The Social Media Landscape:
Segments, Trends and Market Size
September 2013
Sections
• Social Media & Advertising
• Social Media Management
• Mobile Advertising
• Content Creation & Publishing

2
Social Media & Advertising
Social Media Continues to Grow Globally
Social Media Penetration by Destination

Social Media Population by Destination
Fa...
Global Usage of Social Networking Continues to Increase
Global social network usage continues to rise
Worldwide social net...
Social Networking Gaining Share of Time Online
Social networking is forecast to comprise nearly 30% of all time spent onli...
In Other Words, It’s Not Just About Facebook
Most brands are simultaneously using multiple social platforms to reach their...
Brands are Increasingly Promoting Content…

8
And Consumers Want Brand Engagement on Social Media

9
Social Networks Playing an Increasing Role in E-Commerce

Source: Vocus & Gartner, November 2012

10

Source: Monetate, Ma...
Advertisers Use a Variety of Social Media Strategies

11
Sponsored / Branded Content
CPM rates are diving
– Due to shift to mobile + RTB/DSPs

Sponsored content is the fastest gro...
Sponsored Content – Incredibly Effective When Done Right

Simple, effective and actually appreciated by consumers
As a res...
A Well-Designed, “In-Stream” Experience “Ad Unit”

14
Leads to a Consistent User Experience (Not a Landing Page)

15
American Express and Other Brands Focusing on Twitter

16
Leading to a Great (and Highly Engaging) User Experience

17
Social Media Management
Marketers Increasing Spend on Social Media Management

19
Recent M&A Activity in Social Media Marketing & Management
July 2012

$350M Acquisition
+ $100M Potential Earnout

June 20...
Social Collaboration is a Related Trend
Enterprise social networking and collaboration vendors complement social media
str...
Social CRM is a Natural Extension of Social Networking
Opportunities for Social CRM

Source: Gartner, May 2013
Mobile Advertising
Mobile Ad Revenue is Poised for Strong Growth
Total mobile advertising revenue is forecast to exceed $24B by 2016
Mobile w...
Smartphone Penetration Increasing Globally
Highest growth regions for smartphone adoption are the Middle East and Africa, ...
Mobile Content is Gaining Ad Revenue Share
“Non-traditional” advertising platforms are
gaining share, especially on mobile...
Behavior on Mobile is Vastly Different From Desktop
Note that “Reading News” or “Work Applications” don’t show more than 5...
Social Media Ad Revenue is Increasingly Mobile-Centric
Mobile ad revenues for Facebook and Twitter will comprise over 50% ...
Mobile Monetization – Not Your Father’s IAB Standard Ad Unit
Ad Units / Monetization

The best mobile advertising experien...
Content Creation & Publishing
Market for Digital Content Creation Software is Growing
Digital Content Creation Software Market Size: SaaS & Non-SaaS

So...
Content Creation is a Major Part of Marketing Budgets

32
Social Marketing Teams Are Focused on Content Creation…

Source: Gartner, March 2013

33
…Which is Driving Demand for Content Creation Outsourcing

Source: Gartner, March 2013

34
The Social Media Landscape:
Segments, Trends and Market Size
Jeff Richards / jrichards@ggvc.com
Crystal Huang / chuang@ggv...
Upcoming SlideShare
Loading in …5
×

Trends in Social Media; a Focus on Content, Mobile and Geography

1,649 views

Published on

Q3 2013 presentation by GGV Capital on trends in social media with a focus on content, mobile and geography. For more, follow GGV on Twitter @ggvccapital.

Published in: Technology, Business
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,649
On SlideShare
0
From Embeds
0
Number of Embeds
20
Actions
Shares
0
Downloads
45
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Trends in Social Media; a Focus on Content, Mobile and Geography

