2010 World Digital Economy - E-Commerce and M-Commerce Trends

Publication Overview

This annual report offers a wealth of information on the dynamic e-commerce and m-commerce sectors. The report includes analyses, statistics and trends. The report provides valuable insight into the key trends occurring worldwide and includes unique regional perspectives on the markets of North America, Latin America, Europe, Middle East, Africa and Asia Pacific.

Subjects covered include:

  • Key Elements of the Digital Economy;
  • Key Global E-commerce Trends;
  • Key Global M-commerce Trends;
  • Key Global Advertising Trends;
  • Regional insights for North America, Latin America, Europe, Middle East, Africa and Asia Pacific.

Researchers:- Kylie Wansink, Paul Budde, Lawrence Baker, Lucia Bibolini, Peter Evans, Lisa Hulme-Jones, Paul Kwon, Henry Lancaster, Peter Lange, Stephen McNamara
Current publication date:- October 2010 (3rd Edition)
Next publication date:- October 2011

Executive Summary

E-commerce and M-commerce enter new phase of development

It is no surprise that there is enormous interest in the unfolding developments occurring in the e-commerce and m-commerce sector. It is entering a new phase of development as the traditional online commerce sector merges with the newer web and mobile tools of social media, cloud computing, location based services etc. In addition, the infrastructure required to facilitate online and mobile commerce are becoming a reality as high-speed broadband and mobile technologies become more and more integrated into society.

Fifteen years ago we saw the launch of innovative online shopping services like eBay and Amazon and these, and other models, are now evolving and combining new elements of the online experience. In addition, the original e-retailers are facing competition as services based on a Person-to-Person (P2P) model become increasingly popular. P2P refers to a service which allows users to communicate directly with each other to exchange information, products, services, or alternatively make direct payments to each other (ie. PayPal). Crowd-sourcing is an extension of the P2P model and facilitates group communication in niche areas.

The P2P payment model offered by services such as PayPal is thriving thanks to demand from both consumers and vendors, and thanks to the methods of payments that are already based on tools developed for the web. The P2P model is also being used in social media as social networks and e-commerce begin to converge. Facebook in particular is entering the e-commerce space and it has a number of initiatives underway including its Payvment service, which allows sellers to create and operate a retail storefront on Facebook. Developments in this area are being referred to as “social shopping”.

Advertising remains a key source of revenue for those operating in both the e-commerce and online content sectors. In recent times there has been much discussion around targeted advertising utilising social media; online gaming; online video; online search and mobile advertising platforms. Traditional e-commerce vendors like Amazon now compete directly with other Internet players like Google and Facebook for the advertising dollar. However, given that spending on advertising using digital media channels makes up less than 15% of overall worldwide advertising spending; it has become clear that advertising cannot be relied upon as the only source of revenue.

Successful online business models are being quickly adapted or incorporated into mobile devices in order to maximise revenue opportunities. It is now impossible to discuss e-commerce developments without m-commerce, as these two sectors have become so closely linked. Unique services like FourSquare, which combine mobile location based services, social networking and e-commerce, are a growth area for the future.

FourSquare has already evolved from what was initially a clever way to inform others in real-time of a user’s movements, to a more sophisticated form of rewards program whereby loyal customers are offered discounts and special deals. However FourSquare must act quickly to retain its foothold in this new market as Internet media heavyweights like Facebook develop and launch services of their own.

While the e-commerce sector has become a very competitive sector indeed – other changes are also occurring in terms of how merchants operate and manage their websites. Some e-retailers are outsourcing areas such as security and payment processing, while others are beginning to make use of cloud computing services. Cloud computing allows e-retailers which don’t have the resources or capacity to manage their sites infrastructure to tap into a cloud based service.

The e-commerce and m-commerce services have become so dynamic that keeping abreast of the emerging trends has become a key priority for many enterprises and investors alike. This annual report provides valuable insights and analysis into the key trends taking place in the e-commerce and m-commerce sectors. It explores future directions with a focus on the use of social media, location based services and cloud computing for the digital economy. The report provides a unique perspective into how the digital economy is unfolding differently around the world by incorporating regional overviews written by BuddeComm’s senior analysts.

