Sunday, May 1, 2011

Why the world needs a digital e-commerce platform

Let the numbers speak
Before we started working on Babolog 6 months ago, we did research to see where the digital e-commerce industry was headed. For a start-up focusing specifically on social, digital e-commerce, the results looked appealing from all ends of the spectrum: sales, content production, and social tendencies.

1. Digital Sales - There's a rapidly growing market
From a sales perspective, a Pew study in Dec 2010 shows nearly two-thirds of Internet users -- 65% -- having paid to download or access some kind of online content from the Internet, ranging from movies to games to news articles [1]. The worldwide market for digital content creation products has grown from $3.04 billion from 2008 to $6.5 billion, exceeding estimates for 2012 by over 2 billion dollars [2,3].

2. Content Production - Aggregating content producers
In terms of digital content production, eMarketer predicts the number of user-generated content creators in the US will rise 9% (to 114.5 million creators) by 2013, from the 82.5 million (42.8%) recorded in 2008. This translates to over half (51.8%) of all US Internet users [2].

3. Leveraging social networking
A survey of 2,221 consumers, conducted by VG Market and Playspan in July 2010, indicates 75% of customers have spent money on virtual goods, and 32% have made purchases within social networks [4].
                  
[1] Pew Research Center's Internet & American Life Project
[2] (eMarketer, 2009)
3] (Computerworld - April 11, 2007)
[4] Women Spend More on Digital Goods ...

Sincerely,
Michael E. Karpeles
Stephen A. Balaban

http://babolog.com

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