Virtual Gifts & Goods Overtake Advertising on the Social Network

Advertising, Internet, Social network No Comments

In the US virtual gifts and goods are now overtaking advertising on the social network, according to smartphone app analytics firm Flurry. Growing from approximately $600 million in 2008 to $1 billion in 2009. Wedbush Morgan, Securities video game analyst forecasts that social gaming will generate nearly $1.6 billion this year alone.

Mobile is another massive platform for virtual goods. On Apple’s iOS (Apple’s operating system) in September 2010 the average monthly revenue per user from social networking advertisement was a little over $1 where as the average monthly revenue from virtual goods sales was almost $8.

That is a massive 80% of total revenue earned, resulting from virtual goods.

Flurry believes that the “slow acceptance of mobile as a media platform” by ad agencies is a factor for low advertising levels on these sites. Showing “scepticism about the viability of social games and social mobile media as a channel for advertisement”. These ad agencies “appear to be missing a meaningful opportunity to reach a mass market of consumers who have adopted new platforms and forms of content”.

These figures compiled by Flurry show that consumers are spending on the social network and they should give companies and ad agencies alike the confidence to invest in on-line advertising and reach these customers on the new platforms, to which they are now playing.

If you are interested in on-line advertising or you would like to know more about how on-line advertising could help your business, then why not call agog on 01782 213095 or drop us an email to and we’ll get back to you.

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