1. The State of the Internet
March 5th, 2013
Tuesday, March 5, 13

2. Agenda
• Interesting Times
• Follow the Money
• Top 3 Trends in 2013
• Device Diversity
• Social Monetization
• Data and The Display Ecosystem
• Policy Developments
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

3. Interesting times
• I grew up with the internet
• We are witnessing the printing press being developed
• Twitter = web page for all = social revolution
• The internet has afforded me incredible opportunities - Nethercutt @ 14
• From novelty to career to company with 6 employees
• Let’s peel back the layers
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

4. Interesting times
• I grew up with the internet
• We are witnessing the printing press being developed
• Twitter = web page for all = social revolution
• The internet has afforded me incredible opportunities - Nethercutt @ 14
• From novelty to career to company with 6 employees
• Let’s peel back the layers
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

5. Interesting times
• I grew up with the internet
2083
• We are witnessing the printing press being developed
• Twitter = web page for all = social revolution
• The internet has afforded me incredible opportunities - Nethercutt @ 14
• From novelty to career to company with 6 employees
• Let’s peel back the layers
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

6. Interesting times
• I grew up with the internet
• We are witnessing the printing press being developed
• Twitter = web page for all = social revolution
• The internet has afforded me incredible opportunities - Nethercutt @ 14
• From novelty to career to company with 6 employees
• Let’s peel back the layers
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

7. State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

8. Interesting times
• I grew up with the internet
• We are witnessing the printing press being developed
• Twitter = web page for all = social revolution
• The internet has afforded me incredible opportunities - Nethercutt @ 14
• From novelty to career to company with 6 employees
• Let’s peel back the layers
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

9. Interesting times
• I grew up with the internet
• We are witnessing the printing press being developed
• Twitter = web page for all = social revolution
• The internet has afforded me incredible opportunities - Nethercutt @ 14
• From novelty to career to company with 6 employees
• Let’s peel back the layers
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

10. Interesting times
• I grew up with the internet
• We are witnessing the printing press being developed
• Twitter = web page for all = social revolution
• The internet has afforded me incredible opportunities - Nethercutt @ 14
• From novelty to career to company with 6 employees
• Let’s peel back the layers
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

11. Interesting times
• I grew up with the internet
• We are witnessing the printing press being developed
• Twitter = web page for all = social revolution
• The internet has afforded me incredible opportunities - Nethercutt @ 14
• From novelty to career to company with 6 employees
• Let’s peel back the layers
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

12. Interesting times
• I grew up with the internet
• We are witnessing the printing press being developed
• Twitter = web page for all = social revolution
• The internet has afforded me incredible opportunities - Nethercutt @ 14
• From novelty to career to company with 6 employees
• Let’s peel back the layers
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

13. State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

14. The State of the Internet
March 5th, 2013
Tuesday, March 5, 13

15. State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

16. State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

17. 2012 Online Advertising Spending (US) - via emarketer
follow the money.
$17.58
$8.68
$2.60 $2.93
$0.22 $0.23 $1.71 $1.56 $1.82
Email SMS Lead Directories Sponsorships Rich Video Banner Search
Gen Media
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

18. 2013 Online Advertising Spending (US) - via emarketer
$19.75
$9.60
$4.14
$0.23 $0.23 $1.90 $2.71 $1.90 $2.03
Email SMS Lead Directories Sponsorships Rich Video Banner Search
Gen Media
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

19. 2014 Online Advertising Spending (US) - via emarketer
$21.73
$10.27
$5.75
$0.24 $0.24 $2.09 $2.81 $2.28 $2.38
Email SMS Lead Directories Sponsorships Rich Video Banner Search
Gen Media
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

20. Why Search Matters
Intent = Advertiser Value
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

21. Search Clicks are Valuable
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

22. Search Clicks are Valuable
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

23. Top Search Clicks
1. Insurance (example keyword: “auto insurance price quotes”)
2. Loans (example keyword: “consolidate graduate student
loans”)
3. Mortgage (example keyword: “refinanced second
mortgages”)
4. Attorney (example keyword: “personal injury attorney”)
5. Credit (example keyword: “home equity line of credit”)
6. Lawyer
7. Donate
$277
8. Degree
9. Hosting
10. Claim
11. Conference Call
12. Trading
13. Software
14. Recovery
15. Transfer
16. Gas/Electricity
17. Classes
18. Rehab
19. Treatment
20. Cord Blood
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

