Social Commerce | Display Ads | SOPA Stats | Web VC

January 20, 2012

booz-company-estimate-of-social-commerce-market-size-jan12.gifBy 2015, the dollar volume of goods sold through social media should rise sixfold, to $30 billion from $5 billion in 2011, according to [pdf] a Booz & Company estimate released in January 2012, which limited its estimate to hard goods such as electronics, apparel, and movie tickets. The company forecasts the market to almost double this year to $9 billion, of which the US will account for $3 billion, up from $1 billion in 2011. Indeed, while Booz & Company expects rest of the world revenues to increase by 400% between 2011 and 2015, its projections are even more aggressive for the US market, forecast to grow from $1 billion last year to $14 billion in 2015.

  • According to January highlights from a comScore study involving 12 national premium brands, in many cases online ads are delivered but not in-view or on target, and therefore never have a chance to make an impact. In fact, across all charter campaigns measured, 69% of the ad impressions were classified as being “in-view,” while the remaining 31% were delivered but never seen by a consumer, a likely result of a consumer scrolling past the ad before it loaded or a consumer never scrolling the ad into view. In-view percentages varied by site and ranged from 7% to 91%. An average of 4% of ad impressions were delivered outside the desired geography, but individual campaigns ran as high as 15%. In many cases, ads were served in markets where the advertised product is not sold, meaning wasted ad spend and sub-optimal effectiveness results. Also, 72% of the campaigns had at least some ads running next to content deemed “not brand safe” by the advertiser, meaning that the content is deemed objectionable by the brand.
  • According to statistics compiled by Marketing Land, the anti-SOPA/PIPA movement on January 18th cast a wide net. More than 162 million users saw Wikipedia’s blackout page, and more than 8 million used the page to look up their representatives’ contact information. Google said more than 7 million users signed its petition opposing the bills, while its petition page was +1’d more than 130,000 times. And Twitter announced that its users sent about 3.9 million SOPA-related tweets that day.
  • The latest MoneyTree report from PricewaterhouseCoopers and the National Venture Capital Association indicates that internet-specific companies saw a substantial increase in investing in 2011. The $6.9 billion going into 997 deals represented a 68% increase in dollars and 24% rise in deals from 2010, when $4.1 billion went into 807 deals. 2011 also marked the highest level of internet investment over the past decade. For the fourth quarter, internet-specific investment declined 23% in dollars and 7% in deals with $1.3 billion going into 239 deals, compared to $1.7 billion going into 257 deals in the third quarter of 2011.”Internet-specific” is a discrete classification assigned to a company whose business model is fundamentally dependent on the internet, regardless of the company’s primary industry category. These companies accounted for 24% of all venture capital dollars in 2011, up from 18% in 2010.

About the Data: The comScore US-based vCE Charter Study involved 12 national brands, 3,000 placements, 381,000 site domains and 1.7 billion ad impressions. Select advertisers from the charter study include Allstate, Chrysler, Discover, E*TRADE Financial, Ford, General Mills, Kellogg’s, Kimberly Clark, Kraft, and Sprint. All of the impressions analyzed in the study were delivered in iframes and none required publisher site pixels.

45th Parallel Design Ad

Explore More Charts.

Pin It on Pinterest

Share This