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Social Network Advertising - Global Strategic Business Report

  • ID: 1946804
  • Report
  • Region: Global
  • 321 Pages
  • Global Industry Analysts, Inc
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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.

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1. INTRODUCTION, METHODOLOGY & PRODUCT DEFINITION 1
Study Reliability and Reporting Limitations 1
Disclaimers 2
Data interpretation & reporting level 3
Quantitative Techniques & Analytics 3
Product Definitions and Scope of Study 3

2. INDUSTRY OVERVIEW 4
The Age of Social Media Advertising 4
Snapshots 4
Targeting Consumer's Social Behavior 4
Social Advertising Assumes Mainstream Status 5
Recession & Social Network Advertising 6
Current and Future Analysis 6
US: The Dominant Regional Market 6
Social Advertising: Yet to Live Up to Expectations 7
Metrics to Assess Revenue Generation Potential of Social
Networks 7
How Successful is the Ad Revenue Model for Social Networks? 7
Social Gaming: Potential for Growth 8
Table 1: Global Social Network Advertising Market (2010 &
2011): Percentage Share Breakdown of Revenues for Social
Networks and Social Games (includes corresponding
Graph/Chart) 9

3. MARKET DYNAMICS 10
Mobile Advertising - Potential for Growth 10
Social Advertising Follows Trends in Paid-for-Search Advertising 10
Global Use of Social Networks Continues to Rise 10
Large Brands Move Towards Social Advertising 10
Social Communities Foster Innovations at P2P Level 11
Social Advertising and Earned Media 11
Traditional Media Continue to Rule Advertising 11
Table 2: Average Revenue Per User (US$) in Social Network
Advertising and Total Advertising (2009-2011) (includes
corresponding Graph/Chart) 12
Can Social Media Beat Search Advertising? 12
Focus Shifts to User Engagement Ads 13
Challenges Facing Social Advertising 13
User Base Saturation - A Concern for Social Networks 14
Spam & Content Quality: Concerns Facing Microblogging 14
Low Engagement of Display Ads: A Major Barrier 14
B2B Social Marketing Spending on the Rise 14

4. SOCIAL NETWORKS & ADVERTISING STRATEGIES 15
Prelude 15
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) 15
A Glance at the Advertising Strategies of Leading Social
Networks 16
Facebook: The Leader in Social Network Advertising Arena 16
Table 4: Average Revenue Per User (in US$) of Select
Technology Companies (2010) (includes corresponding
Graph/Chart) 17
Is Google Plus the Answer to Facebook? 17
MySpace: Losing Hold on the Market 17
Twitter Advertising Revenues on the Rise 18

5. DIGITAL ADVERTISING 19
Digital Advertising: An Overview 19
Monetization of Online Businesses: Critical Factors to Watch Out 19
Major Platforms of Digital Advertising 19
Search Marketing: The Predominant Online Ad Segment 20
The Emerging Ad Formats 20
Technological Advancements Drive Development of New Ad Methods 21

6. INTRODUCTION TO SOCIAL NETWORK ADVERTISING 22
An Introduction to Online Advertising 22
Social Network Advertising: A Conceptual Overview 22
Ideal for Targeted Advertising Strategy 22
Social Ads Vs Behaviorally Targeted Ads 23
Tools of Social Advertising 23
Basic Components of Social Ads 23
Data Used in Social ads 24
Forms of Advertising on Social Networks 24
Self-Service Ads 25
Types of Social Network Advertising 25
Direct Advertising (Based on Network of Friends) 25
Direct Advertising (Placed on User's Social Networking Site) 25
Indirect Advertising 25
Social Media as Search Engines 26
Social Network Advertising Vs Traditional Online Advertising 26
Advantages of Social Network Advertising 26
Audience Targeting: A Key Benefit 27
Access to Large Audience Base 27
Easy Development of Content 27
Favorable Cost Scenario 28
The Advantage of Earned Media 28
Online Campaigns: Leveraging Social Media 28
Improving Customer Service and Feedback 28
Enhancing Social Awareness 29
Disadvantages of Social Network Advertising 29
The Role of Buzz Monitoring Tools 29

