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Archive for January, 2011

Apple to Pass RIM in Smartphone Market Share This Year

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Google’s Android to Top All Operating Systems by 2012

NEW YORK, NY (Jan 27, 2011)—Apple is expected to pass Research In Motion as the leader of the US smartphone market in 2011—but not for long. Google’s Android platform will overtake both Apple and RIM in 2012, according to a new forecast by eMarketer.

eMarketer, which bases its forecast on a meta-analysis of research estimates and methodologies from several firms who track the smartphone market, estimates Apple took a 28% share of the US smartphone user market in 2010, just above the 24% of users who use a device running Google’s Android platform.

Research In Motion’s share of the market is expected to decline to 25% in 2011, down from 30% in 2010.

Android will continue to gain share through 2012, when 31% of all smartphone users will own a device running the Google OS. That same year Apple’s share of the market will hold steady at 30%, up only slightly from 2009.

“The open-source Android OS requires no licensing fee and allows handset manufacturers and wireless carriers considerable latitude to customize the user interface according to their desired specifications,” said Noah Elkin, eMarketer principal analyst and author of a forthcoming report on mobile devices. “With a growing roster of manufacturer and carrier partners in every major market and market segment, scale for Android is coming quickly in terms of device, market share, apps and ad revenues.”

Figures from several research firms show just how fast that scale has come. Between 2009 and 2010, Android grabbed a significant slice of the pie, mostly at the expense of Research In Motion and other non-Apple handsets.

“Ultimately, the winner, if there is one, matters less than marketers’ ability to make the most of the growing number of smart devices to deliver rich, engaging experiences for consumers,” said Elkin.

About eMarketer
eMarketer is the authority on digital marketing, media and commerce, offering insights essential to navigating the changing, competitive and complex digital environment. By weighing and analyzing information from different sources, eMarketer provides businesspeople, marketers and advertisers with the most complete view of digital marketing available.
www.eMarketer.com

Media Contact:
Clark Fredricksen
Vice President, Communications, eMarketer
Tel. 212-763-6056
Twitter

Posted on January 27, 2011.    

Starcom MediaVest Group Invests in Enterprise Deal with eMarketer

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SMG offers eMarketer’s Digital Intelligence to all its employees around the world

NEW YORK, NY (Jan. 25, 2011)—Starcom MediaVest Group (SMG) is providing 6,700 employees across its 110-office network access to eMarketer’s analysis of digital marketing, media and commerce information.

The deal represents a corporate-wide commitment on SMG’s part to educate and inform its personnel across all departments and disciplines on the importance and impact of digital trends.

“Digital isn’t a testing ground where our industry can afford to make mistakes anymore, as this deal demonstrates,” said Kate Sirkin, EVP Research at SMG. “We think we’ve taken an important step in giving all our employees the information they need to lead the industry as digital media becomes a mainstream channel for marketers and advertisers.”

The global deal gives media-buying giant SMG access to the steady flow of information on online marketing, media spending and consumer usage trends that eMarketer produces by daily aggregating and analyzing data from thousands of media, research, government and academic sources.

“This represents a major step forward,” said Lisa Church, president of eMarketer. “We’re honored to help raise the digital IQ of their entire organization, beyond the research and digital departments.”

According to eMarketer, US advertisers spent $25.8 billion on internet ads in 2010—15.3% of total advertising dollars for the year. By 2014, the firm estimates online ad spending will reach $40.5 billion and account for more than 21% of total ad spending.

In September 2010, Starcom MediaVest Group and eMarketer jointly released the Global Media Intelligence Report, an in-depth look at digital media in 29 global markets.

About eMarketer
eMarketer is the authority on digital marketing, media and commerce, offering insights essential to navigating the changing, competitive and complex digital environment. By weighing and analyzing information from different sources, eMarketer provides businesspeople, marketers and advertisers with the most complete view of digital marketing available.
www.eMarketer.com

Media Contact:
Clark Fredricksen
Vice President, Communications, eMarketer
Tel. 212-763-6056
Twitter

Posted on January 25, 2011.    

Twitter Expected to Hit $150 Million in Ad Revenues This Year

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$45 million in ad revenues in 2010

NEW YORK, NY (Jan. 24, 2011)—Advertising spending on Twitter reached an estimated $45 million in 2010, and is expected to hit $150 million this year, according to eMarketer’s first full forecast of ad spending on the service.