Market highlights:

  • Despite the economic downturn, online spending is proving quite resilient in most markets and in 2010 we are beginning to see some growth again as tentative confidence in the world economy returns.
  • Singapore, Hong Kong, India, Japan, South Korea and Australia are just some of the countries in Asia Pacific which have embraced online spending and there is room for much growth ahead. It has also become recognised that China offers enormous potential in the future..
  • Although the Internet’s overall share of total US retail sales remains relatively small in early 2010, at less than 4%, up from around 1.5% in 2003, nevertheless its share is expected to continue to grow steadily over the next 5 to 10 years, with sales forecast to reach over $240 billion by 2014.
  • Western Europe is one of the key regions for the growth in global e-commerce. E-commerce usage in Eastern Europe is growing strongly on the back of growing broadband penetration and Internet usage.
  • The opening of the telecom market and the blossoming of broadband has paved the way for a flourishing e-commerce sector in Argentina.
  • 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.
  • Jordan and Dubai have developed as the Middle East region’s major bases for web-based businesses and services but Saudi Arabia, home to around one in seven Arab Internet users, is the region’s most important market..
  • In the United Arab Emirates in 2010, Etisalat announced a partnership with Mobiqa which would allow consumers to purchase tickets via their mobile (m-ticketing).
  • M-payment services carry more than 12% of the country's GDP in Kenya.

