World Online Services Market Brief
The global outlook series on Online Services provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report provides a bird’s eye view of the industry’s structure for online/internet services, the service market composition, primary market stimulants, trends, and a sneak peek into major markets worldwide. The 49 information-rich, market data tables give the reader a wholesome understanding of the industry in its totality. Regional markets briefly summarized and illustrated with tables and graphs include the US, Canada, Japan, Europe, France, Germany, Switzerland, United Kingdom, Asia Pacific, China, India, South Korea, Taiwan, Vietnam, Latin America, and Rest of World. The purpose of the abstracted regional market discussion is to provide the reader a prelude, and a macro level primer to these markets. The report also recapitulates the recent mergers, acquisitions, and other noteworthy strategic corporate developments. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 627 companies worldwide.
ONLINE SERVICES GOS-031
A GLOBAL OUTLOOK, SEPTEMBER 2008
CONTENTS
1. Overview 1
Global Online/ Internet Services Market 1
Drivers for the Growing Market 1
Broadband Access 1
e-Commerce 1
Leading Global Online Services Companies 1
Major Online Service Categories Worldwide 1
e-Commerce: A Multi-Trillion Market 1
Table 1: World e-Commerce Revenues: Annual Market Estimates
for 2003 through 2008 in Billions of US$ 2
B2B e-Commerce 2
Table 2: Global B2B e-Commerce Revenues: Annual Market for
2003 through 2008 in US$ Billion 2
Table 3: Global B2B e-commerce Revenues: Annual Market for
2003 through 2008 in US$ Billion for United States, Japan,
Europe, Asia-Pacific (excl. Japan), and Rest of World 3
B2C e-Commerce 3
Table 4: Global B2C e-Commerce Revenues: Annual Market for
2003 through 2008 in US$ Billion 3
Table 5: Global B2C e-Commerce Revenues: Annual Market for
2003 through 2008 in US$ Billion for United States, Japan,
Europe, Asia-Pacific (excl. Japan), and Rest of World 4
Online Retailing - A Comprehensive Approach 4
Table 6: Global Online Retail and Business Trade’s
Revenues: Annual Market Estimates for 2003 through 2008 in
Billions of US$ 4
Online Retail Categories 5
Online Gaming 5
Overview 5
Major Markets 5
USA 5
Asia-Pacific 5
Europe 5
The Future 5
Table 7: Global Online Gaming Market: (2005) Percentage
Breakdown by Category 6
Online Advertising 6
Table 8: World Market for Online Advertising by Mode/Format
- Search, Display and Other Modes/Formats Independently
Analyzed by Annual Revenues in US$ Million for the Years
2006 through 2008 6
Trends and Issues 6
Continuous Shift Towards Online Advertising 6
Why Online Advertisement is the Most Sought-After
Advertising Medium 6
Online Advertising Spreads its Wings into SMEs 7
Online Industry Welcomes Open Source Solutions 7
Rich Media Market Rapidly Undergoes Changes 7
Present Scenario 7
Video Streaming - A Multifaceted Advertising Mode 8
Software Technology Improvements Facilitate Online Ads 8
Other Side of Online Advertising 8
Major Bottlenecks in Online Advertising 8
US Economic Downturn to Benefit Online Advertising Market 8
e-Recruiting 9
Online Music Services 9
Table 9: World Market for Online Music by Distribution
Format - Hard Format, One-off Downloads &Subscription
Downloads Markets Independently Analyzed with Annual Sales
Figures in US$ Million for Years 2006 through 2008 9
Online Music - Music Industry’s Knight in Shining Armor 9
Record Industry Moves Rapidly Towards the Internet 9
Video on Demand (VOD) Services 9
Table 10: Global Video on Demand (VOD) Services Based on IP
Networks’ Subscribers by Region: Annual Market Estimates for
2003 through 2008 in Millions for North America, Europe,
Asia, and Rest of the World 10
e-Governance - An Overview 10
2. Market Trends & Issues 10
Online Insurance Advertising to Grow at a Rapid Pace 10
