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Gartner Says Worldwide Enterprise Software Market Grew 8.5 Percent in 2010 to Reach $245 Billion

Press Releases

The worldwide enterprise software market showed broad growth and recovery in 2010 with total software revenue increasing 8.5 percent annually to a worldwide market size of $245 billion, according to Gartner, Inc. In 2009, worldwide revenue declined 2.5 percent to $226 billion.

“In 2010, major software vendors expanded their product portfolios, acquired companies where appropriate to their plans, and reached deeper into emerging markets,” said Joanne Correia, managing vice president at Gartner. “The year represented a return to solid footing as the market recovered and expanded in terms of revenue and geographies. However, some regions did not recover as rapidly as others. Japan and Western Europe saw relatively modest dollar-denominated growth, while Latin America and Asia/Pacific saw growth in the mid-to-high teens, nearly double the market average.” Read more

How Twitter Makes Money

ClickZ, 4/26/11

On January 24, eMarketer predicted that Twitter would bring in a bit over $150 million in 2011 and $250 million in 2012. (You can see the chart at the bottom of this column.) Is this realistic? I think it may be from what I have learned and am writing about below.

Twitter’s “Promoted” Products

Recently my firm had a very interesting series of calls and meetings with Twitter and I got my head around all the details of its advertising or “Promoted” products. Twitter’s offerings have three attributes that really struck the value/performance chord in my book:

Cost-per-click from its Promoted Tweets

Cost-per-action (actually cost-per-follower) from its Promoted Accounts

Exclusivity from its Promoted Trends offering (basically Twitter’s version of a home page takeover)

So here is a quick breakdown of what those products are offering:

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Tweet This: Agencies Get 28% of Revenue From Digital

Mad Ave Better Take Note — You Are Digital, or You Are Very, Very Unimportant

Ad Age, 4/25/11

Digital services accounted for an estimated $8.5 billion (28%) of the $30.4 billion in 2010 U.S. revenue generated by the 900-plus advertising and marketing-services agencies that Ad Age analyzed for Agency Report 2011.

Digital’s share of agency revenue rose from 25.8% in 2009. In dollar terms, agencies’ digital revenue jumped 16.9% in 2010.

One point is clear: Digital has become a standard tool across every agency discipline.

To be sure, six in 10 digital dollars — or $5.1 billion — last year went to digital-specialty agencies such as Publicis Groupe’s Digitas and Sapient Corp.’s SapientNitro.

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Social Games Market to Quintuple to $5 Billion by 2015

Industry Gamers, 4/11/11

Social gaming is one of the fastest growing sectors right now, and there doesn’t appear to be any slowdown in sight. According to a new report from Parks Associates, revenues in the social gaming market will increase fivefold to $5 billion between 2010 and 2015.

Parks attributes this growth in large part to advertising revenues and sales of virtual items. These two elements were mostly responsible for the over $1 billion in revenues seen in 2010.

“Gaming on social networks has quickly become the most visible category of online games,” said Pietro Macchiarella, Research Analyst, Parks Associates. “Right now more than 250 million people play games like Zynga’s CityVille and FarmVille on Facebook every month, and both game developers and marketers have taken notice. Big brands such as McDonald’s and 7-Eleven have carried out cross-promotions with existing social games.”

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B2B marketers: the revenue cat is out of the bag

Econsultancy, 1/13/11

There’s been a sea-change in B2B marketing and it’s all about our relationship to revenue.

Here’s why it’s a good thing, why it’s an inevitable thing and what you B2B marketers can do about it.

i’ve sifted through dozens of ‘B2B Marketing Predictions’ blog posts over the last few weeks and there is one that is showing up a lot more than in last year’s batch: B2B marketers will be much more accountable for revenue going forward. The R-word topic is so ubiquitous in B2B blogs that it’s at risk of becoming a truism.

Cue fuzzy flashback…

It reminds me of when I was a pup account exec at Ogilby & Mather in New York (way back before Mather was erased from the brand but after Benson was).

By some twisted irony, I was responsible for a handful of budgets. That meant a lot of spreadsheet work, which, in 1983, involved actual spreadhseet paper and lots of erasing and recalculating every time a number changed.

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Forecast: Search Revenue To Jump By 20%, Buoyed By International Growth

MediaPost, 1/3/11

An 18% rise in global paid-search query volume should help revenue grow by 20% in 2011, compared with 18% year-on-year revenue growth in fiscal 2010, according to a report released Monday from J.P. Morgan. The analyst firm believes opportunities for paid search in the international market will become more significant than in the U.S.

