NEWSROOM eMarketer's latest news, announcements, and media resources.

Archive for September, 2011

Twitter Ad Revenues to Grow 210% to $139.5 Million in 2011

Posted By:

Ad dollars expected to triple this year

NEW YORK (Sept 28, 2011)—Twitter is expected to rapidly expand its advertising revenues in 2011 and the years following, according to a new forecast from eMarketer.

eMarketer estimates global ad revenues at Twitter will grow 210% to $139.5 million in 2011, up from just $45 million in 2010, the company’s first full year of selling advertising. By 2013, eMarketer estimates worldwide ad revenues at Twitter will reach nearly $400 million.

“Since their debut in April 2010, Twitter’s Promoted Products have proven successful in the US,” said eMarketer principal analyst Debra Aho Williamson. “Marketers have seen solid engagement rates with Twitter advertising—in some cases better than those on Facebook—despite Twitter’s relatively smaller audience.”

Earlier this year, Twitter reported that 80% of advertisers return to use the products again, while the average engagement rate for Promoted Tweets is between 3% and 5%.

This forecast features a slightly lower 2011 ad revenue estimate than eMarketer’s previous forecast from January 2011—a result of Twitter’s slower-than-expected rollout of several ad offerings including ad sales offices in markets outside the US and a platform enabling advertisers to buy ads on a self-serve basis. In January, eMarketer forecast that Twitter would have $150 million in ad revenue this year.

However, Twitter will have stronger than expected growth in ad revenue next year. In 2012, Twitter will earn $260 million in worldwide ad revenue, up 86.3% over 2011. International ad revenue will reach $26 million, or 10% of total ad revenue, eMarketer estimates. Previously, eMarketer forecast that worldwide ad revenue would reach $250 million in 2012.

“Twitter took several months longer than expected to start selling advertising in the UK, but more international offices are coming soon,” Williamson said. “In addition, the self-serve platform has been in development for some time. When it launches, it will open up Twitter to more small and midsize advertisers.”

“Twitter is looking to compete for the same advertisers that made Google and Facebook’s self-serve advertising platforms smash hits,” Williamson added. “Self-serve advertising accounts for about 60% of Facebook’s ad revenue—that’s a pinnacle Twitter will hope to reach as well.”

eMarketer forms its estimates for advertising spending on Twitter through a meta-analysis of estimates of consumer usage, marketer usage, ad pricing, and impressions on Twitter, as well as revenue estimates from research firms and other sources. eMarketer also conducted interviews with industry executives who provided perspective on Twitter’s advertising business and revenues.

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 September 28, 2011.    

Facebook Revenues to Reach $4.27 Billion in 2011

Posted By:

Ad revenue to reach $3.8 Billion this year as earnings from Credits grow

NEW YORK, NY (Sept 20, 2011)—Global revenues at Facebook will reach $4.27 billion in 2011, up from $2 billion in 2010, according to a new forecast by eMarketer.

eMarketer estimates Facebook will earn $3.8 billion worldwide this year in advertising revenue, up 104% from $1.86 billion in 2010. Revenues from Facebook Credits are expected to reach $470 million in 2011, up from $140 million last year, eMarketer estimates.

“Facebook’s revenue streams will continue to diversify, with ads representing a decreasing proportion of total revenue while other sources such as Facebook Credits will grow,” said Debra Aho Williamson, eMarketer principal analyst.

Ads, which represented an estimated 95% of Facebook’s total revenue in 2009, will fall to 89% of total revenue this year, eMarketer estimates. Revenue from Facebook Credits will grow to 11% of the company’s total revenues in 2011, compared to 7% in 2010.

While eMarketer’s previous forecast from January 2011 had estimated Facebook would earn $4.05 billion worldwide in ad revenue this year, “this slight revision downward for 2011 should not be taken as a sign that Facebook’s overall business is losing momentum,” said Williamson.

eMarketer estimates Facebook will slightly surpass earlier expectations in 2012, earning an estimated $5.78 billion worldwide in ad revenue that year. eMarketer had previously estimated Facebook would earn $5.74 billion.

Despite a positive outlook, Facebook will continue to have to prove to advertisers that its products deliver results.

“Even though Facebook has spent several years wooing marketers, many of them still believe the ads aren’t effective at driving clicks and other actions,” said Williamson. “Facebook must either work to improve its clickthrough rate or show advertisers that advertising on the site is effective even without a click or other action.”

Many marketers also still believe they can successfully engage consumers on Facebook without spending a great deal on paid advertising.

“Having amassed a large quantity of ‘likes,’ some brands feel that they can continue to market to these people directly through their pages rather than by buying advertising on Facebook,” said Williamson. “This may especially be the case for companies that market to Facebook’s younger users, because they tend to be more willing to ‘like’ or comment on brand pages.”

The company has also taken steps in recent months to streamline its ad inventory to make a better experience for users, which contributed to eMarketer’s slight downward revision for 2011, Williamson

Facebook is expected to earn $2.01 billion in US ad revenues in 2011, eMarketer estimates. The company’s share of the $12.33 billion US display ad market will reach 16.3% in 2011. eMarketer’s estimates for US display ad revenue at Google, Microsoft, AOL and Yahoo! were not affected by this forecast.

eMarketer forms its estimates for advertising spending on Facebook through a meta-analysis of estimates of consumer usage, marketer usage, ad pricing, and impressions on Facebook, as well as revenue estimates from research firms and other sources. eMarketer also conducted interviews with industry executives who provided perspective on Facebook’s advertising business and revenues.

