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The Top 5 Digital Trends of 2016Mobile  |  Digital  Media  |  Payments  |  E-­‐Commerce  |  Internet  of  Things    

The  World  Is  Now  Digital  Today,  nearly  43%  of  the  world  is  connected  to  the  internet1,  enabling  us  to  talk,  share  photos,  and  conduct  business  halfway  across  the  globe.  As  a  result,  we  have  seen  more  technological  advancements  in  the  past  10  years  than  we’ve  witnessed  in  the  past  10,000  years.  And  in  the  next  five  years,  we’ll  see  even  more  advancements.    In  this  overview  provided  by  BI  Intelligence,  Business  Insider’s  premium  subscripMon  research  service,  we  idenMfy  the  key  trend  in  each  of  our  top  verMcal  areas  including  Mobile,  E-­‐Commerce,  Digital  Media,  Digital  Financial  Services,  and  the  Internet  of  Things.  

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WhatsApp   Facebook  Messenger  

WeChat   Viber   LINE   Snapchat   Tango   Kik   KakaoTalk  

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MOBILE:  Messaging  apps  are  the  new  OS  The  top  four  messaging  apps  in  the  world  have  nearly  3  billion  monthly  acMve  users  and  are  opened  almost  five  Mmes  as  much  as  regular  apps.  Because  users  spend  so  much  Mme  in  these  apps,  companies  are  leveraging  the  apps  to  connect  with  their  customers.  

Facebook  Is  DominaAng  The  Messaging  App  Wars    

The  two  largest  messaging  apps  in  the  world  –  Facebook  Messenger  and  WhatsApp  –  are  both  owned  by  Facebook.  What’s  more,  these  two  apps  are  global,  meaning  Facebook  reaches  both  the  Eastern  and  Western  worlds.  

Calls   Chat   GIFs  

Games   SMckers   VoIP  

Taxi   E-­‐commerce   Music  

Video   Payments   URL  Bar  /  Search  

UMliMes   QR  Codes  

Apps  On  Top  Of  Apps    

Companies  throughout  the  world  have  realized  that  messaging  apps  are  a  great  way  to  connect  with  their  customers.  Therefore,  many  companies  have  leveraged  the  apps  to  sell  goods,  promote  products,  chat  with  customers,  and  more.    

2015  Messaging  Apps  MAU2  

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DIGITAL  MEDIA:  The  rise  of  the  bots  ProgrammaMc  adverMsing  —  or  the  automaMc  buying  and  selling  of  ad  impressions  —  has  exploded  in  recent  years,  as  the  digital  shic  has  led  to  an  increase  in  ad  inventory.  But  the  rise  of  programmaMc  has  also  led  to  a  massive  ad  fraud  problem  in  which  traffic  bots  are  penetraMng  the  ecosystem,  mimicking  human  behavior,  and  siphoning  billions  from  the  digital  media  industry.  

52%  

20%  

29%  

Actual  Human  Traffic  A  liele  over  half  of  all  traffic  

on  the  internet  is  from  actual  humans.    

The ‘Good Bots’ 30% of global internet traffic comes from “good bots” – or bots that can be easily detected as nonhuman viewers. These bots are often built to collect and track information.

The ‘Bad Bots’ ‘Bad bot” traffic imitates user behavior to boost website audience numbers, generate revenue for the host website, or steal revenue from the advertiser. It disrupts the delivery of the right ad to the right user. “Bad bots” accounted for nearly 20% of all internet traffic and cost advertisers $6.3 billion in 2015 5.

2015 Online Traffic Sources4

Consumer  AdopMon  

CompaMble  Terminals  

PAYMENTS:  What  comes  first?  Mobile  in-­‐store  payments  have  gained  tracMon  over  the  past  two  years.  The  EMV  migraMon  and  the  launch  of  mobile  wallet  soluMons  from  smartphone  providers  have  been  the  two  largest  enabling  factors  for  in-­‐store  mobile  payments.  Consumers  will  be  further  incenMvized  by  offer  and  loyalty  programs,  which  will  drive  up  volume.  

&

A  Chicken  And  Egg  Problem  Before  merchants  upgrade  their  terminals  they  want  to  know  if  there  is  demand  for  mobile  payments.  For  consumers  to  adopt  mobile  payments,  they  need  to  be  able  to  use  them.  So  the  quesMon  is,  “which  will  come  first?”   Mobile  Wallets  Are  PlenMful  

Tech  companies,  such  as  Apple,  Samsung,  and  Google,  have  released  mobile  wallet  soluMons  that  come  naMve  on  the  vast  majority  of  smartphones.  

Retailers  Are  Onboard  In  the  US,  the  EMV  migraMon  is  forcing  retailers  to  upgrade  their  POS  systems.  To  stay  ahead  of  the  curve,  many  are  opMng  for  NFC-­‐compaMbility  as  well.  That  solves  acceptance.  Already,  2  million  retail  locaMons  currently  accept  Apple  Pay6.    

