2008 Global Digital Economy - M-Commerce, E-Commerce & E-Payments

Publication Overview

This annual report offers a wealth of information on the trends and developments taking place in the worldwide m-commerce and c-commerce sectors. The report provides analyses of the issues surrounding the growth of e-commerce, including e-banking, e-payments and online advertising. Information on mobile commerce developments are also provided, including m-payments and m-banking. Comprehensive information on the exciting developments taking place on a regional level is included along with statistics and forecasts for both the e-commerce and m-commerce sectors.

 

Subjects covered include:

·         Analyses of key e-commerce trends;

·         E-commerce statistics and forecasts;

·         Internet statistics and forecasts;

·         Analyses and statistics for the emerging market of China;

·         Information on e-payment and e-banking sectors;

·         Analyses of key m-commerce trends;

·         M-commerce statistics and forecasts;

·         Information on m-payment and m-banking sectors;

·         Information on net neutrality;

·         Regional overview including North America, Latin America, Europe, Middle East, Africa and Asia Pacific.

 

Researcher:- Kylie Wansink

Current publication date:- October 2008 (1st Edition)
Next publication date:- October 2009

Executive Summary

E-commerce is now an important part of the economy, particularly in the developed markets. While e-commerce is still in its infancy in many emerging markets, this is set to change in the coming years especially in China. In 2008 China now has the highest number of Internet users in the world, overtaking the USA. E-commerce growth in the USA remains strong however, with China also offering significant opportunities for those operating in the e-commerce space. 

Worldwide the number of Internet users has now reached around 1.4 billion and billions will be spent by consumers during 2008 on online retail. While the economic slowdown will most likely curb e-commerce growth somewhat over the next couple of years, particularly spending on online advertising, there is evidence that so far the online retail market has remained steady due mostly to the lower prices offered via online shopping.  

Internet banking has slowly become more popular around the world, with 30% or more of Internet users utilising such services in some markets. However many online banking websites have at least one potential design weakness that could leave users vulnerable to cyber attacks. Improved bank security measures over the last couple of years, such as the introduction of home chip and pin devices is helping to combat this issue. 

In the next few years the total entertainment and publishing industry (including offline and online) is expected to be worth more than $2 trillion – driven in particular by a wave of growth in online video games, gambling, music, social networking/UGC, and online video. In recent times sales of digital music, mostly via the Internet, have increased by more that 30%; in contrast sales of CD and DVDs continue to decline. Online video consumption is also beginning to produce promising results and advertisers have begun to seriously take note. Pay-to-own downloading is particularly popular and new business models in this area are expected to emerge over the next few years. Travel and adult content services are also popular with more growth expected ahead. 

Mobile commerce is potentially important for a wide range of industries, including telecommunications, IT, finance, retail and the media, as well as for end-users. It will work best in those areas where it can emphasise the core virtue of mobile networks – convenience. However while there are good applications, the technologies and business models to date have not been well suited to mass market applications. The regulatory environment has also held this market up. This is beginning to change as banks and merchants collaborate with mobile operators. Applications around contactless cards using Near Field Communications are also being developed around the world. Focus has also turned to the developing markets, where mobile phones are being viewed as an opportunity to reach the masses that would not otherwise use m-payment or m-banking services.
In countries such as Kenya and India, national mobile banking systems are thriving and they are literally popping up around the world as well. In Kenya, 3 million out of Vodafone's 10 million subscribers are using mobile banking services and Vodafone is rapidly rolling the service out in other countries as well.
This annual report provides an insight and analyses into the trends and developments taking place in the m-commerce and e-commerce sectors. The report provides analyses of the trends and issues impacting upon the growth of e-commerce, including e-banking, e-payments and online advertising sectors. Analyses of the developments taking place in mobile commerce are also provided, along with information on m-payment and m-banking. Statistics and forecasts for both the e-commerce and m-commerce markets are provided. The report also includes valuable insights and statistics on the developments taking place on a regional level including North America, Latin America, Europe, Middle East, Africa and Asia Pacific.  

Key highlights:

·         By 2012 it is expected that more than 1 trillion will be spent online by B2C consumers. B2B spending will exceed this considerably.

·         E-payment solutions are an important part of e-commerce transactions; however security issues continue to tarnish the industry.

·         Asia Pacific leads the world in terms of using mobile phones for m-payments, accounting for around 85% of customers worldwide.

