Menu
Matt Damon is Jason Bourne Again

Matt Damon is Jason Bourne Again

Galaxy Note 4 Screen is the World's Best

Galaxy Note 4 Screen is the World's Best

Iggy Azalea Sex Tape Controversy Heats Up

Iggy Azalea Sex Tape Controversy Heats Up

Paris Hilton just bought the Cutest and Smallest Dog

Paris Hilton just bought the Cutest and Smallest Dog

Kim Kardashian Flames Media about Kanye West Attack

Kim Kardashian Flames Media about Kanye West Attack

Pinterest, Twitter And Tumblr (Yes, Tumblr!)--Stealing Revenues From Facebook

Jan 27 2014, 10:32am CST | by , in News | Technology News

Pinterest, Twitter And Tumblr (Yes, Tumblr!)--Stealing Revenues From Facebook
 
 

YouTube Videos Comments

Full Story

Pinterest, Twitter And Tumblr (Yes, Tumblr!)--Stealing Revenues From Facebook

No longer a novelty, social media is now driving huge increases in paying customers to retail sites, according to a report released this morning by Adobe.

But Adobe’s fourth-quarter Social Media Intelligence Report also showed something else interesting: Facebook is no longer the only game in town.

The report, drawn from anonymous, aggregated data from more than 5,000 companies using Adobe’s Marketing Cloud services, indicates that Tumblr, Pinterest, and Twitter are now seeing big increases in revenue per visit thanks to their driving more consumers to retail sites.

Even Tumblr, which Yahoo bought last year in a $1.1 billion deal that has since drawn a lot of criticism as Tumblr traffic growth has apparently waned, showed that it might have a chance to fulfill Yahoo CEO Marissa Mayer’s hopes after all. Adobe says revenue per visit to Tumblr, derived from sending consumers to retail sites via ads, social media pages, and brand posts, jumped 340% from a year ago. Pinterest saw a 244% jump in revenue per visit, while Twitter logged a 131% increase and Facebook revenue per visit was up 72%.

Though surely the incredible increases posted by Tumblr and Pinterest are off a relatively small base a year ago, Adobe also says there are other factors. Tamara Gaffney, principal analyst for Adobe Digital Index, the Adobe unit that compiled the report, thinks the jumps mainly have to do with the visual nature of those two social networks vs. Facebook, which for all its posted photos still depends to a large extent on text posts, both by users and by marketers.

Pinterest even overtook Facebook for referring revenues in the fourth quarter in the United Kingdom, and Adobe expects it to blow past Facebook’s revenue per visit in the U.S. this year. Tumblr almost caught up with Facebook’s revenue per visit as well, coming in only 10% lower.

Some of the gains by Facebook competitors, of course, comes from the fact Facebook has years of revenue growth already, so the leading social network still leads by far in revenues. Still, the signs are worrisome for Facebook, says Gaffney. “Growth might be slowing down because of competition,” she said in an interview. “Facebook is going to have to do some new things to improve click-throughs on its ads.”

Not all the news is bad for Facebook. Adobe says brand marketers, who spend the largest chunk of ad dollars overall, are finding Facebook ads more attractive. Facebook’s click-through rate on ads jumped 365% from a years ago, even as its ad prices in cost per thousand impressions–a method of payment used by brand marketers looking to influence brand or purchase preferences more than trying to get an immediate click-to-buy–rocketed 437%.

What’s more, brand posts are attracting more attention from Facebook users, with social engagement such as comments, shares and likes on the posts up 180% from a year ago. Brand posts with images in them got more than seven times the engagement of text posts, though posts with links, text or (oddly) video got less engagement than a year ago.

For all that, Facebook’s competition–and the chief competition for all social networks for that matter–is not other social networks but search. Though this report doesn’t address search ads, chiefly from Google, they drive much more revenue to retailers and just about every other site than social networks.

Source: Forbes

 

You Might Also Like

Updates


Sponsored Update


Advertisement


More From the Web

Shopping Deals

 
 
 

<a href="/latest_stories/all/all/31" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

 

Comments

blog comments powered by Disqus

Latest stories

 
Eva Mendes and Ryan Gosling Welcome Baby Girl
Eva Mendes and Ryan Gosling Welcome Baby Girl
This went from rumored pregnancy to birth pretty quick. Eva Mendes and Ryan Gosling have a baby.
 
 
Leica strips display from digital camera
Leica strips display from digital camera
Leica is celebrating in style with a new entry in the series: the Leica M Edition 60, a seriously unique digital camera.
 
 
Kourtney Kardashian positively Glows while sporting a Baby Bump
Kourtney Kardashian positively Glows while sporting a Baby Bump
Kourtney Kardashian was spotted recently by paparazzi and she positively glowed while she also sported a baby bump beneath a white lace dress.
 
 
 

About the Geek Mind

The “geek mind” is concerned with more than just the latest iPhone rumors, or which company will win the gaming console wars. I4U is concerned with more than just the latest photo shoot or other celebrity gossip.

The “geek mind” is concerned with life, in all its different forms and facets. The geek mind wants to know about societal and financial issues, both abroad and at home. If a Fortune 500 decides to raise their minimum wage, or any high priority news, the geek mind wants to know. The geek mind wants to know the top teams in the National Football League, or who’s likely to win the NBA Finals this coming year. The geek mind wants to know who the hottest new models are, or whether the newest blockbuster movie is worth seeing. The geek mind wants to know. The geek mind wants—needs—knowledge.

Read more about The Geek Mind.