPad released Windows 8 released
  • 42.
    Should you be“mobile only?”
  • 43.
  • 44.
    It’s a “multi-screen”world Source: Gartner, IDC, Strategy Analytics, Company Filings, BI Intelligence estimates Personal Computers Smartphones Tablets Smart TVs Wearables 0 1 1 2 2 3 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E UnitsBillions Global Internet Connected Device Shipments
  • 45.
    You should be“mobile, too.”
  • 46.
    ~60% of onlinedevices are now smartphones or tablets Source: BI Intelligence estimates Personal Computers (Desktop And Notebook) Smartphones Tablets Smart TVs Wearables 0 1 2 3 4 5 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E NumberOfDevicesInUse(InBillions) Global Internet Device Installed Base
  • 47.
    Other 8% Visit Websites 14% Games 8% Social Networking 15% Talk 26% Text 20% Email 9%BreakdownOf The Average Smartphone Owner's Daily Time-Spend On Average, U.S. Smartphone Owners Spend 58 Minutes Daily On Their Phones We spend an hour a day on our smartphones Source: Experian Marketing Services, May 2013
  • 48.
    We spend ½hour on tablet each time we use it Source: Google, August 2012 43 39 30 17 TV PC/Laptop Tablet Smartphone Average Minutes Spent Per Interaction By Device
  • 49.
    More than ¼of Internet traffic is mobile Source: StatCounter, BI Intelligence estimates 0% 25% 50% 75% 100% Dec-08 Jan-10 Feb-11 Mar-12 Apr-13 May-14 Global Internet Traffic Share Desktop Vs. Mobile
  • 50.
    Mobile has extendedthe digital day to 18/7 Source: Google Analytics, Business Insider 9/1/12 9/15/12 9/29/12 10/13/12 10/27/12 11/10/12 11/24/12 12/8/12 12/22/12 1/5/13 Mobile Visits Desktop Visits
  • 51.
    Each device hasa different “prime time” Source: comScore, Telefonica, Macquarie Capital (USA), December 2011
  • 52.
    Where are wein the mobile device cycle?
  • 53.
    Developed mobile marketsare nearing maturity Source: comScore 18% 72% 0% 10% 20% 30% 40% 50% 60% 70% 80% Jan 10 Jun 10 Nov 10 Apr 11 Sep 11 Feb 12 Jul 12 Dec 12 May 13 Oct 13 Mar 14 (asapercentageofthemobilepopulation) U.S. Smartphone Penetration
  • 54.
    The action isnow in China, India, and emerging markets Source: Mediacells via The Guardian 0 50 100 150 200 250 300 MillionsOfSmartphones Smartphone Sales In 2014 Will Be Driven By New Users In Emerging Markets Sales To New Smartphone Users In 2014 Smartphone Upgrades In 2014 Top 11 Markets Other Markets
  • 55.
    China is alreadytwice the size of the US market Source: China Internet Network Information Center Mobile Users Total Users US Users 0 100 200 300 400 500 600 700 June 06 Dec 06 June 07 Dec 07 June 08 Dec 08 June 09 Dec 09 June 10 Dec 10 June 11 Dec 11 June 12 Dec 12 June 13 Dec 13 June 14 MillionsOfInternetUsers Chinese Internet Users
  • 56.
    Prices are droppingfast Source: BI Intelligence estimates $100 $150 $200 $250 $300 $350 2010A 2011A 2012A 2013E 2014E 2015E 2016E AverageSellingPrice Global Smartphone Average Selling Price Forecast
  • 57.
    iPhone sales growthhas slowed (iPhone 6 will help) Source: Company Filings 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 0 10,000 20,000 30,000 40,000 50,000 60,000 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 YoYSalesGrowth UnitSales(Thousands) iPhone Sales Unit Sales YoY Growth
  • 58.
    Chinese companies sell~25% of smartphones in world Source: Canalys, IDC, Strategy Analytics, BI Intelligence, Company Reports 0 10 20 30 40 50 60 70 80 90 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 Millions Selected Local Manufacturers From China Global Quarterly Smartphone Shipments Xiaomi Huawei Lenovo ZTE Coolpad
  • 59.
    Global tablet growthhas hit a wall Source: IDC, Strategy Analytics, BI Intelligence estimates Year-Over-Year Growth -100% -50% 0% 50% 100% 150% 200% 250% 300% 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 Global Tablet Shipments Quarterly Year-Over-Year Growth Sequential Growth
  • 60.
    (iPad now experiencing“negative growth”) Source: Apple -50% 0% 50% 100% 150% 200% 0 5,000 10,000 15,000 20,000 25,000 30,000 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 YoYSalesGrowth UnitSale(Thousands) iPad Sales Unit Sales YoY Growth
  • 61.