·         BuddeComm estimates revenue from mobile content and services (excluding SMS), accounts for around 7-10% of total mobile revenues worldwide. SMS remains popular and accounts for a further 10% of total mobile data revenues.

·         Online advertising growth is set to continue for the next few years, but will slow slightly in the wake of the US financial crisis. It is expected that online advertising will eventually account for around 20% of all advertising spend in some markets.

·         Search services are central to almost everything that users do online, and this places leading search companies such as Google and Yahoo at an advantage. In the emerging Chinese market, Baidu and Alibaba also have a good foothold.

·         Google is still the most popular website property worldwide; however individual countries and regions show unique differences with many local sites remaining popular. Other web properties proving popular across multiple markets include Yahoo, Microsoft and Wikipedia sites, Apple Inc, eBay and Amazon.

 

Comparison of popular websites in different markets – 2008

Market

Japan

USA

United Arab Emirates

Germany

Google sites

Google sites

Google sites

Google sites

Yahoo! sites

Yahoo! sites

Yahoo! sites

Yahoo! sites

Microsoft sites

Microsoft sites

Microsoft sites

Microsoft sites

Wikipedia sites

Wikipedia sites

Wikipedia sites

Wikipedia sites

Rakuten Inc

AOL

Maktoob

eBay

FC2 inc

Fox Interactive Media

Bayt

United-Internet sites

NTT Group

eBay

Gulf News

AOL

GMO Internet Group

Amazon sites

Amazon sites

ProSiebenSat1 sites

Livedoor

Time Warner - excluding AOL

CNET download.com

Verlagsgruppe Georg von Holtzbrinck

Nifty Corporation

Ask Network

Souq

Arcandor AG

Amazon sites

New York Times Digital

AME Info

T-Online sites

Apple Inc

Apple Inc

United Arab Emirates University

Deutsche Telekom

NEC Corporation

Viacom Digital

Ma7room.com

Vodafone Group

Sony Online

Glam Media

UAE Women Network

Otto Gruppe

(Source: BuddeComm based on various industry sources, 2008)

Note: This is not a ranked list.

 

 

Data in this report is the latest available at the time of preparation and may not be for the current year.

