Association Consolidation (continued)
digital media in 2017, up from 5. 6
hours the year prior. Some 3. 3 of
those hours were spent on mobile.
● Growth continues in internet advertising. While percent of time
spent in media and percent of ad
spend declined in print, radio,
and TV, Meeker identified a $7
billion opportunity in ad spend
in mobile as time spent was up 29
percent and ad spend was up just
● E-commerce sales growth continues to accelerate. It grew 16 percent in the U.S. in 2017, up from
14-percent growth in 2016. And
Amazon is taking a bigger share of
those sales — 28 percent last year.
● Search is changing. Now, 49
percent of product searches start
at Amazon, while 36 percent
start on a search engine. What’s
more, Amazon is better poised to
capitalize on those searches with
features like one-click purchas-
ing, which encourage consumers
to use Amazon to fulfill orders
that result from those searches.
Product search on Google, on the
other hand, usually takes consumers away from Google, so others
● Voice-controlled products like
Amazon Echo are taking off.
The Echo’s installed base in the
U.S. grew from 20 million in
third-quarter 2017 to more than
30 million in the fourth quarter.
● Physical retail sales are continuing
to decline, while mobile payments
are becoming easier to complete.
China continues to lead the rest
of the world in mobile payment
adoption, with more than 500
million active mobile payment
users in 2017.
● The way consumers discover
products is also changing, fueled
in part by social media, which
now regularly features ads in feeds.
Facebook leads the way with 78
percent of survey respondents
saying they have discovered products on the platform, followed by
Instagram and Pinterest with 59
percent, Twitter with 34 percent,
● China is catching up as a hub to
the world’s biggest internet companies. Currently, China is home
to nine of the world’s 20 biggest
internet companies by market
cap, while the U.S. has 11. Five
years ago, China had two and the
U.S. had nine.
● Immigration remains important
for U.S. tech companies. More
than half of the most highly
valued tech companies in the
U.S. are founded by first- or sec-
ond-generation immigrants. Uber,
Tesla, We Work, and Wish all
have first-generation founders.
On the issue of privacy, Meeker says
tech companies are facing a “privacy
paradox” — meaning they’re caught
between using data to provide better
consumer experiences and violating
consumers’ privacy. She adds that inter-
net companies must understand the un-
intended consequences of their products
and that regulators must understand the
unintended consequences of regulation.
“But it’s irresponsible to stop innova-
tion and progress,” she added.
be headed by DMA CEO Tom Benton.
This unit will offer “a robust network
of educational and professional development resources channeled through”
the DMA’s strategic center for da-ta-driven excellence.
Though ANA and DMA leaders
were positive about the move, a trio
of anonymous insiders painted a
different picture in an AdAge story in
“The 101-year-old DMA … has
been bleeding cash, losing members,
and shopping itself around for a few
years, according to three people fa-
miliar with the matter. They asked to
remain anonymous to protect industry
relationships,” wrote AdAge reporter
George Slefo. “One of the people fa-
miliar with the situation describes the
DMA deal as a ‘total fire sale,’ adding
the trade body had attempted to sell
itself to the Interactive Advertising
Bureau (IAB) four years ago. The IAB
board declined, partly over price, the
The story also notes that, accord-
ing to recent tax filings, the DMA’s
revenue dropped from $22 million
in 2013 to $16.8 million in 2016.
Additionally, the DMA’s net income of
$1.8 million in 2013 had turned into
a $900,000 annual loss in 2016.
In other association news, the
Electronic Retailing Association (ERA)
terminated operations and closed its
doors on June 1.
In a letter emailed to ERA mem-
bers, Bill Sheehan — ERA’s executive
vice president — wrote that the ERA’s
board voted unanimously to close
due to “declining dues receipts, fewer
sponsorships, and an overall shortage
of revenue coupled with burdensome
Sheehan said that, for 28 years,
ERA “represented, championed, and
educated its members and associ-
ates as the direct response industry
“The ERA, as the only non-profit
association in the direct response
space, advocated for self-regulation
and best practices and helped take
the industry from nascency to maturi-
ty,” Sheehan added. “The ERA is very
proud of the member companies that
benefited, grew, and prospered under
its guidance and tutelage.”
Meeker Report (continued) ➜