Facebook: increasing mobilisation
Facebook’s audience and engagement continue to rise as a result of the migration to mobile devices – on its current trajectory more people will access the social network via mobile devices than PCs by the end of 2014
The transition to mobile is cannibalising desktop time on Facebook but significantly higher usage on mobile devices and rising mobile ad yield is driving growth in overall consumption and revenue |
Media, Internet |
May 2013 Access this report
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Facebook Home and mobile
Facebook has announced Home, an Android app that takes control of your phone, replaces the home screen with your Facebook newsfeed and relegates any competing social services to, it hopes, an afterthought.
At launch, Home will be available to at most 20% of Facebook’s mobile base. It is an interesting tool to lock in core users and drive up their engagement, but can only be part of Facebook’s mobile strategy. |
Media, Mobile, Internet, Technology, Telecoms |
April 2013 Access this report
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Facebook finally trials social search
Facebook’s announcement of Graph Search, the company’s first move into socially-powered search which now in beta trial in the US, leaves many details unanswered including full launch and monetisation plans. Reliance on user-generated content from Facebook friends limits the usefulness of Graph Search as a conventional search engine and hence its impact on Google and other web search businesses in the near term. |
Media, Internet |
January 2013 Access this report
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UK local media: a holy grail?
This report explores and quantifies expenditure in the local media landscape. Flat disposable income and the rise in e-commerce continue to force many retailers from the high street, though we argue first-rate small and medium enterprises (SMEs) have the opportunity to grow share of the local market, despite these pressures |
Media, Press, Internet |
December 2012 Access this report
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Facebook – the only way is mobile
Facebook now has more than one billion users but future commercial success depends on monetising the growing consumption via mobile devices, which are replacing the PC as the main method of access
Facebook’s new mobile ads are newsfeed based Sponsored Stories and Promoted Posts rather than banners; early agency performance feedback is positive
Rapid growth in mobile ads will not be sufficient to offset slowing growth from PC-based advertising in 2012 and 2013, but revenue growth should pick up in 2014 as mobile ad volumes ramp up and other initiatives kick in |
Media, Mobile, Internet, Telecoms |
October 2012 Access this report
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Mobile platforms update, Q2 2012: Apple. Android, Samsung and Facebook
Around 125m smartphones were sold globally in Q2, up over 30% from Q2 2011. Around 450m mobile handsets were sold in the quarter, giving smartphones a volume share of around 28% Apple and Android dominate with a combined of 85% of units sold, and a cumulative total of 810m devices running their mobile platforms. Of these we estimate that 680m are active, of which 95m are tablets Android arrived later and has grown faster, but Apple’s market share of smartphones as been steady at 20-25% for several years: Android’s growth has come at the expense of Nokia, RIM and feature phones |
Mobile, Non-UK Telecoms, Technology, Telecoms |
August 2012 Access this report
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Google winning battle for internet display
Search remains the main engine for Google’s core business, but display is rising fast: we estimate display gross revenue will reach $9.2 billion in 2013, representing 16% of projected gross revenue (excluding Motorola)
Gross revenue from YouTube looks set to more than double to nearly $4 billion by 2013. Revenues from Google’s ad networks and platforms are also growing strongly, mainly to the benefit of publishers
We project Google’s net revenue from display next year will amount to $4.2 billion, equal to 10% of net revenue from its total advertising business |
Media, Internet |
August 2012 Access this report
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UK internet advertising forecasts for 2012/2013
Recent news flow and feedback from media buyers indicates that growth in UK internet advertising is slowing due to the ongoing weakness in the economy
Paid search, buttressed by its link to e-commerce and measurable ROI, is suffering less than internet display, with growth in spend on social media slowing and price deflation especially for non-premium inventory
Online classifieds are also being hit by the economic woe, resulting in some sectors growing more slowly and non-advertising communications taking a larger share of spend; the secular shift to the internet continues |
Media, Internet |
June 2012 Access this report
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Facebook display ad volume down in key markets in April
Analysis of comScore data suggests that ad volumes fell in April on Facebook’s PC-based website in the US and UK, which we estimate account for 60% of ad revenue Seasonal effects may account for some of the decline, but increasing pressure on ad performance and pricing, due to the tough economic climate, and slowing growth in PC usage of Facebook are other probable factors As a result we expect Facebook’s ad revenue growth slowdown to continue in Q2, with audience saturation in key internet markets and increasing mobile substitution limiting future growth potential from display advertisin |
Media, Internet |
June 2012 Access this report
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Facebook: the monetisation challenge
Facebook will confirm its status as an internet superpower on 18 May when it goes public at a valuation now expected to be between $93-104 billion
The social network’s revenue fell quarter-on-quarter for the first time in Q1 2012, partly due to seasonal effects, amidst a broader slowdown in annual revenue growth on the shift to mobile consumption
Investor interest is being fuelled less by current performance than longer term potential for growing Facebook’s audience of 901 million and improving monetisation |
