2011 World Digital Economy - Mass Adoption of E-Commerce and M-Commerce Channels

Publication Overview

This annual report offers a wealth of information on the global e-commerce and m-commerce sectors. The report includes analyses, statistics and trends and explores the impact of developments such as social media, cloud computing, the Internet of Things and digital advertising. It highlights some of the key digital media leaders participating in this industry such as Google, Facebook, Apple, Amazon, eBay and PayPal. The report provides valuable insight into the key trends occurring worldwide and unique case studies from around the world, written by BuddeComm’s Senior Analysts.

Subjects covered include:

  • The Dynamic Digital Economy;
  • E-Commerce and M-Commerce Key Global Trends and Statistics;
  • E-Commerce and Online Entertainment;
  • E-Commerce and Social Media including the Social Enterprise;
  • Digital Media Advertising;
  • The Internet of Things (IoT);
  • Cloud Computing;
  • Case studies from around the world.

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 2011 (4th Edition)

Executive Summary

Consumers around the world embrace online and mobile commerce channels

E-Commerce and m-commerce have become very competitive areas of focus in 2011 and the digital economy is again in a growth phase. With high speed broadband connections increasing and smart phone use continuing to rise; we are at last seeing significant adoption of e-commerce and m-commerce services.  The digital economy will also play an important role in the overall Internet of Things concept which is emerging around the world.

We have come a long way from dial up Internet and 2G phones. The fact that new global fixed and mobile investments are measured in the hundreds of billions of dollars show how big this business is and what commitment there is to a first class infrastructure for the digital economy. The growth in m-commerce over the last two years in particular has surpassed all expectations. While there has been a pent-up demand for these services for some time; it wasn’t until the iPhone arrived that the potential of this market was finally revealed. Once again the international companies such as Google, Amazon, Apple, Facebook, eBay, Twitter, PayPal are leading the way and showing the potential opportunities presented by this emerging sector.

The enormous success of social networks and services like eBay and Amazon are an indication of where commerce will go; already these companies have a huge presence on mobile and are expecting this revenue stream to continue growing. Facebook has moved into the e-commerce sector and is also well positioned to capitalise on mobile commerce via its Facebook mobile app and services such as Facebook Places.

Near-Field Communication (NFC) technology has received a lot of attention from the mobile operators, and over the past few years there have been many m-payment trials and services based on NFC occurring around the world. M-payment initiatives are not just limited to the mobile operators however and the 2011 launch of Google Wallet confirmed that the Internet Media players will also be competitive in this area.

While consumers are embracing mobile and online channels to buy physical goods; there continues to be a number of digital products which also remain popular. Purchasing and accessing online music has been very widespread for a number of years and was one of the key drivers behind the early developments in digital media. In 2011 cloud-based music on offer by services like Apple iTunes is gaining popularity as a way to deliver music anywhere, anytime over-the-air. With service providers like Grooveshark or Spotify also providing free access to over 10 million tracks interspersed occasionally with ads, business models like these will be hard to contend with.

Online advertising is a key source of economic revenue for Internet players, with Google attracting the largest market share of advertising spend. This market is becoming more competitive however with popular sites like Facebook now gaining advertisers attention. This is at the expense of other Internet heavyweights however, with Yahoo in particular suffering recent losses in revenue and company instability.

The financial downturn has presented many positive opportunities for e-commerce and m-commerce, with consumers often turning to these purchasing channels as a way to save money during difficult economic times. This has coincided with increasing uptake of smart phones and broadband penetration. The future growth of this sector lies in further improvements to infrastructure, with around 40 countries around the world already indicating that broadband is seen as a national infrastructure and is critical to the development of the digital economy.

BuddeComm’s new report, World Digital Economy – Mass Adoption of E-Commerce and M-Commerce Channels, gives the latest insights into the developments occurring in these increasingly important sectors. It explores key issues and opportunities and provides analyses, statistics, forecasts and trends. The report includes broad statistical information and insights into the key trends impacting upon the industry including social media developments, cloud computing, the Internet of Things and digital advertising. It explores the key digital media leaders participating in this industry such as Google, Facebook, Apple, Amazon, eBay and PayPal.  The report also includes a unique perspective into how the e-commerce and m-commerce sectors are unfolding differently around the world by incorporating case studies from around the world, written by BuddeComm’s senior analysts.

