The Profitability of Social Networking
According to Gartner,Global social media revenue is forecast to reach $16.9 billion in 2012, up 43.1 percent from 2011 revenue of $11.8 billion.
Advertising is, and will continue to be, the largest contributor to overall social media revenue and is projected to total $8.8 billion in 2012. Social gaming revenue more than doubled between 2010 and 2011 and is expected to reach $6.2 billion in 2012, while revenue from subscriptions is expected to total $278 million this year.
Neha Gupta, senior research analyst at Gartner stated that usage of online social media has matured, and more than one billion people worldwide will use social networks this year.Even though the number of social media users is large, and in some cases increasingly mature in their usage patterns, the market is still in its early stages from a revenue perspective.
The number of social networking users will continue to increase with a moderate pace. New kinds of media and entertainment help keep users engaged on social networking sites and attract brand new ones. Rising competition among social networking players, each vying for consumers' leisure time and attention, will result in the rise of new forms of social networking (Web based and mobile).
Marketers are allocating a higher percentage of their advertising budget to social networking sites. This is mainly driven by the fact that these sites offer a large pool of engaged users who spend considerable time on these sites — this increases the potential click-through rates (CTRs). Social media sites enable marketers to target ads to discrete consumer segments by unlocking the interconnected data structures of users that include lists of friends, their comments and messages, photos and all their social connections, contact information and associated media.
Social media sites are becoming more innovative in their ad products to attract marketers.Social networking sites should deploy data analytic technologies that interrogate social networks to give marketers a more accurate picture of trends in accordance with consumers' needs and preferences.
Advertising is, and will continue to be, the largest contributor to overall social media revenue and is projected to total $8.8 billion in 2012. Social gaming revenue more than doubled between 2010 and 2011 and is expected to reach $6.2 billion in 2012, while revenue from subscriptions is expected to total $278 million this year.Neha Gupta, senior research analyst at Gartner stated that usage of online social media has matured, and more than one billion people worldwide will use social networks this year.Even though the number of social media users is large, and in some cases increasingly mature in their usage patterns, the market is still in its early stages from a revenue perspective.
The number of social networking users will continue to increase with a moderate pace. New kinds of media and entertainment help keep users engaged on social networking sites and attract brand new ones. Rising competition among social networking players, each vying for consumers' leisure time and attention, will result in the rise of new forms of social networking (Web based and mobile).
Marketers are allocating a higher percentage of their advertising budget to social networking sites. This is mainly driven by the fact that these sites offer a large pool of engaged users who spend considerable time on these sites — this increases the potential click-through rates (CTRs). Social media sites enable marketers to target ads to discrete consumer segments by unlocking the interconnected data structures of users that include lists of friends, their comments and messages, photos and all their social connections, contact information and associated media.
Social media sites are becoming more innovative in their ad products to attract marketers.Social networking sites should deploy data analytic technologies that interrogate social networks to give marketers a more accurate picture of trends in accordance with consumers' needs and preferences.
0 comments: