Social networks

Revenue from advertising on the social networking services: $5.4 billion dollars in 2011 and $10 billion dollars in 2013


According to analysts of eMarketer the worldwide revenue from advertising on the social networking services will reach 5.54 billion dollars in 2011 and it will be doubled by 2013. Calculation was made by eMarketer based on a range of popular social networking services including Facebook, Twitter and LinkedIn.
Half of the revenue that makes 2.74 billion dollars from advertising on the social networking services goes to the United States this year. It is not surprising that a large portion of the amount is the credit of Facebook service, which according to the expectations of experts will get more than 3.8 billion dollars in 2011 thanks to advertisements that is viewed by a large audience of 800 million members of the networking.
Profit is growing steadily and eMarketer company data suggests that in the next few years there will be major sources of advertising revenue not only in the U.S., but also in other countries. By 2013 the profits will make 51.9% of the total in other countries, which is estimated at $10 billion dollars. The social networking services will get nearly $5 billion dollars from advertising in the United States this year.
Revenues from advertising on the social networking services grew by 50% in 2010 and according to the preliminary estimates will increase by 55.6% this year. However, the growth will fall to 45% in 2012 and 25.2% in 2013.


It is known that Twitter continuously has been increasing the advertising revenue. Now, this network probably will get even more profits at the expense of a new "self service" for the advertisers. Analysts of eMarketer predict a profit for the first time for the professional LinkedIn service, which recently has been offering the new social advertising formats that in many respects are similar to advertising on Facebook.
According to estimates of eMarketer LinkedIn will have 3% of the global revenue from advertising on the social networking services this year, which will amount 140.8 million dollars. For two years the website has increased its advertising revenue more than tripled, but analysts predict a gradual slowdown of its growing. Advertising revenue will grow by 79% in 2011, but it will drop to 44% in 2012 (reaching $200 million dollars) and 24.3% in 2013 ($250 million dollars).
However, the LinkedIn every second recorded two new members of the network and the total number of registered users reaches 120 million dollars, so that social networking service still remains as a popular advertising platform, where advertisers can easily attract the customers.
On the scale of the global digital advertising market is 8.8% of revenue in the U.S. and 6.9% of world income goes to the social networking services. By 2013 the revenues from advertising on the social networking services will make 11.7% of the revenue from online advertising in the U.S. and 9.4% of world income.
Of course, there is a factor that was not mentioned in the report of eMarketer, the analysts have not considered the possibilities of introducing the completely new formats of advertising and their potential impact on the earnings growth in the following years. For example, a few weeks ago Gokul Rajaram that is an advertising director of Facebook has admitted in the project of TechCrunch Disrupt that their network is considering the possibility of introduction AdSense service for the advertisers on Facebook.

Sparks 11 october 2011, 14:40
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