“Promoted Trends is seeing good traction in the marketplace, which gives us cautious optimism for Twitter’s fledgling ad products,” said eMarketer principal analyst Debra Aho Williamson, author of the upcoming report “Worldwide Social Network Ad Spending: 2011 Outlook.”

“However, the company has a lot to do to live up to its hype,” Williamson said. “Twitter must work overtime to give its early advertisers a positive experience.”

By 2012, Twitter ad spending could reach $250 million, eMarketer estimates. But this forecast is dependent on Twitter growing its user base substantially. According to the Pew Internet & American Life Project, only 8% of online Americans use Twitter.

One reason for the dramatic growth forecast this year is the upcoming launch of a self-serve ad platform, expected mid-2011. The self-serve model has been major factor behind the growth of other online ad publishers such as Google and Facebook.

“Twitter is poised to go after the same performance advertising business that has funded much of Facebook’s growth,” Williamson said. “If Twitter can grow its user base and convince marketers of its value as a go-to secondary player to Facebook, it will succeed in gaining revenue.”

Twitter revenues will still be small compared to those of Facebook, but by next year eMarketer expects Twitter to pull in more ad dollars than Myspace.

About eMarketer
eMarketer is the authority on digital marketing, media and commerce, offering insights essential to navigating the changing, competitive and complex digital environment. By weighing and analyzing information from different sources, eMarketer provides businesspeople, marketers and advertisers with the most complete view of digital marketing available.
www.eMarketer.com

Media Contact:
Clark Fredricksen
Vice President, Communications, eMarketer
Tel. 212-763-6056
Twitter

Posted on January 24, 2011.    

eMarketer Webinar: Social Media Outlook for 2011

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Debra Aho Williamson

To listen and watch playback of the webinar, Social Media Outlook for 2011, click here. You can view the PowerPoint deck below.

View more presentations from eMarketer.

You will take away:

  • The numbers to know—how businesses are budgeting for social media and what they are spending
  • How important Facebook is becoming to the online marketplace
  • Why “liking” a brand is only the beginning of a consumer’s dialog with a company
  • Which demographic groups are the heaviest users of social media and how to effectively reach them

About Debra Aho Williamson

Debra is eMarketer’s lead analyst focusing on social media marketing and the demographics of social media users. She produces eMarketer’s forecasts for social network advertising spending in the US and worldwide and has written more than two dozen reports delivering key insights covering how marketers, media and consumers are engaging with social media. A founding executive editor of pioneering internet business publication The Industry Standard, Debra is quoted for her analysis in the business press and invited to speak at major digital marketing internet events.

Sponsored by Demand Media.

Demand Media

Posted on January 21, 2011.    

Digital Agency Razorfish Provides eMarketer to Its Offices Around the World

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An indicator of the advertising industry’s increasing interest in digital channels

NEW YORK (Jan. 20, 2011)—Today, Razorfish announced it has expanded its relationship with eMarketer and is now providing the firm’s analysis of digital marketing, media and commerce information to its entire global employee base.

The agreement is an indicator of the advertising industry’s increasing interest in driving international and domestic business through digital channels, and the growing demand for information to support online, social and mobile marketing efforts.

“Now that digital is undoubtedly a core buy for all evolved marketers, our agency’s need for supporting data has never been stronger,” said Razorfish CEO Bob Lord. “We think eMarketer is a fantastic resource for the information our global organization needs to navigate and lead in the fast-moving digital marketplace.”

The deal gives Razorfish employees 24/7 access to the steady flow of information on online marketing, media spending and consumer usage trends that eMarketer produces by aggregating and analyzing data from thousands of media, research, government and academic sources.

“As digital continues to grow in importance for marketers all over the world, we’re poised to deliver the data and analysis that clients like Razorfish can use to lead the industry forward,” said Lisa Church, president of eMarketer.

According to eMarketer, advertisers will spend $68.7 billion worldwide on internet advertising in 2011, up 11.1% from $61.8 billion the year before. By 2014, the firm estimates online ad spending will account for 17.2% of total media ad spending worldwide, up from 12.8% in 2010.

About eMarketer
eMarketer is the authority on digital marketing, media and commerce, offering insights essential to navigating the changing, competitive and complex digital environment. By weighing and analyzing information from different sources, eMarketer provides businesspeople, marketers and advertisers with the most complete view of digital marketing available.
www.eMarketer.com

Media Contact:
Clark Fredricksen
Vice President, Communications, eMarketer
Tel. 212-763-6056
Twitter

Posted on January 20, 2011.    

