elearning market review
TRANSCRIPT
Traditional Education
Traditional education consists of face-to-face courses, textbooks, paper
assignments, and limited flexibility.
− Course size limited due
to capacity restrictions
− Tuition costs continue to
rise each year
− 50% of students use
their laptops for note-
taking in class at least
once a week
Why eLearning?
eLearning has grown significantly over the past few years and will continue
to grow in the future.
− In 2013, 7.6 million students were enrolled in at least one online class;
an increase of 411,000 students since 2012
− 74% of big academic players rate online learning outcomes the same
or better than traditional learning
− Only 9.7% of polled institutions reported online education was not a
critical part of their long term strategy
Source: Babson Survey Research Group
Innovating Traditional Education
eLearning offers several capabilities that traditional education does not:
− Scalability
− Cost-effectiveness
− Convenience
− Digitalization
Opportunities for eLearning
− Education on a mass, global
scale means more people can
become students
− Brick-and-mortar institutions
looking to increase enrollment
can do so through adopting
eLearning methods
− Marketing opportunities are
high among startups that
currently run off word-of-mouth
eLearning Industry Growth
− No longer saturated exclusively
by big online universities, though
still the market leaders
− Start-ups have entered the
industry offering new methods to
approach how to educate online
− Higher education institutions
looking towards these start-ups to
help develop their online
curriculum and experiment with
new methods
eLearning Landscape
For Credit No Credit
Online
Universities
Partner
Programs
Brick-and-Mortar
Efforts
Enrichment
Courses
MOOCs
For Credit: Online Universities
− Online universities continue to lead the eLearning market
− According to Nielsen data, television and internet advertising
(respectively) garner the most spend from online universities
University of Phoenix
TV ads $105.6M
Internet $3.57M
DeVry University
TV ads $62.58M
Internet $7.64M
Kaplan University
TV ads $8.95M
Internet $905K
− 2011: University of Phoenix, Online Campus had highest enrollment of all
degree-granting colleges or universities with 307,871 enrolled students*
*Source: National Center for Education Statistics
For Credit: Partner Programs
−2U: Provides a cloud-based
software-as-a-service platform to host
educational content that can be
accessed globally
− Q2 2014 revenue was $27.4M;
32% increase from Q2 2013
−Has raised $95M in funding
− No marketing efforts due to
required enrollment with a
partnered institution
− Programs that offer online versions of degrees from accredited brick-and-
mortar institutions
Source: 2U press release; 2U Impact Report 2014
No Credit: MOOCs
− Free, not-for-credit courses
for personal learning, resume
building, and certification in
select subjects
− Created by higher education
professionals and enhanced
by partnerships with large
organizations worldwide
− Opportunity to act as
content marketing medium for
organizations and institutions
− Brick-and-Mortars using
MOOCs as an chance to
experiment with eLearning
Source: The Chronicle of Higher Education
No Credit: Enrichment Courses
− Courses based in advancing one’s personal
education, such as learning a language or a
vocational skill
− Open English: personalized learning 24/7 ($350M)
− Lynda.com: contributor-model allows for content
creation in large quantities; received $103M in
funding in January; 1M+ paying members
− Codecademy: leading the free eLearning category
with 24 million users, $12.5M in funding, expanding
overseas
− Called the “Next Frontier In Digital Education”
by Forbes
Future of eLearning
− Worldwide eLearning Market projected to
reach $51.5B in revenue by 2016
− North American eLearning revenue
alone projected to reach $27.1B by 2016
− Cloud-based software-as-a-service solutions
will continue to grow as a platform for
eLearning
− Corporate eLearning to begin replacing face-
to-face training sessions due to convenience
and cost-effectiveness for employers
− K-12 sector will continue to be impacted
most by innovative eLearning technology in
coming years
Source: Docebo E-Learning Market Trends &
Forecast 2014 - 2016 Report, March 2014
THX
San Diego
2173 Salk Avenue
Suite 300
Carlsbad, CA 92008
(760) 929-0041
Portland
920 SW Sixth Avenue
Suite 111
Portland, OR 97204
(503) 228-5555
Boston
101 Huntington Avenue
21st Floor
Boston, MA 02199
(617) 585-3000
Los Angeles
6922 Hollywood Blvd.
2nd Floor
Hollywood, CA 90028
(310) 734-1333
London
6 Briset Street
London, EC1M 5NR
44 (0) 20 7017 1082