Pivot Research Group predicts that revenue from social media marketing at Facebook will skyrocket by 2017.
An analysis from Pivot Research Group has been released, showing that Facebook social media marketing will provide a significant way to monetize the overwhelming quantity of activity on the site, as about half of the 900 million members actively use the site using their smartphones, tablets, and other devices.
This information was developed despite the fact that the social network did not provide a clear strategy for monetization when it made its Initial Public Offerings filing several months ago, which concerned many investors.
According to Pivot Research Group, the social media marketing revenues over mobile at Facebook could reach more than $490 million and represent 22 percent of the non-search ad market over mobile by 2017. Though the social network may not be forthcoming about its intentions to use mobile ads, an analyst at Pivot, Brian Wieser, said that the massive use of the company by itself could be enough to start revenue generation. Wieser explained that:
“I think they are constantly assessing their product potential internally such that I have confidence they will figure something out.”
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He also went on to predict that “I think that in the worst case scenario they will run simpler text ads at some point.” Wieser indicated that it wouldn’t surprise him if Facebook had intentions to begin regional international market ad programs in areas such as Japan or India.
Though this is not based on any formal announcement of formats or approaches, the IPO SEC filing for the company did suggest that it was thinking about “promoted stories” placements into the news feeds of its users. At the same time, Wieser pointed out the fact that individuals are using tablets on an increasing basis to access their social network profiles, and that this channel allows for more conventional forms of advertising whenever Facebook is prepared to launch them.
The mobile marketing forecasts made by Pivot are based on a prediction of the growth of the market share as well as significant discussions with the overall advertising community and its experts.