  1. 1. The Social Media Landscape: Segments, Trends and Market Size September 2013
  2. 2. Sections • Social Media & Advertising • Social Media Management • Mobile Advertising • Content Creation & Publishing 2
  3. 3. Social Media & Advertising
  4. 4. Social Media Continues to Grow Globally Social Media Penetration by Destination Social Media Population by Destination Facebook 1,100M Twitter 500M Google+ 500M Qzone 480M Sina 300M Habbo 268M LinkedIn 200M Renren 160M Vkontakte 123M Tagged 100M 0M 250M 500M 750M 1,000M 1,250M Source: Gartner, September 2013 4
  5. 5. Global Usage of Social Networking Continues to Increase Global social network usage continues to rise Worldwide social network penetration is forecast to reach 35% by 2017, up from 24% in 2013
  6. 6. Social Networking Gaining Share of Time Online Social networking is forecast to comprise nearly 30% of all time spent online and on smartphones in 2013, up from 18% for online and 10% for mobile in 2010
  7. 7. In Other Words, It’s Not Just About Facebook Most brands are simultaneously using multiple social platforms to reach their customers 7
  8. 8. Brands are Increasingly Promoting Content… 8
  9. 9. And Consumers Want Brand Engagement on Social Media 9
  10. 10. Social Networks Playing an Increasing Role in E-Commerce Source: Vocus & Gartner, November 2012 10 Source: Monetate, May 2013
  11. 11. Advertisers Use a Variety of Social Media Strategies 11
  12. 12. Sponsored / Branded Content CPM rates are diving – Due to shift to mobile + RTB/DSPs Sponsored content is the fastest growing and most lucrative “ad unit” for publishers – Flipboard, Buzzfeed, Mashable, Business Insider others all over it; major publishers starting to take notice The challenge for brands – Sponsored content across media properties looks somewhat similar to traditional content/advertising model – Branded content across social media does not – Enormous value in “real time” and capturing the moment – See: Oreo at the Super Bowl – Younger demographic (<25) thrives on “real time” • Spends more time on Instagram, FB, Twitter, Pinterest • And less time on News, TV, etc. 12
  13. 13. Sponsored Content – Incredibly Effective When Done Right Simple, effective and actually appreciated by consumers As a result, highly viral and shared 13
  14. 14. A Well-Designed, “In-Stream” Experience “Ad Unit” 14
  15. 15. Leads to a Consistent User Experience (Not a Landing Page) 15
  16. 16. American Express and Other Brands Focusing on Twitter 16
  17. 17. Leading to a Great (and Highly Engaging) User Experience 17
  18. 18. Social Media Management
  19. 19. Marketers Increasing Spend on Social Media Management 19
  20. 20. Recent M&A Activity in Social Media Marketing & Management July 2012 $350M Acquisition + $100M Potential Earnout June 2012 May 2012 $689M Acquisition $325M Acquisition Undisclosed May 2012 May 2012 $152M Acquisition $150M Acquisition September 2011 20
  21. 21. Social Collaboration is a Related Trend Enterprise social networking and collaboration vendors complement social media strategies by familiarizing employees with managing diverse, distributed communication channels Customer service is increasingly a facet of social media marketing, with customer satisfaction ratings becoming increasingly public and easy to find Enterprise social networking, collaboration an/d project organization software; acquired by Microsoft for $1.2B Social collaboration, offering suites for employee social networking, customer service, sales, marketing and government communication; now public with market cap of $871M Customer support software with broad social media integration 21
  22. 22. Social CRM is a Natural Extension of Social Networking Opportunities for Social CRM Source: Gartner, May 2013
  23. 23. Mobile Advertising
  24. 24. Mobile Ad Revenue is Poised for Strong Growth Total mobile advertising revenue is forecast to exceed $24B by 2016 Mobile web display, in-app display and mobile search will dominate revenue share $30,000 $24.5B $25,000 $20,000 $15,000 $10,000 $5,000 $0.8B $0 2009 2010 Mobile Web Display Source: Gartner, November 2012 24 2011 2012 In-App Display 2013 Search/Maps 2014 2015 Audio/Video 2016 SMS/MMS/IM
  25. 25. Smartphone Penetration Increasing Globally Highest growth regions for smartphone adoption are the Middle East and Africa, Latin America and Central and Eastern Europe 70% 60% 50% 40% 30% 20% 10% 0% 2012 2013 US Middle East and Africa Region US Canada Western Europe Central and Eastern Europe Asia Pacific Middle East and Africa Latin America Worldwide Source: eMarketer, May 2013 25 2014 Western Europe Latin America 2012 38.7% 30.6% 30.2% 21.0% 15.6% 5.1% 13.1% 15.7% 2015 2016 Central and Eastern Europe Worldwide 2013 44.3% 35.1% 38.7% 29.3% 18.7% 8.3% 18.6% 19.8% % of Population 2014 2015 50.1% 55.4% 40.2% 43.6% 47.4% 55.6% 39.1% 46.6% 22.9% 25.9% 10.9% 13.0% 23.6% 29.2% 24.3% 28.0% 2017 Asia Pacific 2016 59.8% 46.6% 61.3% 53.6% 28.5% 15.0% 34.0% 31.2% 2017 63.5% 49.8% 65.8% 59.5% 31.0% 16.8% 38.8% 34.0% CAGR 10.4% 10.2% 16.9% 23.2% 14.7% 26.9% 24.3% 16.7%
  26. 26. Mobile Content is Gaining Ad Revenue Share “Non-traditional” advertising platforms are gaining share, especially on mobile – Facebook – Pandora – Twitter We believe Google will retain a dominant position in mobile due to search, click to call and maps – And mobile’s share of Google’s ad revenue is forecast to dramatically increase Traditional publishers likely to lose significant share to new entrants – FB, Pandora, Twitter – New players like Yelp, Trulia, Houzz, Flipboard Mobile will not reflect a simple “transition” of traditional display market to mobile 26
  27. 27. Behavior on Mobile is Vastly Different From Desktop Note that “Reading News” or “Work Applications” don’t show more than 5% of user timeshare (“News” is likely encompassed in “Browser” in chart below) 27
  28. 28. Social Media Ad Revenue is Increasingly Mobile-Centric Mobile ad revenues for Facebook and Twitter will comprise over 50% of total ad revenues in 2014, up from 0% in 2011 28
  29. 29. Mobile Monetization – Not Your Father’s IAB Standard Ad Unit Ad Units / Monetization The best mobile advertising experiences are appearing as “native,” and blended into the user experience in a way that the user perceives value in the ad unit (versus an annoying unit he/she must click through to get to content) 29
  30. 30. Content Creation & Publishing
  31. 31. Market for Digital Content Creation Software is Growing Digital Content Creation Software Market Size: SaaS & Non-SaaS Source: Gartner, October 2012 31
  32. 32. Content Creation is a Major Part of Marketing Budgets 32
  33. 33. Social Marketing Teams Are Focused on Content Creation… Source: Gartner, March 2013 33
  34. 34. …Which is Driving Demand for Content Creation Outsourcing Source: Gartner, March 2013 34
  35. 35. The Social Media Landscape: Segments, Trends and Market Size Jeff Richards / jrichards@ggvc.com Crystal Huang / chuang@ggvc.com

×