Research firm eMarketer estimates that $2.6 billion, or just 2% of all U.S. marketing budgets this year, will be spent on mobile advertising. But it’s clear that importance of mobile advertising is growing. StatCounter estimates that smartphone and tablet users now account for more than 10% of Internet traffic in the country. Recently the IAB Mobile Marketing Center of Excellence released mobile advertising report for the past year. According to their research, global mobile advertising was worth $5.3 billion last year, with 26% of the market belonging to Europe and 31% to North America. Asia Pacific markets contributed the largest share – 36% of the market. The emerging markets of Latin America and Middle East & Africa together accounted for nearly 7% of the global market.
According to Forrester’s research, the cloud computing market will be worth $241 billion by the year 2020. Forrester projects the market to be worth $55 billion by 2014. Driven by such growth potential, E2open, one of the leading providers of cloud-based, on-demand software solutions for supply chain management, went public.
Market researcher BCC Research estimates that the market for pre-shot commercial digital imagery will grow to $5 billion by 2013. The expansion will be driven by growing demand from organizations such as businesses, marketing agencies, and media organizations. In 2008, the market was worth $2.7 billion. Within the pre-shot market, the microstock market is an emerging market where digital images are collected from semi-professional photographers and designers to be sold at comparatively lower prices to organizations and individuals for commercial use. The market is dominated by three players: Getty Images’ iStockPhoto, Shutterstock, and Fotolia. Recently, Shutterstock announced plans to become a listed company.
Gartner estimates that the worldwide cloud computing market will be worth $58 billion this year, compared with $50 billion last year. Big players are focusing on growth within this market. Earlier this week, at Oracle’s OpenWorld conference, Oracle (Nasdaq:ORCL) CEO Larry Ellison announced the company’s plans to grow in cloud computing in his keynote address.
Gartner’s recent report on Software-as-a-Service (SaaS) estimates that global spending on SaaS will grow 18% this year to $14.5 billion. By 2015, the SaaS market is projected to be worth $22.1 billion. North America remains the largest, most mature market in the industry. SaaS revenues from the continent are projected to grow from $7.8 billion last year to $9.1 billion. SaaS spending in Europe will also grow from $2.7 billion to $3.2 billion this year. While growth in the industry will be dominated by leaders like Salesforce.com, which is estimated to report revenues of $3 billion by next year, other players are also reaping in big.
Not all social media players are looking to go public. Recently, Twitter CEO Dick Costolo reaffirmed his intentions to keep Twitter private. Costolo claims that “five years from now Twitter will remain an independent company.” Twitter’s belief is that remaining private and independent is the best course of action.
Analysts believe that the IT outsourcing market will grow 2.1% over the year to $251.7 billion in 2012. Within IT outsourcing, cloud computing is projected to grow 48.7% to $5 billion. During the year, the application outsourcing market is expected to grow 2% to $40.7 billion. On the other hand, the data center outsourcing segment is expected to fall 1% this year.
By the end of 2011, Latin America had more than 231 million Internet users, including more than 145 million Facebook subscribers. Internet penetration in this vast region is close to 40%, and Latin America accounted for 10% of the world’s online population. Researchers estimate that Internet penetration is projected to grow to 53% by the year 2016. Internet use on mobile devices is also on the rise, and analysts expect more than 750 million mobile users in the region by 2015.
Digital software maker Adobe (Nasdaq:ADBE) is shifting from a license-based model to a subscription-based model for its services. But the transition isn’t so simple to dissect for market analysts. Adobe’s customers are migrating from a perpetual licensing model to cloud subscriptions. Financial reporting for the new business model requires Adobe to recognize revenues over time compared with recognizing them at the time of purchase. >>>
The healthcare IT segment may be growing. However, WebMD’s (Nasdaq: WBMD) newly appointed CEO, Cavan Redmond, does not see bright prospects for the pharmaceutical industry. Over the past few years, several big drugs have gone off-patent. In 2011 Pfizer lost exclusivity for Lipitor and Protonix, both of which accounted for combined sales of $6 billion. In 2010 in the U.S., Johnson & Johnson lost its patent for antibiotic Levaquin and ADHD/ADD drug Concerta, which brought in revenues of more than $2.2 billion annually. Last year, Bristol-Myers Squibb’s patent for Plavix expired. The company used to earn $7 billion annual revenues through the drug. Merck also lost protection for Singulair, a drug that raked in $5.5 billion in 2011.