    Why have tabletsales cratered?
  • 62.
    1. Long upgradecycle 2. Phablet cannibalization 3. Need keyboard for serious input 4. Price
  • 63.
  • 64.
    We have awinner!
  • 65.
    Apple is strongin the US, where it’s a two-horse race Source: comScore Android Apple BlackBerry Windows Phone Other 0% 20% 40% 60% 80% 100% Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 US Smartphone Platform Market Share
  • 66.
    But, globally, it’san Android world
  • 67.
    ~85% of smartphonesrun Google’s Android Source: IDC, Strategy Analytics, BI Intelligence estimates Android iOS Microsoft BlackBerry Other 0% 25% 50% 75% 100% 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 ShareofGlobalUnitShipments Global Smartphone Market Share By Platform
  • 68.
    ~65% of tabletsrun Android Source: BI Intelligence estimates Android Apple Amazon BlackBerry Nook Windows 0% 25% 50% 75% 100% 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 Global Tablet Market Share By Platform
  • 69.
    ~70% of allnew computing gadgets run Android Source: Gartner, IDC, Strategy Analytics, Company Filings, BI Intelligence estimates Android Windows Apple BlackBerry Other 0% 20% 40% 60% 80% 100% 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 Global Computing Platform Market Share
  • 70.
    Android used tolag Apple badly with app developers.
  • 71.
  • 72.
    Android “fragmentation” problemis improving Source: Google Other Froyo Gingerbread Honeycomb Ice Cream Sandwich Jelly Bean Kit Kat 0% 20% 40% 60% 80% 100% 9/15/12 11/15/12 1/15/13 3/15/13 5/15/13 7/15/13 9/15/13 11/15/13 1/15/14 3/15/14 5/15/14 7/15/14 Jelly Bean And Kit Kat Are Now ~80% Of Android
  • 73.
    Android now morepopular with developers than iOS Source: Developer Economics, Q3 2014 Android 42% iOS 32% BlackBerry 10 3% Windows Phone 10% Other 13% Mobile Developers' Main Platform
  • 74.
    Android will soonovertake iOS in app revenue Source: Jana, App Annie, BI Intelligence estimates $0 $1 $2 $3 $4 4Q13 2Q14 4Q14E 2Q15E 4Q15E 2Q16E Billions Estimated App Revenue Apple App Store Vs. Google Play
  • 75.
    Android is catchingup to iOS in developer payouts Source: Jana, App Annie, BI Intelligence estimates Apple App Store Google Play $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 3Q13 4Q13 1Q14 2Q14 Billions Estimated App Developer Payout Apple App Store And Google Play
  • 76.
    Android now generatesmore global ad traffic than iOS Source: Opera Mediaworks Android iOS BlackBerry Symbian Other 0% 20% 40% 60% 80% 100% 2Q12 4Q12 2Q13 4Q13 2Q14 ShareOfTraffic Global Mobile Ad Traffic Share By Platform
  • 77.
    The key digitalmedia trends…
  • 78.
  • 79.
    Most digital growthis now mobile Source: comScore, April 2014 Smartphone 131 Smartphone 442Tablet 11 Tablet 124 0 200 400 600 800 1000 1200 Dec-10 Dec-13 BillionsOfMinutes Time Spent By Digital Platform Per Month U.S., December 2010 Vs. December 2013 1,040% Growth 237% 7% Desktop 401 Desktop 429
  • 80.
    Messaging apps areexploding Source: Company Statements, News Reports, BI Intelligence estimates 0 100 200 300 400 500 600 Oct-10 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Millions The Messaging Wars — MAUs For Top Apps (Monthly Active Users - Global)
  • 81.
    Social networks andsharing are exploding Source: BI Intelligence estimates based on data from company filings, comScore, Global Web Index, Totem and news reports Facebook Twitter Tumblr Instagram Snapchat Google Plus LinkedIn Pinterest Vine 0 500 1,000 1,500 2010 2011 2012 2013 2014E Millions Social Network MAUs (Global)
  • 82.
    Mobile video isbooming… Source: Cisco, 2013 0 1 2 3 4 5 6 7 8 2011 2012 2013 2014 2015 2016 2017 MillionsofTerabytesPerMonth Global Mobile Video Traffic Will Continue To Surge
  • 83.
    Mobile video hasenabled the rise of the YouTube stars Source: Company Filings 35 million viewers 8 million viewers 1 million viewers
  • 84.
    Social and musicare now mostly mobile Source: Company Filings Pandora Facebook Twitter 0% 25% 50% 75% 100% 2008 2009 2010 2011 2012 2013 Mobile Usage: Pandora, Twitter, Facebook
  • 85.
