Question: What generates 478,422,629?
Answer: The annual shopper traffic for the Macerich Shopping Center Portfolio.
Real Estate Investment Trust (REIT) White Paper Summary,
Originally published: December 22, 2010.
Macerich Portfolio
Shopping Centers: 76
Total Square Foot Gross Leasable Area (GLA) 76 Centers: 62,654,521
Trade Area Population Combined: 44,549, 202
Annual Shopper Traffic All Centers: 478, 422, 629
Facebook Users in U.S.A. as of Dec. 2010: 145, 331, 000
As of Dec. 21, 2010 Facebook Fans All 76 Centers Combined: 86,106
How does that compare to some other brands?
Let’s take a closer look.
Top Retail and Consumer Brand Growth on Facebook between Dec. 20th and 22nd in 2010
Coca-Cola, beverage company: 21,098,972 (+95,334)
Red Bull, soft drink, promoter: 14,254,011 (+33,387)
Target, dept. store: 3,499,028 (+13,303)
Ralph Lauren, retailer/ manufacturer: 2,140,709 (+14,342)
Vans, footwear: 1,731,965 (+2,706)
JCPenny, dept. store: 1,398,459 (+2,848)
Macy’s, dept. store: 973,266 (+4,194)
What Goes Around Comes Around, retail boutique in NYC: 726,533 (+48)
Facebook Breakdown Per Mall as of Dec. 21, 2010
Where does Macerich earn their revenue?
Obtained from 2009 Macerich Annual Report.
In 1956, the NEW two-level Swifton Center, Cincinnati, OH was all the rage. It consisted of 66 retailers, 486,000 GLA, and 3,000 parking spaces.
Fast-forward: below is a areal view of the layout of the The Danbury Fair Mall, Danbury, CT with 1,292,176 GLA. (Renovation completed 2008).
1956, 2008 — Is there a difference?
Let’s look at some revenue streams the REITs are not earning:
Brand ads*
Self-service ads*
Virtual goods*
Ad sense*
Mobile commerce
Location-based check-in offers
Mobile app enhancements
Mobile coupons
Affiliate revenue
*See examples below of revenue.
Is there value in that stuff, you ask?
An est. of Facebook’s expected 2009 revenue:
*Self-service ads: $200M
*Brand ads: $125M
Ad deal with sponsor: $150M
*Virtual goods: $75M
[ Sub-total: $550M ]
Note: Facebook does not own one brick-and-mortar store or any shopping malls.
AdSense** (2009)
Google sites: $4.42B (+16% from 2008)
Google network: $2.04B (+21% from 2008)
**Source: Google investor relations
This is just the tip of the iceberg.
Web/Mobile/Social Snapshot
A random search of several of the above listed companies’ total funding to date exceeds $1.29B.
The estimated market value of the below listed companies, to date, exceeds $33.1B.
Is anyone out there?
Below is a chart of the percentage of adult internet users using social networking sites, organized by age group.
Source: Pew Research Center
Most used social media platforms
More than 500M users
Most visited website: 1 out of 4 pages viewed on the web are on Facebook.
More than 190M users on the communications, multimedia platform
More than 65M tweets daily
More than 800K search queries daily
YouTube
More than 2B videos viewed daily on the multimedia, entertainment platform
More than 85M users on the communications, networking platform
Yelp
More than 31M unique monthly visitors to the reviews and opinions website
Why should businesses use social media?
Social media allows businesses access to vast quantities of consumer data.
The data can be used to create targeted messages, bringing the communications practice closer to the elusive one-to-one marketing experience.
CEOs and companies embracing social media.
Social media empowers businesses to change the nature of their relationship with consumers by engaging in transparent, real-time, two-way conversation with users.
If done properly, openly, and honestly, this dialogue can create legions of supporters that have access to numerous other potential customers.