BIA/Kelsey Forecasts U.S. Social Ad Revenues To Reach $11 Billion In 2017
April 10, 2013 at 3:55 AM (PT)
BIA/KELSEY forecasts U.S. social advertising revenues to grow from $4.7 billion in 2012 to $11 billion in 2017, representing a compound annual growth rate (CAGR) of 18.6%. BIA/KELSEY expects social advertising's local penetration to steadily increase as social networks continually improve the ease of onboarding, local targeting and campaign management for both brands and SMBs. Locally targeted social ad revenues will grow at a 26.4% CAGR, from $1.1 billion in 2012 to $3.6 billion in 2017.
"Social networks are evolving their ad products and features to improve performance," said Dir./Consulting and Senior Analyst JED WILLIAMS. "Native social formats, including video, and mobile-social advertising will be the principal market growth drivers."
According to the forecast, display remains the dominant social ad unit, although native ad formats such as FACEBOOK's Sponsored Stories and TWITTER's Promoted Tweets require re-thinking of traditional display to optimize social campaigns, especially on mobile platforms. BIA/KELSEY forecasts U.S. native social advertising revenues to grow from $1.6 billion in 2012 to $4.6 billion in 2017 (CAGR: 22.9%).
Also driven by FACEBOOK and TWITTER, U.S. social mobile ad revenues approached $600 million in 2012, and are expected to grow to $2.2 billion by 2017 (CAGR: 29.9%).
BIA/KELSEY's Annual U.S. Local Media Forecast (2012-2017) draws from multiple sources. They include proprietary data -- company, industry and country information in the public domain -- as well as discussions with clients and non-clients about the direction and pace of development in the local media marketplace. The forecast is issued annually each SPRING and updated in the FALL.