To kick off the IGNITION conference, Business Insider CEO Henry Blodget delivered the following presentation put together with the help of the BI Intelligence team.
2. intelligence.businessinsider.com
Henry Blodget
CEO & Editor-in-Chief
Emily Adler
Senior Research Editor
Marcelo Ballvé
Editorial Director
Cale Weissman
Reporter
Hope King
Reporter
Nicholas Quah
Research Associate
John Greenough
Research Analyst
Jessica Smith
Research Associate
Tony Danova
Senior Research Analyst
Mark Hoelzel
Research Analyst
John Heggestuen
Research Analyst
Cooper Smith
Senior Research Analyst
BI Intelligence
3. There are now nearly 3 billion people online
Source: International Communication Union, Google
0
1
1
2
2
3
3
1990 1994 1998 2002 2006 2010 2014E
Billions
Global Internet Population
4. Four billion to go
Global Population
Internet Population
0
1
2
3
4
5
6
7
8
1990 1994 1998 2002 2006 2010 2014E
Billions
Global Internet Population
Source: International Communication Union, Google
5. Attention is shifting to digital, especially mobile
Source: eMarketer, April 2014
45%
25%
17%
9%
7%
4%
37%
18%
11%
4%
2%
23%
TV Online Radio Print Other Mobile
US Consumer Media Consumption Share
2009 2010 2011 2012 2013 2014
6. This is a generational shift
Source: Ofcom
0 10 20 30 40 50 60 70 80 90 100
Total
Aged 16-24
Aged 25-34
Aged 35-44
Aged 45-54
Aged 55-64
Aged 65-74
Aged 75+
Digital Is Reaching The New Generation
Top Five Media Mentions Among all Adults, 2013
Watch TV
Read Newspapers/Magazines
Listen To The Radio
9. Ad spending is moving to digital (and mobile)
Source: IAB, U.S. Census Bureau, Strategy Analytics, BI Intelligence estimates
Offline
All Other Online
Mobile
$0
$60
$120
$180
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013
Billions
U.S. Advertising
10. Print ads have fallen off a cliff
Source: Newspaper Association Of America *Estimate
$-
$10,000
$20,000
$30,000
$40,000
$50,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013*
Millions
Newspaper Ad Revenue (Print vs. Online)
Print Online
11. Google is now bigger than all newspapers, magazines
Source: Google, NAA, PIB
$0
$10,000
$20,000
$30,000
$40,000
$50,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Millions
Google vs. Magazine vs. Newspaper Ad Revenue,
US Data, 2004-2013
Google (US)
US Magazines
US Newspapers
12. Google now dwarfs “big media”
Source: Company Filings, BI Intelligence estimates
$30
$18
$16
$14
$5 $5
$3 $2
$70
Time
Warner
Facebook CBS Viacom Gannett Yahoo AOL New York
Times
Google
Billions
Estimated 2014 Revenue
Select Media Companies
13. Google is almost half the size of all global TV advertising
$174
$70
Global TV Ad Revenue Google
Billions
Estimated 2014 Ad Revenue
Google vs. Global TV Ad Market
Source: Google, PWC
14. For many years TV folks have (rightly)
laughed off digital concerns
16. Ratings are falling…
Source: Nielsen
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
6
6.1
6.2
2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013
NielsenHouseholdRating
(%OfHouseholds
WithTVSetsWatching)
Primetime Household TV Ratings
Big 4 U.S. TV Networks Average
17. Pay TV subscriptions are dropping…
Source: Leichtman Research Group
Cable
Satellite
Telephone
Total
(800)
(600)
(400)
(200)
-
200
400
600
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Q2
2014
Q3
2014
NetAdditionsInThousands
Pay-TV Net Additions (US)
18. Facebook reaches more young people than free TV
Source: Nielsen, January 2013
58%
73%
83%
89%
63%
68%
63%
42%
Age 18-24 Age 25-34 Age 35-54 Age 55+
PercentReach
Facebook vs. TV Daily Reach
(US)
Four TV Networks
Facebook
19. Netflix now has more US subscribers than HBO
Source: Netflix, SNL Kagan
HBO
Netflix
0
10
20
30
40
4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014
MillionsOfUSSubscribers
Paid Domestic Subscribers — Netlix v. HBO
20. YouTube reaches more 18-34s than any cable network
0
200
400
600
800
1000
1200
1400
2010 2011 2012 2013 2014E
Millions
YouTube “Ratings”
21. Digital video revenue is no longer a joke…
Source: BI Intelligence estimates, Company Filings
Netflix
YouTube
Hulu
$0
$2
$4
$6
$8
$10
$12
2006 2007 2008 2009 2010 2011 2012 2013
Billions
Estimated Digital Video Revenue
22. iTunes and Netflix already dwarf small cable networks
Source: News Reports, Company Filings
iTunes
Netflix
AMC Networks
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
2007 2008 2009 2010 2011 2012 2013
Billions
Cable Network vs. Digital Content Revenue
2007-2013
23. YouTube is closing in on broadcast-network revenue
Source: News Reports, BI Intelligence estimates, Company Filings
$-
$2
$4
$6
$8
$10
$12
2007 2008 2009 2010 2011 2012 2013
Billions
YouTube Ad Revenue vs.
