2013 Global Digital Economy - The Buoyant E-Commerce and M-Commerce Markets

Publication Overview

This annual report is a valuable resource of information on the global development of e-commerce and m-commerce and incorporates key insights, statistics, examples and trends. The report explores some of the larger issues surrounding the rise of Over-The Top (OTT) services and provides BuddeComm’s insights into e-payments, e-banking, entertainment apps, mobile location based services and digital advertising. The report includes regional information across North America, Europe, Africa, Middle East, Latin America and Asia Pacific.

Subjects covered include:

  • Industry transformation, Over-The-Top services and the digital economy;
  • Global e-commerce, e-payment and m-commerce markets;
  • Global mobile location based service insights;
  • Global mobile and digital entertainment;
  • Global digital advertising and marketing;
  • Regional overviews for North America, Europe, Africa, Middle East, Latin America and Asia Pacific.

Researchers:- Kylie Wansink, Paul Budde, Lucia Bibolini, Peter Evans, Paul Kwon, Henry Lancaster, Peter Lange
Current publication date:- October 2013 (6th Edition)

Executive Summary

Industry conditions create perfect recipe for e-commerce and m-commerce to thrive

The e-commerce and m-commerce sectors must represent one of the most innovative and rapidly evolving sectors worldwide; with the speed that new services, features and companies appear (and disappear) quite a spectacle to observe.

Recent industry and economic conditions have been a challenge to the telecoms operators – however in contrast these same industry conditions have provided the perfect recipe for digital e-commerce and m-commerce to thrive. From the rise of Over-The-Top (OTT) services and app stores offering more digital channels for e-retailers to reach audiences; to the growth of smart phones and improved infrastructure  – all mixed with consumers willingness to seek cheaper and broader retail options; the e-retail sector is finally coming into its own.

Demonstrating this buoyancy, in 2013 well over $1 trillion will be spent worldwide. E-commerce offers more than just cheaper alternatives for consumers; it provides a larger pool of products stretching beyond geographical boundaries; the ability to browse extensively, compare prices and shop from home. However while it is B2C e-commerce that seems to attract much of the global media attention; it is important to acknowledge that it is actually B2B spending that holds the largest market share of e-commerce spending with over $12 trillion spent worldwide in 2012.

The rising popularity of smart phones and uptake of tablets, along with improved mobile infrastructure has been a key driver to the rise of mobile commerce. Mobile commerce is one of the hottest sectors right now and it is gaining importance for a wide range of industries, including telecommunications, IT, finance, retail and the media, as well as for end-users. It works best in those areas where it can emphasise the core virtue of mobile networks – convenience. The enormous success of smart phones is linked to the large range of available apps and increasingly commercial models are being linked to these apps - which will result in further spectacular growth in m-commerce.

The Mobile Location-Based Services (MLBS) sector has evolved and the full potential of this technology is starting to be revealed. Advertising, travel, weather, vehicle tracking and accessing local business information are just of the other applications for LBS. The sector will continue to evolve as handsets with smarter capabilities, new apps and user interfaces permeate the market. This technology will also be included in the broader concept of The Internet of Things and Machine-to-Machine (M2M) developments.

It has become clear that OTT is ‘the new normal’ for the telecoms industry and these services are viewed as a substantial threat by the traditional network operators. The companies offering them are also perceived to be getting a free lunch over their networks – the European telcos in particular are calling for international regulation. This in essence is the same argument as the one the bricks-and-mortar retailers are making when they complain about online shopping and ask their governments for tax increases to address the problem. This would be detrimental to the digital economy which is driving the desperately needed innovations and new jobs essential for countries to recover from the global economic downturn.

BuddeComm’s new report, Global Digital Economy – The Buoyant E-Commerce and M-Commerce Markets, provides important insights into how the telecoms industry transformation and growth of Over-The-Top (OTT) services has both impacted upon the digital economy and the telcos. This unique report includes information and statistics on the global e-commerce, e-payments and m-commerce markets; mobile location based services and apps based on entertainment.  In addition the report provides insights and statistics on the global digital advertising sector which provides a valuable source of revenue to many of those operating in the online sector. Insightful regional overviews written by BuddeComm’s Senior Analysts are provided for North America, Europe, Africa, Middle East, Latin America and Asia Pacific.