Advertising Revenues at Myspace Sank to $288 million in 2010

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$184 million in ad revenues expected in 2011

NEW YORK, NY (Jan 18, 2011)—Ad spending on Myspace will drop to $184 million in 2011, down from $288 million in 2010 and $470 million in 2009, according to new estimates by eMarketer.

Next year’s ad spending will be even more diminished, with eMarketer estimating just $156 million will go toward the site.

eMarketer’s previous forecast, from August 2010, was slightly more optimistic. The firm estimated Myspace would draw $347 million in ad revenues this year and $297 million in 2011. Since then, however, Myspace has faced blow after blow, despite its relaunch in October 2010 as a social entertainment portal.

“The bottom has fallen out for Myspace, the company that Rupert Murdoch only a few short years ago thought of as the crown jewel of News Corp.’s online future,” said eMarketer principal analyst Debra Aho Williamson, author of the upcoming report “Worldwide Social Network Ad Spending: 2011 Outlook.”

In the third quarter of 2010, Myspace revenues were down $70 million compared to the same period the previous year, the company reported. And in January 2011, Myspace laid off nearly half of its 1,000 employees, with many of the layoffs coming from international offices.

Even as Myspace has undergone immense upheaval, it has a few things going for it that still make it attractive to some marketers, Williamson said.

“It has continued to explore new ways to make advertising more social, and in this it stands apart from Facebook, whose ad formats have remained relatively static over the past few years,” she added.

eMarketer’s ad spending forecast includes revenues from Myspace’s deal with Google to provide search functionality and display advertising.

About eMarketer
eMarketer is the authority on digital marketing, media and commerce, offering insights essential to navigating the changing, competitive and complex digital environment. By weighing and analyzing information from different sources, eMarketer provides businesspeople, marketers and advertisers with the most complete view of digital marketing available.
www.eMarketer.com

Media Contact:
Clark Fredricksen
Vice President, Communications, eMarketer
Tel. 212-763-6056
Twitter

Posted on January 18, 2011.    

Facebook Ad Revenues Forecast to Reach $4.05 Billion in 2011

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SOCIAL NETWORK GRABBED $1.86 BILLION IN GLOBAL AD REVENUES IN 2010

NEW YORK, NY (Jan 18, 2011)–eMarketer estimates ad spending on Facebook will reach $2.19 billion in the US this year and just over $4 billion worldwide–more than double last year’s figure of $1.86 billion in global ad revenues. By 2012, worldwide ad spending on Facebook is expected to reach $5.74 billion, up 42% over 2011.

“2010 was the year that Facebook firmly established itself as a major force, not only in social network advertising, but all of online advertising,” said eMarketer principal analyst Debra Aho Williamson, author of the upcoming report “Worldwide Social Network Ad Spending: 2011 Outlook.”

eMarketer estimates Facebook accounted for 4.7% of the $25.8 billion US online ad market in 2010. This year, its share will rise to 7.8% as it adds an estimated $1 billion in US ad revenues to its 2010 base.

This forecast is significantly higher than eMarketer’s previous estimate, from August 2010, which put Facebook ad spending at $1.3 billion worldwide in 2010 and $1.8 billion in 2011.

One major reason for the shift is Facebook’s phenomenal user growth.

“Facebook has clearly locked up the US market and even with the growth of other international social networks, its global presence is something that multinational marketers can’t ignore,” Williamson said.

Meanwhile, performance marketers also continue to increase their use of Facebook’s self-serve ad system, which eMarketer estimates now accounts for as much as 60% of total ad spending on Facebook, up from 50% in mid-2010.

“If Facebook can keep growing its global user base and boost the amount of revenue it generates per user, it could even surpass these forecasts,” Williamson added.

This estimate does not include any Facebook revenue from sources other than advertising, such as Credits.

The dramatic increase in spending on Facebook will push US ad spending on all social networking sites to $3.08 billion this year, eMarketer forecasts. Spending will be up 55% over the $1.99 billion US advertisers devoted to social networks in 2010 and will rise by a further 27.7% next year to reach nearly $4 billion.

About eMarketer
eMarketer is the authority on digital marketing, media and commerce, offering insights essential to navigating the changing, competitive and complex digital environment. By weighing and analyzing information from different sources, eMarketer provides businesspeople, marketers and advertisers with the most complete view of digital marketing available.
www.eMarketer.com

Media Contact:
Clark Fredricksen
Vice President, Communications, eMarketer
Tel. 212-763-6056
Twitter

Posted on January 18, 2011.    

US Social Gaming Market to Surpass $1 Billion in 2011

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Revenues up 27.7% this year

NEW YORK (Jan 12, 2011)—The rapid rise in popularity of social networking sites as a venue for casual gaming since Zynga released FarmVille in June 2009 will drive overall US social gaming revenues to $1.09 billion this year, eMarketer estimates.

Nearly 62 million US internet users, or 27% of the online audience, will play at least one game on a social network monthly this year, up from 53 million in 2010. Their numbers will continue to grow and, along with them, money spent on virtual goods, lead-generation offers and advertising.

“With disposable income and a willingness to spend real dollars on virtual goods, social gamers are propelling a growing economy,” said Paul Verna, author of the forthcoming eMarketer report “Social Gaming: Marketers Make Their Moves.”

Revenues from virtual goods made up the majority of social gaming revenues in the past, and they will continue to bring in the biggest share of dollars through 2012. Ad spending will grow more quickly; in 2011, marketers will spend $192 million to advertise on social games, nearly a 60% increase over 2010. eMarketer forecasts a further rise of 41% in ad spending next year.

Rapid growth in ad spending will help its share of total revenues grow from 14.1% in 2010 to 20.5% in 2012, when it will surpass lead-generation offers as a source of developer revenues. Such offers have been a powerful force in the social gaming market but are losing favor as marketers use games for more branding-oriented efforts. Virtual goods will hold steadily onto a share of about 60% of the market.

“Even though fewer than 6% of US social gamers spend money on virtual items, these avid players will produce revenues of $653 million in the US alone this year,” Verna said. “This is the largest segment of the social gaming economy, and one that marketers are increasingly turning to as a branding vehicle. We expect to see more branded virtual goods as social gaming matures over the next two years.”

About eMarketer
eMarketer is the authority on digital marketing, media and commerce, offering insights essential to navigating the changing, competitive and complex digital environment. By weighing and analyzing information from different sources, eMarketer provides businesspeople, marketers and advertisers with the most complete view of digital marketing available.
www.eMarketer.com

Media Contact:
Clark Fredricksen
Vice President, Communications, eMarketer
Tel. 212-763-6056
Twitter

Posted on January 12, 2011.    

Stripes Group Closes $25 Million Minority Growth Investment in eMarketer

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NEW YORK, NY (January 10, 2012)—eMarketer, a business information provider covering digital marketing, media and commerce, today announced that Stripes Group has completed a $25 million minority investment in the company.

Stripes’ equity stake was acquired by purchasing a portion of the equity held by early eMarketer investors, including the company’s major shareholder, Beehive Ventures, LLC, and the company’s founders. This recapitalization is designed to provide liquidity for long-time shareholders and support the rapid growth of eMarketer.

Ken Fox, Founder and Managing Partner at Stripes Group, said, “We have been following eMarketer for several years and have watched as management built the business into the leader in providing information and data on digital marketing and e-commerce.

“We got to know the eMarketer team after engaging with them through our thematic investment sourcing effort focused on research and data businesses,” Fox added. “We enthusiastically pursued this partnership, and we are looking forward to a long, profitable relationship with eMarketer.”

Geoff Ramsey, eMarketer Co-Founder and CEO, said, “We decided that this was the right time to bring in a partner to support our rapid growth and to distribute some of the value we’ve generated building the business.

“This recapitalization ideally positions us to execute our strategy over the coming years,” Ramsey added. “During this process, we’ve gotten to know Ken and Stripes Group well and are confident that their thinking is in sync with ours. We are excited to have Stripes be part of the eMarketer team and believe they will help us meet our goals and strengthen our market leading position.”

About eMarketer
eMarketer is the authority on digital marketing, media and commerce, offering insights essential to navigating the changing, competitive and complex digital environment. By weighing and analyzing information from different sources, eMarketer provides businesspeople, marketers and advertisers with the most complete view of digital marketing available.
www.eMarketer.com

Media Contact:
Clark Fredricksen
Vice President, Communications, eMarketer
Tel. 212-763-6056
Twitter

Posted on January 10, 2011.