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 September 20, 2011.    

Android Gobbles Smartphone Share from BlackBerry to Beat iPhone

Posted By:

Android share up 13 points, ahead of Apple, BlackBerry

NEW YORK, NY (Sept 14, 2011)—By the end of this year, the iPhone will have lost its title as the No. 1 smartphone in the US, eMarketer estimates, with Google’s Android operating system surging ahead to first place.

Android will be installed on 37% of all smartphone handsets in the country by year-end, up 13 percentage points over 2010, eMarketer estimates. Apple will likewise see its OS increase share, but only slightly: from 28% of the market last year to 29% this year. iOS will continue to inch upward in market share through 2013, but by that year Android will hold more than two-fifths of the US smartphone market, eMarketer estimates.

The growth in Android usage comes mostly at the expense of Research In Motion’s BlackBerry, which eMarketer predicts will drop from 30% of the market in 2010 to just 15% in 2013. Shares for Microsoft and other operating systems, including Nokia’s Symbian, will also dwindle over the forecast period.

“The battle for US smartphone market share continues to look like a two-horse race between Android and iOS,” said eMarketer Principal Analyst Noah Elkin. “Within two years, Google and Apple will control nearly three-quarters of this key segment, making it very difficult for contenders like Microsoft and RIM to achieve scale.”

eMarketer forms its forecasts of smartphone usage by operating system through a meta-analysis of company reports, as well as survey, traffic and shipment data from dozens of research firms.

In terms of users, Android will more than double again this year after posting 496% growth in 2010. eMarketer estimates the number of Android users will rise from 33.4 million this year to 50.4 million in 2013. The iOS user population will also grow substantially, from 26.1 million this year to 38.4 million in 2013.

Despite the large addressable audience of Android users, many marketers remain more interested in advertising on the iPhone. One fact that has helped Google’s OS to grow in terms of usage—its availability on a range of devices from several manufacturers—may also be hurting it here, as fragmentation makes marketing efforts more difficult. But its hold on the smartphone market will only become harder to ignore.

eMarketer released estimates in August on the number of total US smartphone users, a figure that is expected rise 49.6% to 90.1 million this year, up from 60.2 million 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 September 14, 2011.    

eMarketer Webinar: What Retailers Need to Know About Online Holiday Shopping Behavior

Posted By:

To listen and watch playback of the webinar, What Retailers Need to Know About Online Holiday Shopping Behavior, click here. You can view the PowerPoint deck below.

View more presentations from eMarketer.

The webinar will address these key questions:

  • What is the outlook for the 2011 online holiday shopping season?
  • How will budget-minded consumers shop online to find the best deals?
  • What effect will mobile and social have on holiday shopping?
  • What can marketers still do to ensure a successful holiday season?

About Jeffrey Grau

Jeffrey Grau covers retail ecommerce in North America for eMarketer. In addition to building ecommerce forecasting models for these markets, he writes on topics such as multichannel retailing, online holiday shopping, social commerce and mobile commerce. Jeffrey is quoted frequently in the press and is in demand as a speaker at digital and industry conferences.

Sponsored by IBM.


Posted on September 8, 2011.    

One in Ten Mobile Users Redeem Coupons, New Forecast Shows

Posted By:

One in Ten Mobile Users Redeem Coupons, New Forecast Shows

NEW YORK, NY (Sept 7, 2011)—Mobile coupon usage is growing at a fast pace, with nearly one in 10 US mobile phone users over 18 expected to redeem a coupon this year, according to a new report by eMarketer.

eMarketer estimates 19.8 million adults, or 9.5% of US mobile phone users over 18, will redeem a mobile coupon this year, including coupons or codes received via SMS, applications and mobile web browsers; quick response codes for redemption online or offline; and group buying coupons purchased via mobile. Next year, the number of US consumers who redeem mobile coupons will rise to 28.7 million, or 13.5% of adult mobile phone users, eMarketer estimates.

“Even as the sputtering economy attempts its recovery, the popularity of couponing has continued, spurred in part by the burgeoning daily deals space,” said Noah Elkin, eMarketer principal analyst and author of the new report, “Mobile Coupons: Offers and Deals Light Up the Last Mile.” “Mobile coupons will play a central role in broadening the appeal and acceptance of digital coupons among shoppers.”

By 2013, the number using such coupons will nearly double, and 16.5% of all US adult mobile phone users will redeem a coupon that year.

Among smartphone users, penetration is significantly higher. This year, nearly one in five smartphone owners ages 18 and older will redeem a mobile coupon, representing growth of 117.6%. Triple-digit uptake rates will be short-lived, but by 2013 almost one-third of smartphone users will be redeeming discounts on the go.

Still, marketers and retailers will face challenges in encouraging this usage. The technology landscape is complex, and training sales associates about the intricacies of mobile coupon programs might be as big a change as getting consumers to use them in the first place.

“Consumers have started to use mobile devices more extensively at the top of the shopping funnel—to research products and pricing, for example,” said Elkin. “But usage has yet to migrate to the bottom of the funnel on a wide scale. Although awareness of mobile coupons is growing, it remains limited. And most consumers have yet to be convinced of the benefits of using their mobile devices as a payment mechanism, for either in-store or online purchases.”

eMarketer forms its estimates for US mobile coupon users through a meta-analysis of information aggregated from dozens of sources, including firms that track coupon usage and users. This forecast does not include mobile coupon users under the age of 18.

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 September 7, 2011.