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India Driving More Revenue Per User for Social Media Firms: Report

Other social platforms are now focusing on video in Asia Pacific

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Silhouettes of mobile users are seen next to logos of social media apps Signal, Whatsapp and Telegram projected on a screen in this picture illustration. VOA

As user growth on various social media platforms in the key global markets slows down, India is helping social media players clock more revenue per user in the Asia-Pacific region, thus driving the overall social advertising spend, a new report said on Monday.

According to Forrester, global social advertising spend will hit $165.6 billion in 2023, up from $75 billion in 2018 — growing at a CAGR of 17.1 per cent.

“Asia Pacific and the rest of world will grow fastest, capturing the US and Europe’s share of global social advertising spend. Asia Pacific’s share of global spend will increase from 30 per cent in 2018 to 35 per cent in 2023, mostly thanks to growth in China,” said Forrester’s ‘Social Media Advertising Forecast, 2019 to 2023’ report.

“User growth is slowing down across most of the key markets in Asia Pacific except India. As such, key social players are now focusing on increasing revenue per user to drive revenues,” the findings showed.

Twitter has been experimenting with increasing its ad loads.

“As a result, Japan, the largest market for Twitter outside the US, registered 35.1 per cent growth in its revenue per user in 2018,” said Meenakshi Tiwari, Forecast Analyst at Forrester.

In addition, with slowing growth in the number of social users, revenue per user is the main way the social giants can drive revenues across key markets.

Value-added formats like video have been the primary drivers of revenue per user on social platforms.

Social video advertising spend will grow from $17.6 billion in 2018 to $56.5 billion in 2023 — a compound annual growth rate (CAGR) of 26.3 per cent, the report informed.

Just as social media companies have come up with transparency rules for political ads, they should have similar features for influencers so that people can distinguish between commercial space and personal space. Pixabay

Social video’s share of social advertising spend in India was 24 per cent in 2018.

China’s social advertising spend will triple by 2023.

“Asia Pacific will replace North America as the region with the highest social advertising spend,” the report added.

China already accounts for 44 per cent of Asia Pacific’s social advertising spend.

“We expect it to grow from $9.9 billion in 2018 to $27.6 billion in 2023 — a CAGR of 22.8 per cent. China’s key social players have acquired huge user bases and will start monetizing them aggressively,” added Tiwari.

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Other social platforms are now focusing on video in Asia Pacific.

“While short video apps were the main surprise for social marketers in 2018, players like Tencent, Twitter, and Weibo are now also growing their video advertising revenues.

“Their efforts to facilitate the creation and distribution of video content on their platforms have created an environment that is more conducive to video ads,” the report mentioned. (IANS)

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I Fall in Love with India Every Time I Return Here: Amazon CEO Jeff Bezos

On Friday, Goyal clarified that government welcomes all kinds of investments into the country which are within the ambit of the law

amazon, jeff bezos arrived in India on June 5, 2013 and for world's top billionaire Jeff Bezos, has transformed the way the country buys and sells. VOA

Amazon Founder and CEO Jeff Bezos on Friday posted a note on the company’s e-commerce website Amazon India, saying “he falls in love with India every time he returns here”, a day after Commerce and Industry Minister Piyush Goyal snubbed him during a public event.

“I fall in love with India every time I return here. The boundless energy, innovation and grit of the Indian people always inspire me,” Bezos wrote in the letter while mentioning Amazon’s investment in the Indian economy and that the firm is aiming to create 10 lakh new jobs by 2025.

Bezos, in the letter, added that more than 550,000 small and medium businesses (SMBs) in India are using Amazon as a platform to offer millions of products.

The new expected jobs are on top of the 700,000 jobs Amazon has already created in the country since 2013.

Amazon, drones
In this Sept. 13, 2018, file photo Jeff Bezos, Amazon founder and CEO, speaks at The Economic Club of Washington’s Milestone Celebration in Washington. VOA

On Thursday, Goyal not only ticked off Bezos saying that they are not doing India a favour by investing a billion dollars, but also raised concerns if its losses were a result of predatory pricing and if Amazon and Flipkart were gaining entry into multi-brand retail by using loopholes.

Also Read: Tech Giant Apple Solves Location Privacy Issue with iPhone 11 in 2nd iOS 13.3.1 Beta

On Friday, Goyal clarified that government welcomes all kinds of investments into the country which are within the ambit of the law.

“We welcome all kinds of investments that follow the letter and spirit of the law. If some investment is outside the legal purview, appropriate action will be taken,” he told reporters. (IANS)