As Mobile Grows, So Does Revenue
Whether your business is eCommerce or mobile app development, Mary Meeker's recent presentation on the state of the Internet had to please you. Mobile device use is up. Mobile monetization up. You're right where you want to be -- and if you're not, you should be.
That's because mobile is growing incredibly fast. Remember the talk about the Post PC revolution? It's happening and probably faster than anyone ever imagined.
For starters, according to numbers from Morgan Stanley, smartphone and tablet sales passed PC and laptop sales in 2011 and today they simply blow them away. (See p. 25 of the presentation for details.)
As for mobile phones, Morgan Stanley reported there were an estimated 5 billion mobile phones in the world this year and a billion smart phones. Now to be sure, that's not a one for one ratio when it comes to ownership because many people own more than one, but these are numbers simply too big to ignore, that is for sure, even if they are inflated a bit.
You want to hear about tablets? Pew estimates that between April 2009 and January of this year, the percentage of US adults who reported owning a tablet skyrocketed from just two percent in 2009 to 29 percent at the beginning of this year. And that number has probably increased again, especially with the release of the iPad mini, Google Nexus 7 and the new Kindle Fires stimulating even more sales.
And all of these devices are having a big impact on the percentage of Internet traffic in the world that comes from mobile. As recently as 2010, mobile accounted for just 4 percent of worldwide Internet traffic. As of last month, it was 13 percent of total traffic and it's just going to continue to go up with the continued proliferation of these devices, especially in places where it's much easier to afford a mobile phone than it it is a PC or laptop.
I'm sure this is all thrilling to you, but you want me to show you the money. You can't possibly have people purchasing mobile device in the kinds of numbers we're seeing without having an appreciable effect on income and Meeker reports that according to data from Gartner, eMarketer and Strategy Analytics, the income is indeed growing at a rapid rate growing from about $5 billion in 2010 to $19 billion this year.
If you want further proof look at the Black Friday shopping figures, which showed that according to IBM Data Analytics, mobile accounted for 24 percent of Internet shopping traffic up from 14 percent a year ago. And it's worth noting that of that, the vast majority of the shoppers used iOs devices.
So it's clear from Meeker's presentation that as more devices proliferate, it's having an impact on the amount of Internet traffic coming from mobile devices and the amount of business that is being conducted on them with more revenue being generated.
When you add the apps marketplace, which she didn't quantify directly to to this, you have a huge revenue generating machine and that means you need to be a part either as a way to make money or at least to provide your employees with access to enterprise repositories and resources from mobile devices.
One thing you can not afford to do is sit and wait because if Meeker's research is right, the future is now.
Photo credit: adactio.
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