CBS Ad Revenue And AMC Networks Revenue
CBS Ad Revenue
YouTube Ad Revenue
AMC Networks Revenue
24. (Some) live sports are now being streamed
Source: Ooyala 2014
34.5
7.1
3.5
42.8
11
17.1
10.5
16.9
2.6
4.1
2.8
5.1
Desktop Tablet Mobile Connected TV
TimeSpentPerPlay
InMinutes
Time Spent Watching Online Video By Content Type
Global
All Live Events
Sports
VOD
25. TV now has to share attention with digital
Source: Millward Brown, 2014
83
(55%) 65
(63%)
20
(45%)
68
(45%)
38
(37%)
24
(55%)
Smartphone Laptop Tablet
TimeSpentInMinutes
(PercentageOfTotalTime)
Daily Time Spent With Devices, While Watching TV Or Using The
Device Independently
Ages 16 - 44, United States Only
Without TV
With TV
28. TV still massive, digital video still a blip
Source: Nielsen, IAB
$0
$20
$40
$60
$80
2007 2008 2009 2010 2011 2012 2013
Total TV
Ad Spend
(Billions)
US Ad Spend, 2007-2013
TV Vs. Online Video
TV Ad Spend
Online Video Ad
31. It’s a generational shift — look what Millennials are doing
Source: Ofcom
TV
TV
TV
Print
Print
Radio
Radio
Radio
Computer
3
Computer
Smartphone
Smartphone
All Adults Aged 75+ Aged 16-24
“Media you would miss most”
Use A Smartphone
Go Online On A
Computer/Laptop/Netbook/Tablet
Listen To The Radio
Read Newspapers/Magazines
Watch TV
32. Money follows eyeballs…
Source: Mary Meeker, IAB, eMarketer
5%
38%
25%
12%
20%19%
43%
22%
10%
4%
Print TV Web Radio Mobile
2013 U.S. Ad Spending vs. Consumer Time Spent
By Media
35. Smartphone sales are still booming
Source: IDC, Strategy Analytics, BI Intelligence estimates
Samsung
Apple
Xiaomi
Lenovo
Huawei LG
ZTE
Coolpad
Nokia
Sony
Motorola
HTC
BlackBerry
Other
-
50
100
150
200
250
300
350
2Q08 4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14
Millions
Global Smartphone Shipments By Vendor
37. “Phablets” are replacing small smartphones
Source: BI Intelligence estimates
Phablets
Tablets
Smartphones
(Non-Phablet)
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2006 2008 2010 2012 2014E 2016E 2018E
Millions
Global Annual Shipments By Device
38. Nearly half of TVs are now connected
Source: Leichtman Research Group, BI Intelligence estimates
27.7
35.7
43.8
50.1
56.5
61.1
65.7
68.6
71.4 72.6
24%
31%
38%
44%
49%
53%
57%
60%
62% 63%
2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E
U.S. Households With Connected TV
Percentage Of Households; Number Of Households In Millions
39. “Wearables” are overhyped but growing
Source: BI Intelligence estimates
Smartwatches
Fitness Bands And Other
Activity Trackers
Rest Of Wearables Market
0
20
40
60
80
100
120
140
160
2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2018E 2019E
MillionsOfUnitsShippedAnnually
Global Wearable Device Unit
Shipments Forecast
35% CAGR
We Are Here
41. 300 million PCs are still sold each year
Source: Gartner, IDC, BI Intelligence estimates
Lenovo
HP
Dell
Acer
Other
0
20,000
40,000
60,000
80,000
100,000
1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14
Thousands
Global PC Shipments By Manufacturer
iPad released Windows 8 released
46. ~60% of online devices are now smartphones or tablets
Source: BI Intelligence estimates
Personal Computers
(Desktop And Notebook)
Smartphones
Tablets
Smart TVs
Wearables
0
1
2
3
4
5
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E
NumberOfDevicesInUse(InBillions)
Global Internet Device Installed Base
48. We spend ½ hour on tablet each time we use it
Source: Google, August 2012
43
39
30
17
TV PC/Laptop Tablet Smartphone
Average Minutes Spent Per Interaction By Device
