Social Network Advertising: Market Research Report
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1 Social Network Advertising: Market Research Report Phone: Fax:
2 Social Network Advertising: Market Research Report Date: September 1, 2011 Pages: 321 Price: US$ 4, ID: S70DBEF61C1EN This report analyzes the worldwide markets for Social Network Advertising in US$ Million. The report provides separate comprehensive analytics for US, Canada, Japan, Europe, Asia-Pacific, and Rest of World. Annual estimates and forecasts are provided for the period 2008 through The report profiles 57 companies including many key and niche players such as Adknowledge, Inc., Clearspring Technologies, Inc., DoubleClick, LifeStreet Media, LinkedIn Corporation, LivingSocial, Inc., Right Media LLC, RockYou, Inc., and SplashCast Corporation. Market data and analytics are derived from primary and secondary research. Company profiles are mostly extracted from URL research and reported select online sources. Table of Content 1. INTRODUCTION, METHODOLOGY & PRODUCT DEFINITION Study Reliability and Reporting Limitations Disclaimers Data interpretation & reporting level Quantitative Techniques & Analytics Product Definitions and Scope of Study 2.INDUSTRY OVERVIEW The Age of Social Media Advertising Snapshots Targeting Consumer s Social Behavior Social Advertising Assumes Mainstream Status Recession & Social Network Advertising Current and Future Analysis US: The Dominant Regional Market Social Advertising: Yet to Live Up to Expectations Metrics to Assess Revenue Generation Potential of Social Networks How Successful is the Ad Revenue Model for Social Networks? Social Gaming: Potential for Growth Table 1. Global Social Network Advertising Market (2010 & 2011): Percentage Share Breakdown of Revenues for Social Networks and Social Games (includes corresponding 3.MARKET DYNAMICS Social Network Advertising: Market Research Report 2
3 Mobile Advertising Potential for Growth Social Advertising Follows Trends in Paid-for-Search Advertising Global Use of Social Networks Continues to Rise Large Brands Move Towards Social Advertising Social Communities Foster Innovations at P2P Level Social Advertising and Earned Media Traditional Media Continue to Rule Advertising Table 2. Average Revenue Per User (US$) in Social Network Advertising and Total Advertising ( ) (includes corresponding Can Social Media Beat Search Advertising? Focus Shifts to User Engagement Ads Challenges Facing Social Advertising User Base Saturation - A Concern for Social Networks Spam & Content Quality: Concerns Facing Microblogging Low Engagement of Display Ads: A Major Barrier B2B Social Marketing Spending on the Rise 4.SOCIAL NETWORKS & ADVERTISING STRATEGIES Prelude Table 3. Leading Players in the Social Network Advertising (2011): Percentage Share Breakdown of Revenues for Facebook, MySpace, Twitter and Others (includes corresponding A Glance at the Advertising Strategies of Leading Social Networks Facebook: The Leader in Social Network Advertising Arena Table 4. Average Revenue Per User (in US$) of Select Technology Companies (2010) (includes corresponding Is Google Plus the Answer to Facebook? MySpace: Losing Hold on the Market Twitter Advertising Revenues on the Rise 5.DIGITAL ADVERTISING Digital Advertising: An Overview Monetization of Online Businesses: Critical Factors to Watch Out Major Platforms of Digital Advertising Search Marketing: The Predominant Online Ad Segment The Emerging Ad Formats Technological Advancements Drive Development of New Ad Methods 6.INTRODUCTION TO SOCIAL NETWORK ADVERTISING An Introduction to Online Advertising Social Network Advertising: A Conceptual Overview Ideal for Targeted Advertising Strategy Social Ads Vs Behaviorally Targeted Ads Social Network Advertising: Market Research Report 3
4 Tools of Social Advertising Basic Components of Social Ads Data Used in Social ads Forms of Advertising on Social Networks Self-Service Ads Types of Social Network Advertising Direct Advertising (Based on Network of Friends) Direct Advertising (Placed on User s Social Networking Site) Indirect Advertising Social Media as Search Engines Social Network Advertising Vs Traditional Online Advertising Advantages of Social Network Advertising Audience Targeting: A Key Benefit Access to Large Audience Base Easy Development of Content Favorable Cost Scenario The Advantage of Earned Media Online Campaigns: Leveraging Social Media Improving Customer Service and Feedback Enhancing Social Awareness Disadvantages of Social Network Advertising The Role of Buzz Monitoring Tools 7.MAJOR SOCIAL NETWORKING SITES A REVIEW