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2008 Global Digital Economy - M-Commerce, E-Commerce & E-Payments

This annual report offers a wealth of information on the trends and developments taking place in the worldwide m-commerce and c-commerce sectors. The report provides analyses of the issues surrounding the growth of e-commerce, including e-banking, e-payments and online advertising. Information on mobile commerce developments are also provided, including m-payments and m-banking. Comprehensive information on the exciting developments taking place on a regional level is included along with statistics and forecasts for both the e-commerce and m-commerce sectors.

Subjects covered include:

  • Analyses of key e-commerce trends
  • E-commerce statistics and forecasts
  • Internet statistics and forecasts
  • Analyses and statistics for the emerging market of China
  • Information on e-payment and e-banking sectors
  • Analyses of key m-commerce trends
  • M-commerce statistics and forecasts
  • Information on m-payment and m-banking sectors
  • Information on net neutrality
  • Regional overview including North America, Latin America, Europe, Middle East, Africa and Asia Pacific.


E-commerce is now an important part of the economy, particularly in the developed markets. While e-commerce is still in its infancy in many emerging markets, this is set to change in the coming years especially in China. In 2008 China now has the highest number of Internet users in the world, overtaking the USA. E-commerce growth in the USA remains strong however, with China also offering significant opportunities for those operating in the e-commerce space.

Worldwide the number of Internet users has now reached around 1.4 billion and billions will be spent by consumers during 2008 on online retail. While the economic slowdown will most likely curb e-commerce growth somewhat over the next couple of years, particularly spending on online advertising, there is evidence that so far the online retail market has remained steady due mostly to the lower prices offered via online shopping.

Internet banking has slowly become more popular around the world, with 30% or more of Internet users utilising such services in some markets. However many online banking websites have at least one potential design weakness that could leave users vulnerable to cyber attacks. Improved bank security measures over the last couple of years, such as the introduction of home chip and pin devices is helping to combat this issue.

In the next few years the total entertainment and publishing industry (including offline and online) is expected to be worth more than $2 trillion - driven in particular by a wave of growth in online video games, gambling, music, social networking/UGC, and online video. In recent times sales of digital music, mostly via the Internet, have increased by more that 30%; in contrast sales of CD and DVDs continue to decline. Online video consumption is also beginning to produce promising results and advertisers have begun to seriously take note. Pay-to-own downloading is particularly popular and new business models in this area are expected to emerge over the next few years. Travel and adult content services are also popular with more growth expected ahead.

Mobile commerce is potentially important for a wide range of industries, including telecommunications, IT, finance, retail and the media, as well as for end-users. It will work best in those areas where it can emphasise the core virtue of mobile networks - convenience. However while there are good applications, the technologies and business models to date have not been well suited to mass market applications. The regulatory environment has also held this market up. This is beginning to change as banks and merchants collaborate with mobile operators. Applications around contactless cards using Near Field Communications are also being developed around the world. Focus has also turned to the developing markets, where mobile phones are being viewed as an opportunity to reach the masses that would not otherwise use m-payment or m-banking services.

In countries such as Kenya and India, national mobile banking systems are thriving and they are literally popping up around the world as well. In Kenya, 3 million out of Vodafone's 10 million subscribers are using mobile banking services and Vodafone is rapidly rolling the service out in other countries as well.

This annual report provides an insight and analyses into the trends and developments taking place in the m-commerce and e-commerce sectors. The report provides analyses of the trends and issues impacting upon the growth of e-commerce, including e-banking, e-payments and online advertising sectors. Analyses of the developments taking place in mobile commerce are also provided, along with information on m-payment and m-banking. Statistics and forecasts for both the e-commerce and m-commerce markets are provided. The report also includes valuable insights and statistics on the developments taking place on a regional level including North America, Latin America, Europe, Middle East, Africa and Asia Pacific.

Key highlights:

  • By 2012 it is expected that more than 1 trillion will be spent online by B2C consumers. B2B spending will exceed this considerably.
  • E-payment solutions are an important part of e-commerce transactions; however security issues continue to tarnish the industry.
  • Asia Pacific leads the world in terms of using mobile phones for m-payments, accounting for around 85% of customers worldwide.
  • BuddeComm estimates revenue from mobile content and services (excluding SMS), accounts for around 7-10% of total mobile revenues worldwide. SMS remains popular and accounts for a further 10% of total mobile data revenues.
  • Online advertising growth is set to continue for the next few years, but will slow slightly in the wake of the US financial crisis. It is expected that online advertising will eventually account for around 20% of all advertising spend in some markets.
  • Search services are central to almost everything that users do online, and this places leading search companies such as Google and Yahoo at an advantage. In the emerging Chinese market, Baidu and Alibaba also have a good foothold.
  • Google is still the most popular website property worldwide; however individual countries and regions show unique differences with many local sites remaining popular. Other web properties proving popular across multiple markets include Yahoo, Microsoft and Wikipedia sites, Apple Inc, eBay and Amazon.

