Worldwide social media revenue is on track to reach $10.3 billion in 2011

It’s been a while since I shared with you some Social Media highlights around the world…Before you start reading this though, you need to stop thinking of social networks as just another venue for your marketing.  Their next evolution is already underway and holds much promise for the business world.  Consider that social are morphing into new channels for collaboration and innovation…

According to Gartner Inc., worldwide social media revenue is on track to reach $10.3 billion in 2011, a 41.4 percent increase from 2010 revenue of $7.3 billion. Worldwide social media revenue is forecast for consistent growth with 2012 revenue totaling $14.9 billion, and the market is projected to reach $29.1 billion in 2015. Advertising revenue is, and will remain, the largest contributor to overall social media revenue. Social media advertising revenue is forecast to total $5.5 billion in 2011, and grow to $8.2 billion in 2012. Advertising revenue includes display advertising and digital video commercials on any device including PCs, mobile and media tablets
According to the 18th annual 3PL survey conducted by Northeastern University and Penske Logistics, natural disasters in 2011, especially the earthquake and tsunami in Japan, increased awareness among 3PLs and their customers of the need for contingency supply-chain planning. North American companies experienced supply chain disruptions due to supplier failure and unpredictable transit times. Another interesting finding from this year’s survey is the growing use by 3PLs of social networking. About two-thirds of companies in the survey have Linked-In accounts, about a third are on Twitter, about half have Facebook accounts, and a quarter have material on YouTube

According to Adrian Gonzalez, director of the Logistics Executive Council at ARC Advisory Group, in order to determine where to start with social media and develop a clear business case, supply chain executives will need to – Think Beyond Facebook, Twitter, and LinkedIn. For most executives, and the public in general, the term “social media” basically equates to Facebook, Twitter, LinkedIn, and other publicly accessible sites. But the ecosystem of “social networking” solutions also includes “Enterprise 2.0” applications (aka “Enterprise Social Software”) that companies can deploy internally to facilitate communication and collaboration between employees and different functional groups, and with suppliers, customers, and other external partners in a private, secure environment. At last month’s CSCMP conference, for example, Tricia Mims from Home Depot discussed how the company is using an internal social media site called “The Warehouse” that store and DC associates, as well as corporate store support center, use for “internal communication and knowledge transfer of innovative ideas and best practices for just about any issue impacting the business.” She added: “The ability to capture information on the obstacles that associates face allows the company to analyze and formulate solutions. It facilitates internal benchmarking that results in process standardization based on best practices.”
Members of the CPO Agenda Network discuss department sizing and financial responsibility per employee on LinkedIn

A news release from H.P. Labs discussed a project where data from social media is merged with corporate information, like sales transactions and customer demographics, to predict customer behavior. The study claimed 90 percent accuracy. The system used can correlate social media conversations about specific product features to actual customer transactions in real time. HP is expanding the scope of the project internally as the underlying technology is being piloted by HP customers in the media and entertainment industries

Nestlé is looking for an agency to handle social media activity for its Nespresso brand. The food and drink giant has already contacted a number of UK agencies regarding the work, as it looks to boost the online presence of Nespresso. Nespresso, which manufacturers machines and capsules to help people create their own espresso coffee, already enjoys a loyal following among its existing consumer base and it is keen to use social media to maintain these relationships and to help it develop new ones

InnoCentive is the first global web community for open innovation created back in 2001. InnoCentive is designed to bring seekers (companies with problems) and solvers (scientists, engineers, professionals, and entrepreneurs with solutions) together to collaborate on challenges that R&D-driven organizations are facing. In 2011, this web-based network has more than 250,000 engineers, scientists, inventors, business people, and research organizations in more than 175 countries available to solve seekers problems. Companies like DuPont, Procter & Gamble, Dow AgroSciences, BASF, and Eli Lilly and Company, post problems their own in-house research teams cannot solve, offering rewards that range from $10,000 to $100,000. To date, InnoCentive has paid out more than $7 million dollars in rewards to solvers. Access to external resources helps companies source experts throughout the world. Without the internal knowledge to solve these challenges, many firms would fail to develop new products at the rapid pace needed in some markets

AT&T plans to build out its Networking Leaders Academy program, educating its employees and encouraging them to go on social networks. Trish Nettleship, social media lead for business marketing at AT&T, says she would like to engage more third-party, external advocates for the brand as well, extending AT&T’s social footprint to the tech and communications space

The survey by Protiviti showed that one in six (17 %) UK employees consider social networking sites such as Facebook and LinkedIn a major risk to corporate security. The research also showed three in 10 (28 per cent) believed that social networking sites also posed a real threat to their own personal security.  Although Twitter, LinkedIn or Facebook are used by employees for business use, privacy and security are major concerns for users. Key security risks include potential leakage of sensitive information, unintentional upload of viruses to employees’ computers, individuals falling prey to fraudulent scams and increased targeting of individuals associated with the company for social engineering attacks. Staff have called for clearer guidelines on social media usage in the workplace. In particular, employees aged 55 and over would like to see clearer guidelines, with one in three (30 per cent) expressing a need for this, more than any other age group. Jonathan Wyatt, managing director of Protiviti UK said: “By allocating and establishing a unified risk management process, organisations can start to mitigate the threats they face.”

According to new Booz & Company research, “Campaigns to Capabilities: Social Media and Marketing 2011,” as social media plays an expanding role in advertising and branding efforts, 94% of respondents regard Facebook as one of their top 3 social media platform priorities. 77% view Twitter as one of their top 3 social media platform priorities; 42% say YouTube is one of their top 3 social media platform priorities.The research, based on quantitative and qualitative input from more than 100 leading companies, finds that 81% of respondents say the marketing department is responsible for social media. 35% of companies have a dedicated head of social media. 50% of respondents said they believe that this role is critical to social media success. And while social media is squarely on the functional agenda of senior marketers, 38% say that social media is CEO-level priority for their companies

UK leading the way as mobile social networking use skyrockets across Europe

The UK is head and shoulders above its continental counterparts in mobile uptake, according to new comScore data, as 35% of UK mobile users access social networking sites on their phones, compared to the European average 23%. Read full article here

 Google+ has instant impact on social media landscape
New social media network Google+ attracts 25 million-plus users by the first week in August, according to comScore.
Why does it matter? Google+ is already being touted as a potential Facebook killer because of unique features and its parent company’s strength.
Still, its initial numbers are far below the 750 million active Facebook users. Questions also remain as to how Google+ will eventually fit into both the social media landscape as well as the marcomms strategies of brands large and small. Read full article here

And for those who missed my previous article on this:
An IBM computer-based analysis of billions of social media posts predicts an intriguing change on the horizon in women’s shoe fashions, with heel heights – currently in nosebleed territory – poised to decline.  The IBM project highlights the predictive capabilities of social media analysis as a source of valuable insight that can help drive business strategies and results. According to a recent IBM study, Chief Marketing Officers around the world recognize the need to embrace social media in their business – but only a small minority of them actually factor information from blogs and other forms of social media into their strategic decisions

Happy Tuesday !

2 thoughts on “Worldwide social media revenue is on track to reach $10.3 billion in 2011

  1. Andrew Stephens says:

    Some very interesting insights and statistics Delphine to help us further in the advancement of social business.

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