The Social Networking Market Opportunity: Quantifying market reach, scale and monetization across the value chain, 2010-15

Date: April 22, 2010
Pages: 160
Price:
US$ 2,875.00
Publisher: Business Insights
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: S81C2C6691CEN
Leaflet:

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The Social Networking Market Opportunity: Quantifying market reach, scale and monetization across the value chain, 2010-15
The online Social Networking market is emerging from an immature period of competitive dislocation to one of market maturity, in which clear user needs and platform value propositions have emerged, paving the way for incumbency, scalability and successful monetization.

Not just another ‘how to make money via social networking; report, 'Monetizing Social Networking' is a thorough examination of the totality of emerging value chains, quantifying commercial opportunities along the value chain. It examines these opportunities in the business / strategic context, whereby there will be a ‘few winners take all’ fall-out. The report will be of major significance to brand owners and marketers, but will also deliver a key business advice and data reference vehicle for all stakeholders in the value chain.

'Monetizing Social Networking' qualifies and quantifies the commercial opportunities that are available and will emerge in the near term in online social networking for brand owners, advertisers, content providers, apps developers, hardware and software providers, as well as the social networking platforms themselves and their user communities. The period between 2010–2012 represents the key near term strategic window in establishing incumbency in the social networking market, and the market is racing towards maturity by 2015.

Key features of this report
  • Quantification of opportunities
  • Segmentation of opportunities by geography
  • Segmentation of opportunities by stakeholder type
  • Segmentation of opportunities by user community demographics
  • Full analysis of impact of social, technological, regulatory and business drivers
  • Full coverage of Asian and European as well as US markets
  • Profiles of 18 leading social networking stakeholders
Scope of this report
  • Gain a unique quantified data platform of how online social network markets are gaining scale, and delivering direct and indirect revenue opportunities across the whole value chain
  • Access uniquely comprehensive and robust data to permit business planning for global strategy, including forecasts to 2015
  • Understand how the competitive environment is changing, and how networks themselves will remain in a difficult financial position, while opening up large revenue opportunities for others.
  • Access detailed data and insight into the market globally with all major markets detailed. 20 leading markets representing 88% of global opportunity are separately profiled.
Key Market Issues
  • There is apparent value in the scale and growth offered by online social networking, but platforms and other stakeholders need to establish how to successfully monetize this potential.
  • There is a lack of clarity regarding the scale, category segmentation and geographic reach of the developing social networking market, making monetization strategy elusive.
  • A strategic shakeout is required, in part due to the rise of Facebook, if many current providers are to survive – at the same time, Facebook risks overstretch, and other rising networks such as Twitter and LinkedIn face an unclear monetization path.
  • Most stakeholders, especially brand owners and advertisers, will have to move in the period 2010-11 away from a non-quantified, hopeful social media presence and towards a planned, quantified, sophisticated social media strategy.
Key findings from this report
  • The online social networking market is emerging from an immature period of competitive dislocation to one of market maturity, in which clear user needs and platform value propositions have emerged, paving the way for incumbency, scalability and successful monetization.
  • Online social networks have attained mass - already being used by 971m unique users at the end of 2009.
  • Online social networking is becoming a meaningful global phenomenon. The US and Western Europe will continue to be major markets, and will see very strong levels of absolute growth. These early adopter markets are, however, declining in terms of proportion of global users with Asia increasingly dominant.
  • In the face of Facebook’s dominance, most networks are embracing a ‘double niche’ strategy – focusing upon clear customer segments and service categories. LinkedIn, for example, targets professionals aged 30-55, and offers professional and career networking services. Hi5 is becoming a specialist gaming network aimed at the 16-29 audience.
Key questions answered
  1. What is the scale of the opportunity provided by social networking?
  2. How will social networking usage grow in the period 2010-2015?
  3. What are the competitive positions of major platforms?
  4. Who are the main stakeholders, and what is their position in the value chain?
  5. What is the market reach of the major platforms?
  6. Are current business models sustainable?
Monetizing Social Networking
Executive summary
Social networking market context
The dynamics of the social networking marketplace
Social networking competitive situation analysis
Monetizing the social networking market
Stakeholder profiles

CHAPTER 1 SOCIAL NETWORKING MARKET CONTEXT

Summary
Introduction
Who is this report for?
Development of the social networking market

