Global social media revenue to increase 43.1% y-o-y to $16.9 billion in 2012, says Gartner
Market research company Gartner has put forth interesting revenue trends in the social media sector in its report “Forecast: Social Media Revenue, Worldwide, 2011-2016”.
According to the forecast, social media revenue worldwide is projected to climb up by 43.1% year-on-year to $16.9 billion in 2012. The largest contribution to the revenue growth would be advertising, i.e. $8.8 billion in 2012. The other two contributors include social gaming and subscriptions with $6.2 billion and 278 million respectively.
In short, revenues from advertising and gaming would together make about 90% of the total sum.
Neha Gupta, senior research analyst at Gartner, says:
- Usage of online social media has matured, and more than one billion people worldwide will use social networks this year. Although 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.
- 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.
Further, the research firm predicts an upward albeit moderate trend in the increase of social media users. Newer social media platforms may evolve as players vie for consumers’ attention.
In the meantime, the growing number of users paying for professional networking accounts would continue to rise. However, premium subscription models are not foreseen to gain much traction.
Gartner’s forecast (click here for the press release ) is in line with other announcements recently in the social media space. For instance, a senior Facebook executive reported recently that the number of Facebook users in India has crossed 50 million.
The rapid adoption of social media is obviously a marketer’s delight. At the same time, unlike search marketing , there are still questions about the ROI of social media advertising. However, the large captive audience that social media channels offer are too large for any marketer to ignore.
Are you ready to capitalise on the growth in social media adoption in India and the marketing/ advertising opportunities these offer? Contact us to discuss more about we can formulate and execute your social media marketing strategy.