Report: Social Ad Spending Expected To Double By 2016

Social media ad spending is expected to double in the U.S. between now and 2016, according to a new forecast from BIA/Kelsey.

The data are from BIA/Kelsey’s U.S. Local Media Forecast, which sees a compound annual growth rate of 21 percent in social media advertising.

The forecast estimates social media ad spend at $4.8 billion in 2012 and doubling to $9.8 billion by 2016. (That’s slightly more than double, to be precise.) BIA/Kelsey estimates that about one-third of that ad spend will be from local advertisers, with their ad spending in the U.S to grow from $1.2 billion this year to $3.1 billion in 2016.


The forecast credits the growth of local social ad spend to increased adoption of Facebook’s ad platform and Twitter’s recently launched self-serve ad platform for small businesses. There are also recent reports that Foursquare is launching an ad platform later this year.

Mobile will no doubt be another driver of social/local ad spending. Both Facebook and Twitter recently announced that ads can be targeted to their rapidly growing number of mobile users.

Related Topics: Channel: Display Advertising | Display Advertising | Social Media Marketing | Social Media Marketing: Advertising | Statistics: Online Advertising | Statistics: Spend Projections


About The Author: is Editor-In-Chief of Marketing Land. His news career includes time spent in TV, radio, and print journalism. His web career continues to include a small number of SEO and social media consulting clients, as well as regular speaking engagements at marketing events around the U.S. He recently launched a site dedicated to Google Glass called Glass Almanac and also blogs at Small Business Search Marketing. Matt can be found on Twitter at @MattMcGee and/or on Google Plus. You can read Matt's disclosures on his personal blog.

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