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Global social media revenue to reach $16.9 bn in 2012, lead by advertising: Gartner

According to a study by research firm
Gartner, global revenues of social media is expected jump by 43.1 per cent to
reach $ 16.9 billion in 2012. The social media revenue stood at $ 11.8 billion
in 2011. Advertising will continue to be the largest contributor to overall
social media revenue and is projected to total $ 8.8 billion in 2012, Gartner

According to a study by research firm
Gartner, global revenues of social media is expected jump by 43.1 per cent to
reach $ 16.9 billion in 2012. The social media revenue stood at $ 11.8 billion
in 2011. Advertising will continue to be the largest contributor to overall
social media revenue and is projected to total $ 8.8 billion in 2012, Gartner
said in a statement.

Revenues from social gaming 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,”
the study added.

The research further said that 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, which
increases the potential click-through rates.

Gartner expects social media sites to
continue to incorporate gaming techniques on their networks, driven by the
monetisation opportunities that it presents. The sale of virtual goods will
remain the primary source of revenue, it added.

“Usage of online social media has
matured, and more than one billion people worldwide will use social networks
this year. New forms of media and entertainment will keep users engaged on
social media sites and attract new ones. Rising competition among social media
players, each vying for consumers’ leisure time and attention, will lead to the
rise of new forms of social media (web based and mobile),” Gartner Senior
Research Analyst Neha Gupta has said.

“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,” Gupta
added.

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