Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications
    • IT Management
    • Small Business

    Social Media Revenue Nears $17 Billion in 2012: Gartner

    By
    Nathan Eddy
    -
    July 26, 2012
    Share
    Facebook
    Twitter
    Linkedin

      Although Facebook€™s initial public offering may have disappointed some, social media is on track to generate close to $17 billion in revenue worldwide this year, according to IT research firm Gartner. The report found revenue is up 43.1 percent to $16.9 billion, compared with 2011 revenue of $11.8 billion. Advertising continues to be the largest contributor to overall social media revenue, projected to total $8.8 billion in 2012.

      Revenue from social media subscriptions is expected to total $278 million this year, while social gaming revenue, which more than doubled between 2010 and 2011, is expected to reach $6.2 billion in 2012. Gartner analysts predicted users would continue to join social networking sites at a €œmoderate€ pace, with new features, applications and experiences holding the interest of old members and drawing the interest of new participants. As the competition between sites like Facebook, LinkedIn, Twitter and new players increases, new forms of Web-based and mobile social media will rise, Gartner predicted.

      “Usage of online social media has matured, and more than one billion people worldwide will use social networks this year,” Neha Gupta, senior research analyst at Gartner, said in prepared remarks. “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.”

      As many of the professional sites, including LinkedIn and Xing, that charge for premium services observed a decline in the subscriptions revenue ratio, social sites are moving toward lower subscription fees and shifting focus to other sources of revenue, such as advertisement-based sales, although the report notes the growth in users paying for professional networking accounts will continue. Marketers are allocating a higher percentage of their advertising budgets to social networking sites, which is driven by the large pool of engaged users who spend considerable time on social media sites, thereby increasing the potential click-through rates (CTRs).

      “Social media sites are becoming more innovative in their ad products to attract marketers,” Gupta continued. “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.”

      In terms of new revenue channels, Gartner predicted payments on social media sites will increase, providing increased revenue opportunities to social media sites to serve as a payment platform for transactions of digital content, such as paying for applications, as part of social gaming or to make a person-to-person (P2P) payment to another user of the network site. The sale of virtual goods will remain the primary source of revenue, the report predicted.

      “New revenue opportunities will exist in social media, but no new services will be able to bring significant fresh revenue to social media by 2016,” Gupta concluded. “The biggest impact of growth in social media is on the advertisers. In the short and medium terms, social media sites should deploy data analytic techniques that interrogate social networks to give marketers a more accurate picture of trends about consumers’ needs and preferences on a customized basis. In the meantime, however, they should also continue to exploit other channels of revenue like mobile advertising and social commerce.”

      Nathan Eddy
      A graduate of Northwestern University's Medill School of Journalism, Nathan was perviously the editor of gaming industry newsletter FierceGameBiz and has written for various consumer and tech publications including Popular Mechanics, Popular Science, CRN, and The Times of London. Currently based in Berlin, he released his first documentary film, The Absent Column, in 2013.

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Big Data and Analytics

      Alteryx’s Suresh Vittal on the Democratization of...

      James Maguire - May 31, 2022 0
      I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×