7. MAJOR SOCIAL NETWORKING SITES - A REVIEW 31
Introduction 31
Social Networks Development Timeline 32
An Overview of Leading Social Networks 33
Bebo (US) 33
Cyworld (South Korea) 33
Facebook, Inc. (US) 33
Advertising on Facebook: An Insight 34
Small Businesses - Major Revenue Generators for Facebook 35
Difference Between Facebook & MySpace 35
Friendster (Malaysia) 35
MySpace, Inc. (US) 35
Orkut (US) 36
Renren, Inc. (China) 36
Twitter, Inc. (US) 37

8. PRODUCT INNOVATIONS/INTRODUCTIONS 38
Mixi and Nike Japan Launch Social Banner Ad Campaign 38
YouTube Introduces TrueView Advertisement Format 38
XA.net Launches optim.al Multivariate Advertising Optimization
Platform 38
Clickable Launches Live Advertising Solution 39
WebAdvantage.net Introduces Social Media Roadmap Service 39
Linqia Introduces Social Advertising Platform 39
The Social Network Introduces Advertisement Unit for MySpace 40
Twitter Introduces Promoted Tweets Advertising Platform 40
Facebook Introduces Places, Location-Based Platform 40
RockYou Introduces DOTD In-Game Advertising Solution 40
Turespaña Introduces Online Campaign on Social Networks 41
Google Unveils DoubleClick for Publishers 41
BLiNQ Media Introduces BAM Facebook Ad Campaign Management Engine 42
RockYou Introduces Brand Advertising Offerings 42
ShopIt Introduces Shopit Media Advertising Network 43
Starbucks Unveils New Advertisement Campaign on Social Networks 43
eWorld Companies Introduces eWorldMix Online Social Network 43
Adknowledge Launches BidSystem 3.0 Self-Service Auction
Marketplace 44
Clearspring to Introduce Enhanced Version of AddThis Platform 44
Google Launches New DoubleClick Ad Exchange 44
MySpace Introduces Self-Serve Ad Platform 45
Clearspring and SplashCast Introduce Integrated Social
Advertising Platform 45
LinkedIn Introduces DirectAds Platform 46
SplashCast Introduces New HotSpot Technology 46
Adknowledge Introduces Social Advertising Network in the UK 46

9. RECENT INDUSTRY ACTIVITY 47
LivingSocial Takes Over Socialmedia.com 47
Experian Acquires Techlightenment 47
Facebook Establishes Sales Office in Brazil 47
AOL Takes Over Pictela 47
Traffic Marketplace Acquires Social Suitcase 48
LifeStreet Media Acquires Ad Network Assets of SocialCash 48
Adknowledge Takes Over Hydra Group 48
Criterion Capital Partners Takes Over Bebo 49
Kaixin.com to Merge with Renren.com 49
Google and MySpace Sign Multi-Year Agreement 49
Google Implements Changes to Orkut 50
Facebook and PayPal Enter into Partnership 50
RockYou Inks Agreement with Facebook® 50
Quepasa Signs Agreement with Grupo Expansion 51
Quepasa Signs Agreement with Sony Pictures Television Ad Sales 51
Candystand.com and Intergi Entertainment Sign Agreement 52
Facebook Establishes New Office in India 52
RockYou Collaborates with Game Developers to Integrate DOTD(SM) 52
Google Takes Over Teracent 52
Atrinsic Takes Over ShopIt 53
Adknowledge Acquires Advertising Business of SocialMedia.com 53
ShopIt Takes Over Triana Global 53
Adknowledge Takes Over KITN Media 54
Adknowledge Takes Over Advertising Business of Lookery 54
MOL Global Acquires Friendster 54
Mixi Becomes Part of OpenSocial Initiative 55
Adknowledge Acquires Adonomics 55
AOL Acquires Bebo 55
Radio One Acquires Community Connect 56

10. FOCUS ON SELECT SOCIAL NETWORK ADVERTISING COMPANIES 57
Adknowledge, Inc. (US) 57
Clearspring Technologies, Inc. (US) 57
DoubleClick (US) 57
LifeStreet Media (US) 58
LinkedIn Corporation (US) 58
LivingSocial, Inc. (US) 59
Right Media LLC (US) 59
RockYou, Inc. (US) 59
SplashCast Corporation (US) 60

