“The magnitude of upcoming change will be stunning” – Mary Meeker
Stats guru and analyst Mary Meeker, a partner at Kleiner Perkins Caulfield and Byers, has just published her latest report filled with amazingly useful data, the “2012 Internet Trends Year-End Update.”
Some highlights include:
- 2.4 billion Internet users worldwide, a number that’s still growing eight percent yearly.
- There are 1.1 billion smartphone subscribers worldwide — but that’s still just 17 percent of the global cellphone market.
- 29 percent of adults in the U.S. now own either a tablet or an e-reader.
- Mobile devices now account for 13 percent of worldwide Internet traffic, up from 4 percent in 2010.
- Mobile app and advertising revenue has grown at an annual rate of 129 percent since 2008, and now tops $19 billion.
- Mobile traffic app Waze has been adding users faster than all GPS makers combined have sold personal navigation units, and it’s been that way since the beginning of 2012.
Meeker’s spells out how these device and connectivity trends are leading to the complete re-imagination of everything from encyclopedias to money itself. And as slide 58 says….”the magnitude of upcoming change will be stunning – we are still in Spring training”.
In 2012 its amazing to still learn that many businesses are yet to embrace online as part of their marketing and sales strategy. A recent survey by Hunter Valley Research Foundation revealed that many Hunter businesses are not embracing the digital economy with rates of taking orders via the internet remaining very low and 42.7% of businesses having no website.
Contrast those statistics with a new survey report released today by American Express showing those who have embraced e-commerce are 33 per cent more likely to have reported a profit increase in the 2011-12 financial year.
Here is the full media release. I have highlighted significant points.
GOING ONLINE MEANS GOING STRONG FOR SMALL BUSINESS
Company website and Facebook page top marketing channels
One in three small businesses have made their products available for purchase online and those that have are reaping the benefits, according to a nationwide survey.
Commissioned by American Express among more than 1000 Australian small business owners, the survey shows that those who have embraced e-commerce are 33 per cent more likely to have reported a profit increase in the 2011-12 financial year.
Those small businesses who have introduced e-sales say it accounts for almost half (45 per cent) of their revenue and the majority (55 per cent) predict an increase in this type of trade in the next 12 months.
“Small business owners who have incorporated e-commerce into their business are seeing it as a worthwhile investment and appear confident of its long-term benefits. This comes at a time when having an online presence is becoming more and more important for small businesses. In fact, Australian business owners cite company websites and Facebook pages as the most effective marketing channels,” said Amelia Zaina, Head of Marketing and Customer Engagement, Small Business Services at American Express.
Social media drives revenue growth
The American Express survey also found that social media has helped almost one quarter (23 per cent) of small business owners to grow their business – and those that attribute business growth to social media are more likely to have reported an increased profit in 2011-12 (57 per cent) than those who don’t (35 per cent).
Small business operators who use social media believe it has helped them grow their business in several ways, including:
- Sourcing new customers (54 per cent);
- Raising brand awareness (51 per cent); and
- Generating new sales (40 per cent).
“These findings support the notion that small businesses who have gone online and are using social media, are seeing comparatively stronger revenue growth” Zaina said.
“While different channels work better for different industries, both e-commerce and social media can be innovative and affordable. Businesses can benefit in many ways to offset the impact of tough economic times on their business.”
Non-embracers reluctant to introduce e-sales
Despite the success of e-commerce, those who have not established an e-sales strategy are reluctant to do so, with only 12 per cent planning to sell their products and services online in the next 12 months. An even smaller number of small business owners (9 per cent) consider e-commerce necessary for future-proofing their business.
This reluctance can partly be explained by the significant proportion of respondents (40 per cent) who don’t find e-commerce relevant to their business – a view most prevalent among those in construction, finance, insurance and health and community services.
“Some small business owners also say they are not sure how to approach adopting e-commerce with their main concerns surrounding difficulties in setting up the payment platform and customer privacy issues. Seeking out information and advice on how to do this could potentially benefit their business and allay any concerns they may have,” said Zaina.
“Fortunately for small business owners, the internet offers limitless opportunities so even those who feel e-commerce isn’t right for them can make use of the online opportunities offered by social media to promote their products and grow their business.
Almost six out of ten consumers (59 per cent) have stopped engaging with four or more brands as a result of poorly targeted communications, according to research released today by Experian. The report, titled ‘The future of multichannel marketing: marketer and consumer perspectives,’ shines a spotlight on disconnects that exist between marketers and consumers and highlights the opportunities available to marketers to minimise the impact of poorly targeted communications.
The Experian figures show that, as a result of poorly-targeted communications, eight per cent of consumers have stopped engaging with 20 or more brands. A further 27 per cent of Australians have gone as far as creating a separate email address to receive this information to avoid other email accounts from being inundated.
However, marketers are also making strides to change traditional marketing practices demonstrated by a significant 89 per cent of marketers now using a customer segmentation strategy. In addition, 69 per cent are becoming more selective about the channels they use to engage with customers. A key challenge identified by half (50 per cent) of Australian marketers lies in cutting through the white-noise to get messages through to the consumer.
It’s clear that many marketers are investing in tools to get the right message to the right audiences at the right time, yet the findings suggest that they may not be applying this strategic segmentation across all marketing disciplines, particularly among newer channels such as social media.
The evolution of social media
The findings show that consumers are least trusting of newer marketing channels such as social media, SMS and LinkedIn for direct communication with brands. Almost three in 10 (29 per cent) consumers ranked social media as among the three marketing channels they trusted least when receiving information about a brand. While just four per cent said it was the channel they trusted most.
A new global study of Chief Marketing Officers by IBM has revealed that Australian and New Zealand marketers are lagging behind their international counterparts when it comes to technology savviness and social media expertise.
From Stretched to Strengthened – Insights from the Global Chief Marketing Officer Study, was presented to a round-table of marketers yesterday in Sydney and some of the findings were concerning in this age of global competition.
The major insight appears to be that Australian and New Zealand marketers still rely heavily on traditional forms of promotion and research and are yet to embrace the more modern techniques of their global counterparts.
Especially concerning was the belief that Aussie and Kiwi CMOs rated technology savviness, social media expertise and finance skills as low priority capabilities crucial to their success in the next 3 to 5 years. in fact, IBM revealed that our ranking of 12% for social media expertise was HALF that of the global average.
This is despite CMOs acknowledging that ROI will become the primary measure of success.
Trust in government and business has reached heights similar to that before the GFC, however Australian trust of the media trails most industries and is amongst the lowest in the world according to a major report by Edelman, the world’s largest independent public relations firm.
According to the survey, only 32% of the Australian public trusts the media, compared to a global average of 49%. Only the USA and U.K had lower media trust than Australia.
Edelman say that “Transparency, honesty and trust are key reputation attributes for Australians”. Unfortunately this doesn’t seem to be as evident in the media sector which ranked behind banks, insurance and financial services for trust.
The survey suggests that “Search is King: Online search engines the ‘go-to’ source of information about a company”:
Australians are using search engines first when sourcing information about an organisation (35%), followed by online news outlets (22%).
Company websites are now also seen as an important information source, ranking third (16%).
Although Australians are going online first for information, they view traditional media sources such as business magazines (27%), newspapers (23%) and radio (23%), along with online search (27%), as the most trusted (“Trust a great deal”) sources of information about a company.
More survey details here: