BIA/Kelsey Forecasts U.S. Social Local Advertising Revenues to Reach
$2.3 Billion in 2015
The firm’s first forecast of geotargeted social media reveals
steady rise over the next five years as local targeting capabilities
improve
CHANTILLY, Va. (Nov. 14, 2011) - 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 percent. 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 percent).
“To date, local targeting has not been widely adopted by SMBs
or national brands,” said Jed
Williams, analyst and program director
of BIA/Kelsey’s Social Local Media practice. “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 percent), 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 percent).
BIA/Kelsey defines social media advertising as money spent on advertising
formats across social networks. It does not encompass virtual goods and rewards,
social gaming, social commerce or social marketing.
The social local media forecast is part of the midyear update to BIA/Kelsey’s
U.S. Local Media Forecast (2010-2015). It is available to clients of BIA/Kelsey’s
Social Local
Media (SLM) advisory service, which is dedicated to covering the
growing and dynamic social media ecosystem and the best opportunities for driving
revenues with social platforms. To learn more about the Social Local Media
advisory service, visit http://www.biakelsey.com/Advisory-Services/Social-Local-Media,
or contact Steve Passwaiter at (703) 802-2973 or spasswaiter@biakelsey.com.
About BIA/Kelsey
BIA/Kelsey advises companies in the local media space through consulting
and valuation services, research, Continuous Advisory Services and
conferences. Since 1983 BIA/Kelsey has been a resource to the media,
mobile advertising, telecommunications, Yellow Pages and electronic
directory markets, as well as to government agencies, law firms and
investment companies looking to understand trends and revenue drivers.
BIA/Kelsey’s annual conferences draw executives from across industries
seeking expert guidance on how companies are finding innovative ways
to grow. Additional information is available at www.biakelsey.com,
on the company’s Local
Media Watch blog, Twitter (http://twitter.com/BIAKelsey)
and Facebook (http://www.facebook.com/biakelsey).
BIA/Kelsey publicly available information (including, but not limited to, press releases, blog posts, company Web site content, presentations, and excerpts from advisories and reports) may be cited, provided BIA/Kelsey is properly identified as the source (Source: BIA/Kelsey). If you are uncertain about a particular use, please contact us for approval. Provide the full citation and context for your request via e-mail to Eileen Pacheco at eileen@tango-group.com
Company Information
BIA Advisory Services (BAS) is doing business as (d/b/a) BIA/Kelsey. BAS is owned by BIA Financial Network. For more information on this parent company and for a list of affiliated companies, please click now.
