Since we announced the MONETIZE social media monetization platform earlier this year at NAB, we’ve heard from dozens of stations and groups that are eagerly awaiting the ability to generate meaningful revenue from their premium social content. But often, we’ve been asked just how “meaningful” the revenue social monetization will be in the near future.
To answer that question, we performed a comprehensive analysis of the social audiences in 210 TV markets and estimated the value of those social audiences for TV station main brands on Facebook. Next, we forecasted a sell-through rate to determine a realistic addressable market value estimate for 2018.
We determined that there is an overall $1.4 billion revenue opportunity for local stations to monetize their social media audiences and content with an estimated $233 million sales potential for 2018.
That $233 million estimate essentially discounts the overall market opportunity to account for the various dynamics in the emerging local sponsored social content marketplace. The estimate incorporates many factors, including the time broadcasters will need to ramp up social sales efforts, advertiser acceptance, and the fact that stations in the top 50 markets will have the most resources and capabilities to quickly incorporate this new advertising inventory into their sales efforts.
However, as the market for premium branded social content advertising matures in the years to come, we expect both tremendous growth in the market as well as a higher percentage of that market to be addressable. In fact, eMarketer estimated the total market for sponsored social content worldwide to be worth $20 billion by 2021. Because of the highly-engaged local TV audiences on social media (and particularly Facebook), we believe local broadcasters in the U.S. are well positioned to take their rightful share of that spend.
As we mentioned on this blog after the announcement of Share Rocket MONETIZE, broadcasters’ struggles to generate revenue from social monetization is not due to lack of effort. They have cultivated audiences that generate tens of billions of engagements and video views a year and are ravenous for quality content. The key to tapping into that revenue is developing a transactional social currency and a sales management platform. We’ve been developing both for the last seven months and are excited to begin beta testing with select customers in the coming weeks.
To download the full White Paper regarding our 2018 valuation of sponsored premium content on social media, fill out your information below. To learn more about becoming a Share Rocket customer, email email@example.com.