Examples of key insights:

  • In June 2011 the OECD highlighted that the strength and dynamism of the Internet depends on its ease of access to high speed networks, openness, and on user confidence. For this to happen it agreed upon a number of basic principles for Internet policy; making this an important step in ensuring that the Internet remains open and dynamic.
  • E-commerce and m-commerce have become very important areas of focus for mobile operators, Internet media players, financial institutions and payment processing firms alike.
  • There have been a number of key developments recently, particularly in the mobile digital wallet space.
  • By 2014 over $1 trillion in revenue is expected to be generated by e-commerce.
  • Websites which offer “deals of the day” such as Groupon have become popular. BuddeComm is following these developments with great interest and note that Google has another initiative underway called Google Offers.
  • In the USA, close to $1 of every $10 dollars on discretionary spending is now spent online.
  • Digital music sales generate billions in revenue worldwide each year and now accounts for around 30% of music companies' trade revenues.
  • In its legislation of the National Broadband Network (NBN); the Australian government has made provision for the development of the Internet of Things.
  • One fifth of Kenya's entire GDP now passes through the M-Pesa mobile money service in the form of person-to-person transactions.

 

Table of Contents

  • 1. The Dynamic Digital Economy
    • 1.1 The Dynamic Digital Economy: Key Elements
      • 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 Insights
    • 2.1 E-Commerce and M-Commerce Key Trends
      • 2.1.1 Market summary
      • 2.1.2 Market insights
      • 2.1.3 Case studies
    • 2.2 E-Commerce and Online Entertainment Trends
      • 2.2.1 Digital media and entertainment
      • 2.2.2 Key online entertainment services
      • 2.2.3 Digital Rights Management (DRM)
    • 2.3 Global Social Media and Gaming Trends
      • 2.3.1 Social networks market summary
      • 2.3.2 Social networks market insights
      • 2.3.3 Brief case studies
      • 2.3.4 Online and mobile gaming market
    • 2.4 Social Enterprise Business Models
      • 2.4.1 Introduction
      • 2.4.2 Building lifelong customer relationships
    • 2.5 Digital Media Advertising Trends
      • 2.5.1 Market summary
      • 2.5.2 Market insights
      • 2.5.3 Key online advertising categories
  • 3. Emerging Trends
    • 3.1 The Internet of Things
      • 3.1.1 Building smart communities and smart countries
      • 3.1.2 Stage one – infrastructure
      • 3.1.3 Stage two – trans-sector policies
      • 3.1.4 Stage three – the business game-changer
      • 3.1.5 Application examples
      • 3.1.6 Smart cities and smart countries
      • 3.1.7 Change in services driven by sensing and monitoring information
    • 3.2 Cloud Computing and the Digital Economy
      • 3.2.1 Changing the CIO function
      • 3.2.2 What is cloud computing (CC) and what can it be used for?
      • 3.2.3 Cloud Computing (CC) is about business transformation
      • 3.2.4 Software as a service
      • 3.2.5 Cloud Computing (CC) = big business
      • 3.2.6 Recent trends
      • 3.2.7 Case study 1: Cloud Computing in China and Japan
      • 3.2.8 Case study 2: Analysis of Telstra’s cloud coup
      • 3.2.9 Backgrounder information
  • 4. Case Studies From Around the World
    • 4.1 USA
      • 4.1.1 Overview and analysis
      • 4.1.2 E-commerce, m-commerce and online advertising
    • 4.2 Europe
      • 4.2.1 Overview
      • 4.2.2 EC policies
      • 4.2.3 M-commerce in Europe
    • 4.3 Africa
      • 4.3.1 E-commerce and Internet banking
      • 4.3.2 The mobile money revolution
      • 4.3.3 Online and mobile advertising
      • 4.3.4 Social media
    • 4.4 Middle East
      • 4.4.1 Saudi Arabia
      • 4.4.2 Jordan
      • 4.4.3 United Arab Emirates
      • 4.4.4 Israel
    • 4.5 Asia
      • 4.5.1 China
      • 4.5.2 M-commerce
      • 4.5.3 Japan
