Social Media Revenue To Hit $29.1 Billion
There is little doubt that social media is the next frontier of web profits, but its very nature has caused many people to question its efficacy. One of the biggest complaints has been social media’s slowness to translate into revenues—many can’t seem to get social media participants to buy anything.
But there seems to be light at the end of the tunnel. According to marketing insights firm Gartner, the revenue from social media is set to tip $29.1 billion by 2015. Based on the present state of things, social media worldwide is sitting at $10.3 billion for 2011. For many skeptics this is certainly great news and shows that the growth trajectory for revenues is correct. In 2010 social media revenues stood at a paltry $7.3 billion. The year-on-year growth into 2011 therefore represents a 41.4% jump.
So what is driving this surging growth? Based on Gartner’s findings, the increased participation of advertisers on social networks has contributed heavily to the growth in revenues. Indeed, social media giant Facebook, saw massive growth from advertising for much of 2010/2011. Another big factor contributing to revenue growth is the increased tolerance for ads by social gamers. Social games like Farmville are no key vehicles for advertising and as developers Zynga roll out more offerings, the ad inventory will increase.
With such healthy revenue projections, one can’t help but wonder what the state of things will be in the coming years. Will Google+ take over Facebook? Will Twitter gain more market share? All tantalizing questions that I am sure will be answered in due course.
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