What industry is set to reach nearly 17 billion dollars in global revenue in 2012?
If you are sick of hearing everybody talk about the importance of social media, the dominance of Facebook or the creativity of Twitter campaigns, then the latest report from Gartner may make you think again.
There's a huge buzz around social networking for a reason – popular sites attract millions of users and this translates into billions of dollars.
Yesterday (July 25), research company Gartner released a report predicting that the global revenue of social media would reach $16.9 billion in 2012.
This is a 43.1 per cent increase compared to the revenue in 2011, which was 11.8 billion.
The study, titled Forecast: Social Media Revenue, Worldwide, 2011-2016, analyses the growth of social networks and makes some economic predictions.
Among the forecasts, Gartner expects that there will be continued growth across social media sites and rising competition among the platforms.
Senior research analyst at Gartner Neha Gupta also says that social media marketing strategies will continue to be developed to appeal to advertisers, which is a large source of revenue.
"Social media sites are becoming more innovative in their ad products to attract marketers," Ms Gupta said.
"Social networking sites should deploy data analytic technologies that interrogate social networks to give marketers a more accurate picture of trends in accordance with consumers' needs and preferences."
Ms Gupta went on to explain that in addition to advertising, revenue opportunities could also be available through new mobile technology platforms and 'social gaming'.
The latter refers to the money-earning potential of interactive games such as FarmVille or Hidden Chronicles.
Gartner predicts that advertising revenue will reach $8.8 billion this year, closely followed by social gaming at $6.2 billion.
Posted by Jess O'Connor