      • 4.5.4 Singapore
      • 4.5.5 South Korea
    • 4.6 Pacific Region
      • 4.6.1 Australia
      • 4.6.2 New Zealand
  • 5. Glossary of Abbreviations
  • Table 1 – Worldwide telecom statistics at a glance – 2011
  • Table 2 – Worldwide telecom statistics at a glance – 2011
  • Table 3 – Global e-commerce revenue – 2010; 2011; 2013
  • Table 4 – Visitors to top fifteen web properties worldwide – 2009 - 2010
  • Table 5 – Worldwide smartphone operating systems by market share – 2007 - 2010
  • Table 6 - Worldwide advertising spend versus online advertising spend – 2009 - 2010
  • Table 7 - Most popular formats for receiving news in the USA – 2010
  • Table 8 – Fastest growing e-commerce sectors in the USA – 2008 - 2010
  • Table 9 – Online retail sales and annual change in the USA – 2003 - 2010
  • Table 10 – Mobile banking users in the USA – 2007 - 2010
  • Table 11 – Breakdown of e-commerce users in China – 2009
  • Table 12 – Estimated value of B2C e-commerce market in China – 2005 - 2011
  • Table 13 – Estimated value of C2C e-commerce market in China – 2005 - 2011
  • Table 14 – Worldwide broadband subscribers and annual change – 2005 - 2011
  • Table 15 – Worldwide Internet users – 2000 - 2011
  • Table 16 – Worldwide online gambling revenue – 1997; 2001; 2004; 2006; 2008, 2010
  • Table 17 – Worldwide digital music revenue – 2007 - 2010
  • Table 18 – Time spent on online in social networks by top 10 countries – 2009 - 2010
  • Table 19 – Subscribers to Netflix – 2010; Q1 2011
  • Table 20 – Worldwide revenue from online video – 2008; 2012
  • Table 21 – Time spent on online in social networks by top 10 countries – 2010
  • Table 22 – Worldwide market share of mobile social network users – 2008; 2013
  • Table 23 – Top 5 countries using Facebook by unique monthly users – 2010
  • Table 24 – The demise of MySpace - Facebook versus MySpace by unique monthly users – 2009 - 2010
  • Table 25 – Worldwide online gambling revenue – 1997; 2001; 2004; 2006; 2008, 2010
  • Table 26 – Total value of bets placed via mobile gambling worldwide – 2006; 2010; 2015
  • Table 27 – Worldwide advertising spending- all mediums – 2008 - 2012
  • Table 28 – Worldwide online advertising spending – 2007 - 2012
  • Table 29 – Most popular forms of online advertising
  • Table 30 – Western Europe mobile ad spending – 2009 - 2012
  • Table 31 –Asia-Pacific mobile ad spending – 2009 - 2012
  • Table 32 – Google overall advertising revenue – 2009; 2010
  • Table 33 – Worldwide smart phone operating systems by market share – 2007 - 2010
  • Table 34 – Growth of Hulu video streams – various months – 2008 - 2010
  • Table 35 – Worldwide in-game advertising spending – 2007 - 2009; 2013
  • Table 36 – Worldwide social network advertising spending – 2008 - 2010
  • Table 37 – USA social network advertising spending – 2008 - 2009
  • Table 38 – US online advertising revenues - top four portals – 2008 - 2011
  • Table 39 - Fastest growing US retail e-commerce categories – 2009 – 2010
  • Table 40 – USA - Online retail sales – 2003 – 2011
  • Table 41 – USA - Mobile banking growth by country – 2010 – 2011
  • Table 42 – USA - Online advertising revenues and annual change – 2000 – 2011
  • Table 43 – USA - Online advertising revenue by category – 2009 – 2010
  • Table 44 – Value of e-commerce sales (UK) – 2007 - 2012
  • Table 45 – Proportion of businesses engaged in e-commerce – 2009 – 2010, 2013
  • Table 46 – Proportion of internet sales to total commerce turnover (select countries) – 2007 – 2009; 2013
  • Table 47 – Proportion of population using internet for goods or services (select countries) – 2005 – 2010; 2013
  • Table 48 – European mobile gaming market value – 2005 - 2007; 2009, 2013
  • Table 49 – Kenya: M-Pesa users and revenue – 2008 - 2011
  • Table 50 – Utilisation rate and number of users of selected network applications in China – 2009 - 2010
  • Table 51 – Estimated value of B2C e-commerce market – 2005 – 2012
  • Table 52 – Estimated value of C2C e-commerce market – 2005 – 2012
