Electronic Commerce

Social networking, video, and search sites are key generators of e-commerce revenue. Additional drivers are dating sites, massively multiplayer online games, online gambling, pornography, and virtual worlds such as Second Life. Advertising adds substantial revenue at most of these sites. According to market analysis company eMarketer, Inc., Internet advertising revenues in the United States grew 30 percent from June 2010 to June 2011. Google earned the largest amount of ad revenue.

Total online advertising revenue is expected to increase as more people use tablet computers, smartphones, and Internet-connected televisions to browse, shop, and view content over the Internet. Use of these devices is in early phases in most countries. However, as such use proliferates, advertising revenues will continue to grow, underwriting the costs for content, which will lead to lower prices or possibly no fee at all on the Internet.