Social Network Advertising: Market Research Report

September 2011 | 321 pages | ID: S70DBEF61C1EN
Global Industry Analysts, Inc

Abstracts

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 2017.

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.

Contents

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 Graph/Chart)

3.MARKET DYNAMICS

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 (2009-2011) (includes corresponding Graph/Chart)

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 Graph/Chart)

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 Graph/Chart)

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
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
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)
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 Graph/Chart)

12.THE UNITED STATES

A. MARKET ANALYSIS

Outlook
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 (2010-2012E): Percentage Share Breakdown of Revenues for Facebook, Yahoo!, Google, AOL, and Others (includes corresponding Graph/Chart)

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

B. MARKET ANALYTICS

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 Graph/Chart)

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 Graph/Chart)

13.CANADA

A. MARKET ANALYSIS

Outlook
Internet Advertising Gains Momentum

Table 9. Online Advertising Spending in Canada (2011): Percentage Share Breakdown by Format for Search, Display, Classifieds, and Video & Email (includes corresponding Graph/Chart)

Table 10. Internet Users in Canada (2010): Percentage Share Breakdown by Age Group (includes corresponding Graph/Chart)

Social Media Advertising in Canada
Retailers Opt for Advertising through Social Media

B. MARKET ANALYTICS

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 Graph/Chart)

14.JAPAN

A. MARKET ANALYSIS

Outlook
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

B. MARKET ANALYTICS

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 Graph/Chart)

15.EUROPE

A. MARKET ANALYSIS

Outlook
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 (2010-2015) (includes corresponding Graph/Chart)

Table 14. Social Network Users as % of Internet Users (2009 & 2015) for France, Germany, Italy, UK and Spain (includes corresponding Graph/Chart)

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

B. MARKET ANALYTICS

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 Graph/Chart)

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 Graph/Chart)

15A.FRANCE

A. MARKET ANALYSIS

Outlook
Rapid Progress of the Digital Media Market

Table 17. Internet Penetration in France (2009-2013): Internet Users as % of Total Population (includes corresponding Graph/Chart)

Social Networking: A Rising Phenomenon
Impact of Regulations

B. MARKET ANALYTICS

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 Graph/Chart)

15B.GERMANY

A. MARKET ANALYSIS

Outlook
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 Graph/Chart)

B. MARKET ANALYTICS

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 Graph/Chart)

15C.ITALY

A. MARKET ANALYSIS

Outlook
Impact of New Regulations

B. MARKET ANALYTICS

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 Graph/Chart)

15D.THE UNITED KINGDOM

A. MARKET ANALYSIS

Outlook
Social Network Ad Spending on the Rise

Table 22. Social Network Ad Spending as % of Total Online Ad Spending in the UK (includes corresponding Graph/Chart)

Table 23. Penetration of Social Networking Sites in the UK (2009-2014): Number of Users as % of Total Internet User Base (includes corresponding Graph/Chart)

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 (2009-2011) (includes corresponding Graph/Chart)

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 Graph/Chart)

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 Graph/Chart)

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

B. MARKET ANALYTICS

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 Graph/Chart)

15E.SPAIN

A. MARKET ANALYSIS

Outlook
An Overview of Digital Market

Table 28. Internet Penetration in Spain (2009-2013): Internet Users as % of Total Population (includes corresponding Graph/Chart)

Social Networking – A Thriving Market
Product Innovations/Introductions

B. MARKET ANALYTICS

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 Graph/Chart)

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 Graph/Chart)

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 Graph/Chart)

16.ASIA-PACIFIC

A. MARKET ANALYSIS

Outlook
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 (2010-2011): Percentage Share Breakdown of Revenues for Display Advertisements and Text Advertisements (includes corresponding Graph/Chart)

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

B. MARKET ANALYTICS

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 Graph/Chart)

17.REST OF WORLD

A. MARKET ANALYSIS

Outlook
Internet Advertising Gathers Pace in Latin America

Table 35. Online Ad Spending as % of Total Ad Expenditure in Latin America (2009-2012) (includes corresponding Graph/Chart)

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

B. MARKET ANALYTICS

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 Graph/Chart)

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