Online Photo Services Treading High Growth Track 11
Online Shopping - A Burgeoning Sector in the US 11
Online Clipping Services Picking Up 11
3. Mergers and Acquisitions 11
4. Strategic Corporate Developments 45
5. Product/Service Launches 55
6. Technological Advancements 81
Broadband Audio-Visual Services - An Emerging Concept 81
Benefits of BAV Services 82
Consumer Perspective 82
ISP Perspective 82
Content Provider’s Perspective 82
Advertiser’s Perspective 82
Popular Broadband Audio-Visual Services 82
A REGIONAL PERSPECTIVE
1. United States 83
Overview 83
Leading Online Service Categories 83
e-Commerce 83
Table 11: e-Commerce Revenues in the US: Annual Market
Estimates for 2003 through 2008 in Billions of US$ 83
B2B e-Commerce Market 84
Table 12: Business-to-Business (Total) e-Commerce Market
Size in the United States (2005) by Sector - Manufacturing,
Wholesale, Information & Communications, Construction,
Finance, Transport, Service, Others (In US$ Billion) 84
B2B Sales through Internet 84
Table 13: Business-to-Business (Internet) e-Commerce Market
Size in the United States (2005) by Sector - Manufacturing,
Wholesale, Information & Communications, Construction,
Finance, Service, Transport, Others (In US$ Billion) 84
B2C e-Commerce 85
Table 14: B2C e-Commerce Revenues in the US: Annual Market
Estimates for 2003 through 2008 in Billions of US$ 85
e-Procurement 85
Use of Internet for Sourcing Goods 86
Table 15: Products and Services Employing e-Procurement
(Use of Internet for Sourcing Goods) for Purchasing in the
US: 2005 Percentage Breakdown for Office Supplies, Office
Equipment, Computer Hardware/ Software, Travel, Raw
Materials and/or Goods for Resale / Merchandise, Printing,
Temporary Services, Telecommunications, Packaging
Materials, and Advertising 86
Online Music 86
Table 16: US Market for Online Music by Distribution Format
- Hard Format, One-off Downloads & Subscription Downloads
Markets Independently Analyzed with Annual Sales Figures in
US$ Million for Years 2006 through 2008 86
Online Advertising 87
Table 17: US Market for Online Advertising by Mode/Format -
Search, Display Ads, Classifieds, Rich Media, Sponsorship,
Referrals, Slotting Fees and E-Mail Independently Analyzed
by Annual Revenues in US$ Million for the Years 2006
through 2008 87
Table 18: Online Advertisement Expenditure of Healthcare
and Pharmaceutical Industry in the US in US$ Million for
Years 2006 through 2010 87
Table 19: Leading Online Travel Advertisers in the US
(2006): Ranked by Percentage share - VacationsToGo.com,
InterActive Corp, Puerto Rico Tourism Company, Orbitz La
Quinta Corporation, Alaska Air Group, Hilton Hotels
Corporation, General Electric Company, Extended Stay
America, RedWeek.com, and Others 88
Table 20: Leading Online Health Advertisers in the US
(2006): Ranked by Percentage Share - Weight Watchers
International, NutriSystem, Kaiser Permanente, LasikPlus
Vision Center, NutraCore, Medical Hair Restoration, Takeda
Pharmaceuticals, The Procter & Gamble Company, Johnson &
Johnson, eDiets.com, and Others 88
Table 21: Leading Online Telecommunications Advertisers in
the US (2006): Ranked by Percentage Share - Verizon
Communications, AT&T, Vonage Holdings, Deutsche Telekom AG,
Sprint Corporation, InPhonic.com, ALLTEL Corporation, Skype
Technologies, Cablevision Systems Corporation, Flycell, and
Others 89
Table 22: Leading Online Entertainment Advertisers in the
US (2006): Ranked by Percentage Share - Time Warner, The
Walt Disney Corporation, Viacom, The News Corporation
Limited, Lions Gate Entertainment Corp., General Electric
Company, E.W. Scripps Company, Domino's Pizza, Discovery
Communications, Ford Motor Company, and Others 89
2. Canada 89
Leading Online Service Categories 89
B2C e-commerce Gains Momentum 89
Internet Advertising Expenditure to Register Good Growth 90
Table 23: Canadian Market for Online Advertising by
