- by Rory Ramsden
“The value of the web economy in G20 countries will nearly double by 2016, according to Boston Consulting Group. Driving the spurt from $2.3tn (£1.5tn) to $4.2tn (£2.7tn) will be the rapid rise of mobile internet access. The study, supported by web giant Google, assumes that in four years 3bn people will be using the internet, or nearly 50% of the world’s population”
That quote came straight from the BBC who went on to say that the rapid fall in the cost of smartphones – with cheap versions now costing about $100 – means that by 2016 about 80% of all internet users will access the web using a mobile phone. That does not include feature phones or tablets like the Ipad or Kindle Fire
Impressive as these numbers may be, they still only represent 4.1% of the total size of all G20 economies so the upside is still large to say the least.
The Boston Consulting Group point out that web access will not be a luxury any more. The majority of web users will live in emerging markets (within four years, China is expected to be home to 800 million people using the internet; that is more than the United States, India, France, Germany and the UK taken together) and about 80% of all internet users will access the web from a mobile.
These are highly reputable sources sounding a warning bell for those small businesses who have not woken up to the challenge that this massive shift will mean to their very survival. Paul Zwillenberg of BCG says that entrepreneurs building a digital business are outperforming rivals who do not embrace the web economy.
They need to grasp the fact that the web which was once one big amorphous mass is splintering into different ecosystems with Facebook, Amazon, Apple and Google leading the charge in the west and with Baidu and Tencent dominant in China.
Once electricity had a massive impact on people’s lives bringing list where there was darkness and heat where there was cold. Whole industries were transformed and new ones created and yet no-one talked about the ‘electricity economy’ as we talk now of the ‘web economy’ which is having a similar impact on our lives and our businesses
Five years ago the iPhone and the iPad did not exist and yet today they account for 72 percent of total revenue for Apple. By 2020 the web economy will be so much a part of everyone’s daily lives that it will be regarded in much the same way as we look upon the use of electricity today.
The challenge that small business owners, that’s you, face is one of re-engineering their whole business model to position themselves to take advantage of the opportunities that are being thrown up by this seismic shift without letting the tremors shake the foundations of what they have built to date.
The traditional marketing strategies that you have always used are losing their potency. You are faced with social media marketing, search engine marketing and many other web based marketing strategies yet you still have to sell your products every day to a demographic that is changing almost by the minute.
In short you are in a vice.
On one side is time or rather the lack of it. you have time to run your day to day business BUT add in the demands of learning the ins-and-outs of the web economy not to mention how to do one product launch after another online add you quickly reach overwhelm
On another, you have to give your prospects and customers a reason to move from doing business with you offline to doing business with you online and on the move.
Have you found the answer to these questions? If you have, how have you focused your mobile marketing efforts? Please pay it forward by sharing your insights with the launch marketing community… Leave a comment below and tell us how you did it and why