Introduction Social Networks Development Timeline An Overview of Leading Social Networks Bebo (US) Cyworld (South Korea) Facebook, Inc. (US) Advertising on Facebook: An Insight Small Businesses Major Revenue Generators for Facebook Difference Between Facebook & MySpace Friendster (Malaysia) MySpace, Inc. (US) Orkut (US) Renren, Inc. (China) Twitter, Inc. (US) 8.PRODUCT INNOVATIONS/INTRODUCTIONS Mixi and Nike Japan Launch Social Banner Ad Campaign YouTube Introduces TrueView Advertisement Format XA.net Launches optim.al Multivariate Advertising Optimization Platform Clickable Launches Live Advertising Solution WebAdvantage.net Introduces Social Media Roadmap Service Linqia Introduces Social Advertising Platform The Social Network Introduces Advertisement Unit for MySpace Twitter Introduces Promoted Tweets Advertising Platform Facebook Introduces Places, Location-Based Platform RockYou Introduces DOTD In-Game Advertising Solution Turespana Introduces Online Campaign on Social Networks Google Unveils DoubleClick for Publishers BLiNQ Media Introduces BAM Facebook Ad Campaign Management Engine Social Network Advertising: Market Research Report 4
5 RockYou Introduces Brand Advertising Offerings ShopIt Introduces Shopit Media Advertising Network Starbucks Unveils New Advertisement Campaign on Social Networks eworld Companies Introduces eworldmix Online Social Network Adknowledge Launches BidSystem 3.0 Self-Service Auction Marketplace Clearspring to Introduce Enhanced Version of AddThis Platform Google Launches New DoubleClick Ad Exchange MySpace Introduces Self-Serve Ad Platform Clearspring and SplashCast Introduce Integrated Social Advertising Platform LinkedIn Introduces DirectAds Platform SplashCast Introduces New HotSpot Technology Adknowledge Introduces Social Advertising Network in the UK 9.RECENT INDUSTRY ACTIVITY LivingSocial Takes Over Socialmedia.com Experian Acquires Techlightenment Facebook Establishes Sales Office in Brazil AOL Takes Over Pictela Traffic Marketplace Acquires Social Suitcase LifeStreet Media Acquires Ad Network Assets of SocialCash Adknowledge Takes Over Hydra Group Criterion Capital Partners Takes Over Bebo Kaixin.com to Merge with Renren.com Google and MySpace Sign Multi-Year Agreement Google Implements Changes to Orkut Facebook and PayPal Enter into Partnership RockYou Inks Agreement with Facebook Quepasa Signs Agreement with Grupo Expansion Quepasa Signs Agreement with Sony Pictures Television Ad Sales Candystand.com and Intergi Entertainment Sign Agreement Facebook Establishes New Office in India RockYou Collaborates with Game Developers to Integrate DOTD(SM) Google Takes Over Teracent Atrinsic Takes Over ShopIt Adknowledge Acquires Advertising Business of SocialMedia.com ShopIt Takes Over Triana Global Adknowledge Takes Over KITN Media Adknowledge Takes Over Advertising Business of Lookery MOL Global Acquires Friendster Mixi Becomes Part of OpenSocial Initiative Adknowledge Acquires Adonomics AOL Acquires Bebo Radio One Acquires Community Connect 10.FOCUS ON SELECT SOCIAL NETWORK ADVERTISING COMPANIES Adknowledge, Inc. (US) Clearspring Technologies, Inc. (US) DoubleClick (US) LifeStreet Media (US) LinkedIn Corporation (US) LivingSocial, Inc. (US) Right Media LLC (US) RockYou, Inc. (US) Social Network Advertising: Market Research Report 5
6 SplashCast Corporation (US) 11.GLOBAL MARKET PERSPECTIVE Table 5. World Recent Past, Current and Future Analysis for Social Network Advertising with Annual Revenue Figures in US$ Million for the Years 2008 through 2017 (includes corresponding 12.THE UNITED STATES Economic Crisis Benefits Social Networks Social Networks Increase Share in Online Ad Revenues The Less Preferred Medium for Ads Rising Expenditure on Social Network Advertising Advertising: A Reasonable Price for Using Social Networks Mobile Marketing Finds Favor Among Consumers Facebook: The Leading Social Network in the US Facebook Leads Display Ads Market Table 6. Leading Online Ad Selling Companies in the US Display Advertising Market ( E): Percentage Share Breakdown of Revenues for Facebook, Yahoo!, Google, AOL, and Others (includes corresponding Mobile Technology Offers Enormous Potential for Social Networks Opportunities in Gaming Sector Financial Service Companies Carry Out Campaigns on Social Media Networks Regulatory Environment Product Innovations/Introductions Strategic Corporate Developments Key Players Table 7. US Recent Past, Current and Future Analysis for Social Network Advertising by Social Network MySpace, Facebook, Social Games, and Others Markets Independently Analyzed with Annual Revenue Figures in US$ Million for the Years 2008 through 2017 (includes corresponding Table 8. US 10-Year Perspective for Social Network Advertising by Social Network Percentage Breakdown of Revenues for MySpace, Facebook, Social Games, and Others Markets for the Years 2008, 2011 and 2017 (includes corresponding 13.CANADA Internet Advertising Gains Momentum Table 9. Online Advertising Spending in Canada (2011): Percentage Share Breakdown by Format for Social Network Advertising: Market Research Report 6
