Welcome to Market Revolution's blog

Thank you for visiting Market Revolution's blog.

We live and work in exciting times - revolutionary times. Technology continues to recast the media industry.

The extraordinary advance of affordable personal digital technology and the stellar rise of social networks are both distrupting and transforming the media market making this a unique moment to be involved in the convergence sectors we focus on.

This is also our place to ruminate and comment on the world as we see it, we hope you enjoy and please join in.

Friday, 14 January 2011

Groupon looks for even more cash through IPO

Groupon, the social buying site that spurned a $6 billion offer from Google, is pushing ahead with plans for its initial public offering, a debut that could value the company at $15 billion or more.

The company, which just raised a record $950 million from big investors, discussed a public offering with bankers this week, according to two people with knowledge of the deal who were not authorized to speak publicly on the matter. Banks are pitching Groupon on dizzying valuations at which they expect to take the company public, with many at $15 billion, these people said

Wednesday, 12 January 2011

Social gaming - $1bn market in 2011

Social gaming is expected to be a billion-dollar business this year, according to an eMarketer report released today. Of course, this staggering number isn’t surprising considering the massive growth of both Zynga and Facebook as a platform for social games.

eMarketer says that nearly 62 million US internet users, or 27% of the online audience, will play at least one game on a social network monthly this year, up from 53 million in 2010.

In the U.S., consumers will spend $653 million on virtual goods in social games in 2011, compared to $510 million spent in 2010.

These revenues from virtual goods will continue to make up the majority of social gaming revenues in the past but other areas in the business are anticipated to grow. Ad spending is expected to grow to $192 million in 2011 to advertise on social games, which is a 60% increase over 2010. And Lead-gen offers will increase to $248 million in 2011 from $225 in 2010.

Ad revenue is actually expected to surpass lead-generation offers as a source of developer revenues in 2012, says eMarketer.

Monday, 3 January 2011

Facebook valuation doubles to $50 billion

Facebook has raised another $500 million from Goldman Sachs and Russian investor Digital Sky Technologies, at a valuation for Facebook of $50 billion, the New York Times reports. That makes Facebook CEO Mark Zuckerberg worth more than twice the $6.9 billion Forbes said he was worth in September 2010 –when Facebook was valued at $23 billion.

It probably won’t change Zuckerberg’s low-key lifestyle, but the jump in net worth will, as the New York Times noted, put  Zuckerberg closer to the ranks of Google founders Sergey Brin and Larry Page, both worth $15 billion as of Forbes’ Sept. 2010 ranking of the 400 Richest Americans.

The latest fundraising will also boost the billionaire fortunes of two other Facebook co-founders, Dustin Moskovitz (worth $1.8 billion on the 2010 Forbes 400) and Eduardo Saverin (worth $1.15 billion on the 2010 Forbes 400). Moskovitz left Facebook in 2008 to start another company, Asana; Saverin helped Zuckerberg found Facebook but stayed on to graduate from Harvard while Zuckerberg and Moskovitz dropped out.

Saturday, 1 January 2011

Welcome to 2011

Happy New Year

2011 is going to be spectacular.

Year when tablets sales explode making them really interesting for publishers and advertisers. When Facebook and social media become very powerful advertising channels. When mobile finally gets locational. Year when everybody wakes up to the potential of Africa. When cloud computing becomes real and begins to impact on consumers lives. Year when newspapers struggle with digital and digital commercial models continue with no sign of a solution. When digital couponing takes off.

It's going to be a cracker and as always we will be ringside.