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Gartner Says Worldwide Social Media Revenue Is on Pace to Total $10.3 Billion in 2011 and Grow to $14.9 Billion in 2012

Analysts to Reveal Latest Global IT Spending Forecast on 17 October at Gartner Symposium/ITxpo 2011 in Orlando. EMEA IT Spending Forecast to Be Announced on 7 November at Gartner Symposium/ITxpo 2011 in Barcelona

(PresseBox) (Stamford, Conn., )
Worldwide social media revenue is on track to reach $10.3 billion in 2011, a 41.4 per cent increase from 2010 revenue of $7.3 billion, according to Gartner, Inc. Worldwide social media revenue is forecast for consistent growth with 2012 revenue totalling $14.9 billion, and the market is projected to reach $29.1 billion in 2015.

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. Advertising revenue includes display advertising and digital video commercials on any device including PCs, mobile and media tablets.

"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."

To calculate social media revenue, Gartner analysts defined "social media" as including websites where: (1) content is created, consumed, promoted, distributed, discovered or shared for purposes which are primarily related to communities and social activities, rather than functional, task-oriented objectives; (2) content usually takes the form of words, pictures or videos; (3) the web site may be a closed or an open platform; and (4) the flow of expression can be unidirectional or multidirectional.

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. It includes revenue earned from "virtual wallets" within games (such as when users spend virtual money on in-game items like swords or tanks, or to create virtual armies).

"We have seen social networks take a platform-oriented approach to game monetisation. That is, the social networks have evolved into platforms for social gaming by publishing APIs that help build an ecosystem of developers and publishers," Ms Gupta said. "The dominant monetisation models for social games are ad-led and 'freemium' models. The free-to-play games are funded either through advertising (wall advertisements and in-game branding) or through in-game monetary transactions that enable users to 'level up' or buy virtual goods."

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.

"From a revenue perspective, the social media market is still in its early stages, even though it has a large number of users who, in some cases, are exhibiting increasingly mature usage patterns," Ms Gupta said. "Market participants need to build new business models to tap into this increased usage and users' increased level of engagement."

Additional information is available in the Gartner report "Forecast: Social Media Revenue, Worldwide, 2010-2015" at http://www.gartner.com/..., and the report "Market Insight: Social Media Market Tops $7 Billion, Driven by Advertising" at http://www.gartner.com/....

This research is produced by Gartner's Consumer Technology and Markets research group. This team - part of the Technology and Service Provider Research Group - provides strategic advice for consumer technology and service provider businesses. It analyses the consumer markets for devices, services and applications and researches consumer behaviour related to the adoption of technologies.

Peter Sondergaard will provide the global outlook for the IT industry during the opening keynote at Gartner Symposium/ITxpo 2011 in Orlando, on Monday 17 October. Mr Sondergaard will announce the outlook for the EMEA IT industry during the opening keynote at Gartner Symposium/ITxpo 2011 in Barcelona, on Monday 7 November. Gartner Symposium/ITxpo is the world's most important gathering of CIOs and senior IT executives. This event delivers independent and objective content with the authority and weight of the world's leading IT research and advisory organisation, and provides access to the latest solutions from key technology providers. Additional information for Gartner Symposium/ITxpo 2011 in Barcelona, 7-10 November, is available at www.gartner.com/eu/symposium.

Gartner analysts will provide more detailed analysis regarding the overall IT spending outlook during the Gartner webinar "IT Spending Forecast (3Q11 Update)" on 18 October 18 at 3:00pm UK time. To register for this complimentary webinar, please visit http://my.gartner.com/....

Gartner UK Ltd

Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is a valuable partner to 60,000 clients in 11,500 distinct organizations. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 4,500 associates, including 1,250 research analysts and consultants, and clients in 85 countries. For more information, visit www.gartner.com.

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Für die oben stehenden Stories, das angezeigte Event bzw. das Stellenangebot sowie für das angezeigte Bild- und Tonmaterial ist allein der jeweils angegebene Herausgeber (siehe Firmeninfo bei Klick auf Bild/Titel oder Firmeninfo rechte Spalte) verantwortlich. Dieser ist in der Regel auch Urheber der Texte sowie der angehängten Bild-, Ton- und Informationsmaterialien. Die Nutzung von hier veröffentlichten Informationen zur Eigeninformation und redaktionellen Weiterverarbeitung ist in der Regel kostenfrei. Bitte klären Sie vor einer Weiterverwendung urheberrechtliche Fragen mit dem angegebenen Herausgeber. Bei Veröffentlichung senden Sie bitte ein Belegexemplar an service@pressebox.de.