11. GLOBAL MARKET PERSPECTIVE 61
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) 61

12. THE UNITED STATES 62
A.Market Analysis 62
Outlook 62
Economic Crisis Benefits Social Networks 62
Social Networks Increase Share in Online Ad Revenues 62
The Less Preferred Medium for Ads 63
Rising Expenditure on Social Network Advertising 63
Advertising: A Reasonable Price for Using Social Networks 64
Mobile Marketing Finds Favor Among Consumers 64
Facebook: The Leading Social Network in the US 64
Facebook Leads Display Ads Market 64
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) 65
Mobile Technology Offers Enormous Potential for Social Networks 65
Opportunities in Gaming Sector 66
Financial Service Companies Carry Out Campaigns on Social
Media Networks 66
Regulatory Environment 66
Product Innovations/Introductions 66
Strategic Corporate Developments 73
Key Players 80
B.Market Analytics 87
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) 87

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) 88

13. CANADA 89
A.Market Analysis 89
Outlook 89
Internet Advertising Gains Momentum 89
Table 9: Online Advertising Spending in Canada (2011):
Percentage Share Breakdown by Format for Search, Display,
Classifieds, and Video & Email (includes corresponding
Graph/Chart) 89

Table 10: Internet Users in Canada (2010): Percentage Share
Breakdown by Age Group (includes corresponding Graph/Chart) 90
Social Media Advertising in Canada 90
Retailers Opt for Advertising through Social Media 90
B.Market Analytics 91
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) 91

14. JAPAN 92
A.Market Analysis 92
Outlook 92
Social Media Networking in Japan 92
General Social Networking Service Sites 92
Video and Photo Sharing Sites 92
Social Bookmarking Sites 92
Blog Network Sites 93
Mini-Blogging Sites 93
Intense Battle in Social Networking Market 93
Mixi: Leading the Social Network Scene 93
Gree: A Tough Competitor 94
Mobage Town 94
Twitter Japan: Gaining Ground Through Ad Sales 94
Widespread Use of Mobile Platform 95
Product Innovations/Introduction 95
Strategic Corporate Development 95
B.Market Analytics 96
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) 96

15. EUROPE 97
A.Market Analysis 97
Outlook 97
Recession & Online Spending 97
Increasing Use of Social Networking 97
Social Networking Trends in Western Europe 98
Table 13: Social Network Users as % of Internet Users in
Western Europe (2010-2015) (includes corresponding
Graph/Chart) 98

Table 14: Social Network Users as % of Internet Users (2009 &
2015) for France, Germany, Italy, UK and Spain (includes
corresponding Graph/Chart) 99
Online Ad Spending Trends in Western Europe 99
Popular Online Activities of Internet Users (25-34 Years)
in Western Europe 99
Social Media Influences Online Advertising & Retail Market 100
Social Media Trend Catching on with Baby Boomers 100
Display Advertising Catches On 100
Regulatory Environment 100
Leading Ad Providers Opt for Self Regulation 100
B.Market Analytics 102
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) 102

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) 103

15a. FRANCE 104
A.Market Analysis 104
Outlook 104
Rapid Progress of the Digital Media Market 104
Table 17: Internet Penetration in France (2009-2013):
Internet Users as % of Total Population (includes
corresponding Graph/Chart) 104
Social Networking: A Rising Phenomenon 105
Impact of Regulations 105
B.Market Analytics 106
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) 106

15b. GERMANY 107
A.Market Analysis 107
Outlook 107
Display Ads: A Growing Category 107
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) 107
B.Market Analytics 108
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) 108

15c. ITALY 109
A.Market Analysis 109
Outlook 109
Impact of New Regulations 109
B.Market Analytics 110
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) 110

15d. THE UNITED KINGDOM 111
A.Market Analysis 111
Outlook 111
Social Network Ad Spending on the Rise 111
Table 22: Social Network Ad Spending as % of Total Online
Ad Spending in the UK (includes corresponding Graph/Chart) 111

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) 112
Facebook Propels Online Advertising Expenditure 112
Social Networking Scenario in the UK 112
Rising Broadband Penetration Favors Growth of Social Media 113
Table 24: Penetration Rate (%) of Internet in the UK (
2009-2011) (includes corresponding Graph/Chart) 113
Major Online Activities of Adult Internet Users in the UK 114
Mobile Technologies: Vital Role in Social Networking 114
Table 25: % of Time Spent on Social Networking Sites
(2010): Breakdown by Age Group and Device (includes
corresponding Graph/Chart) 114
Social Networking Catches Up Among the Elderly 115
Table 26: Social Networking Site Users as % of All
Internet Users in the UK (2010): Breakdown by Age Group
(includes corresponding Graph/Chart) 115
Government's Online Initiatives 115
B2C in Social Networks 116
Robust Growth for Display Advertising 116
Social Gaming: Potential for Growth 116
Social Network Advertising in Consumer Goods Industry 116
ASA Moves to Regulate Online and Social Advertising 117
Strategic Corporate Developments 117
B.Market Analytics 118
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) 118

15e. SPAIN 119
A.Market Analysis 119
Outlook 119
An Overview of Digital Market 119
Table 28: Internet Penetration in Spain (2009-2013):
Internet Users as % of Total Population (includes
corresponding Graph/Chart) 119
Social Networking - A Thriving Market 120
Product Innovations/Introductions 120
B.Market Analytics 122
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) 122

15f. SWEDEN 123
Market Analysis 123
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) 123

15g. REST OF EUROPE 124
Market Analysis 124
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) 124

16. ASIA-PACIFIC 125
A.Market Analysis 125
Outlook 125
Social Network Advertising Catches Up in Asia 125
Southeast Asia: Slow to Embrace Social Network Advertising 126
Table 32: Social Media Use in Southeast Asia 126
Tencent QQ: The Richest Social Network 126
Cyworld Rules Korean Market 127
The Predominance of Local Social Networks 127
Twitter: A Worthy Competitor? 127
High Level of Social Media Engagement at Workplaces 127
Low-Cost Asian Carriers Move Towards Social Media 128
Unilever Uses Social Networks for Marketing Campaigns 128
Review of Select Regional Markets 128
Australia 128
China 128
Social Network Advertising - An Untapped Market 128
Social Networks Make Rapid Strides 129
Competition in the Social Networks Market 129
Comparison of the Top Four Social Networks in China 130
India 130
Online Advertising in India 130
Table 33: Online Advertising Market in India
(2010-2011): Percentage Share Breakdown of Revenues for
Display Advertisements and Text Advertisements (includes
corresponding Graph/Chart) 131
Growing Popularity of Social Media Sites 131
Facebook Strengthens Presence in India 131
Snapshots 132
Social Advertising: A Nascent Phenomenon 132
Businesses Use Social Sites for Select Inventories 133
Corporate India Wakes Up to the Benefits of Social Media 133
Social Network: An Ideal Platform for Start-Ups 134
Twitter: Potential for Growth 134
Online Product Reviews 134
Business Tycoons Become Part of Social Advertising 135
Drawbacks of Using Social Media for Advertising 135
South Korea 135
An Advanced Online Market 135
Cyworld: Leading the Social Networking Marketplace 136
Microblogging Services Gain Momentum 136
Thailand 136
Strategic Corporate Developments 136
Key Players 137
B.Market Analytics 138
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) 138

17. REST OF WORLD 139
A.Market Analysis 139
Outlook 139
Internet Advertising Gathers Pace in Latin America 139
Table 35: Online Ad Spending as % of Total Ad Expenditure
in Latin America (2009-2012) (includes corresponding
Graph/Chart) 139
Social Media Sites Find Favor 140
Brazil 140
Social Network Advertising in Brazil 140
Table 36: Select Social Networking Sites in Brazil (August
2010): Breakdown by Total Unique Visitors, Average
Minutes, and Average Pages 141
Orkut Brazil: The Most Popular Social Network in Brazil 141
Demographic Profile of Leading Social Network Sites 141
Mexico 142
Strategic Corporate Developments 142
B.Market Analytics 144
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) 144

COMPETITIVE LANDSCAPE

Total Companies Profiled: 57 (including Divisions/Subsidiaries - 62)

Region/Country Players
  • The United States - 46
  • Japan - 1
  • Europe - 9
  • Germany - 3
  • The United Kingdom - 2
  • Spain - 2
  • Rest of Europe - 2
  • Asia-Pacific (Excluding Japan) - 5
  • Latin America - 1
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