Some key points:
- Global Internet Population should surpass 2.5 billion this year.
- Globally, Internet users tend to be well off - 82% of Internet users have incomes in the top 30% in their countries
- The Internet's quickly going mobile - smartphone sales currently surpass PC sales. (With a number of new & cheaper competition for the iPad, tablet sales should soar in 2013).
- This trend is supported by rapid expansion of broadband access in industrialized countries (G20 nations)
- Connected mobile devices have, or will soon, achieve 50% penetration rates in more advanced industrial countries.
Digital advertising revenues in the U.S. are also rapidly growing, although still below more traditional media levels. They are, as the slide below indicates, increasing their share of total advertising revenues and should continue to do so. Interestingly, Google's earnings from advertising are 50% higher than the total for all other online revenues combined.
As for the rest of the world, digital advertising markets in most other countries are still in the earliest stages of market development. They should pick up as the U.S. industry develops and adopts widely-acceptable metrics for digital advertising exposure and impacts.
Another Google tidbit - in the first half of this year, Google generated as much U.S. advertising revenue as the entire U.S. newspaper industry, and almost as much as the entire U.S. magazine industry.
changing viewing habits enough that broadcasters are calling for extending the periods in which watching a program will be included in the basic ratings numbers. In the meantime, pay TV subscriptions in the US are increasingly volatile, and trending down.
In the meantime, revenues from online video subscriptions (more than $4.5 billion in the U.S.) and online video advertising ($2 billion in the U.S.) are increasing.
Already, there's some hints that mobile devices will contribute to the continued disruption of traditional media. But this post is running long, so I'll save most of the discussion of mobile for later.
First, digital content, broadband, and connected mobile are clearly transformative and disruptive technologies. They are changing the way people are accessing and consuming both information and entertainment content. With the advent of social media systems, they are fostering whole new forms of media consumption in the form of active, interconnected, and engaged audiences.
Second, people are finding more and better ways to monetize online media consumption, particularly in the U.S. Online digital advertising is rapidly growing and should reach levels competitive with at least some traditional media in the near term. In addition, online content providers are developing viable business models based on subscriptions or access-point fees (on-demand, or through app payments). Economic support for online content distributors is growing, at least in the U.S., and seems to have the potential to overtake more traditional media revenues.
Source - The Future of Digital (Slide Deck), Business Insider.