Examples of key insights:

  • Demonstrating the innovation occurring in this sector; in September 2013 PayPal launched its Beacon service which utilises Bluetooth technology to allow a shopper to complete an in-store purchase without having to physically open the PayPal app.
  • Sending Person-to-Person (P2P) payments via email has become a hot area in 2013 with both Google (Gmail) and Square (Square Cash) entering this sector.
  • Mobile Location Based Advertising (LBA) is a key area for development with predictions it will account for over 30% of the mobile advertising sector by 2017.
  • The digital entertainment market is now worth billions of dollars in revenue and is driven by the growing uptake of smart phones and touchscreen tablets.
  • Banks finally seem to be embracing the new digital environment and understand that they too will have to change in order to play a key role. An emerging driving force is social banking.
  • Singapore, Hong Kong, 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 and India offer enormous potential in the future.
  • Competition from the e-tailers and e-marketplaces is greater than ever in Australia, due to the strong Australian dollar, growing confidence in using online payments and the ease of setting up an online store. In the New Zealand sector Near Field Communications (NFC) payments are popular.
  • The Middle Eastern e-commerce sector is expected to grow by a third by 2015.
  • In the USA the mobile sector is increasingly driving traffic to e-commerce sites. Across Canada the most common types of online orders are for travel services, entertainment, books and magazines, clothing, jewellery and accessories.
  • Europe has seen m-payments stimulated by a growing range of specialised mobile money offerings.
  • During the last two to three years the Latin American region has become one of the main growth areas for e-commerce globally.
  • In Africa’s most advanced markets, m-commerce, mobile content, applications and media have reached a level of development that is beginning to foster an associated advertising and marketing industry.