Table of Contents

  • 1. E-Commerce and E-Payment Market 2008
    • 1.1 E-commerce analyses and trends
      • 1.1.1 The key drivers of growth
      • 1.1.2 Introduction
      • 1.1.3 The role of service providers
      • 1.1.4 E-payments – market overview
      • 1.1.5 Internet economy – key trends
      • 1.1.6 E-commerce statistics and forecasts
  • 2. Internet Overview and Statistics
    • 2.1 Internet industry overview and statistics
      • 2.1.1 The Internet and the web
      • 2.1.2 Internet users and penetration
      • 2.1.3 Internet hosts
      • 2.1.4 The World Wide Web
      • 2.1.5 Search engines
      • 2.1.6 Websites
      • 2.1.7 The ISP market
      • 2.1.8 Key developments
    • 2.2 Net neutrality
      • 2.2.1 Introduction
      • 2.2.2 Network neutrality – a global issue
      • 2.2.3 Carriers in competition with content providers
      • 2.2.4 Network neutrality and non-discrimination
      • 2.2.5 Developments in the USA
      • 2.2.6 No-one owns the Internet
  • 3. Online Content and Business Models
    • 3.1 Online content & services
      • 3.1.1 Digital media and entertainment
      • 3.1.2 Digital media trends
      • 3.1.3 Online content and services
      • 3.1.4 Digital Rights Management (DRM)
    • 3.2 Advertising in the digital media
      • 3.2.1 Digital media advertising analysis
      • 3.2.2 Global advertising statistics
      • 3.2.3 Internet advertising
      • 3.2.4 New media advertising
      • 3.2.5 Mobile advertising
      • 3.2.6 TV advertising to struggle
      • 3.2.7 Dubious advertising tactics
    • 3.3 Industry business models
  • 4. Mobile Commerce and M-Payment Overview 2008
    • 4.1 M-commerce, m-banking and m-payments
      • 4.1.1 M-commerce market in 2008
      • 4.1.2 M-commerce analysis
      • 4.1.3 M-payments (mobile payments)
      • 4.1.4 M-banking (mobile banking)
      • 4.1.5 The rapid emergence of mobile banking
      • 4.1.6 Industry consortia
  • 5. M-Commerce Content And Services
    • 5.1 Mobile commerce content & services
      • 5.1.1 The market in 2008
      • 5.1.2 Key industry segments: statistics and forecasts
      • 5.1.3 Future predictions
      • 5.1.4 Mobile Digital Rights Management (MDRM)
  • 6. Regional Overviews
    • 6.1 North America
      • 6.1.1 USA
    • 6.2 Latin America
      • 6.2.1 M-commerce
      • 6.2.2 E-commerce
      • 6.2.3 E-payment
    • 6.3 Europe
      • 6.3.1 Western Europe
      • 6.3.2 Eastern Europe
    • 6.4 Africa/Middle East
      • 6.4.1 Africa
      • 6.4.2 Middle East
    • 6.5 Asia
      • 6.5.1 Market overview
      • 6.5.2 China
      • 6.5.3 Japan
      • 6.5.4 South Korea
      • 6.5.5 Singapore
      • 6.5.6 Other markets in Asia Pacific
    • 6.6 Pacific region
      • 6.6.1 Australia
  • 7. Glossary of Abbreviations
  • Table 1 – Worldwide online spending – B2B and B2C – 2012
  • Table 2 – Worldwide Internet users and penetration by region – mid-2008
  • Table 3 – Top ten ranking by country for Internet users – 2007 - 2008
  • Table 4 – Households with access to a home PC and the Internet – selected countries – 2007
  • Table 5 – Top online activities – 2005; 2007
  • Table 6 – Country comparison of monthly at-home Internet usage – 2006 - 2007
  • Table 7 – Growth in the number of Internet hosts – 1984; 1991 - 2008
  • Table 8 – Number of domain names worldwide – 2007 - 2008
  • Table 9 – Internet users by top languages – 2002; 2005; 2007
  • Table 10 – Worldwide market share of top 5 browsers – 2007 - 2008
  • Table 11 – Web server market share, top 4 developers – 2004 - 2008
  • Table 12 – How people find websites
  • Table 13 – Search engine worldwide market share – early 2008
  • Table 14 – Online search market share – top 4 search engines in the US – Jan 2007; Dec 2007
  • Table 15 – Number of websites worldwide – 2004; 2006; 2008
  • Table 16 – Worldwide Internet users – 1990 - 2008
  • Table 17 – Worldwide broadband subscribers – 2003 - 2008
  • Table 18 – Top 5 dating websites in the US – February 2008
  • Table 19 – Worldwide e-learning market value – 2005; 2008; 2010
  • Table 20 – Worldwide online gambling revenue – 1997; 2001; 2004; 2006; 2008
  • Table 21 – Top five e-government countries – 2007
  • Table 22 – Market value and growth of telehealth – 2012
  • Table 23 – iTunes catalogue breakdown – 2007
  • Table 24 – Major regional user base of popular social networks – mid 2007
  • Table 25 – US online spending revenue for top 5 product types – 2006
  • Table 26 – Worldwide revenue from online video – 2007; 2010
  • Table 27 – Number of virtual worlds worldwide – 2007; 2009
  • Table 28 – Worldwide consumer spending on convergent platforms – 2006; 2011
  • Table 29 – Global advertising market revenue – 2007; 2012
  • Table 30 – Global online advertising spend – 2007; 2010
  • Table 31 – USA online advertising spend – 2000 - 2007
