Ad spending has reached nearly $450 billion per year and the fastest growth areas in digital are social media and ecommerce. In 2010, we saw the rise of flash sale sites, such as HauteLook and Rue La La and the discount site Groupon.  Social media and saving sites were the talk of 2010 and here are the stats to prove it:

Social Media Trends

  • Overview
    • Total advertising spending currently an $449.7 billion per year. ZenithOptimedia
    • Of the global ad spend, web marketing will rise from 14 to 18 percent in 2013 — driven by video and social media. ZenithOptimedia
  • Key Players
    • Groupon has 21 million subscribers, 20.25 million coupons bought, available in 150+ cities and has saved an eye-popping $850 million for its customers. Goupon
    • Groupon walked away from a $6 billion offer from Google. ZenithOptimedia
    • Facebook revenues are estimated at nearly $1.4 billion in 2010. SMI
    • The largest Facebook advertisers are increasing their spend on the social network by 20-fold. Facebook COO Sheryl Sandberg
  • Venture Capital Investment
    • Social media ranked number one (13 percent) for 2009-2010 top 30 VCs internet funding sectors. CB Insights
  • Business Perspective
    • Facebook placed third (behind websites and email marketing) at 63 percent as the most important marketing tools used to promote small businesses. Constant Contact
    • US companies using social media tools for marketing purposes grew 15 percent from 2009 to 2010 to 73 percent and is estimated to grow to 80 percent in 2011 and 88 percent in 2012. eMarketer

eCommerce

  • Overview
    • Online retail sales are anticipated to grow 10 percent annually for the next five years, accounting for 53 percent of all U.S. retail sales by 2014. Forrester Research.
    • Females make up 57.9 percent and males 42.1 percent of internet users who made any type of purchase online. comScore
  • eLuxury
    • Households with an annual income of over $100,000 contributed to only a third of total US online spending in 2010 Q2, but accounted for for two-thirds of the ecommerce growth. comScore
    • Prada estimates that within five years about 40 percent of its revenue in America will be from Internet sales. NuWire Investor
  • Amazon.com
    • Analysts are estimating a 25 percent growth over the next five years for Amazon.com. EntreBlogger
    • Amazon has grown its top line roughly 40 percent in every quarter in 2010. EntreBlogger
    • Amazon’s China business may add $1 billion to its revenue growth from 2011 and China may contribute about 10 percent of the global revenue by 2015. Goldman Sachs
  • Venture Capital Investment
    • Discount sites accounted for 9 percent (placing third, behind social media and advertising, sales and marketing) of 2009-2010 top 30 VCs funding. CB Insights
  • Business Perspective
    • Flash sales and member-only ecommerce sites are hot
      • The four leading flash-sales sites (HauteLook, ideeli, Gilt Groupe and Rue La La) are expected to bring in an estimated $900 million in revenues in 2010 and double the number of visits to the category over the previous year. eMarketer
      • Member-only sites have experienced incredible growth in 2010. Ideeli’s 2010 visit growth reached 150 percent over last year and Gilt expects to generate $400 to 500 million in revenue in 2010. eMarketer
    • Top Flash Sale sites:
      • HauteLook (18.59 percent)
      • Beyond the Rack (17.34 percent)
      • Ideell (16.94 percent)
      • Gilt (13.06 percent)
      • Rue La La (8.05 percent) Experian

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