Social media revenue to touch $10.3 billion in 2011 and grow to $14.9 billion in 2012


Worldwide social media revenue is on track to reach $10.3 billion
in 2011, a 41.4 percent increase from 2010 revenue of $7.3 billion, according
to Gartner.


Worldwide social media revenue is forecast for consistent growth
with 2012 revenue totaling $14.9 billion, and the market is projected to reach
$29.1 billion in 2015.


Marketers will begin to transition from -onetime placement and
click of ads’ toward -ongoing engagement’ with the Internet user and will
therefore allocate a higher percentage of their advertising budget to social
networking sites,” said Neha Gupta, senior research analyst at
Gartner.


This is mainly because social networking sites, with the help of
social analytics firms, are able to unlock the interconnected data structures
of users mapping lists of friends, their comments and messages, photos and all
their social connections, contact information and associated media,” Gupta added.


Advertising revenue is, and will remain, the largest contributor
to overall social media revenue. Social media advertising revenue is forecast
to total $5.5 billion in 2011, and grow to $8.2 billion in 2012.


Social gaming revenue is on pace to reach $3.2 billion in 2011 and
grow to $4.5 billion in 2012. Social gaming includes revenue that social
networking sites earn directly from users who play games that are developed
in-house, and the revenue earned by allowing game developers/publishers to use
their sites as a platform to let users play with friends on the network. 


Social media subscription revenue is forecast to reach $236
million in 2011 and total $313 million in 2012. Few social sites charge
subscription revenue, mostly for premium services. Some professional sites such
as LinkedIn, Xing in Germany and Vladeo in France, charge a subscription fee
from their users for enhanced services, such as an expanded profile view.


By
Telecomlead.com Team
[email protected]