49. More than ¼ of Internet traffic is mobile
Source: StatCounter, BI Intelligence estimates
0%
25%
50%
75%
100%
Dec-08 Jan-10 Feb-11 Mar-12 Apr-13 May-14
Global Internet Traffic Share
Desktop Vs. Mobile
50. Mobile has extended the digital day to 18/7
Source: Google Analytics, Business Insider
9/1/12 9/15/12 9/29/12 10/13/12 10/27/12 11/10/12 11/24/12 12/8/12 12/22/12 1/5/13
Mobile Visits Desktop Visits
51. Each device has a different “prime time”
Source: comScore, Telefonica, Macquarie Capital (USA), December 2011
53. Developed mobile markets are nearing maturity
Source: comScore
18%
72%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Jan 10 Jun 10 Nov 10 Apr 11 Sep 11 Feb 12 Jul 12 Dec 12 May 13 Oct 13 Mar 14
(asapercentageofthemobilepopulation)
U.S. Smartphone Penetration
54. The action is now in China, India, and emerging markets
Source: Mediacells via The Guardian
0
50
100
150
200
250
300
MillionsOfSmartphones
Smartphone Sales In 2014 Will Be Driven
By New Users In Emerging Markets
Sales To New Smartphone Users
In 2014
Smartphone Upgrades In 2014
Top 11 Markets
Other Markets
55. China is already twice the size of the US market
Source: China Internet Network Information Center
Mobile Users
Total Users
US Users
0
100
200
300
400
500
600
700
June
06
Dec 06 June
07
Dec 07 June
08
Dec 08 June
09
Dec 09 June
10
Dec 10 June
11
Dec 11 June
12
Dec 12 June
13
Dec 13 June
14
MillionsOfInternetUsers
Chinese Internet Users
56. Prices are dropping fast
Source: BI Intelligence estimates
$100
$150
$200
$250
$300
$350
2010A 2011A 2012A 2013E 2014E 2015E 2016E
AverageSellingPrice
Global Smartphone Average Selling Price Forecast
58. Chinese companies sell ~25% of smartphones in world
Source: Canalys, IDC, Strategy Analytics, BI Intelligence, Company Reports
0
10
20
30
40
50
60
70
80
90
1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14
Millions
Selected Local Manufacturers From China
Global Quarterly Smartphone Shipments
Xiaomi
Huawei
Lenovo
ZTE
Coolpad
59. Global tablet growth has hit a wall
Source: IDC, Strategy Analytics, BI Intelligence estimates
Year-Over-Year
Growth
-100%
-50%
0%
50%
100%
150%
200%
250%
300%
3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14
Global Tablet Shipments
Quarterly Year-Over-Year Growth
Sequential Growth
65. Apple is strong in the US, where it’s a two-horse race
Source: comScore
Android
Apple
BlackBerry
Windows Phone
Other
0%
20%
40%
60%
80%
100%
Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14
US Smartphone Platform Market Share
67. ~85% of smartphones run Google’s Android
Source: IDC, Strategy Analytics, BI Intelligence estimates
Android
iOS
Microsoft
BlackBerry
Other
0%
25%
50%
75%
100%
1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14
ShareofGlobalUnitShipments
Global Smartphone Market Share By Platform
68. ~65% of tablets run Android
Source: BI Intelligence estimates
Android
Apple
Amazon
BlackBerry
Nook
Windows
0%
25%
50%
75%
100%
3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14
Global Tablet Market Share By Platform
69. ~70% of all new computing gadgets run Android
Source: Gartner, IDC, Strategy Analytics, Company Filings, BI Intelligence estimates
Android
Windows
Apple
BlackBerry
Other
0%
20%
40%
60%
80%
100%
1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14
Global Computing Platform Market Share
72. Android “fragmentation” problem is improving
Source: Google
Other
Froyo
Gingerbread
Honeycomb
Ice Cream Sandwich
Jelly Bean
Kit Kat
0%
20%
40%
60%
80%
100%