    Mobile is drivingall of Facebook’s growth Source: Company Filings Advertising (Non-Mobile) Mobile Advertising Payments And Fees $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 Q1 10 Q3 10 Q1 11 Q3 11 Q1 12 Q3 12 Q1 13 Q3 13 Q1 14 Q3 14 Billions Facebook Revenue By Segment (Global)
  • 86.
    Mobile is nowa third of eCommerce traffic Source: Monetate PC Tablet Smartphone 0% 25% 50% 75% 100% 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 Ecommerce Website Traffic By Device
  • 87.
    PayPal powers $30billion in mobile payments *PayPal counted a small portion of Braintree’s transaction volume as its own in the last 12 days of Q4 2013.Source: PayPal PayPal Mobile Braintree Mobile* $0 $5 $10 $15 $20 $25 $30 $35 2008 2009 2010 2011 2012 2013 U.S.DollarsInBillions PayPal Mobile Transaction Volume (Including Braintree 2013)
  • 88.
    Venmo is (finally)replacing friend-to-friend payments Source: PayPal, BI Intelligence $81 $105 $141 $194 $314 $468 $700 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 MillionsOfDollars Venmo Payment Volume
  • 89.
    Ad growth ismobile, social, video, native, programmatic Source: BI Intelligence estimates based on data from BIA/Kelsey, IAB, IDC, and Magna Global Note: Formats overlap. Mobile includes all ad formats that appear on mobile. -0.4% 15.1% 2.3% 42.6% 18.0% 34.7% 35.7% Desktop Display Desktop Video Desktop Search Mobile Social Native Programmatic Advertising Revenue Growth (US) CAGR 2013 - 2018
  • 90.
    Mobile is a“green field” Source: eMarketer $1 $1 $1 $3 $10 $12 $1 $1 $1 $3 $15 $30 $1 $1 $1 $4 $19 $46 Latin America Middle East and Africa Eastern Europe Asia-Pacific Western Europe North America Annual Mobile Ad Spend Per Mobile Internet User By Region 2011 2012 2013
  • 91.
    Social is booming Source:BI Intelligence estimates, BIA/Kelsey Non-Mobile Mobile $- $2 $4 $6 $8 $10 $12 $14 $16 2013 2014E 2015E 2016E 2017E 2018E Billions FORECAST: Social Media Advertising Spend (US)
  • 92.
    “Display” ad spendingis still respectable, but… Source: Company Filings, BI Intelligence estimates Google Other Yahoo AOL Microsoft $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2Q06 4Q06 2Q07 4Q07 2Q08 4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14 Total Display Advertising Revenue (Millions) US Display Advertising, 2006-2014 (Quarterly)
  • 93.
    Growth is shiftingto “native”… Source: BI Intelligence estimates, IAB $1.0 $1.3 $1.9 $2.7 $3.9 $5.7 $0.8 $1.0 $1.3 $2.0 $2.7 $3.4 $2.9 $5.6 $7.5 $9.2 $10.7 $11.9 $0 $5 $10 $15 $20 $25 2013 2014E 2015E 2016E 2017E 2018E Billions Native Advertising Revenue (US) Desktop And Mobile Native-Style Display Sponsorship Social
  • 94.
    And “programmatic” Source: BIIntelligence estimates, Magna Global, IDC $6 $8 $12 $18 $23 $28 2013 2014E 2015E 2016E 2017E 2018E AdSpendInBillions FORECAST: Programmatic Ad Spend (U.S.)
  • 95.
    Google is stillthe digital advertising king Source: Company Filings Note: Based on GAAP revenue. Google Facebook Yahoo AOL $0 $4 $8 $12 $16 $20 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Billions Digital Advertising Revenues (Global)
  • 96.
    Google’s YouTube dominatesdigital video and video ads Source: Company Filings, BI Intelligence estimates YouTube Tremor YuMe TubeMogul $0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 RevenueInMillions Global Digital Video Advertising Revenue (Select Companies)
  • 97.
    Google’s Chrome browseris crushing Firefox and IE Source: StatCounter Other Safari Firefox Internet Explorer Chrome Opera 0% 10% 20% 30% 40% 50% 60% 2010 2011 2012 2013 2014 Global Web Browser Usage Share
  • 98.
    Google’s Android haspeak-Windows-like market share Source: IDC, Strategy Analytics, BI Intelligence estimates Android iOS Microsoft BlackBerry Other 0% 20% 40% 60% 80% 100% 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 ShareofGlobalUnitShipments Global Smartphone Market Share By Platform
  • 99.