CHAPTER 2 THE DYNAMICS OF THE SOCIAL NETWORKING MARKETPLACE

Summary
Introduction
Notes on data and sources
Global overview
Market scale and growth
Market reach
15 leading national markets dominate worldwide
Regional markets
North America
North American social networking markets
USA
Canada
Western Europe
Major Western European national social networking markets
UK
Germany
France
Italy
Spain
Central and Eastern Europe
Major Central and Eastern European national social networking markets
Russia
Central and South America
Major Central and South American national social networking markets
Brazil
Mexico
Asia
Major Asian national social networking markets
China
Japan
South Korea
India
South East Asia
Indonesia
Philippines
Singapore
Other major markets
Australia
South Africa
Turkey
Other geographies
Forecast market opportunity
Factors promoting and restricting the growth of social networking
17 national markets will exceed 20m users by 2015

CHAPTER 3 SOCIAL NETWORKING COMPETITIVE SITUATION ANALYSIS

Summary
Competitive overview
Introduction
Facebook – the first global social network
Facebook’s rise drives emergence of strategic clarity
Likely competitive paths, 2010-2015
Competitor monetization strategies, 2010
Competitor monetization strategic paths, 2010-2015

CHAPTER 4 MONETIZING THE SOCIAL NETWORKING MARKET

Summary
Introduction
Note on methodology and sources
The consumer expenditure reach of social networking
Direct revenues earned through online social networks, 2010 and 2015
Direct revenues earned through social networking sites
Global overview
Revenue
ARPU
Detail of the scalable markets emerging by 2015
Revenue
ARPU
Implications for stakeholders
Models of future monetization
Implications for online social network technology infrastructure suppliers
Implications for brand owners and advertisers
Implications for games, apps and virtual goods developers
Implications for networks

CHAPTER 5 STAKEHOLDER PROFILES

Summary
Introduction
Social networking platforms
Facebook
QQ.com (Tencent)
Twitter
MySpace
Friendster
Hi5 Networks
LinkedIn
NetLog
Cyworld
Mixi
Social gaming developers
Zynga
Playdom
Playfish
SGN
Custom social network services
Elgg
TweetMeme
Brands using social networks
Kimberley Clark
Majestic Wines

CHAPTER 6 APPENDIX

Index

LIST OF FIGURES

Figure 1.1: Launch dates of major social network sites
Figure 2.2: Social network user growth (users m), 2009-15 by region
Figure 2.3: Proportion of population using social networks by region (%), 2009-15
Figure 2.4: Social network user growth (users per country, m), 2009-15
Figure 2.5: Social network user growth in North America (users m), 2009-15
Figure 2.6: Percentage of population using social networks in North America, 2009-15
Figure 2.7: Social network overview for the US
Figure 2.8: Social network overview for Canada
Figure 2.9: Social network growth in Western Europe (users, m), 2009-15
Figure 2.10: Percentage of population using social networks in Western Europe, 2009-15
Figure 2.11: Social network overview for the UK
Figure 2.12: Social network overview for Germany
Figure 2.13: Social network overview for France
Figure 2.14: Social network overview for Italy
Figure 2.15: Social network overview for Spain
Figure 2.16: Social network growth in Central and Eastern Europe (users, m), 2009-15
Figure 2.17: Percentage of population using social networks in Central and Eastern Europe, 2009- 15
Figure 2.18: Social network overview for Russia
Figure 2.19: Social network growth in Central and South America (users, m), 2009-15
Figure 2.20: Percentage of population using social networks in Central and South America 2009-15
Figure 2.21: Social network overview for Brazil
Figure 2.22: Social network overview for Mexico
Figure 2.23: Social network growth in Asia (users, m), 2009-15
Figure 2.24: Percentage of population using social networks in Asia, 2009-15
Figure 2.25: Social network overview for China
Figure 2.26: Social network overview for Japan
Figure 2.27: Social network overview for South Korea
Figure 2.28: Social network overview for India
Figure 2.29: Social network overview for Indonesia
Figure 2.30: Social network overview for the Philippines
Figure 2.31: Social network overview for Singapore
Figure 2.32: Social network overview for Australia
Figure 2.33: Social network overview for South Africa
Figure 2.34: Social network overview for Turkey
Figure 2.35: PEST analysis for the social networking market
Figure 2.36: Social network growth by region (users, m), 2009-15
Figure 2.37: Top 10 national social networking markets by unique user numbers, 2015
Figure 3.38: Leading global social networks by unique user numbers (m), end 2009
Figure 3.39: Leading global social networks by regular unique user numbers (m), end 2009
Figure 3.40: Major social networks’ regular users as a proportion of total unique users (%), end 2009
Figure 3.41: Social networks’ monetization strategy, 2010
Figure 3.42: Social network user category / segment ownership in the US
Figure 4.43: Top 7 national social networking markets by consumer spending reach, 2015
Figure 4.44: Global social networking direct revenues by segment ($bn), 2010-15
Figure 4.45: Global social networking ARPU by segment ($), 2010-15
Figure 4.46: Top 10 national markets by direct social networking revenue ($bn), 2015
Figure 4.47: Top 10 national markets by direct social networking ARPU ($), 2015
Figure 4.48: Global direct social gaming revenues ($bn), 2010-15

