Trends in Social Media; a Focus on Content, Mobile and Geography
35
The Social Media Landscape: Segments, Trends and Market Size September 2013
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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.
Transcript of Trends in Social Media; a Focus on Content, Mobile and Geography
The Social Media Landscape:Segments, Trends and Market Size
September 2013
Sections
2
• Social Media & Advertising
• Social Media Management
• Mobile Advertising
• Content Creation & Publishing
Social Media & Advertising
Social Media Continues to Grow Globally
4
Social Media Penetration by Destination Social Media Population by Destination
Source: Gartner, September 2013
1,100M
500M
500M
480M
300M
268M
200M
160M
123M
100M
0M 250M 500M 750M 1,000M 1,250M
Google+
Qzone
Sina
Habbo
Renren
Vkontakte
Tagged
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
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
In Other Words, It’s Not Just About Facebook
7
Most brands are simultaneously using multiple social platforms to reach their customers
Brands are Increasingly Promoting Content…
8
And Consumers Want Brand Engagement on Social Media
9
Social Networks Playing an Increasing Role in E-Commerce
10
Source: Monetate, May 2013Source: Vocus & Gartner, November 2012
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 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
Sponsored Content – Incredibly Effective When Done Right
13
Simple, effective and actually appreciated by consumers
As a result, highly viral and shared
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
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Recent M&A Activity in Social Media Marketing & Management
20
June 2012$689M Acquisition
July 2012 $350M Acquisition
+ $100M Potential Earnout
May 2012$325M Acquisition
May 2012Undisclosed
September 2011$150M Acquisition
May 2012$152M Acquisition
Social Collaboration is a Related Trend
21
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
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
24
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
2009 2010 2011 2012 2013 2014 2015 2016
Mobile Web Display In-App Display Search/Maps Audio/Video SMS/MMS/IM
Source: Gartner, November 2012
Total mobile advertising revenue is forecast to exceed $24B by 2016
Mobile web display, in-app display and mobile search will dominate revenue share
$24.5B
$0.8B
Smartphone Penetration Increasing Globally
25
Source: eMarketer, May 2013
Highest growth regions for smartphone adoption are the Middle East and Africa, Latin
America and Central and Eastern Europe
Region 2012 2013 2014 2015 2016 2017 CAGR
US 38.7% 44.3% 50.1% 55.4% 59.8% 63.5% 10.4%
Canada 30.6% 35.1% 40.2% 43.6% 46.6% 49.8% 10.2%
Western Europe 30.2% 38.7% 47.4% 55.6% 61.3% 65.8% 16.9%
Central and Eastern Europe 21.0% 29.3% 39.1% 46.6% 53.6% 59.5% 23.2%
Asia Pacific 15.6% 18.7% 22.9% 25.9% 28.5% 31.0% 14.7%
Middle East and Africa 5.1% 8.3% 10.9% 13.0% 15.0% 16.8% 26.9%
Latin America 13.1% 18.6% 23.6% 29.2% 34.0% 38.8% 24.3%
Worldwide 15.7% 19.8% 24.3% 28.0% 31.2% 34.0% 16.7%
% of Population
0%
10%
20%
30%
40%
50%
60%
70%
2012 2013 2014 2015 2016 2017
US Western Europe Central and Eastern Europe Asia PacificMiddle East and Africa Latin America Worldwide
Mobile Content is Gaining Ad Revenue Share
“Non-traditional” advertising platforms are
gaining share, especially on mobile
– Pandora
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,
Mobile will not reflect a simple “transition” of
traditional display market to mobile
26
Behavior on Mobile is Vastly Different From Desktop
27
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)
Social Media Ad Revenue is Increasingly Mobile-Centric
28
Mobile ad revenues for Facebook and Twitter will comprise over 50% of total ad
revenues in 2014, up from 0% in 2011
Mobile Monetization – Not Your Father’s IAB Standard Ad Unit
Ad Units / Monetization
29
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)
Content Creation & Publishing
Market for Digital Content Creation Software is Growing
31
Digital Content Creation Software Market Size: SaaS & Non-SaaS
Source: Gartner, October 2012
Content Creation is a Major Part of Marketing Budgets
32
Social Marketing Teams Are Focused on Content Creation…
33
Source: Gartner, March 2013
…Which is Driving Demand for Content Creation Outsourcing
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Source: Gartner, March 2013
The Social Media Landscape:Segments, Trends and Market Size
Jeff Richards / [email protected]
Crystal Huang / [email protected]
