BIA/Kelsey Forecasts U.S. Social Local Advertising Revenues To Reach $2.3 Billion In 2015
November 17, 2011 at 7:09 AM (PT)
BIA/KELSEY's first forecast of geotargeted social media projects the local segment of U.S. social media advertising revenues will grow from $400 million in 2010 to $2.3 billion in 2015, representing a compound annual growth rate of 33.3%. During the same forecast period, the firm expects overall U.S. social media ad revenues to grow from $2.1 billion in 2010 to $8.3 billion in 2015 (CAGR: 25.7%).
"To date, local targeting has not been widely adopted by SMBs or national brands," said BIA/KELSEY Social-Local Media Analyst/PD JED WILLIAMS. "However, the paradigm is moving to performance, with FACEBOOK and other networks focused on improving format, creative and targeting to boost rates and drive deeper ad engagement. We expect social local ad spend to steadily increase through 2015, especially as smaller businesses learn how to leverage targeting features to optimize results."
The predominant social ad format continues to be display, spending on which will increase from $2.1 billion in 2010 to $7.7 billion in 2015 (CAGR: 24.2%), according to the forecast. BIA/KELSEY expects the social non-display segment to grow from $50 million in 2010 to $610 million in 2015 (CAGR: 51.6%).