The market in the United Kingdom remains at par or ahead of the U.S. market, but the development of the overall international paid-search market is still more than two years behind the United States. While J.P. Morgan analysts expect the U.S. to experience 12% year-on-year query growth in 2011, international markets will see a 19% lift. The firm’s estimates put paid-search revenue growth at 25% to $25.7 billion.

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Revenue Rising, and a New No. 2 Ad Medium: Internet

Ad Age, 12/20/10

Next Chapter: 14 Companies on Media 100 Dig Out of Bankruptcy as Firms’ Creditors Trade Debt for Equity

The recession officially ended in June 2009, and the media business began a modest recovery in first-half 2010.

Reported revenue for the nation’s top media firms climbed 6.1% in the first six months of 2010, according to Ad Age’s analysis. U.S. media employment has added 4,600 jobs since hitting its downturn nadir in May 2010.

Measured-media spending turned north in first-quarter 2010, marking the first year-over-year quarterly gain since first-quarter 2008, according to WPP’s Kantar Media.

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Strong Rebound in EMEA Server Market in 3Q10 With Revenue Up 6.4% Annually and Shipments Back to Double-Digit Growth, Says IDC

IDC News Release, 12/6/10

According to International Data Corporation’s (IDC) EMEA Quarterly Server Tracker, EMEA server revenue in the third quarter of 2010 reached $3.1 billion, up 6.4% on the same quarter last year. The number of servers shipped was up 10.2% year on year after nearly 550,000 were sold. The strong results, with shipment volume back to double-digit growth, and revenue growth also significant, must be read in the context of a very weak third quarter last year, favoring year-to-date comparisons. When looking at revenue in absolute terms, it becomes apparent that the server market results are a long way from the peak seen in the fourth quarter of 2007, when revenue reached $5.4 billion.

By technology, x86 industry standard servers consolidated their position as the dominant technology, with $2.2 billion in revenue and 533,000 shipment units, an annual growth of 26.5% and 11.0% respectively. It is worth noting that the strong revenue growth, more than double the unit growth rate, is a positive sign that industry standard servers are avoiding the trend toward commoditization seen in previous quarters. Higher ASVs are a sign that enterprises are moving their mission-critical applications to x86 from RISC, CISC, and EPIC, and demanding more richly configured systems with higher availability features.

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Worldwide Server Market Revenues Increase 13.2% in Third Quarter as Market Accelerates Further, According to IDC

IDC News Release, 12/1/10

According to the International Data Corporation (IDC) Worldwide Quarterly Server Tracker, factory revenue in the worldwide server market increased 13.2% year over year to $11.8 billion in the third quarter of 2010 (3Q10). This is the third consecutive quarter of year-over-year revenue growth and the fastest quarterly revenue growth since 2000, as market demand continued to improve around the world. Server unit shipments increased 13.1% year over year in 3Q10; however, server shipment growth moderated slightly over the strong 23.1% year-over-year shipment growth reported in the second quarter of 2010.

Volume systems experienced the sharpest improvement with year-over-year revenue increasing 22.8%, the fourth consecutive quarter of positive growth for the segment. Midrange server demand improved significantly with year-over-year growth of 19.8%, the segment’s second consecutive quarter of positive growth following nine quarters of decline and a sign that server market conditions are improving more broadly beyond volume systems. Demand for high-end enterprise systems continued to be soft, as revenue declined 10.4% when compared to 3Q09. This is the eighth consecutive quarter of contraction in the high-end enterprise server segment of the server market.

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Twitter CEO: We Still Don't Know What Twitter Is For

SF Chronicle, 11/26/10

In an interview with The Telegraph newspaper this morning, Twitter CEO Dick Costolo admitted that he’s still trying to figure out Twitter’s “long-term purpose.”

Costolo, who took over for Evan Williams last month, said that he’s “currently trying to define” what Twitter is going to become, and noted that users have come up with a lot of past innovations like the hashtag.

Sources say that despite its fast user growth and the introduction of new revenue sources like sponsored tweets and selling access to data, Twitter still isn’t booking a lot of revenue. On stage at Web 2.0, Williams didn’t offer any revenue numbers for what he called the “promoted suite,” saying only that demand was outstripping supply.

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