State of the Consumer Internet

#SVIXP

2

Internet users

2,000,000,000

3

Internet users are not in the US

1996

2010

0 10 20 30 40 50 60 70 80 90 100

US ROW

4

They are in Asia

EuropeNorth AmericaLatin AmericaMiddle EastAsia

5

In China actually and their number grew 30% last year (US = 10% growth)

China

United States

Japan

Germany

Russia

France

India

UK

Brazil

0 50 100 150 200 250 300

6

And where is the activity growth?

E-mail Social Networking0

200

400

600

800

1000

1200

2009 Users (million) 2010 Users (million)2009 Minutes (billion) 2010 Minutes (billion)

7

Global social networkers (in millions)

15-24 25-34 35-44 45-54 55+0

50

100

150

200

250

300

350

400

450

Male Female

8

US Market

213 million users

– 10% user growth

– 20% user visit growth

– 7% user minutes growth

Average = 32 hours/month

Portals (-15%)Email (3%)Social Networks (9%)IM (-3%)Conversational media (4%)Entertainment (-5%)

9

US Market

92% of US users searched for something

82% of US users viewed a video

– 201 videos/month (71% growth)

– Guys spend 2x time than women

Comm

unity

Lifes

tyles

Photo

s

Newsp

aper

s

Resea

rch …

Beaut

y

Politic

s

Job

sear

ch0

20

40

60

80

100

Number of site visits (index)

10

Search and mobile

Search

– 1584bn per year = 132bn per month = 50k per second (17% growth)

– 45% = site search, 55% = search engine

– US = 37% search

– Google = 75%

Mobile

– 30% just voice, 30% voice + text, 40% voice + text + data

– Smartphones pushing over 20%

– Activity: Search = E-mail = Social networks = 45% of users

Weather = news = 35% of users

11

Commerce

Currently at $210bn

– $90bn travel = 43%

Top sites in millions of visitors

– Amazon = 77 with average $200 per unique user per year

– Walmart = Apple = 37

– Target = 28

– Netflix = 21

Advertising = $24bn (note GOOG’s total revenue is $22bn )

– 50% search

– 25% banner ads

– 10% classifieds

– 5% video

12

Consumer Internet

13

Consumer Internet

14

Why is Facebook so important?

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Zynga’s games: (WWZD?)

Cityville got to 75m players in 3 months

16

Etsy + FB Connect

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Etsy + FB Connect

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eBay + FB Connect

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eBay + FB Connect

20

eBay + FB Connect

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eBay + FB Connect

22

eBay + FB Connect

23

eBay + FB Connect

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eBay + FB Connect