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 subscription research service, we identify the key trend in each of our top vertical areas including Mobile, E-Commerce, Digital Media, Digital Financial Services, and the Internet of Things.

1. Providing
in-­‐depth
insight,
data,
and
analysis
of
everything
digital.
The Top 5 Digital Trends of 2016
Mobile
|
Digital
Media
|
Payments
|
E-­‐Commerce
|
Internet
of
Things

2. 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.
2

3. 0
100
200
300
400
500
600
700
800
900
1000
WhatsApp
Facebook
Messenger
WeChat
Viber
LINE
Snapchat
Tango
Kik
KakaoTalk
3
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

4. 4
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

5. 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
1
2
3
5

6. 6
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%

7. 7
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.
Manufacturing
35% 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
Agriculture
We 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 ServicesUtilities
Energy 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.
Retail
Beacons, 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.
Healthcare
We 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

8. 8
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9. 9
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10. 10
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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