9/15/12 11/15/12 1/15/13 3/15/13 5/15/13 7/15/13 9/15/13 11/15/13 1/15/14 3/15/14 5/15/14 7/15/14
Jelly Bean And Kit Kat Are Now ~80% Of Android
73. Android now more popular with developers than iOS
Source: Developer Economics, Q3 2014
Android
42%
iOS
32%
BlackBerry 10
3%
Windows Phone
10%
Other
13%
Mobile Developers' Main Platform
74. Android will soon overtake iOS in app revenue
Source: Jana, App Annie, BI Intelligence estimates
$0
$1
$2
$3
$4
4Q13 2Q14 4Q14E 2Q15E 4Q15E 2Q16E
Billions
Estimated App Revenue
Apple App Store Vs. Google Play
75. Android is catching up to iOS in developer payouts
Source: Jana, App Annie, BI Intelligence estimates
Apple App Store
Google Play
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
3Q13 4Q13 1Q14 2Q14
Billions
Estimated App Developer Payout
Apple App Store And Google Play
76. Android now generates more global ad traffic than iOS
Source: Opera Mediaworks
Android
iOS
BlackBerry
Symbian
Other
0%
20%
40%
60%
80%
100%
2Q12 4Q12 2Q13 4Q13 2Q14
ShareOfTraffic
Global Mobile Ad Traffic Share By Platform
79. Most digital growth is now mobile
Source: comScore, April 2014
Smartphone
131
Smartphone
442Tablet
11
Tablet
124
0
200
400
600
800
1000
1200
Dec-10 Dec-13
BillionsOfMinutes
Time Spent By Digital Platform Per Month
U.S., December 2010 Vs. December 2013
1,040% Growth
237%
7%
Desktop
401
Desktop
429
80. Messaging apps are exploding
Source: Company Statements, News Reports, BI Intelligence estimates
0
100
200
300
400
500
600
Oct-10 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14
Millions
The Messaging Wars — MAUs For Top Apps
(Monthly Active Users - Global)
81. Social networks and sharing are exploding
Source: BI Intelligence estimates based on data from company filings, comScore, Global Web Index, Totem and news reports
Facebook
Twitter
Tumblr
Instagram
Snapchat
Google Plus
LinkedIn
Pinterest
Vine 0
500
1,000
1,500
2010 2011 2012 2013 2014E
Millions
Social Network MAUs (Global)
82. Mobile video is booming…
Source: Cisco, 2013
0
1
2
3
4
5
6
7
8
2011 2012 2013 2014 2015 2016 2017
MillionsofTerabytesPerMonth
Global Mobile Video Traffic Will Continue To Surge
83. Mobile video has enabled the rise of the YouTube stars
Source: Company Filings
35 million viewers
8 million viewers
1 million viewers
84. Social and music are now mostly mobile
Source: Company Filings
Pandora
Facebook
Twitter
0%
25%
50%
75%
100%
2008 2009 2010 2011 2012 2013
Mobile Usage: Pandora, Twitter, Facebook
85. Mobile is driving all of Facebook’s growth
Source: Company Filings
Advertising (Non-Mobile)
Mobile Advertising
Payments And Fees
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
Q1 10 Q3 10 Q1 11 Q3 11 Q1 12 Q3 12 Q1 13 Q3 13 Q1 14 Q3 14
Billions
Facebook Revenue By Segment (Global)
86. Mobile is now a third of eCommerce traffic
Source: Monetate
PC
Tablet
Smartphone
0%
25%
50%
75%
100%
2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14
Ecommerce Website Traffic By Device
87. PayPal powers $30 billion in mobile payments
*PayPal counted a small portion of Braintree’s transaction volume as its own in the last 12 days of Q4 2013.Source: PayPal
PayPal Mobile
Braintree Mobile*
$0
$5
$10
$15
$20
$25
$30
$35
2008 2009 2010 2011 2012 2013
U.S.DollarsInBillions
PayPal Mobile Transaction Volume
(Including Braintree 2013)
89. Ad growth is mobile, social, video, native, programmatic
Source: BI Intelligence estimates based on data from BIA/Kelsey, IAB, IDC, and Magna Global Note: Formats overlap. Mobile includes all ad formats that appear on mobile.