1. E-Commerce and E-Payment Market 2008
1.1 E-commerce analyses and trends
1.1.1 The key drivers of growth
1.1.2 Introduction
1.1.3 The role of service providers
1.1.4 E-payments - market overview
1.1.5 Internet economy - key trends
1.1.6 E-commerce statistics and forecasts
2. Internet Overview and Statistics
2.1 Internet industry overview and statistics
2.1.1 The Internet and the web
2.1.2 Internet users and penetration
2.1.3 Internet hosts
2.1.4 The World Wide Web
2.1.5 Search engines
2.1.6 Websites
2.1.7 The ISP market
2.1.8 Key developments
2.2 Net neutrality
2.2.1 Introduction
2.2.2 Network neutrality - a global issue
2.2.3 Carriers in competition with content providers
2.2.4 Network neutrality and non-discrimination
2.2.5 Developments in the USA
2.2.6 No-one owns the Internet
3. Online Content and Business Models
3.1 Online content & services
3.1.1 Digital media and entertainment
3.1.2 Digital media trends
3.1.3 Online content and services
3.1.4 Digital Rights Management (DRM)
3.2 Advertising in the digital media
3.2.1 Digital media advertising analysis
3.2.2 Global advertising statistics
3.2.3 Internet advertising
3.2.4 New media advertising
3.2.5 Mobile advertising
3.2.6 TV advertising to struggle
3.2.7 Dubious advertising tactics
3.3 Industry business models
4. Mobile Commerce and M-Payment Overview 2008
4.1 M-commerce, m-banking and m-payments
4.1.1 M-commerce market in 2008
4.1.2 M-commerce analysis
4.1.3 M-payments (mobile payments)
4.1.4 M-banking (mobile banking)
4.1.5 The rapid emergence of mobile banking
4.1.6 Industry consortia
5. M-Commerce Content And Services
5.1 Mobile commerce content & services
5.1.1 The market in 2008
5.1.2 Key industry segments: statistics and forecasts
5.1.3 Future predictions
5.1.4 Mobile Digital Rights Management (MDRM)
6. Regional Overviews
6.1 North America
6.1.1 USA
6.2 Latin America
6.2.1 M-commerce
6.2.2 E-commerce
6.2.3 E-payment
6.3 Europe
6.3.1 Western Europe
6.3.2 Eastern Europe
6.4 Africa/Middle East
6.4.1 Africa
6.4.2 Middle East
6.5 Asia
6.5.1 Market overview
6.5.2 China
6.5.3 Japan
6.5.4 South Korea
6.5.5 Singapore
6.5.6 Other markets in Asia Pacific
6.6 Pacific region
6.6.1 Australia
7. Glossary of Abbreviations
List of Tables and Exhibites
Table 1 - Worldwide online spending - B2B and B2C - 2012
Table 2 - Worldwide Internet users and penetration by region - mid-2008
Table 3 - Top ten ranking by country for Internet users - 2007 - 2008
Table 4 - Households with access to a home PC and the Internet - selected countries - 2007
Table 5 - Top online activities - 2005; 2007
Table 6 - Country comparison of monthly at-home Internet usage - 2006 - 2007
Table 7 - Growth in the number of Internet hosts - 1984; 1991 - 2008
Table 8 - Number of domain names worldwide - 2007 - 2008
Table 9 - Internet users by top languages - 2002; 2005; 2007
Table 10 - Worldwide market share of top 5 browsers - 2007 - 2008
Table 11 - Web server market share, top 4 developers - 2004 - 2008
Table 12 - How people find websites
Table 13 - Search engine worldwide market share - early 2008
Table 14 - Online search market share - top 4 search engines in the US - Jan 2007; Dec 2007
Table 15 - Number of websites worldwide - 2004; 2006; 2008
Table 16 - Worldwide Internet users - 1990 - 2008
Table 17 - Worldwide broadband subscribers - 2003 - 2008
Table 18 - Top 5 dating websites in the US - February 2008
Table 19 - Worldwide e-learning market value - 2005; 2008; 2010
Table 20 - Worldwide online gambling revenue - 1997; 2001; 2004; 2006; 2008
Table 21 - Top five e-government countries - 2007
Table 22 - Market value and growth of telehealth - 2012
Table 23 - iTunes catalogue breakdown - 2007
Table 24 - Major regional user base of popular social networks - mid 2007
Table 25 - US online spending revenue for top 5 product types - 2006
Table 26 - Worldwide revenue from online video - 2007; 2010
Table 27 - Number of virtual worlds worldwide - 2007; 2009
Table 28 - Worldwide consumer spending on convergent platforms - 2006; 2011
Table 29 - Global advertising market revenue - 2007; 2012
Table 30 - Global online advertising spend - 2007; 2010
Table 31 - USA online advertising spend - 2000 - 2007
Table 32 - Percentage of total US online advertising spending - top 4 portals - 2006 - 2007
