8 shocking smartphone and Internet stats
Every year, Kleiner Perkins Caufield & Byers’ resident oracle, Mary Meeker, releases her “Internet Trends” presentation, providing high-level data on the growth of the Internet and smartphones in the United States and around the world. Wednesday, May 28, was the big day this year. Sitting as I do at the intersection of the restaurant and tech industries, I found eight of Meeker’s statistics absolutely fascinating and particularly relevant to the future of the restaurant experience.
1. Mobile now represents 25 percent of Web page views, up from 14 percent last year.
Think your brand website is just fine? Think again. Mobile Web page views surged over 78 percent over the past year, meaning it’s high time you visit your own website from your smartphone to make sure it provides a great browsing experience. If you’re still trying to cram a full-page desktop site onto a relatively tiny screen, you may be alienating or losing customers – 25 percent of them, according to Meeker.
2. Made-in-USA smartphone operating systems now represent 97 percent of market share globally, up from 5 percent eight years ago.
Smartphones began as an international phenomenon with companies like Nokia dominating the smartphone operating system market. Since Apple’s launch of iOS (the operating system that powers iPhones and iPads), Google’s acquisition and deployment of Android, and Microsoft’s development of the Windows Mobile platform, the "Made in USA" smartphone operating systems have taken over and dwarfed their foreign counterparts. Another reason to feel patriotic this Fourth of July.
3. Mobile represents 20 percent of consumer media time, yet only 4 percent of advertiser spending.
Each year, Meeker reminds us of the disparity between consumer media time and advertiser spending, and each year the massive gap remains shocking (see graph below). Mobile advertising represents a $30 billion opportunity for companies – and that’s just to catch up with consumer behavior. Smart operators will consider the newest advertising opportunity for what it is – a powerful advertising medium that is both trackable and location-aware, making it highly contextual. Moreover, smartphones are highly personal. We rely on them 24 hours a day for nearly every activity and always have them near and dear.
4. GrubHub generates 39M orders/year to 29k restaurants. That’s 1,367 orders and $35,000 per restaurant.
GrubHub (an Olo business partner) went public earlier this year and disclosed some of its key business metrics in the process, revealing itself as a powerhouse marketing tool driving approximately 5 percent of the average restaurant’s annual sales volume, or $35,000, to its 29,000 restaurant partners. We can all learn a lesson about the power of technology from this Internet brand that did not even exist 10 years ago.
5. Over 47 percent of online transactions use free shipping vs. 35 percent five years ago.
Meeker highlights this point with the headline “Same-Day Local Delivery = Next Big Thing.” With e-tailers (Amazon.com and others) offering services like two-day delivery with free shipping (e.g., Amazon Prime) or “Free Shipping Both Ways,” local retailers are being forced to fight back. Restaurants aren’t necessarily competing with e-tailers, but the statistics reveal an important reminder: customers want convenience, and smart companies are answering the call.
6. When it comes to screen time in the U.S., smartphones win.
The average consumer now spends more time staring at his smartphone screen than his TV screen. In fact, U.S. consumers spend 151 minutes a day looking at a smartphone, 147 watching TV, 103 minutes on a laptop/PC, and 43 minutes on a tablet. Why not? Smartphones are portable, always on, and location aware, filling the gaps between our computer work time and our TV leisure time, and sometimes doing it all at once.
7. 84 percent of consumers use smartphones while watching TV, up 100 percent from 2013.
Users are engaging with their mobile devices (smartphone and tablet) WHILE they are watching TV, meaning the smartphone not only demands attention on its own, it enhances our time with our other screens. Meeker reported that the more screens used, the higher the media engagement. Using the Olympics as an example, the more screens a person used, the more likely they were to follow the programming (and watch the advertising).
8. By the end of 2013, there were 188M smartphone subscribers in the U.S., up 21 percent from 2012.
Smartphone users represent 70 percent of mobile phone users in the U.S., and if the current growth rate keeps up, that number will hit 84.7 percent by this time next year. If you find yourself on the sidelines of the smartphone revolution, it is officially time to get in the game.
What does it all mean for operators? The odds are in favor of the smartphone, so establishing strong mobile takeout and delivery options will be table stakes for winning the heart of the mobile-first, on-demand consumer.
Noah Glass / Noah Glass is the Founder & CEO of Olo. Since 2005, Olo has helped restaurant brands increase revenue per square foot through faster, more accurate, and more personal service with digital ordering.