Media, Internet |
May 2012 Access this report
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Facebook, Instagram and $1 billion
On 9 April Facebook bought the 547-day-old Instagram for about $1 billion in cash and shares, acquiring 40 million users, strengthening its positioning in mobile and photo sharing and preventing anyone else from buying it first
That Instagram could grow to be so big, so quickly, and with just 13 staff and $7 million of funding shows how precarious Facebook’s market leadership might still be. This is not a one-off – many more companies will use cloud services, mobile and social to achieve similar growth in future |
Media, Internet |
April 2012 Access this report
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UK internet advertising powers ahead
According to IABUK/PwC, internet advertising grew 14.4% like-for-like in 2011 to £4.8 billion, overtaking press to become the single largest advertising medium
Search was again the main growth driver, surging 17.5% to £2.7 billion last year, while display rose 13.4% and classifieds increased just 5.2% on the weak economy
We now forecast internet advertising will increase 14% in 2012 and 12% in 2013, taking spend to £6.1 billion or 36% of UK advertising, up from 30% in 2011 |
Media, Mobile, Internet, Telecoms |
April 2012 Access this report
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Google+: hollow circles
Google+, the social network, has around 100 million users worldwide, although user growth appears to have stalled and usage is low on weak network effects
Facebook users, now 70% of the adult internet audience (excluding China), have no incentive to switch to Google+, starving the social network of vital momentum
Facebook is likely to dominate socially enhanced search, unless Google+ takes off, which seems unlikely |
Media, Internet |
March 2012 Access this report
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PC and mobile UK internet trends H2 2011
Three drivers are increasing UK internet consumption: a growing number of older PC internet users; digital natives, especially younger people with high incomes, spending more time online; and rising adoption of the mobile internet
Despite rapid mobile user growth, internet usage remains a PC-centric experience as time spent on mobile is constrained by screen size, ‘on the go’ use and data pricing. These factors are less likely to inhibit tablet use |
Media, Internet |
February 2012 Access this report
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Facebook - the IPO effect
Facebook’s IPO prospectus confirms that the social network is an internet colossus, with 845 million users worldwide and $3.7 billion in revenue in 2011
Growth potential in display advertising, which accounts for the majority of revenue, seems limited with increasing mobile substitution in major ad markets and future user expansion largely in lower yielding countries
There is significant potential to increase income from payments and other businesses beyond social games, but the company’s strategy is unknown at this point |
Media, Internet |
February 2012 Access this report
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Google UK results: mobile and display ascendant
Google’s UK revenue grew 23% to £676 million in Q4 2011, taking 2011 revenue to £2,525 million, up 20% year-on-year, 2 ppts below our November estimate
Globally, gross revenue rose 25% year-on-year, with mobile and display performing strongly, but rising costs pulled net revenue growth down to 8%
Our growth forecasts for Google’s UK revenue remain unchanged; we expect UK internet ad spend to rise from £4.7 billion last year to £5.8 billion by 2013, representing 35% of total advertising, as print continues to fall |
Media, Internet |
January 2012 Access this report
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Google versus Facebook: display advertising
Facebook is winning the battle for eyeballs and advertising in the internet display arena, with revenues projected to reach $5.3 billion in 2012
By comparison, we expect Google to achieve revenue of $2.5 billion, after traffic acquisition costs, though it remains the king of internet advertising, due to its dominance of search
Increasing advertiser demand for scale and performance will make many publishers increasingly reliant on one or both of the internet giants for audience and revenue growth |
Media, Internet |
December 2011 Access this report
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UK social gaming outlook
This presentation analyses the social games market in the UK. UK consumer spending on games software, like other recession-battered markets, has been flat for the last two years. At the same time, however, there has been rapid growth in PC-based social gaming, fuelled by the free to play nature of most games and viral marketing capabilities of social networks particularly Facebook. |
Media, Internet |
October 2011 Access this report
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European internet advertising: display on top
Internet advertising grew 15% YoY to €17.7 billion across Western and Central & Eastern Europe in 2010, according to provisional figures from IAB Europe
As in the US, growth in display, increasingly powered by social media, outpaced that of search, with display accounting for 33% of spend (up 3 ppts YoY)
We have updated our forecasts for 5 key markets – UK, Germany, France, Italy and Spain – and now project aggregated growth of 10% in 2011 and 13% in 2012 |
Media, Internet |
June 2011 Access this report
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Facebook’s threat to Google
Facebook's audience and consumption growth is now generating substantial and rising display advertising revenue, with consensus estimates of $2 billion in 2010, up 160% YoY, and it will overtake Google on this count this year
The social network's growing position as the centre of the internet experience is enabling it to become a platform for other services, such as e-commerce, making it an increasing strategic threat to Google, as well as other players in the digital media |
Media, Internet |
May 2011 Access this report
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