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. Industry Transformation and the Digital Economy
    • 1.1 Transforming the telecoms industry
      • 1.1.1 Telcos still ignoring industry transformation
      • 1.1.2 The rapidly shrinking traditional telecoms market
    • 1.2 Telcos have already lost the current OTT battle
      • 1.2.1 Infrastructure investment models are stuck
      • 1.2.2 Is the WCIT indeed wicked?
    • 1.3 The digital business buzzword is also ‘transformation’
    • 1.4 What will be driving these new investments?
      • 1.4.1 It is not about speed – it’s about ‘big data’
    • 1.5 Hot sectors for OTT services
    • 1.6 How to move forward?
  • 2. E-Commerce, E-Payments and M-Commerce Markets
    • 2.1 Global e-commerce market
      • 2.1.1 The digital commerce evolution
      • 2.1.2 Global e-commerce market statistics
      • 2.1.3 Leading B2C e-commerce players
    • 2.2 Key e-commerce insights
      • 2.2.1 Underlying trends
      • 2.2.2 E-payments
      • 2.2.3 Content Delivery Networks (CDNs)
      • 2.2.4 Cloud computing and e-commerce
      • 2.2.5 Security concerns
    • 2.3 Internet banking (E-banking)
      • 2.3.1 The changing face of e-banking
    • 2.4 Global m-commerce market
      • 2.4.1 Mobile devices rise in popularity
      • 2.4.2 M-commerce buzzword: SoLoMo
    • 2.5 Key m-commerce insights
      • 2.5.1 NFC and M-Wallets
      • 2.5.2 Mobile payments apps
      • 2.5.3 M-banking
      • 2.5.4 Mobile money transfer services
      • 2.5.5 Mobile auctions
      • 2.5.6 Mobile location shopping and marketing
      • 2.5.7 Mobile vouchers, coupons and loyalty cards
      • 2.5.8 Mobile advertising
  • 3. Mobile Location Based Services
    • 3.1 Location becomes a new revenue stream
      • 3.1.1 GPS
      • 3.1.2 Geotagging
    • 3.2 Mobile Location Based Services (MLBS) Introduction
      • 3.2.1 MLBS market overview
      • 3.2.2 Mobile Location Based Gaming
      • 3.2.3 Mobile Location Based Dating
      • 3.2.4 Mobile Location Based Advertising (MLBA)
      • 3.2.5 Vehicle tracking
      • 3.2.6 People and animal tracking
    • 3.3 The Internet of Things and M2M – Behavioural Attitudinal Geolocation
  • 4. Digital and Mobile Entertainment Media
    • 4.1 Apps, Entertainment, Social Networks and Gaming
      • 4.1.1 Portals or Apps?
      • 4.1.2 Mobile apps insights
      • 4.1.3 Social networks
      • 4.1.4 Mobile photo-messaging
      • 4.1.5 Online and mobile gaming
      • 4.1.6 Online and mobile gambling
      • 4.1.7 Online and mobile music
      • 4.1.8 Brief case studies
      • 4.1.9 Advertising – a key revenue source
    • 4.2 E-Book and Newspaper Publishing in the Digital Era
      • 4.2.1 Embracing the new digital era
      • 4.2.2 Transforming the book industry
      • 4.2.3 Customer service is king
      • 4.2.4 Promoting national culture
      • 4.2.5 Industry protectionism will fail
      • 4.2.6 More power to the author
      • 4.2.7 E-publishers are very different beasts
      • 4.2.8 The challenging newspaper publishing sector
      • 4.2.9 The future of mass media news
      • 4.2.10 Conclusion: both industries need a digital transformation
  • 5. Online and Mobile Advertising
    • 5.1 Market summary
    • 5.2 Market insights
      • 5.2.1 Consumers will lead the way
      • 5.2.2 Changes in internet advertising
      • 5.2.3 Mobile advertising
      • 5.2.4 Mobile Location-Based Advertising (MLBA)
      • 5.2.5 TV advertising
      • 5.2.6 Digital ad exchanges
    • 5.3 Internet media companies – selected insights
      • 5.3.1 Google - Advertising a main strategic drivers
      • 5.3.2 Yahoo - profit up, sales down as it attempts to lure Google and Facebook users
      • 5.3.3 Hulu - mostly positives for Hulu
      • 5.3.4 Facebook - prepared to operate in different markets
    • 5.4 Key online advertising categories
      • 5.4.1 In-game advertising
      • 5.4.2 Social media advertising
      • 5.4.3 Online video advertising
      • 5.4.4 Online search advertising
    • 5.5 A multi-screen approach gains attention
    • 5.6 Consumers react to privacy misuse by Internet companies
  • 6. Regional Overviews
    • 6.1 Canada
    • 6.2 USA
      • 6.2.1 E-commerce, m-commerce and online advertising
    • 6.3 Latin America
      • 6.3.1 Mexico
      • 6.3.2 Argentina
      • 6.3.3 Brazil
    • 6.4 Europe
      • 6.4.1 M-commerce
      • 6.4.2 Mobile payments
    • 6.5 Africa
      • 6.5.1 The mobile money revolution
      • 6.5.2 Social media
    • 6.6 Middle East
      • 6.6.1 Jordan
      • 6.6.2 Lebanon
      • 6.6.3 Oman
      • 6.6.4 Qatar
      • 6.6.5 Saudi Arabia
      • 6.6.6 Turkey
      • 6.6.7 United Arab Emirates
      • 6.6.8 Israel
    • 6.7 Asia
      • 6.7.1 China
      • 6.7.2 India
      • 6.7.3 Japan
      • 6.7.4 Malaysia
      • 6.7.5 Singapore
      • 6.7.6 South Korea
    • 6.8 Pacific Region
      • 6.8.1 Australian e-commerce market
      • 6.8.2 Market Surveys and statistics for Australia
      • 6.8.3 Key players in Australia
      • 6.8.4 Online auctions in Australia
      • 6.8.5 The Australian coupon Market
      • 6.8.6 Australia e-banking and m-banking
      • 6.8.7 Australia m-commerce market
      • 6.8.8 New Zealand
      • Table 1 – Global e-commerce spending – 2011 - 2013
      • Table 2 – Visitors to top web properties worldwide – 2013
      • Table 3 – Global m-commerce revenue – 2013; 2015
      • Table 4 – Global app store revenue – 2010; 2012
      • Table 5 – Global smart phone share of handset market – 2009 - 2012
      • Table 6 – Worldwide MLBS subscribers – 2008 – 2014
      • Table 7 – Worldwide MLBS revenue – 2007; 2009; 2011; 2013; 2015
      • Table 8 – Historical - regional MLBS revenue – 2009
      • Table 9 – Global leading app store competitors
      • Table 10 – Time spent on online in social networks by top 10 countries – 2010; 2011; 2012
      • Table 11 – Global wagers via mobile gambling – 2011; 2017
      • Table 12 – Global digital music revenue – 2007 - 2013
      • Table 13 – Top 10 countries using Facebook – 2012
      • Table 14 – Top 5 countries using LinkedIn – 2013
      • Table 15 – Worldwide in-game advertising spending – 2010; 2013
