Tablets, smart phones reshape Internet usage

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Smartphones and Tablets at Intel Booth, Mobile World Congress 2013
Smartphones and Tablets at Intel Booth, Mobile World Congress 2013. Kleiner Perkins Caufield Byers latest report on global internet trends titled ‘2013 Internet Trends’ points toward the growing use of internet and explosive growth of tablets, and other smart devices. Photo-Nick Knupffer/Intel

A new annual report on global internet trends points to the growing use of the internet, along with the explosive growth of tablets and other smart devices.

The second edition of this report, titled 2013 Internet Trends, was unveiled by Kleiner Perkins Caufield & Byers partner Mary Meeker at the All Things Digital D11 conference. The 117-slide presentation covered a range of topics, including internet usage and traffic, to mobile device growth trends. The report highlights the trend is rapidly shifting from regular internet traffic to mobile traffic, which now makes up about 15 percent of total global internet traffic. In the coming years, mobile traffic is expected to maintain its momentum and experience 1.5 percent growth year-over-year.

A significant opportunity exists to promote advertising on mobile channels. While consumers spend 12 percent of their time on mobile devices, only 3 percent of the total advertising spend is directed towards mobile advertising. In the U.S. alone, a USD 20 billion opportunity is available to meet this huge gap.

Both Apple and Samsung have benefited from mobile adoption in recent years. Apple’s share has grown from 16 percent in Q1 2010 to 22 percent in Q4 2012, while Samsung now leads the market by capturing 29 percent of the market share during the same time period. Compared to the previous year, smart phones have grown by about 28 percent in U.S. and 31 percent in China year-over-year.

The Meeker report also points out to the growing trend of sharing photos over various internet services. More than 500 million photos are shared each day on various channels, a figure which is expected to double within the next 12 months. Therefore, it is not surprising that Instagram and Flickr have been acquired at a heavy price by Facebook and Yahoo, respectively.

Global shipments of tablets have also reached new highs and outpaced even smart phone growth. If the first 12 quarters after launch are compared, iPad shipments were three times higher than iPhone shipments. In just three years, global shipments of tablets have also surpassed desktops and notebooks. Another report by IDC had earlier estimated that tablets will surpass notebook shipments by 2013 and the total PC market in 2015.

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