Social Media Revs To Reach Nearly $17 Billion
Posted by Rant4u
Advertising will contribute $9 billion to social media global revenue of nearly $17 billion this year, up from $12 billion in 2011, estimates Gartner. The approximate 43% uptick supports stronger social signals that find their way into search, mobile and premium display ads.
Neha Gupta, senior research analyst at Gartner, estimates more than 1 billion people worldwide will use social networks in 2012, but not just for social streams on sites like Facebook and Google+. Gaming revenue from social media more than doubled between 2010 and 2011 and is expected to reach $6.2 billion in 2012.
Revenue from subscriptions is predicted to reach $278 million this year. The sale of virtual goods will remain the primary source of revenue.
Some social developers, such as Zynga, GREE and DeNA, have moved to an open-platform strategy to support user convenience and choice. Along with the developers move, marketers are allocating a higher percentage of their advertising budget to social networking sites. Not just traditional social sites like Facebook, but video services.
Gupta estimates ecommerce on social media sites will evolve into payment platform for transactions of digital content to pay for applications and social gaming or to make a person-to-person payment to another user in the network site. These new revenue opportunities will augment mobile and TV platforms that integrate with social networks as a core service. Read More
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