Social media ad revenue limited, TV to stay ‘super media’: Deloitte

http://www.marketingmag.ca/news/media-news/social-media-ad-revenue-limited-tv-to-stay-%e2%80%98super-media%e2%80%99-deloitte-21395

Although social networks like Facebook are expected to surpass one billion unique members and serve up more than two trillion ads this year, their ad revenues will remain “relatively modest” compared with other forms of media, says a new report from Deloitte Canada.

In its 10th annual TMT Predictions report (technology, media and telecommunications), Deloitte noted that while global social media advertising revenues will hit US$5 billion this year, they would account for less than 1% of all worldwide ad spending.

Deloitte noted that social networks would still achieve “impressive” gross margins, but their low revenues of about $4 a year per member will prevent them from achieving revenues similar to traditional media and other forms of online advertising.

Elsewhere, Deloitte predicted that TV would strengthen its “super media” status in 2011, with the global audience growing by 40 million to 3.7 billion and boosting worldwide viewing by an astounding 140 billion hours from 2010. That will translate into an additional $10 billion in global ad revenues.
TV shows will be the most common topic of conversation around the world and the subject of more than one billion tweets, Deloitte predicted.

“In short, television will likely continue to command a growing share of the world’s attention and wallets and will retain its leadership among all media in terms of total revenues” including ad sales, subscriptions, pay-per-view and license fees, said the Deloitte report.