      • Table 16 – Worldwide social network advertising spending – 2008 – 2016
      • Table 17 – USA social network advertising spending – 2008 - 2009
      • Table 18 – Growth of e-reader sales – 2009 - 2013
      • Table 19 – Most popular formats for receiving news in the USA – 2010; 2012
      • Table 20 – Global advertising spending- all mediums – 2010 - 2014
      • Table 21 – Top ten countries by advertising spend per capita - 2010
      • Table 22 –Global online advertising spend – 2008 - 2013
      • Table 23 – Global advertising spending market share by major types - 2012
      • Table 24 – Examples of popular forms of online advertising
      • Table 25 – Google total advertising revenue – 2006 - 2012
      • Table 26 –Facebook total and mobile advertising revenue – Q2 2013
      • Table 27 – Global in-game advertising spending – 2010; 2013
      • Table 28 – Worldwide social network advertising spending – 2008 – 2016
      • Table 29 – USA social network advertising spending – 2008 - 2009
      • Table 30 – US online advertising revenues - top four portals – 2008 - 2011
      • Table 32 – Argentina – B2C e-commerce spending – 2005 - 2013
      • Table 33 – Brazil – B2C e-commerce spending – 2005 - 2013
      • Table 34 – Kenya: M-Pesa users and revenue – 2008 - 2013
      • Table 35 – China - mobile internet subscribers and annual change – 2006 - 2013
      • Table 36 – China Mobile - mobile internet use – 2010 - 2013
      • Table 37 – China - Utilisation rate and no. of users of various network activities – 2009 - 2011
      • Table 38 – China - estimated value of B2C e-commerce market – 2005 – 2013
      • Table 39 – China - estimated value of C2C e-commerce market – 2005 – 2013
      • Table 40 – China’s online retail market - revenue and customers – 2003 - 2012
      • Table 41 – China - online banking users and utilisation rate – 2007 – 2012
      • Table 42 – South Korea - internet usage rates by service– 2009 - 2011
      • Table 43 – South Korea - main purpose of using the internet – 2009 - 2011
      • Table 44 – South Korea - e-commerce volumes – 2001 - 2011
      • Table 45 – South Korea - e-commerce volume by transaction type – 2001 - 2011
      • Table 46 – South Korea - internet banking service subscribers – 2001 - 2010
      • Table 47 – South Korea - financial services by delivery channel – 2005 – 2010
      • Table 48 – South Korea - online stock trading customers – 2004 - 2007
      • Table 49 – South Korea - purchase of items by internet shopping – 2010
      • Table 50 – South Korea - mobile banking service subscribers – 2003 – 2010
      • Table 51 – Australia - estimated retail trade revenue online and traditional – by industry – 2012
      • Table 52 – Overview of online shopping activities by Australians – 2012
      • Table 53 – eBay members in Australia – 1999; 2003 - 2004; 2006; 2009 - 2012
      • Table 54 – Popularity of contactless payments using smartphones – 2011 - 2012
      • Chart 1 –Global online advertising spend – 2008 - 2013
      • Chart 2 - Global advertising spending market share by major types - 2012
      • Chart 3 – China - popular mobile internet applications – 2011
      • Chart 4 – Overview of online shopping activities by Australians – 2012
      • Chart 5 – Overview of eBay members in Australia – 1999; 2003 - 2004; 2006; 2009 - 2012
      • Exhibit 1 – Telstra leading the global telco move towards the OTT model
      • Exhibit 2 – WCIT-12 disappoints, more work to be done
      • Exhibit 3 – Digital economy – key developments
      • Exhibit 4 – Popular online activities
      • Exhibit 5 – Other e-commerce business model examples
      • Exhibit 6 – European Commission e-commerce five priorities - 2012
      • Exhibit 7 – Examples of popular online retail websites around the world
      • Exhibit 8 – Walmart
      • Exhibit 9 – The rise of PayPal
      • Exhibit 10 –Mobile apps examples across various sectors
      • Exhibit 11 – M-Commerce – key developments
      • Exhibit 12 – GPS applications and industry use
      • Exhibit 13 – Definition of Geotagging/Geocoding
      • Exhibit 14 – Examples of Location Based Systems (LBS) applications by market division
      • Exhibit 15 – Mobile apps examples
      • Exhibit 16 – Top 5 free leading apps – App Store and Google Play – mid 2013
      • Exhibit 17 – Top 5 paid leading apps – App Store and Google Play – mid 2013
      • Exhibit 18 – Vancouver mall customers shop via Facebook
      • Exhibit 19 – Foursquare
      • Exhibit 20 – Mobile video communication: FaceTime and Google Talk
      • Exhibit 21 – Examples of popular online dating sites
      • Exhibit 22 – Examples of key players in gaming industry sectors worldwide
      • Exhibit 23 – Apple iTunes
      • Exhibit 24 – Twitter snapshot
      • Exhibit 25 – LinkedIn
      • Exhibit 26 – Anarchy Online by Funcom
      • Exhibit 27 – Facebook and Nielsen’s marketing alliance
      • Exhibit 28 – Statistical snapshot of e-books
      • Exhibit 29 - All European books online for the price of 600km of roads
      • Exhibit 30 – Digital advertising cost considerations
      • Exhibit 31 – Examples of large global advertising groups and subsidiaries
      • Exhibit 32 – Examples of digital advertising agencies
      • Exhibit 33 – Top sectors for online advertising spending
      • Exhibit 34 – Online ad deal between Google and Yahoo aborted
      • Exhibit 35 – Top mobile advertising spenders – Q2 2012
      • Exhibit 36 – Anarchy Online by Funcom
      • Exhibit 37 – Facebook and Nielsen’s marketing alliance
      • Exhibit 38 – Example items sold on average in Australia on eBay
      • Exhibit 39 – What’s selling on eBay mobile in Australia
      • Exhibit 40 – Interesting items from online auctions
      • Exhibit 41 – A brief insight on the group buying coupon websites
      • Exhibit 42 – How appealing are contactless payments – 2011 - 2012

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Number of pages 155

Status Archived

Last updated 9 Oct 2013
Update History

Analyst: Kylie Wansink

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