  • Table 53 – China online retail market revenue and customers – 2003 - 2010
  • Table 54 – Online banking users and utilisation rate – 2007 - 2010
  • Table 55 – Internet usage rates by selected services– 2009 - 2010
  • Table 56 – Main purpose of using the internet – 2009 - 2010
  • Table 57 – E-commerce volume – 2001 - 2009
  • Table 58 – E-commerce volume by transaction type – 2001 - 2009
  • Table 59 – Internet banking service subscribers – 2001 - 2010
  • Table 60 – Financial service by delivery channel – 2005 – 2010
  • Table 61 – Online stock trading customers – 2004 - 2007
  • Table 62 – Purchase items by internet shopping – 2010
  • Table 63 – Mobile banking service subscribers – 2003 – 2010
  • Table 64 – Top social networking sites in Australia – 2009 - 2011
  • Table 65 – Estimated New Zealand population who have shopped online and percentage change – 2008 - 2011
  • Table 66 – Top 5 e-commerce sites in New Zealand by popularity – 2011
  • Table 67 – Information, e-commerce or social media websites in New Zealand in top 20 – 2011
  • Chart 1 - Worldwide overall mobile handset sales by quarter – 2009 –2010
  • Chart 2 – USA - Online advertising revenues share by industry category – 2009 – 2010
  • Chart 3 – South Korea mobile banking subscribers – 2003 - 2010
  • Chart 4 – Online shopper profile survey of Australians – 2011
  • Chart 5 – Estimated coupon website revenue - 2010 - 2014
  • Chart 6 – Estimated population who have shopped online in New Zealand – 2008 - 2011
  • Exhibit 1 – Digital economy – key developments
  • Exhibit 2 – Faster broadband speeds offer more than just fast internet
  • Exhibit 3 – Explanation – optical fibre
  • Exhibit 4 – Selected examples of countries with planned ICT infrastructure investment
  • Exhibit 5 – Digital economy – key developments
  • Exhibit 6 –Popular online activities
  • Exhibit 7 – Mobile devices rise in popularity
  • Exhibit 8 – Overview of PayPal
  • Exhibit 9 –Mobile Apps examples across various sectors – 2011
  • Exhibit 10 – M-Commerce – key developments
  • Exhibit 11 – M-PESA
  • Exhibit 12 – Money transfer services
  • Exhibit 13 – Groupon
  • Exhibit 14 – Definition: Cloud computing
  • Exhibit 15 – Amazon Web Services
  • Exhibit 16 – Subway introduces SMS ordering
  • Exhibit 17 – China’s dominant e-commerce site
  • Exhibit 18 – Examples of popular online dating sites
  • Exhibit 19 – Brief company profile – Social game developer – Zynga
  • Exhibit 20 – Examples of key players in gaming industry sectors worldwide
  • Exhibit 21 – Apple iTunes
  • Exhibit 22 – Online music sector – key statistics
  • Exhibit 23 – The Obama campaign
  • Exhibit 24 – BBC iPlayer and ABC iView
  • Exhibit 25 – The Obama campaign
  • Exhibit 26 – Foursquare
  • Exhibit 27 – Twitter usage facts
  • Exhibit 28 – Examples of key players in gaming industry sectors worldwide
  • Exhibit 29 – Brief company profile – Social game developer – Zynga
  • Exhibit 30 – Anarchy Online by Funcom
  • Exhibit 31 – The new definition of social enterprise
  • Exhibit 32 – Foursquare
  • Exhibit 33 – Peter Drucker on customers
  • Exhibit 34 – Digital advertising cost considerations
  • Exhibit 35 – Examples of large global advertising groups and subsidiaries – 2010
  • Exhibit 36 – Examples of digital advertising agencies
  • Exhibit 37 – Top sectors for online advertising spending
  • Exhibit 38 – Online ad deal between Google and Yahoo aborted
  • Exhibit 39 – Anarchy Online by Funcom
  • Exhibit 40 – Facebook and Nielsen’s marketing alliance
  • Exhibit 41 – Cows and the IoT
  • Exhibit 42 – Smart shopping
  • Exhibit 43 – Lifetime customer relationships
  • Exhibit 44 – Definition: Cloud computing
  • Exhibit 45 – Cloud Principles
  • Exhibit 46 – Microsoft’s cloud computing business model
  • Exhibit 47 – Amazon Web Services

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Number of pages 168

Status Archived

Last updated 5 Oct 2011
Update History

Analyst: Kylie Wansink

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