Boston, MA – November 3, 2011 – Global social networking revenue is expected to double to $12.6 billion in 2016, a 121 per cent increase on 2011, according to the Global “2011 Global Social Network Market Forecast” from the Strategy Analytics Digital Media Strategies team.

Strong revenue growth reflects status of social networking as an indispensable digital communications tool, as well as an increasingly important advertising medium. Usage is accelerating in emerging markets offering significant potential for growth through 2016. On the other hand, maturing markets are beginning to deliver levels of audience engagement and reach which position this medium squarely in the sights of the largest brands, ensuring that social networks are now a key part of online campaigns targeting the mass market.

“The broad reach of social networking will continue to drive significant growth in advertising spending and virtual item sales given widespread, habitual use of social networking and its inherent activities. While Facebook remains the top social network worldwide with over 800 million active users, other regionally focused social networks continue to meaningfully augment a rapidly growing market,” said Leika Kawasaki, Analyst, Strategy Analytics Digital Media Strategies (DMS) Team, and author of the report. “Strategy Analytics sees the key to generating revenue in an increasingly competitive market will rest on operator willingness to extend their embrace of the online landscape through building partnerships with brands and integrating of a variety of service providers into their social network platforms.”

Ed Barton, Director of Digital Media Strategies at Strategy Analytics, added, “Strategy Analytics research indicates that sector expectations must now be adjusted upwards. The key challenges for this sector are in driving emerging market penetration and improving already impressive levels of audience engagement. Given sympathetic, user-focused product development and an enlightened approach to the benefits of helping third parties leverage the assets generated by social networking audiences, I fully expect online media’s most dynamic growth story to continue for years to come.”