-0.4%
15.1%
2.3%
42.6%
18.0%
34.7% 35.7%
Desktop Display Desktop Video Desktop Search Mobile Social Native Programmatic
Advertising Revenue Growth (US)
CAGR 2013 - 2018
90. Mobile is a “green field”
Source: eMarketer
$1 $1 $1
$3
$10
$12
$1 $1 $1
$3
$15
$30
$1 $1 $1
$4
$19
$46
Latin America Middle East and
Africa
Eastern Europe Asia-Pacific Western Europe North America
Annual Mobile Ad Spend Per Mobile Internet User
By Region
2011 2012 2013
91. Social is booming
Source: BI Intelligence estimates, BIA/Kelsey
Non-Mobile
Mobile
$-
$2
$4
$6
$8
$10
$12
$14
$16
2013 2014E 2015E 2016E 2017E 2018E
Billions
FORECAST: Social Media Advertising Spend
(US)
92. “Display” ad spending is still respectable, but…
Source: Company Filings, BI Intelligence estimates
Google
Other
Yahoo
AOL
Microsoft
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
2Q06 4Q06 2Q07 4Q07 2Q08 4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14
Total
Display
Advertising
Revenue
(Millions)
US Display Advertising, 2006-2014 (Quarterly)
93. Growth is shifting to “native”…
Source: BI Intelligence estimates, IAB
$1.0 $1.3 $1.9 $2.7
$3.9
$5.7
$0.8 $1.0
$1.3
$2.0
$2.7
$3.4
$2.9
$5.6
$7.5
$9.2
$10.7
$11.9
$0
$5
$10
$15
$20
$25
2013 2014E 2015E 2016E 2017E 2018E
Billions
Native Advertising Revenue (US)
Desktop And Mobile
Native-Style Display Sponsorship Social
94. And “programmatic”
Source: BI Intelligence estimates, Magna Global, IDC
$6
$8
$12
$18
$23
$28
2013 2014E 2015E 2016E 2017E 2018E
AdSpendInBillions
FORECAST: Programmatic Ad Spend (U.S.)
95. Google is still the digital advertising king
Source: Company Filings Note: Based on GAAP revenue.
Google
Facebook
Yahoo
AOL
$0
$4
$8
$12
$16
$20
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
Billions
Digital Advertising Revenues (Global)
96. Google’s YouTube dominates digital video and video ads
Source: Company Filings, BI Intelligence estimates
YouTube
Tremor
YuMe
TubeMogul
$0
$250
$500
$750
$1,000
$1,250
$1,500
$1,750
Q1 2011 Q3 2011 Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014
RevenueInMillions
Global Digital Video Advertising Revenue
(Select Companies)
97. Google’s Chrome browser is crushing Firefox and IE
Source: StatCounter
Other
Safari
Firefox
Internet Explorer
Chrome
Opera
0%
10%
20%
30%
40%
50%
60%
2010 2011 2012 2013 2014
Global Web Browser Usage Share
98. Google’s Android has peak-Windows-like market share
Source: IDC, Strategy Analytics, BI Intelligence estimates
Android
iOS
Microsoft
BlackBerry
Other
0%
20%
40%
60%
80%
100%
1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14
ShareofGlobalUnitShipments
Global Smartphone Market Share By Platform
100. Basically, Google is swallowing the world…
Source: Google, 2014 Is An Estimate
$-
$10
$20
$30
$40
$50
$60
$70
2009 2010 2011 2012 2013 2014E
Billions
Google Global Annual Revenue
106. Search click growth is finally decelerating
Source: Google
20%
23%
26%
31%
26%
25%
17%
Q1 13 Q3 13 Q1 14 Q3 14
Google Paid Clicks Growth
Global, Year-Over-Year
107. US desktop search queries are now shrinking
Source: comScore Note: Explicit user initiated search queries only.