  • Table 32 – Percentage of total US online advertising spending – top 4 portals – 2006 - 2007
  • Table 33 – Global interactive advertising revenue – 2012
  • Table 34 – Global online game advertising spend – 2007 - 2008; 2012
  • Table 35 – Global social networking advertising spend – 2006 - 2008; 2011
  • Table 36 – Consumer electronics sales growth – US – 2006 - 2008
  • Table 37 – Worldwide transaction value of m-payments – 2008; 2013
  • Table 38 – Number of consumers worldwide using m-payment services – 2008; 2011
  • Table 39 – Mobile banking users in the USA – 2007; 2012
  • Table 1 – Worldwide mobile content and service revenue – 2006; 2008
  • Table 2 – Worldwide mobile adult content & services revenue – 2005 - 2006; 2008; 2010
  • Table 3 – Worldwide mobile email revenue – 2007; 2011
  • Table 4 – Worldwide text messages sent – 2008; 2012
  • Table 5 – Worldwide wagers spent on mobile gambling – 2007; 2012
  • Table 6 – Worldwide mobile gaming revenue – 2004; 2007 - 2008
  • Table 7 – Mobile game users – global monthly averages – 2005; 2010
  • Table 8 – Mobile Internet users worldwide – 2006; 2008; 2012
  • Table 9 – Mobile Internet users in Western Europe – 2008; 2013
  • Table 10 – Mobile Internet users in the US – 2007; 2012
  • Table 11 – Worldwide LBS revenue – 2007; 2013
  • Table 12 – Worldwide mobile music revenue – 2006; 2008; 2010; 2012
  • Table 13 – Worldwide mobile UGC revenues – 2007; 2012 - 2013
  • Table 14 – Worldwide market share of mobile social network users – 2008; 2013
  • Table 40 – E-commerce spending growth rates, selected US sectors – 2007 - 2008
  • Table 41 – Online retail sales and annual change in the US – 2003 - 2008
  • Table 42 – B2C sales in Latin America & the Caribbean – 2003 - 2007
  • Table 43 – Forecast gaming market by platform – 2012
  • Table 44 – Value of European mobile gaming market – 2005 - 2007; 2009, 2012
  • Table 45 – Internet users and broadband subscribers in Eastern European countries – 2007
  • Table 46 – Online services take-up in Eastern European EU countries – 2007
  • Table 47 – Online trading as % of total turnover in select Eastern European countries – 2007
  • Table 48 – Businesses purchasing via the Internet in select Eastern European countries – 2007
  • Table 49 – Take up of e-government services by businesses in select Eastern European countries – 2007
  • Table 50 – Take up of e-government services by individuals in select Eastern European countries – 2007
  • Table 51 – E-readiness of select Eastern European countries – 2007
  • Table 52 – Online & mobile banking customers of South Africa’s major banks – June 2007
  • Table 53 – Estimated value of B2C e-commerce market in China – 2004 - 2006; 2010
  • Table 54 – E-commerce volume in South Korea – 2001 - 2006
  • Table 55 – E-commerce volume by transaction type in South Korea – 2001 - 2006
  • Exhibit 1 – Examples of Web 2.0 developments
  • Exhibit 2 – Example of an operational support service
  • Exhibit 3 – World’s first voice-verified payment system
  • Exhibit 4 – PayPal – recent developments
  • Exhibit 5 – Internet economy – key developments
  • Exhibit 6 – Most popular online activities worldwide
  • Exhibit 7 – Implications of ending net neutrality
  • Exhibit 8 – Top 10 most popular domain name suffixes worldwide – 2008
  • Exhibit 9 – The phenomenon of the 1990s
  • Exhibit 10 – Comparison of top 15 web properties – Japan, USA and Germany – 2008
  • Exhibit 11 – Implications of ending net neutrality
  • Exhibit 12 – Applications of Microsoft’s Virtual Earth
  • Exhibit 13 – Online music sector
  • Exhibit 14 – Digital media marketing commandments
  • Exhibit 15 – Anarchy Online by Funcom
  • Exhibit 16 – Why mobile marketing won’t work in the current environment
  • Exhibit 17 – Examples of content provider business models
  • Exhibit 18 – Media centre devices
  • Exhibit 19 – M-commerce milestones
  • Exhibit 20 – Definition: Near Field Communications
  • Exhibit 21 – Examples of NFC applications
  • Exhibit 22 – EA’s change of business model incorporates micropayments
  • Exhibit 23 – Telco based money transfers
  • Exhibit 1 – Summary of the market
  • Exhibit 24 – Ranking of key mobile services & content segments – 2008
  • Exhibit 3 – Definition: off-deck
  • Exhibit 25 – Mobile adult service example: Cherrysauce
  • Exhibit 5 – Key m-gambling market segments
  • Exhibit 6 – Most popular Mobile Internet activities in mid-2008
  • Exhibit 7 – Mobile UGC service example: Moko
  • Exhibit 26 – Live mobile broadcast application
  • Exhibit 27 – The Economist Intelligence Unit (EIU) annual E-readiness criteria

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Number of pages 138

Status Archived

Last updated 4 Nov 2008
Update History

Analyst: Stephen McNamara

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