BIA/Kelsey Forecasts Social Media Ad Spending to Reach $8.3 Billion in 2015
May 2, 2011 at 7:28 AM (PT)
Social media advertising revenues will grow from $2.1 billion in 2010 to $8.3 billion in 2015, representing a compound annual growth rate of 31.6%, according to BIA/Kelsey's U.S. Local Media Annual Forecast (2010-2015).
BIA/KELSEY defines social media advertising as money spent on advertising formats across social networks. Currently, the predominant ad format is display, spending on which the firm expects will increase from $2.1 billion in 2010 to $7.7 billion in 2015. Though revenues for non-display ad formats, such as TWITTER's "promoted products," are minimal at present, BIA/KELSEY anticipates there will be a number of format developments beyond display, and expects the social non-display segment to grow from zero in 2010 to $600 million in 2015.
"It's no surprise that FACEBOOK commands a dominant share of all social ad impressions served and ad revenues generated," said BIA/KELSEY Social Local Media Analyst/PD JED WILLIAMS. "As the social market leader, it already serves the most display ad impressions of any digital company, surpassing both YAHOO and GOOGLE. We fully expect FACEBOOK to increase both impression share and ad revenue, as buyer awareness accelerates and creative formatting and targeting improve to optimize performance."