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. Key Elements Of The Digital Economy
    • 1.1 The digital economy
      • 1.1.1 Infrastructure essential for the digital economy
      • 1.1.2 Can we fast-track the digital economy?
      • 1.1.3 Key sectors for the digital economy
      • 1.1.4 Key requirements of the digital economy
      • 1.1.5 Conclusion: digital economy services
  • 2. Global Digital Economy Trends
    • 2.1 Global e-commerce & m-commerce trends
      • 2.1.1 Market summary
      • 2.1.2 Market insights
      • 2.1.3 Case studies
    • 2.2 Global social media & gaming trends
      • 2.2.1 Social networks market summary
      • 2.2.2 Social networks market insights
      • 2.2.3 Brief case studies
      • 2.2.4 Online and mobile gaming market
  • 3. Global Digital Advertising & Marketing Trends
    • 3.1 Digital media advertising trends
      • 3.1.1 Market summary
      • 3.1.2 Market insights
      • 3.1.3 TV advertising faces real competition
      • 3.1.4 Key online advertising categories
  • 4. Regional Overviews
    • 4.1 North America
      • 4.1.1 E-commerce
      • 4.1.2 M-commerce
    • 4.2 Latin America
      • 4.2.1 E-commerce overview
      • 4.2.2 M-commerce
    • 4.3 Europe
      • 4.3.1 Overview
      • 4.3.2 E-commerce in Europe
      • 4.3.3 M-commerce in Europe
    • 4.4 Africa
      • 4.4.1 Overview
      • 4.4.2 E-commerce and internet banking
      • 4.4.3 The m-payments and m-banking revolution
      • 4.4.4 Online and mobile advertising
      • 4.4.5 Social media
    • 4.5 Middle East
      • 4.5.1 Introduction
      • 4.5.2 Saudi Arabia
      • 4.5.3 Jordan
      • 4.5.4 United Arab Emirates
    • 4.6 Asia
      • 4.6.1 China
      • 4.6.2 Japan
      • 4.6.3 Malaysia
      • 4.6.4 Singapore
      • 4.6.5 South Korea
      • 4.6.6 Taiwan
    • 4.7 Pacific Region
      • 4.7.1 Australia
      • 4.7.2 New Zealand
  • 5. Glossary of Abbreviations
  • Table 1 – Worldwide telecom statistics at a glance – 2010
  • Table 2 – Visitors to top fifteen web properties worldwide – 2009 - 2010
  • Table 3 – Worldwide transaction value of m-payments – 2008; 2012 - 2013
  • Table 4 – Number of consumers worldwide using m-payment services – 2008 - 2012
  • Table 5 – Worldwide transaction value of NFC m-payments – 2009; 2012
  • Table 6 – Number of mobile banking users worldwide – 2008; 2014
  • Table 7 – Number of mobile banking users – Asia-Pacific; North America and Europe – 2014
  • Table 8 – Mobile banking users in the USA – 2007; 2009
  • Table 9 – Worldwide advertising spend versus online advertising spend – 2009 - 2010
  • Table 10 – Most popular formats for receiving news in the USA – 2010
  • Table 11 – Fastest growing e-commerce sectors in the USA – 2008 - 2010
  • Table 12 – Online retail sales and annual change in the USA – 2003 - 2010
  • Table 13 – Mobile banking users in the USA – 2007 - 2010
  • Table 14 – Breakdown of e-commerce users in China – 2009
  • Table 15 – Estimated value of B2C e-commerce market in China – 2005 - 2011
  • Table 16 – Estimated value of C2C e-commerce market in China – 2005 - 2011
  • Table 17 – Time spent online in social networks by top 10 countries – 2009 - 2010
  • Table 18 – Worldwide market share of mobile social network users – 2008; 2013
  • Table 19 – Top 3 countries using Facebook by unique monthly users – 2009
  • Table 20 – Unique monthly users – Facebook versus MySpace – 2009 - 2010
  • Table 21 – Worldwide online gambling revenue – 1997; 2001; 2004; 2006; 2008, 2010
  • Table 22 – Total value of bets placed via mobile gambling worldwide – 2006; 2010
  • Table 23 – Worldwide advertising spending- all mediums – 2008 - 2010
  • Table 24 – Worldwide online advertising spending – 2007 - 2010
  • Table 25 – Most popular forms of online advertising
  • Table 26 – Western Europe mobile advertising spending – 2009 - 2012
  • Table 27 – Asia-Pacific mobile advertising spending – 2009 - 2012
  • Table 28 – Worldwide in-game advertising spending – 2007 - 2009; 2013
  • Table 29 – Worldwide social network advertising spending – 2008 - 2010
  • Table 30 – USA social network advertising spending – 2008 - 2009
  • Table 31 – US online advertising revenues - top four portals – 2008 - 2010
  • Table 32 – Fastest growing e-commerce sectors in the USA – 2008 - 2010
  • Table 33 – Online retail sales and annual change in the USA – 2003 - 2010
  • Table 34 – Mobile banking users in the USA – 2007 - 2010
  • Table 35 – E-commerce transactions in Chile – 2001 - 2009
  • Table 36 – Value of e-commerce sales (UK) – 2007 - 2012
  • Table 37 – Proportion of businesses engaged in e-commerce in select European countries – 2009 – 2010
  • Table 38 – Proportion of Internet sales to total commerce turnover in select European countries – 2008 - 2009
  • Table 39 – Proportion of population making online purchases in select European countries – 2008 - 2009
  • Table 40 – Internet advertising revenue in Russia – 2004 - 2010
  • Table 41 – European mobile gaming market value – 2005 - 2007; 2009, 2012
  • Table 42 – Online advertising revenue in South Africa and annual change – 2003; 2006 - 2009
  • Table 43 – E-services PC use in China 2006; 2009, USA and Japan 2009
  • Table 44 – China online retail market revenue and customers – 2003 - 2009
  • Table 45 – E-Commerce volume in South Korea – 2001 - 2009
  • Table 46 – E-commerce volume by transaction type in South Korea – 2001 - 2009
  • Table 47 – Purchased items by Internet shopping in South Korea – 2009
  • Table 48 – Mobile banking service subscribers in South Korea – 2003 - 2009
  • Table 49 – Selling over the internet by industry sector in Australia – 2010
  • Chart 1 – Safaricom M-Pesa and data revenue breakdown – 2009/10
  • Chart 2 – South Korea mobile banking subscribers – 2003 – Q3 2009
  • Exhibit 1 – Faster broadband speeds offer more than just fast internet
  • Exhibit 2 – Explanation – optical fibre
  • Exhibit 3 – Digital economy – global key developments
  • Exhibit 4 – Popular online activities
  • Exhibit 5 – M-Commerce – worldwide key developments
  • Exhibit 6 – Overview of PayPal
  • Exhibit 7 – M-PESA in Kenya
  • Exhibit 8 – Money transfer services
  • Exhibit 9 – Definition: Cloud computing
  • Exhibit 10 – Amazon Web Services
  • Exhibit 11 – Subway introduces SMS ordering
  • Exhibit 12 – China’s dominant e-commerce site
  • Exhibit 13 – The Obama campaign
  • Exhibit 14 – Foursquare
  • Exhibit 15 – Twitter usage facts
  • Exhibit 16 – Brief company profile – Social game developer – Zynga
  • Exhibit 17 – Examples of key players in gaming industry sectors worldwide
  • Exhibit 18 – Examples of top online games sites in the US
  • Exhibit 19 – Examples of popular mobile games
  • Exhibit 20 – Anarchy Online by Funcom
  • Exhibit 21 – Digital advertising cost considerations
  • Exhibit 22 – Examples of large global advertising groups and subsidiaries – 2010
  • Exhibit 23 – Examples of digital advertising agencies
  • Exhibit 24 – Top sectors for online advertising spending
  • Exhibit 25 – Online ad deal between Google and Yahoo aborted
  • Exhibit 26 – Anarchy Online by Funcom
  • Exhibit 27 – Facebook and Nielsen’s marketing alliance
  • Exhibit 28 – Example items sold on average on eBay Australia
  • Exhibit 29 – Interesting items being auctioned on OZtion Australia

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Technologies

Broadband Fixed
Digital Economy
Internet
Mobile & Wireless Broadband and Media

Number of pages 118

Status Archived

Last updated 29 Oct 2010
Update History

Analyst: Kylie Wansink

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