Mode/Format - Search, Display and Other Modes/Formats
Independently Analyzed by Annual Revenues in US$ Million for
the Years 2006 through 2008 90
Online Music 90
Table 24: Canadian Market for Online Music by Distribution
Format - Hard Format, One-off Downloads & Subscription
Downloads Markets Independently Analyzed with Annual Sales
Figures in US$ Million for Years 2006 through 2008 90
3. Japan 91
e-Commerce - An Overview 91
B2C e-Commerce 91
Table 25: B2C e-Commerce Revenues in Japan: Annual Market
Estimates for 2003 through 2008 in Billions of US$ 91
B2B e-Commerce 91
Table 26: B2B e-Commerce Revenues in Japan: Annual Market
Estimates for 2003 through 2008 in Billions of US$ 92
Online Music 92
Table 27: Japanese Market for Online Music by Distribution
Format - Hard Format, One-off Downloads & Subscription
Downloads Markets Independently Analyzed with Annual Sales
Figures in US$ Million for Years 2006 through 2008 92
4. Europe 93
Overview 93
Internet Users in Europe 93
Table 28: Internet Users in Europe (2006): Breakdown by
Leading Nations in terms of Thousands of Subscribers -
Germany, United Kingdom, France, Italy, Russia, Spain,
Turkey, Netherlands, Poland, and Others 93
Leading Online Service Categories 93
e-Commerce 93
Table 29: e-Commerce Revenues in Western Europe: Annual
Market Estimates for 2003 through 2008 in Billions of US$ 94
B2C e-Commerce Market 94
Table 30: B2C e-Commerce Revenues in Western Europe: Annual
Market Estimates for 2003 through 2008 in Billions of US$ 94
B2B e-Commerce Market 95
Table 31: B2B e-Commerce Revenues in Western Europe: Annual
Market Estimates for 2003 through 2008 in Billions of US$ 95
Online Advertising 95
Table 32: European Market for Online Advertising by
Mode/Format - Search, Display and Other Modes/ Formats
Independently Analyzed by Annual Revenues in US$ Million for
the Years 2006 through 2008 96
4a. France 96
Overview 96
Online Advertising 96
Table 33: French Market for Online Advertising by Mode/Format
- Search, Display and Other Modes/Formats Independently
Analyzed by Annual Revenues in US$ Million for the Years 2006
through 2008 96
Online Music 97
Table 34: French Market for Online Music by Distribution
Format - Hard Format, One-off Downloads & Subscription
Downloads Markets Independently Analyzed with Annual Sales
Figures in US$ Million for Years 2006 through 2008 97
4b. Germany 97
Leading Online Service Categories 97
e-Commerce 97
Table 35: Internet/Online Business-To-Consumer Electronic
Commerce Consumer Spending on Sites in Germany: Annual
Market Estimates for 2003 through 2008 in Billions of US$ 97
Online Advertising 98
Table 36: German Market for Online Advertising by
Mode/Format - Search, Display and Other Modes/ Formats
Independently Analyzed by Annual Revenues in US$ Million for
the Years 2006 through 2008 98
Online Music 98
Table 37: German Market for Online Music by Distribution
Format - Hard Format, One-off Downloads & Subscription
Downloads Markets Independently Analyzed with Annual Sales
Figures in US$ Million for Years 2006 through 2008 98
4c. Switzerland 99
e-Banking 99
Impact of e-Commerce on Banking 99
4d. United Kingdom 99
e-Commerce 99
Overview 99
B2C e-Commerce 99
Online Advertising 99
Table 38: UK Advertising Market (2005): Percentage Breakdown
of Online Ad Spending in Major Industries -Finance,
Recruitment, Travel & Transport, Automotive, Technology and
Others 100
Broadband Potential Pull Marketers Online 100
5. Asia-Pacific 100
Internet Users in Asia 100
Table 39: Internet Users in Asia (March 2007): Breakdown by
Leading Nations in terms of Thousands of Subscribers -
Germany, United Kingdom, France, Italy, Russia, Spain,
Turkey, Netherlands, Poland, and Others 101
Internet Users in Australia & New Zealand 101
e-Commerce 101
B2B Emerges Stronger than B2C 101
B2B e-Commerce 101
Table 40: B2B e-Commerce Revenues in Asia-Pacific (Excl.