LIST OF TABLES

Table 2.1: Social network user growth (users m), 2009-15 by region
Table 2.2: Proportion of population using social networks by region (%), 2009-15
Table 2.3: Social network market scale and growth in the US, 2009-15
Table 2.4: Social network market scale and growth in Canada, 2009-15
Table 2.5: Facebook user reach and market rank in Western Europe, December 2009
Table 2.6: Social network market scale and growth in the UK, 2009-15
Table 2.7: Social network market scale and growth in Germany, 2009-15
Table 2.8: Social network market scale and growth in France, 2009-15
Table 2.9: Social network market scale and growth in Italy, 2009-15
Table 2.10: Social network market scale and growth in Spain, 2009-15
Table 2.11: Social network market scale and growth in Russia, 2009-15
Table 2.12: Social network market scale and growth in Brazil, 2009-15
Table 2.13: Social network market scale and growth in Mexico, 2009-15
Table 2.14: Social network market scale and growth in China, 2009-15
Table 2.15: Social network market scale and growth in Japan, 2009-15
Table 2.16: Social network market scale and growth in South Korea, 2009-15
Table 2.17: Social network market scale and growth in India, 2009-15
Table 2.18: Social network market scale and growth in Indonesia, 2009-15
Table 2.19: Social network market scale and growth in the Philippines, 2009-15
Table 2.20: Social network market scale and growth in Singapore 2009-15
Table 2.21: Social network market scale and growth in Australia, 2009-15
Table 2.22: Social network market scale and growth in South Africa, 2009-15
Table 2.23: Social network market scale and growth in Turkey, 2009-15
Table 2.24: Maktoob unique user spread, end 2009
Table 3.25: Snapshot of major social networks’ unique user numbers (m) as at end 2009
Table 3.26: Snapshot of major social networks’ user reach (% of all SN users), end 2009
Table 3.27: Snapshot of major social networks’ regular unique user numbers (m), end 2009
Table 3.28: Major social networks’ regular users as a proportion of total unique users (%), end 2009
Table 4.29: Social networking consumer spending power ($bn), 2015
Table 4.30: Global social networking direct revenues by segment ($bn), 2010-15
Table 4.31: Global social networking ARPU by segment ($), 2010-15
Table 4.32: Direct social networking revenues ($bn) by major market, 2015
Table 4.33: Direct social networking ARPU ($) by major market, 2015
Table 4.34: Direct social network advertising expenditure ($bn), 2010-15
Table 4.35: Global direct social gaming revenues ($bn), 2010-15
Table 5.36: Facebook key metrics, Q1 2010
Table 5.37: QQ.com key metrics, end 2009
Table 5.38: Twitter key metrics, Q1 2010
Table 5.39: MySpace key metrics, Q1 2010
Table 5.40: Friendster key metrics, end 2009
Table 5.41: Hi5 key metrics, end 2009
Table 5.42: LinkedIn key metrics, Q1 2010
Table 5.43: NetLog key metrics, end 2009
Table 5.44: Cyworld key metrics, end 2009
Table 5.45: Mixi key metrics, end 2009

COMPANIES MENTIONED

Wyeth , Eli Lilly , Pfizer , Bayer , Forest
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