Global social networking revenue is
expected to double to $12.6 billion in 2016, a 121 per cent increase on 2011
Strategy Analytics sees the key to
generating revenue in an increasingly competitive market will rest on operator
willingness to extend their embrace of the online landscape through building
partnerships with brands and integrating of a variety of service providers into
their social network platforms.
Strong revenue growth reflects status of
social networking as an indispensable digital communications tool, as well as
an increasingly important advertising medium. Usage is accelerating in emerging
markets offering significant potential for growth through 2016.
On the other hand, maturing markets are
beginning to deliver levels of audience engagement and reach which position
this medium squarely in the sights of the largest brands, ensuring that social
networks are now a key part of online campaigns targeting the mass market.
The reach of social networking will
continue to drive significant growth in advertising spending and virtual item
sales given widespread, habitual use of social networking and its inherent
activities.
“While Facebook remains the top social network worldwide with over 800 million active users,
other regionally focused social networks continue to meaningfully augment a
rapidly growing market,” said Leika Kawasaki, analyst, Strategy Analytics
Digital Media Strategies (DMS) Team, and author of the report.
“Strategy Analytics sees the key to
generating revenue in an increasingly competitive market will rest on operator
willingness to extend their embrace of the online landscape through building
partnerships with brands and integrating of a variety of service providers into
their social network platforms,” Kawasaki added.
The key challenges for this sector are in
driving emerging market penetration and improving already impressive levels of
audience engagement. Given sympathetic, user-focused product development and an
enlightened approach to the benefits of helping third parties leverage the
assets generated by social networking audiences, I fully expect online media’s
most dynamic growth story to continue for years to come.
By Telecomlead.com Team
editor@telecomlead.com