Japan): Annual Market Estimates for 2003 through 2008 in
Billions of US$ 101
B2C e-Commerce Market Lures Western Companies 102
Table 41: B2C e-Commerce Revenues in Asia-Pacific (Excl.
Japan): Annual Market Estimates for 2003 through 2008 in
Billions of US$ 102
Online Advertising 102
Table 42: Asia-Pacific Market for Online Advertising by
Geographic Region - South Korea, China, Australia and Rest
of Asia-Pacific Independently Analyzed by Annual Revenues in
US$ Million for the Years 2006 through 2008 102
Online Music 102
Table 43: Asia-Pacific Market for Online Music by
Distribution Format - Hard Format, One-off Downloads &
Subscription Downloads Markets Independently Analyzed with
Annual Sales Figures in US$ Million for Years 2006 through
2008 103
5a. China 103
Leading Online Service Categories 103
e-Commerce 103
Factors Promoting e-Commerce 103
Implications of e-Commerce Revolution 103
B2B e-Commerce 104
B2C e-Commerce 104
Online Advertising 104
Table 44: Chinese Online Advertising Market (2005):
Percentage Breakdown of Online Advertising Revenues for
Leading Portals - Sina, Sohu, NetEase, QQ, TOM online and
Others-Ranked in Yuan Million 104
Branded Advertising Vs. Search Ads 104
5b. India 105
e-Commerce Market 105
Online Advertising 105
Overview 105
Growth Inhibitors 105
5c. South Korea 106
e-Commerce - An Overview 106
Online Advertising Market 106
Overview 106
Table 45: South Korean Market for Online Advertising by
Mode/Format - Search, Display and Other Modes/Formats
Independently Analyzed by Annual Revenues in US$ Million for
the Years 2006 through 2008 106
Contextual Advertising - The Next Advertising Mantra 106
5d. Taiwan 107
Taiwanese Internet Content Industry 107
e-Learning 107
Online Gaming 107
5e. Vietnam 107
e-Commerce Market Registers Robust Growth 107
6. Latin America 107
Internet Users 107
Table 46: Internet Users in South America (March 2007):
Breakdown by Leading Nations in terms of Thousands of
Subscribers - Brazil, Argentina, Chile, Colombia, Peru,
Venezuela, Ecuador, Uruguay, and Others 108
Table 47: Internet Users in Central America (March 2007):
Breakdown by Leading Nations in terms of Thousands of
Subscribers - Mexico, Guatemala, Costa Rica, El Salvador,
Honduras, Panama, Nicaragua, and Belize 108
e-Commerce Market 109
e-Commerce and Internet Advertising 109
The Contemporary Developments 109
The Industry Bottlenecks 109
B2B e-Commerce 109
Internet Penetration 109
7. Rest of World 110
Internet Users in the Middle East 110
Table 48: Internet Users in Middle East (March 2007):
Breakdown by Leading Nations in terms of Thousands of
Subscribers - Iran, Israel, Saudi Arabia, United Arab
Emirates, Syria, Kuwait, Lebanon, Jordan, Oman, Palestine
(West Bank), Yemen, Qatar, Bahrain, and Iraq 110
Internet Users in Africa 110
Table 49: Internet Users in Africa (March 2007): Breakdown by
Leading Nations in terms of Thousands of Subscribers - South
Africa, Egypt, Nigeria, Morocco, Sudan, Algeria, Zimbabwe,
Kenya, Tunisia, and Others 110
GLOBAL DIRECTORY