7 Search, Display, Classifieds, and Video & (includes corresponding Table 10. Internet Users in Canada (2010): Percentage Share Breakdown by Age Group (includes corresponding Social Media Advertising in Canada Retailers Opt for Advertising through Social Media Table 11. Canadian Recent Past, Current and Future Analysis for Social Network Advertising Analyzed with Annual Revenue Figures in US$ Million for the Years 2008 through 2017 (includes corresponding 14.JAPAN Social Media Networking in Japan General Social Networking Service Sites Video and Photo Sharing Sites Social Bookmarking Sites Blog Network Sites Mini-Blogging Sites Intense Battle in Social Networking Market Mixi: Leading the Social Network Scene Gree: A Tough Competitor Mobage Town Twitter Japan: Gaining Ground Through Ad Sales Widespread Use of Mobile Platform Product Innovations/Introduction Strategic Corporate Development Table 12. Japanese Recent Past, Current and Future Analysis for Social Network Advertising Analyzed with Annual Revenue Figures in US$ Million for the Years 2008 through 2017 (includes corresponding 15.EUROPE Recession & Online Spending Increasing Use of Social Networking Social Networking Trends in Western Europe Table 13. Social Network Users as % of Internet Users in Western Europe ( ) (includes corresponding Social Network Advertising: Market Research Report 7
8 Table 14. Social Network Users as % of Internet Users (2009 & 2015) for France, Germany, Italy, UK and Spain (includes corresponding Online Ad Spending Trends in Western Europe Popular Online Activities of Internet Users (25-34 Years) in Western Europe Social Media Influences Online Advertising & Retail Market Social Media Trend Catching on with Baby Boomers Display Advertising Catches On Regulatory Environment Leading Ad Providers Opt for Self Regulation Table 15. European Recent Past, Current and Future Analysis for Social Network Advertising by Geographic Region France, Germany, Italy, UK, Spain, Sweden and Rest of Europe Markets Independently Analyzed with Annual Revenue Figures in US$ Million for the Years 2008 through 2017 (includes corresponding Table 16. European 10-Year Perspective for Social Network Advertising by Geographic Region Percentage Breakdown of Revenues for France, Germany, Italy, UK, Spain, Sweden and Rest of Europe Markets for the Years 2008, 2011 and 2017 (includes corresponding 15A.FRANCE Rapid Progress of the Digital Media Market Table 17. Internet Penetration in France ( ): Internet Users as % of Total Population (includes corresponding Social Networking: A Rising Phenomenon Impact of Regulations Table 18. French Recent Past, Current and Future Analysis for Social Network Advertising Analyzed with Annual Revenue Figures in US$ Million for the Years 2008 through 2017 (includes corresponding 15B.GERMANY Display Ads: A Growing Category Table 19. Leading Online Display Advertising Publishers in Germany (Q3 2010): Percentage Share Breakdown of Number of Ad Impressions for Facebook.com, Verlagsgruppe Georg von Holtzbrinck, Jappy GmbH, Deutsche Telekom, and Others (includes corresponding Social Network Advertising: Market Research Report 8
9 Table 20. German Recent Past, Current and Future Analysis for Social Network Advertising Analyzed with Annual Revenue Figures in US$ Million for the Years 2008 through 2017 (includes corresponding 15C.ITALY Impact of New Regulations Table 21. Italian Recent Past, Current and Future Analysis for Social Network Advertising Analyzed with Annual Revenue Figures in US$ Million for the Years 2008 through 2017 (includes corresponding 15D.THE UNITED KINGDOM Social Network Ad Spending on the Rise Table 22. Social Network Ad Spending as % of Total Online Ad Spending in the UK (includes corresponding Table 23. Penetration of Social Networking Sites in the UK ( ): Number of Users as % of Total Internet User Base (includes corresponding Facebook Propels Online Advertising Expenditure Social Networking Scenario in the UK Rising Broadband Penetration Favors Growth of Social Media Table 24. Penetration Rate (%) of Internet in the UK ( ) (includes corresponding Major Online Activities of Adult Internet Users in the UK Mobile Technologies: Vital Role in Social Networking Table 25. % of Time Spent on Social Networking Sites (2010): Breakdown by Age Group and Device (includes corresponding Social Networking Catches Up Among the Elderly Table 26. Social Networking Site Users as % of All Internet Users in the UK (2010): Breakdown by Age Group (includes corresponding Social Network Advertising: Market Research Report 9
