Disruption is the New Normal – The Internet @ December 2012

Meeker Internet Report 2012There are few trend reports that generate the kind of excitement that Mary Meeker is able to elicit. The well known partner at VC group Kleiner Perkins Caulfield and Byers has just released a year-end update to her 2012 internet trends presentation. It is an 88 slide information overload that will provide plenty to ponder during your holiday break.

There are, however, some key meta trends that can be expanded upon:

  • Mobile computing adoption is accelerating. As previously noted, the use of mobile phones to consume internet services and content is accelerating – with western countries lagging the kind of adoption levels seen across Asia Pacific. While mobile computing has surpassed desktop computing in countries like India and China, the US is playing catchup – with 29% of US adults now owning a tablet or eReader
  • Disruption is the new normal. Almost every industry, product category and service is under threat. The shift to digital as characterised by the five pillars of enterprise disruption are highlighted throughout the report.  Formerly dominant players are struggling to adapt as new entrants sweep through, claiming markets and customers with imaginative solutions to old problems. Fuelled by “fearless and connected” entrepreneurs and consumers, the magnitude of disruption will be unprecedented
  • Capital chases opportunity. In the rush to re-imagine this connected future, capital will flow – and flow quickly – towards those businesses exhibiting business model innovation. And where capital flows, expertise follows. Look to Asia Pacific and to South America for emerging and fast moving opportunities.

Is Mobile Working For You?

At the beginning of the year, digital traffic on mobile devices was sitting at about 5%. This was a small but important segment – but very few websites were optimised for mobile devices. And those that were offered slimmed down functionality. Even Facebook was slow to deliver on a mobile experience.

But through the year, mobile web usage continued to grow. Even on the ServantofChaos.com blog, we are seeing about 25% of our traffic coming via mobile devices (almost exclusively iPhone and iPad). These statistics appear to be consistent for other websites and represents a significant challenge for brands who continue to struggle with managing their digital presence. Indeed, Cisco’s Global Mobile Data Traffic Forecast for 2011-2016 indicates that Australian mobile data traffic will almost double in 2013. And by way of comparison, look at the rates for fixed IP traffic (ie non-mobile).

Cisco - Mobile and Internet Growth Prediction 2012-13

 

Respond now to the challenge of digital engagement

How do we respond to the challenges of digital content? While this rapid change in web behaviour and usage has taken many by surprise, we do not need to navigate these changes on our own. My recent report on digital disruption outlines some of the trends and the lessons that we can take away from the burgeoning digital and mobile revolution that has already taken place in Asia Pacific. This disruption is two-fold:

  1. Businesses must embrace and engage with their connected consumers via social channels. A significant proportion of mobile traffic is generated via social media. From “checkins” to product reviews, price validation or even basic product research, connected consumers are transforming the customer relationship. To understand this transformation, brands must understand the 5 Ds of Consumer Engagement.
  2. Rather than thinking “mobile first”, businesses need to think “mobile only”. The shift to mobile is a mega trend that is linked not to business per se, but to patterns of human behaviour. Our patterns of consumption are shifting from a single, stationary device like a desktop PC, to a second or third screen device that is always on, always connected. Business leaders must begin this transformation now or open the door to more agile competitors.

Lessons for the small business and independents

In many ways, a blog operates like a small, independent business. It has its own audiences – its own focus and a charter of engagement. When I moved ServantofChaos.com to a new design and platform, a key part of the decision making process was to address the trends that I was seeing. And while continuing analytics information combined with the trends and statistics reported reinforce this decision, I’m interested in individual points of view.

What do YOU think?

Are you a mobile device user?

Have you considered mobile as part of your digital strategy? If not, why?

Five Must-Read Posts from Last Week

Five Must-Read Posts from Last WeekBy now you will have seen a bunch of prediction articles for 2013 and trend documents looking back over the last year (or at least the last 11 months). I will endeavour to avoid these and focus on must-read articles that will kick start your thinking and not make you wonder off into future space or revisionism. Read on!

  1. When we are hard at work delivering on our business as usual targets, it can sometimes be hard to view your brand from the outside-in. While many turn to focus groups for this type of activity, sometimes an alternative approach is more fruitful. Drew McLellan suggests that your marketing strategy could do with an outside audit.
  2. And speaking of delivering on your day job, Scott Monty asks what happens when the pressure of content creation becomes too much. If content marketing is accelerating, then it is going to get a whole lot more serious.
  3. Craig Davis is pumping out some great posts on his new blog. Here he asks do you know what an idea is?
  4. Following this theme. Eaon Pritchard challenges us to think about what happens when an idea is strong, the creative is good but the strategy fails?
  5. And finally, something a little more introspective. Alex Lickerman investigates our sense of autonomy and its link to happiness. A great lunchtime read!