Ad-funded social networks will provide the bulk of revenues in the mobile user-generated content (UGC) space by 2013. So says analyst Juniper Research in a newly-published report, Mobile User Generated Content: Dating, Social Networking & Personal Content Delivery 2008-2013 (Second Edition).
The report says that the total value of the UGC market – comprising social networking, dating and personal content delivery (PCD) services – will rise from almost $1.1 billion (616 million) in 2008 to more than $7.3 billion in 2013, with social networking overhauling dating to become the largest revenue-generating segment by 2009. The report also notes the increasing importance played by advertising, which Juniper says will account for nearly one-third of total revenues in the UGC space by the end of the forecast period, and more than half of mobile social networking revenues.
Its clear that we have seen an industry wide shift regarding the implementation of business models in this area, says the reports Author, Dr Windsor Holden. Whereas initially there was a perception that users would pay a small mobility premium to access social networks on their handsets, it rapidly became clear that to achieve truly mass adoption, it would be necessary to offer free membership and then to augment that with advertising and the sale of premium content.
The Juniper report also notes that, while the iPhone has substantially increased public awareness of mobile content services, there is significant scope for improvement with regards to the marketing of such services within the industry as a whole. It also stresses  the need for operators to reduce data costs outside of bundles to encourage casual use of social networking and dating services. 
According to the report, the number of active users of mobile social networking sites is expected to rise from 54 million in 2008 to nearly 730 million in 2013. The Far East & China region will be most popular in terms of mobile user numbers for mobile social networking and PCD throughout the forecast period, but the Indian Sub-continent will become the largest region for mobile dating services by 2010. And there will be more than 9 billion downloads from PCD sites by 2013, of which 32% will be ad-supported.
The report costs 1,750 for a single-user PDF or hardback copy; 2,500 for a multi-user licence; or 3,750 for an enterprise-wide licence.
Theres more information about the report here.