10 Government s Online Initiatives B2C in Social Networks Robust Growth for Display Advertising Social Gaming: Potential for Growth Social Network Advertising in Consumer Goods Industry ASA Moves to Regulate Online and Social Advertising Strategic Corporate Developments Table 27. UK Recent Past, Current and Future Analysis for Social Network Advertising Analyzed with Annual Revenue Figures in US$ Million for the Years 2008 through 2017 (includes corresponding 15E.SPAIN An Overview of Digital Market Table 28. Internet Penetration in Spain ( ): Internet Users as % of Total Population (includes corresponding Social Networking A Thriving Market Product Innovations/Introductions Table 29. Spanish Recent Past, Current and Future Analysis for Social Network Advertising Analyzed with Annual Revenue Figures in US$ Million for the Years 2008 through 2017 (includes corresponding 15F.SWEDEN Market Analysis Table 30. Swedish Recent Past, Current and Future Analysis for Social Network Advertising Analyzed with Annual Revenue Figures in US$ Million for the Years 2008 through 2017 (includes corresponding 15G.REST OF EUROPE Market Analysis Table 31. Rest of Europe Recent Past, Current and Future Analysis for Social Network Advertising Analyzed with Annual Revenue Figures in US$ Million for the Years 2008 through 2017 (includes corresponding 16.ASIA-PACIFIC Social Network Advertising: Market Research Report 10
11 Social Network Advertising Catches Up in Asia Southeast Asia: Slow to Embrace Social Network Advertising Table 32. Social Media Use in Southeast Asia Tencent QQ: The Richest Social Network Cyworld Rules Korean Market The Predominance of Local Social Networks Twitter: A Worthy Competitor? High Level of Social Media Engagement at Workplaces Low-Cost Asian Carriers Move Towards Social Media Unilever Uses Social Networks for Marketing Campaigns Review of Select Regional Markets Australia China Social Network Advertising An Untapped Market Social Networks Make Rapid Strides Competition in the Social Networks Market Comparison of the Top Four Social Networks in China India Online Advertising in India Table 33. Online Advertising Market in India ( ): Percentage Share Breakdown of Revenues for Display Advertisements and Text Advertisements (includes corresponding Growing Popularity of Social Media Sites Facebook Strengthens Presence in India Snapshots Social Advertising: A Nascent Phenomenon Businesses Use Social Sites for Select Inventories Corporate India Wakes Up to the Benefits of Social Media Social Network: An Ideal Platform for Start-Ups Twitter: Potential for Growth Online Product Reviews Business Tycoons Become Part of Social Advertising Drawbacks of Using Social Media for Advertising South Korea An Advanced Online Market Cyworld: Leading the Social Networking Marketplace Microblogging Services Gain Momentum Thailand Strategic Corporate Developments Key Players Table 34. Asia-Pacific Recent Past, Current and Future Analysis for Social Network Advertising Analyzed with Annual Revenue Figures in US$ Million for the Years 2008 through 2017 (includes corresponding Social Network Advertising: Market Research Report 11
12 17.REST OF WORLD Internet Advertising Gathers Pace in Latin America Table 35. Online Ad Spending as % of Total Ad Expenditure in Latin America ( ) (includes corresponding Social Media Sites Find Favor Brazil Social Network Advertising in Brazil Table 36. Select Social Networking Sites in Brazil (August 2010): Breakdown by Total Unique Visitors, Average Minutes, and Average Pages Orkut Brazil: The Most Popular Social Network in Brazil Demographic Profile of Leading Social Network Sites Mexico Strategic Corporate Developments Table 37. Rest of World Recent Past, Current and Future Analysis for Social Network Advertising Analyzed with Annual Revenue Figures in US$ Million for the Years 2008 through 2017 (includes corresponding Competitive Landscape Total Companies Profiled: 57 (including Divisions/Subsidiaries - 62) Region/CountryPlayers The United States Japan Europe Germany The United Kingdom Spain Rest of Europe Asia-Pacific (Excluding Japan) Latin America Social Network Advertising: Market Research Report 12
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