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Tuesday, June 21, 2005

Top Ten Emerging Internet Trends

The Piper Jaffray Global Internet Summit saw dynamic ideas emerging on where the Internet and media are going over the near future. Key themes got developed that gradually built upon each other, leading to several key conclusions indicating that the biggest winners were online media companies (Yahoo, Google), intermediaries (Shopping.com), as well as advertising services companies (aQuantive, Marchex). The top ten key findings from the Summit:
1) Online Advertising - The Big Winner - The consensus belief is that migration of dollars from TV and mass marketing to online will significantly accelerate in the coming years
2) Changing Traditional Media and Telecom Models - The traditional media companies are likely to undergo major shifts in their business models with the telecom "gate keepers" likely to lose their power. The new model evolving is highly personalized and does not allow amassing of distribution power with . User-generated content playing a significant role
3) Emergence of Mobile Media as the Next Big Opportunity - The mobile devices will play a major role in consumption of high-bandwidth media, including music and video, in the future. Younger segments of the population, will rely heavily on their mobile devices for peer-to-peer as well as group and other interactions.
4) Google's Brand Strength and Dominance in Search - searching is equated with "googling."
5) Uncertain Future for Music Industry - Today the youth do not consider paying for music a "natural act." To them, music is for sharing. The current economics of the music industry is likely to change and with that the distribution powers will shift. Apple, Yahoo, and similar networks are likely to dominate the online music distribution market.
6) Development of New Web Communities - With blogging & social networking, new trends will pose new challenges and opportunities to marketers. Affinity marketing, auction based listings, and other approaches may offer significant growth potential.
7) Consolidation Environment with Increasing M&A Activities - There is an increasing desire from major consolidators, particularly offline media companies, to acquire online assets. The recent pattern of acquisitions such as Shopping.com, Shopzilla, About.com and others were considered a growing pattern.
8) Limited Upside Potential for Pure eCommerce Players - The eCommerce sector as becoming very competitive while approaching higher levels of saturation & the biggest winners will be search and other intermediaries, such as shopping comparison engines. Offline merchants have had major gains while the infrastructure and technology cost advantages of the pure e-tailers is rapidly eroding.
9) Vertical search shall become more prominent -Vertical Search Gaining
10) Spyware, Viruses Could Slow Ad Spending -The growing "fear factor" in using the web, including spyware programs, viruses and others, could undermine legitimate use of personalization and behavioral targeting methods and slow the growth of online advertising.

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Sadagopan's Weblog on Emerging Technologies, Trends,Thoughts, Ideas & Cyberworld
"All views expressed are my personal views are not related in any way to my employer"