Consumers  See  The  Benefits  We  expect  65%  of  the  US  populaMon  will  make  a  mobile  payment  at  least  once  in  2019,  up  from  8%  in  20152.  IncenMves,  including  store-­‐loyalty  cards,  could  be  the  primary  driver  for  consumer  adopMon.  

The  3  In-­‐Store  Payments  Market  Drivers  

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E-­‐COMMERCE:  Shipping  innovaAon  As  e-­‐commerce  conMnues  to  grow,  retailers  have  to  ship  more  packages,  which  is  overwhelming  shipping  companies.  As  a  result,  shipping  companies  are  raising  their  rates.  But  this  increase  is  causing  mega-­‐retailers,  like  Amazon  and  Walmart,  to  create  their  own  shipping  soluMons.  

Amazon  Prime  Air*  

$1.00  

Amazon  Same-­‐Day    

$8.99  

Google  Shopping  

$4.99  

UPS  Ground  $12.92  

FedEx  Ground  $8.32  

USPS  Priority  1-­‐Day  $5.25  

$0  

$2  

$4  

$6  

$8  

$10  

$12  

$14  

Delivery  Fee  

*Launch  date  unknown,  and  delivery  fee  is  an  esAmate  

Delivery  Fee  That  Consumers  Pay  For  A  Small  Package  2.2kg  (5lb)  package  delivered  within  16.1km  (10  miles)  in  the  US7  

30  MINUTES   SAME-­‐DAY   NEXT-­‐DAY  

Mega-­‐Retailers  Are  CreaAng  Their  Own  Shipping  SoluAons  USPS shipping rates are going up in January 2016:

q  Priority Mail rates increased nearly 10%.

q  Prices for Parcel Select Lightweight increased 23%. Parcel Select Lightweight is USPS' lowest-priced shipping option and is exclusively for shipments booked online.

q  First Class Package International Service rates increased 22%

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IoT:  The  Next  Industrial  RevoluMon  Businesses  in  almost  every  industry  throughout  the  world  are  realizing  how  they  can  leverage  Internet  of  Things  (IoT)  devices  to  lower  operaMng  costs,  increase  producMvity,  expand  to  new  markets,  and  develop  new  product  offerings.  Over  the  next  five  years,  we  expect  enterprise  investments  in  IoT  soluMons  to  total  over  $3  trillion3.  We  esMmate  those  investments  in  IoT  soluMons  will  generate  a  nearly  $8  trillion  ROI3  by  2020.  

Manufacturing35% of manufacturers already use smart sensors, 10% plan to implement them within a year, and 8% plan to implement them within three years, according to PwC8.

74% of insurance executives said they believe the IoT will disrupt insurance within the next five years, and 74% plan to invest in developing and implementing IoT strategies by 2016, according to an SMA Research survey9.

Insurance

We estimate 5.4 million IoT devices will be used on oil extraction sites by 20203. The devices will primarily be internet-connected sensors used to provide environmental metrics about extraction sites.

Oil, gas, and mining

AgricultureWe estimate that IoT devices shipped for agricultural uses will grow at a 20% CAGR3, to reach 70 million devices in 2020. These devices are primary sensors placed in soil to track acidity levels, temperature, and variables that help farmers increase crop yields.

We estimate 310 million IoT devices will be used by food services companies by 20203. The majority of these devices will be digital signs connected throughout grocery stores and fast-food companies.

Food ServicesUtilitiesEnergy companies throughout the world are trying to meet rising demand in energy. To do this, they will be installing nearly 1 billion smart meters by 20203.

RetailBeacons, paired with mobile apps, are being used in stores to monitor customer behavior and push advertisements to customers. In the US, we estimate $44.4 billion will be generated from beacon-triggered messages3.

HealthcareWe estimate 646 million IoT devices will be used for healthcare by 20203. Connected healthcare devices can collect data, automate processes, and more. But these devices can also be hacked, thereby posing a threat to the patients who rely on them.

8  Industries  Being  Transformed  By  The  IoT  

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Sources: 1.  International Telecommunications Union 2.  Companies, BI Intelligence Estimates 3.  BI Intelligence Estimates 4.  Imperva Incapsula 5.  IAB 6.  Digital Trends 7.  ARK Investment Management, Company Info 8.  PriceWaterhouse Coopers 9.  SMA Research 10. Penguin/Shutterstock, Julia Tim/Shutterstock, Olga Lebedeva/Shutterstock, eatcute/

Shutterstock, Max Gribodoev/Shutterstock, T-Kot/Shutterstock, microvector/Shutterstock, Ira Yapanda/Shutterstock, Sentavio/Shutterstock, Vadam Ervmak/Shutterstock, Oxy_Gen/Shutterstock, ProStockStudio/Shutterstock

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