According to new forecasts from local media analyst firm BIA/Kelsey, U.S. social ad revenues are projected to grow from $4.7 billion earned in 2012 to $11 billion in 2017, an $18.6 compound growth rate (CAGR).
While BIA/Kelsey expects mobile local ad revenue to experience an astounding 49. 3 percent growth rate during the next four years, locally targeted social ad revenues are expected to grow as well, generating $3.6 billion by 2017, an increase of 26.4 percent from $1.1 billion earned in 2012. The analyst firm attributes this growth to more local penetration by both brands and SMBs as social networks improve the ease of onboarding, local targeting, and campaign management.
Native and display ad revenue on social networks are also projected to increase, with social display ad units continuing to lead over native advertising. The revenue gap between the two is expected to lessen as social networks evolve their ad products. “Native social formats, including video, and mobile-social advertising will be the principal market growth drivers,” said Jed Williams, director of consulting and senior analyst for BIA/Kelsey.
BIA/Kelsey forecasts U.S. social mobile ad revenues to grow to $2.2 billion by 2017, an increase of 29.9 percent from the $600 million social mobile ad revenue generated in 2012.
Related Topics: Channel: Strategy | Mobile Marketing | Social Media Marketing: Advertising | Statistics: General | Statistics: Online Advertising | Statistics: Social Media | Statistics: Spend Projections