    Google 93% Bing 3% Yahoo 2% Other 2% Europe SearchMarket Share Oct. 2014 In Europe, Google has peak-Windows-like search share Source: StatCounter
  • 100.
    Basically, Google isswallowing the world… Source: Google, 2014 Is An Estimate $- $10 $20 $30 $40 $50 $60 $70 2009 2010 2011 2012 2013 2014E Billions Google Global Annual Revenue
  • 101.
    (And people arenoticing!) Source: StatCounter
  • 102.
    (For Microsoft, DOJattack was the beginning of the end) Source: StatCounter
  • 103.
    Have Google andFacebook won?
  • 104.
  • 105.
  • 106.
    Search click growthis finally decelerating Source: Google 20% 23% 26% 31% 26% 25% 17% Q1 13 Q3 13 Q1 14 Q3 14 Google Paid Clicks Growth Global, Year-Over-Year
  • 107.
    US desktop searchqueries are now shrinking Source: comScore Note: Explicit user initiated search queries only. 10% 12% 14% 10% 7% 4% 0% -3% -5% -7% -8% -7% -7% Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Total Monthly Search Query Growth U.S., Year-Over-Year; Desktop Only
  • 108.
    “No one usesFacebook anymore” — Gen Z-er Source: Piper Jaffray 42% 33% 27% 23% 27% 30% 31% 27% 12% 17% 27% 30% Fall 2012 Spring 2013 Fall 2013 Spring 2014 The Most Important Social Networks To US Teens Percent Of Respondents Who Say The Network Is Most Important Facebook Twitter Instagram
  • 109.
    Why do teenslove Instagram? 0 50 100 150 200 250 300 2010 2011 2012 2013 2014E Millions Instagram “Because parents see that camera icon and think it’s a photo app. They don’t know it’s a social network.”
  • 110.
    What’s Tumblr for? 0 50 100 150 200 250 300 350 20102011 2012 2013 2014E Millions Tumblr “Fandom. And depressed and creepy people.”
  • 111.
    What about phonecalls? Do people talk anymore? 0 200 400 600 800 2010 2011 2012 2013 2014E Millions WhatsApp “No. Everyone has phone numbers, but they’re for texting.”
  • 112.
    Digital is themedium for the new generation. Digital will grow for decades.
  • 113.
  • 114.
    Connected cars —we spend 1.2 hours a day in them Source: Bureau Of Labor Statistics 8.8 hours 7.6 hours 2.5 hours 1.2 hours 1.1 hours 1.1 hours 1.7 hours 0 12 24 Average Daily Time Spent Per Person U.S. Employed Citizens ages 25 to 54 Other Household Activities Eating And Drinking In The Car Leisure And Sports Sleeping Working
  • 115.
    Wearables (someday) Source: BIIntelligence estimates Smartwatches Fitness Bands And Other Activity Trackers Rest Of Wearables Market 0 20 40 60 80 100 120 140 160 2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2018E 2019E MillionsOfUnitsShippedAnnually Global Wearable Device Unit Shipments Forecast 35% CAGR We Are Here
  • 116.
    Smartwatches, like AppleWatch, should do okay Source: BI Intelligence estimates Total Smartwatch Market Apple Watch 0 20 40 60 80 100 120 140 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E Millions Apple Watch Annual Shipments Forecast 2015-2020
  • 117.
    Fitness bands willremain niche Source: NPD Group, BI Intelligence estimates; Annual Data From April Through March Fitbit Jawbone Nike Other - 500 1,000 1,500 2,000 2,500 3,000 3,500 2010-2011 2011-2012 2012-2013 2013-2014 ThousandsOfFitnessBandsSold Fitness Band Hardware Annual Unit Sales By Device Maker, US Only
  • 118.
    “Internet of Things”— 20B connected devices by 2020 Source: BI Intelligence estimates Enterprise Government/Infrastructure Home - 5 10 15 20 25 2014E 2015E 2016E 2017E 2018E 2019E BillionsofDevices Estimated Number of Installed IoT Devices by Sector
  • 119.
    We’ll fill ourhouses with smart devices Source: ABI Research, TechNavio, Pike Research, BI Intelligence estimates Smart Home Energy Smart Home Security Smart Appliances Other Systems 0 500 1,000 1,500 2,000 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E Millions Global Connected Home Device Shipments By Device Category
  • 120.
    And companies willbuy them by the billions Source: BI Intelligence estimates - 1 2 3 4 5 6 7 8 9 10 2014E 2015E 2016E 2017E 2018E 2019E BillionsofDevices Global Enterprise Device Growth Five-Year (2014-2019) CAGR 49%
  • 121.
    Gain access toall BI Intelligence reports, forecasts, charts, and data. Click here to sign up for a trial membership.
  • 122.