24. Search engines make money when people search
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

25. Deals are made to ensure search revenue
$137 Million/Year
Paid By Google
to Mozilla Foundation
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

26. Deals are made to ensure search revenue
$1 Billion+/Year
Paid By Google
to Apple
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

27. Ways to ensure search share
• Build your own browser (Chrome, Internet Explorer
• Build your own smartphones (Google/Motorola, WinMo, etc)
• Build your own operating system
• Install search bars
• Give away tablets
• Free email accounts
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

28. Devices are a proxy to more than searches
•Homepage advertising value
•App economy
•Media sales
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

29. State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

30. State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

31. Lock In
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

32. Winner Take All
•Books
•Music
•Games
•Apps
•Movies
•Bandwidth Deals
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

33. Platform Wars for Ads, Media, and Apps
•Google
•Microsoft
•Apple
•Amazon
•Losers: Palm, Blackberry, Symbian
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

34. Same Players for Cloud Computing (mostly)
•Google Apps, AppEngine, Drive
•Microsoft Dynamics, Azure, Office360
•Amazon EC2, S3, and much more
•Salesforce, Heroku, Database.com, etc
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

35. Microsoft and WA state
Worldwide
97,106
USA
57,325
Puget Sound (Washington State)
41,442
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

36. Desktop Search Share
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

37. Mobile Search Share
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

38. take a deep breath
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

39. Three Top Trends in 2013
•Device Diversification
•Social Media Monetization
•The Rise of Data and Display
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

40. State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

41. Connected TVs
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

42. ‘Retina’ Displays
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

43. Mobile
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

44. Mobile
•Happening at an alarming pace
•Poor Mobile Experience is a turn off
•Responsive Design is King
•Apps easier to develop - Trigger.IO
•Standalone mobile websites still have a place
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

45. Social Media Monetization
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

46. Social Media Monetization
http://globalwebindex.net/thinking/social-platforms-gwi-8-update-decline-of-local-social-media-platforms/
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

47. Social Media Monetization
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

48. Payola is the new normal
• Facebook has 22 ad formats and 17 targeting dimensions
• 10-16% of page posts are seen by their fans
• New newsfeed will likely benefit advertisers
• Twitter Promoted Tweets
• LinkedIn is promoting content as well
• No ads on Google+... yet
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

49. Social Ads Work
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

50. Social Ads Work
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

51. The Rise of Data and Display
1999
“If we can just get a million eyeballs...”
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

52. The Rise of Data and Display
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

53. The Rise of Data and Display
$10-50 $.10-5
CPM CPM
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

54. The Rise of Data and Display
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

55. The Rise of Data and Display
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

56. The Rise of Data and Display
Business Travelers'>Expedia > Business Travelers 10.39X
Offline CPG Purchasers > Brand Segment > Kraft > Oscar Mayer 4.92X
Canada>Resident of > Canada 4.64X
Finance > Household Income > $60,000-$99,999 > $90,000-$99,999 6.42X
Finance > Household Income > $30,000-$59,999 > $30,000-$39,999 6.3X
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

57. Data and Privacy
•Misunderstood by consumers
•Pending legislation could stop most ad-
tech
•Browsers are taking independent action
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

58. Internet Access and Piracy
•Is the web a Luxury Item or a Human Right?
•Tyrannical governments limit web access
•ISPs are self-policing against piracy
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

59. Intellectual Property and Antitrust Regulations
•Patent law is changing next week
•Secondary patent market - NPE and R&D
•Antitrust in our era
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

60. Now What??????????????
1. Get a better mobile presence NOW
2. Budget for social ads if social media is
important to your business
3. Advocate for an open internet
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

61. Q&A Time
?
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13

62. Classes
unleashed-online.com
State of the Internet • Chris Reilly • unleashed-online.com
Tuesday, March 5, 13