10%
12%
14%
10%
7%
4%
0%
-3%
-5%
-7% -8% -7% -7%
Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14
Total Monthly Search Query Growth
U.S., Year-Over-Year; Desktop Only
108. “No one uses Facebook anymore” — Gen Z-er
Source: Piper Jaffray
42%
33%
27%
23%
27%
30%
31%
27%
12%
17%
27%
30%
Fall 2012 Spring 2013 Fall 2013 Spring 2014
The Most Important Social Networks To US Teens
Percent Of Respondents Who Say The Network Is Most Important
Facebook
Twitter
Instagram
109. Why do teens love Instagram?
0
50
100
150
200
250
300
2010 2011 2012 2013 2014E
Millions
Instagram
“Because parents see
that camera icon and
think it’s a photo app.
They don’t know it’s a
social network.”
111. What about phone calls? Do people talk anymore?
0
200
400
600
800
2010 2011 2012 2013 2014E
Millions
WhatsApp
“No. Everyone has
phone numbers, but
they’re for texting.”
112. Digital is the medium for the
new generation.
Digital will grow for decades.
114. Connected cars — we spend 1.2 hours a day in them
Source: Bureau Of Labor Statistics
8.8 hours
7.6 hours
2.5 hours
1.2 hours
1.1 hours
1.1 hours
1.7 hours
0
12
24
Average Daily Time Spent Per Person
U.S. Employed Citizens ages 25 to 54
Other
Household Activities
Eating And Drinking
In The Car
Leisure And Sports
Sleeping
Working
115. Wearables (someday)
Source: BI Intelligence estimates
Smartwatches
Fitness Bands And Other
Activity Trackers
Rest Of Wearables Market
0
20
40
60
80
100
120
140
160
2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2018E 2019E
MillionsOfUnitsShippedAnnually
Global Wearable Device Unit
Shipments Forecast
35% CAGR
We Are Here
116. Smartwatches, like Apple Watch, should do okay
Source: BI Intelligence estimates
Total Smartwatch
Market
Apple Watch
0
20
40
60
80
100
120
140
2013 2014 2015E 2016E 2017E 2018E 2019E 2020E
Millions
Apple Watch Annual Shipments Forecast
2015-2020
117. Fitness bands will remain niche
Source: NPD Group, BI Intelligence estimates; Annual Data From April Through March
Fitbit
Jawbone
Nike
Other
-
500
1,000
1,500
2,000
2,500
3,000
3,500
2010-2011 2011-2012 2012-2013 2013-2014
ThousandsOfFitnessBandsSold
Fitness Band Hardware Annual Unit Sales
By Device Maker, US Only
118. “Internet of Things” — 20B connected devices by 2020
Source: BI Intelligence estimates
Enterprise
Government/Infrastructure
Home
-
5
10
15
20
25
2014E 2015E 2016E 2017E 2018E 2019E
BillionsofDevices
Estimated Number of Installed
IoT Devices by Sector
119. We’ll fill our houses with smart devices
Source: ABI Research, TechNavio, Pike Research, BI Intelligence estimates
Smart Home Energy
Smart Home Security
Smart Appliances
Other Systems
0
500
1,000
1,500
2,000
2012 2013 2014E 2015E 2016E 2017E 2018E 2019E
Millions
Global Connected Home Device Shipments
By Device Category
120. And companies will buy them by the billions
Source: BI Intelligence estimates
-
1
2
3
4
5
6
7
8
9
10
2014E 2015E 2016E 2017E 2018E 2019E
BillionsofDevices
Global Enterprise Device Growth
Five-Year (2014-2019) CAGR 49%
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