Table 33 - Global interactive advertising revenue - 2012
Table 34 - Global online game advertising spend - 2007 - 2008; 2012
Table 35 - Global social networking advertising spend - 2006 - 2008; 2011
Table 36 - Consumer electronics sales growth - US - 2006 - 2008
Table 37 - Worldwide transaction value of m-payments - 2008; 2013
Table 38 - Number of consumers worldwide using m-payment services - 2008; 2011
Table 39 - Mobile banking users in the USA - 2007; 2012
Table 1 - Worldwide mobile content and service revenue - 2006; 2008
Table 2 - Worldwide mobile adult content & services revenue - 2005 - 2006; 2008; 2010
Table 3 - Worldwide mobile email revenue - 2007; 2011
Table 4 - Worldwide text messages sent - 2008; 2012
Table 5 - Worldwide wagers spent on mobile gambling - 2007; 2012
Table 6 - Worldwide mobile gaming revenue - 2004; 2007 - 2008
Table 7 - Mobile game users - global monthly averages - 2005; 2010
Table 8 - Mobile Internet users worldwide - 2006; 2008; 2012
Table 9 - Mobile Internet users in Western Europe - 2008; 2013
Table 10 - Mobile Internet users in the US - 2007; 2012
Table 11 - Worldwide LBS revenue - 2007; 2013
Table 12 - Worldwide mobile music revenue - 2006; 2008; 2010; 2012
Table 13 - Worldwide mobile UGC revenues - 2007; 2012 - 2013
Table 14 - Worldwide market share of mobile social network users - 2008; 2013
Table 40 - E-commerce spending growth rates, selected US sectors - 2007 - 2008
Table 41 - Online retail sales and annual change in the US - 2003 - 2008
Table 42 - B2C sales in Latin America & the Caribbean - 2003 - 2007
Table 43 - Forecast gaming market by platform - 2012
Table 44 - Value of European mobile gaming market - 2005 - 2007; 2009, 2012
Table 45 - Internet users and broadband subscribers in Eastern European countries - 2007
Table 46 - Online services take-up in Eastern European EU countries - 2007
Table 47 - Online trading as % of total turnover in select Eastern European countries - 2007
Table 48 - Businesses purchasing via the Internet in select Eastern European countries - 2007
Table 49 - Take up of e-government services by businesses in select Eastern European countries - 2007
Table 50 - Take up of e-government services by individuals in select Eastern European countries - 2007
Table 51 - E-readiness of select Eastern European countries - 2007
Table 52 - Online & mobile banking customers of South Africa’s major banks - June 2007
Table 53 - Estimated value of B2C e-commerce market in China - 2004 - 2006; 2010
Table 54 - E-commerce volume in South Korea - 2001 - 2006
Table 55 - E-commerce volume by transaction type in South Korea - 2001 - 2006
Exhibit 1 - Examples of Web 2.0 developments
Exhibit 2 - Example of an operational support service
Exhibit 3 - World’s first voice-verified payment system
Exhibit 4 - PayPal - recent developments
Exhibit 5 - Internet economy - key developments
Exhibit 6 - Most popular online activities worldwide
Exhibit 7 - Implications of ending net neutrality
Exhibit 8 - Top 10 most popular domain name suffixes worldwide - 2008
Exhibit 9 - The phenomenon of the 1990s
Exhibit 10 - Comparison of top 15 web properties - Japan, USA and Germany - 2008
Exhibit 11 - Implications of ending net neutrality
Exhibit 12 - Applications of Microsoft’s Virtual Earth
Exhibit 13 - Online music sector
Exhibit 14 - Digital media marketing commandments
Exhibit 15 - Anarchy Online by Funcom
Exhibit 16 - Why mobile marketing won’t work in the current environment
Exhibit 17 - Examples of content provider business models
Exhibit 18 - Media centre devices
Exhibit 19 - M-commerce milestones
Exhibit 20 - Definition: Near Field Communications
Exhibit 21 - Examples of NFC applications
Exhibit 22 - EA’s change of business model incorporates micropayments
Exhibit 23 - Telco based money transfers
Exhibit 1 - Summary of the market
Exhibit 24 - Ranking of key mobile services & content segments - 2008
Exhibit 3 - Definition: off-deck
Exhibit 25 - Mobile adult service example: Cherrysauce
Exhibit 5 - Key m-gambling market segments
Exhibit 6 - Most popular Mobile Internet activities in mid-2008
Exhibit 7 - Mobile UGC service example: Moko
Exhibit 26 - Live mobile broadcast application
Exhibit 27 - The Economist Intelligence Unit (EIU) annual E-readiness criteria

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