One quarter of mobile users join social networks

Almost one quarter of mobile users worldwide could be regular users of mobile-based social networks within the next five years, according to analyst forecasts published this week.

Mobile social networking is already an established service in some regions, but with only low investments from mobile network operators, the growth in users and community registrations is expected to continue at a CAGR of between 30-50 per cent, depending on the type of community and the region.

Research from analyst house and telecoms.com parent, Informa Telecoms & Media, reveals that the number of mobile social networking users exceeded 50 million, approximately 2.3 per cent of the global mobile user population at eth end of 2007. By 2012, Informa predicts there will be between 12.5 per cent penetration of mobile social networks among mobile users globally in the most conservative scenario, and approximately 23 per cent in the high growth scenario.

"Mobile social networking is approaching or has reached critical mass among mobile subscribers in South Korea and Japan," said Christine Perey, independent analyst at Perey Research & Consulting and author of the Informa report, 'Mobile Social Networking: Communities and Content on the Move'.

"The US, the Nordic countries and Western Europe are experiencing high growth and other geographies are following. Much of the recent additions have been responses to new WAP-based services which offer engaging communities and exciting features with low obstacles to entry. Both off-deck and on-deck, the latest mobile community platforms are providing rich media experiences that users want on their mobile handsets," said Perey.

According to the analyst, in 2006, mobile social networking revenues exceeded $1.5bn and more than doubled in 2007. This revenue growth is expected to accelerate in the next two years but after that point, much depends on mobile network operators' policies and the interests of users.

By 2012 revenues generated from all business models in this industry are forecast to reach $28.9bn in the most conservative scenario and $52bn in the high growth scenario.

Informa expects that over the next 24 months, communities which foster friendships will continue strong growth in users and revenues, while entertainment community segment revenues will overtake in some regions in 2010. Other community segments focusing on productivity, fame and social shopping are beginning to emerge on mobile platforms, diversifying the offers and attracting people of different socioeconomic and demographic profiles to mobile social networking services, the analyst said.

For more information on the report, 'Mobile Social Networking: Communities and Content on the Move', click here

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