US Mobile Ad Spending On Social Networks To Reach $4.5 Billion By 2018

If I were to ask you to name the top three social networking sites, you could probably answer easily. If I asked you to name the next five, you might find it a bit more difficult. You may be surprised to hear that Wikipedia has a list of nearly 200 active major social networking sites across the globe. Of these, I was interested in the top 20 social networking sites in the US when building the Forrester Research Social Media Forecast, 2013 To 2018 (US).

I had several research questions in mind. Which are the top 20 social networking sites in the US? How many unique monthly visitors do they attract? How much time do visitors spend on these websites? How many visitors access these websites via mobile? Which of these websites are most important for marketers? What is the share of social media spending within total online advertising spending? How much can it grow? What will drive growth? This last question was of particular interest to me. We believe that mobile will be a key driver for social media spending growth. Here’s why:

  1. More users are accessing social networking sites through mobile. As per our forecast, we expect the number of US social media users accessing social networking sites via mobile to exceed 200 million by 2018. Nearly one-fourth of them will be mobile-only social media users; the rest will access social networking sites via both PC and mobile.
  2. The share of time spent on mobile social networking apps continues to increase. Social media apps are among the top apps that smartphone users use. The amount of time they spend on these apps continues to increase.  
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Social Media Spending In Western Europe Is Expected To Reach 3.2 Billion Euros By 2017, But There Is A Catch

The European economy is still struggling for growth after the global recession. While overall GDP growth was positive in 2010 and 2011, it again turned negative in 2012. A slow economic recovery is projected through 2017, but growth is not expected to reach 2007 levels during the next five years. Despite this weak macro-economic environment, spending on social media has continued to grow in Europe and will continue to see double-digit growth over the next five years as well. Why?

  1. The continuous shift of ad spending from traditional media to online media. The megatrend of the past decade — advertising dollars shifting from offline to online media — is expected to continue in this decade as well. Internet advertising’s share of overall advertising spend grew from 1% in 2001 to 22% in 2012 for Western Europe. There still exists a significant gap between the time spent online by consumers and the share of online spend in overall advertising spend, but this gap will decrease over the next few years with the continued shift in spending.
  2. Social media’s increasing share of online ad spend. Currently, display ad spending is nearly four times higher than social ad spending in Western Europe, and search advertising is eight times larger. However, social will experience faster growth than display or search in the coming years. Social’s share of overall online spending will increase as companies spend more to engage with consumers on social media platforms for marketing and sales initiatives.
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66 Million US Households Will Access The Internet Via Game Consoles, Blu-ray Players, Or Connected HDTVs By 2017

Ten years ago, the most common way to connect to the Internet at home was via a PC or a laptop. Now, connectivity at home is increasingly being supplemented by tablets, smartphones, and other media devices, although PCs/laptops still dominate. Consumer electronics device manufacturers cashing in on this shift are offering Internet-ready capabilities in many of their devices. Although the notion of “connected devices” can be quite broad, we focused specifically on game consoles, Blu-ray players, and high-definition (HD) TVs in our recently published Forrester Research Connected Devices Forecast, 2012 To 2017 (US). Here is a brief commentary on each of these device segments:

  • Game consoles: In 2012, the game console manufacturers experienced declining sales. Unlike in the past, when the introduction of a new console generally saw significant uptake in sales, Nintendo’s Wii U (launched in Q4 2012) is not expected to hit the peak sales of the original Wii. We believe that this trend will be seen more broadly in the game console industry. This is largely (though not exclusively) driven by the availability of low-cost/"freemium" titles on smartphones and tablets, which fulfill the gaming needs of the casual gamer — and have a negative impact on the console market. However, we still expect the console market to see moderate growth. By 2017, the majority of consoles will be “connected” to an IP connection because consoles are multi-purpose and allow users to do many activities online such as rent/buy movies and TV shows, purchase games, watch streaming videos, and listen to streaming music.
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78% Of US Email Users Will Also Access Their Emails Via Mobile By 2017

 

If you search for “the death of email” on the Internet, you might be surprised by the number of articles on the subject. Why are so many people talking about it? Is this 40-year-old method of communication really under threat from social media? Does it mean that marketers will spend less on email marketing solutions? We paid close attention to these questions and many more when building the Forrester Research Email Marketing Forecast, 2012 To 2017 (US). We believe that spending on email marketing solutions will continue to grow. Why? We will see:

1. An increase in the number of active email users. Our email address is our online address, and it offers us universal interoperability. As per our forecast, we expect the number of active email users in the US to grow to 227 million by 2017.

2. The evolution of email clients. Over the past 40 years, email clients have evolved from text-based to desktop to web-based to mobile clients. As per our forecast, 178 million users —78% of all US active email users — will also access their emails through mobile email clients by 2017.

3. Email’s integration with social media. Email marketers have started leveraging a combination of email and social media marketing to get the best results. They are providing links to share via social media in their email messages and are encouraging their social media followers to subscribe to their email lists.

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The World Online Population Is Expected To Reach 3.5 Billion By 2017

In 1974, an Indian Bollywood Hindi-language film was released with the title Roti Kapda Aur Makaan (English translation: Food, Clothing, And Shelter), referring to the bare minimums of life. If it were to be released today, the director of the movie would need to add the word Internet to the title because access to the Internet has become a necessity for many people over the past decade.

In a recently published Forrester ForecastView report titled “Forrester Research World Online Population Forecast, 2012 To 2017 (Global),” Forrester found that 2.4 billion people across the world use the Internet on a regular basis — i.e., at least once a month — from home, school, work, or any other location via a PC or a non-PC (mobile) Internet access device. This is expected to grow to 3.5 billion by 2017, representing nearly half of the 2017 overall world population of 7.4 billion. Our forecast provides the details of the Internet population in 56 countries across five regions. 

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