If you wonder where 2012 is on the timeline of the Internet revolution, this comprehensive report by Henry Blodget and analyst Alex Cocotas from Business Insider will give you the answer.
If I had to summarise it in a few words, I would say “Google domination & Mobile revolution”.
Here are the key stats:
– Online advertising expenditure is now second to TV, and pretty much on par with time spent by users on this channel: 26% time spent for 22% of the total ad spend. In comparison time spent on TV is 43% and TV still captures 42% of the ad spend.
– Mobile is overtaking desktop usage. Yes, is
overtaking and not will
overtake. The most interesting trend with mobile are: mobile makes internet 24/7, when tablet peak late at night and desktop at lunch time, mobile consumption is high all the time. Then, mobile native apps are becoming an entertainment platform: gaming, music & video are what drives the growth of mobile app download, and revenue.
– Google dominates the online ad market with a frightening 62% market share. Huge! Facebook has already overtaken the portals is second to Google but still far behind with 11% market share.
What is even more frightening is that Google also dominates mobile ad space with the same 60%+ market share.
And the challenges that they bring:
– The ad revenue shifting from traditional media to online and now mobile doesn’t hold its value. Mobile yield is only 21% the yield of online. For now, the mobile ad spend counts for 4% of the total online spend and is growing quite rapidly…This clearly highlights the need for traditional media companies, TV broadcasters & newspapers in particular to diversify their revenue source away from advertising. This is also true for Google; expect that the growth of video and m commerce put Google in a much better spot!
It is mostly U.S. centric but gives a great perspective on the growth of new technologies compared to traditional media. The only thing that the report doesn’t cover is the rise of automatic trading, which is changing the landscape rapidly. Here again, Google has built an advanced technology stack… so there would more scary Google numbers… food for thoughts for another post!