New BIA/Kelsey Report Emphasizes 'Localization' Opportunity for National Mobile Ad Campaigns
Highlights will be presented at 'Leading in Local: The National Impact,' March 18-20, in Boston
CHANTILLY, Va. (Nov. 26, 2012) – BIA/Kelsey,
advisor to companies in the local media industry,
forecasts U.S. social media ad revenues to reach $9.2 billion in 2016,
up from $4.6 billion in 2012, representing a compound annual growth
rate of 19.2 percent. According to the fall update to BIA/Kelsey’s
U.S. Local Media Forecast, the local segment of U.S. social media advertising
revenues will grow from $1.1 billion in 2012 to $3 billion in 2016
(CAGR: 28 percent).
“The year 2012 can be viewed as social advertising’s ‘coming
of age,’” said Jed Williams, program director, Social Local
Media, BIA/Kelsey. “The continued development of native ads,
such as Facebook’s Sponsored Stories and Twitter’s Promoted
Tweets, and the acceleration of mobile monetization will be the primary
drivers of social advertising growth through 2016.”
BIA/Kelsey defines social media advertising as money spent on advertising
formats across social networks. Social display advertising will continue
to account for a higher percentage of revenues, due in large part to
Facebook’s Marketplace Ads and YouTube’s multiple display
units (video, traditional banners). Spending on social display advertising
will increase from $3 billion in 2012 to $5.4 billion in 2016 (CAGR:
15.2 percent), according to the forecast.
BIA/Kelsey expects robust growth during the forecast period from native
social ad formats, which are emerging as viable display alternatives.
The firm defines native social advertising as branded content integrated
within a social network experience (e.g., the newsfeed or content stream).
Spending on native social advertising will grow from $1.5 billion in
2012 to $3.9 billion in 2016 (CAGR: 26 percent). Growth will be driven
by the higher premiums native social ad units command.
The forecast also identifies mobile as a key growth area for social
media. BIA/Kelsey estimates social-mobile ad revenues will increase
from $500 million in 2012 to $1.5 billion in 2016 (CAGR: 28.5 percent).
A variety of forces will influence this growth, including rapid social-mobile
consumer usage growth, active experimentation by vendors and deep integration
of native ad units on the platform.
Click to expand/collapse graphics.
Social Local Media Forecast at ILM West
Findings from the social local media forecast will be highlighted
at BIA/Kelsey’s upcoming conference, Interactive
Local Media West (ILM West), which takes place Dec. 4-6, in Los Angeles. During
a session titled, “Social Business Innovators,” BIA/Kelsey’s
Jed Williams will present highlights from the forecast and lead a series
of discussions with top social local media innovators featuring Mark
Gilbert, VP, product, Hearsay Social; Todd Klawin, CEO, MoonTide Media;
and Darren Waddell, SVP, marketing, Payvment.
The ILM West program features nearly 50 leaders from across the local
industry, including a keynote by Dan Levy, director of global SMB markets
for social media giant Facebook. Levy’s fellow keynoters include
Jason Finger, CEO, CityGrid Media; Bill Gross, CEO, Idealab; David
Krantz, CEO, YP; and Todd Rowe, managing director, SMB global sales,
Details about the ILM West conference, including speakers, agenda,
sponsors and online registration are available at www.biakelsey.com/ilmwest2012.
About the U.S. Local Media Forecast (2011-2016)
Social advertising is included in BIA/Kelsey’s
display revenue forecast, which falls within
the online/interactive advertising category
of the firms U.S. Local Media Forecast (2011-2016).
BIA/Kelsey defines the local media advertising
marketplace as those media that provide local
audiences to all types of advertisers. To prepare
this forecast, BIA/Kelsey analysts gathered
as much proprietary and secondary information
as available by segment; generated preliminary
forecasts by segment, which were discussed
with leaders within key segments; included
third-party and public company reports to adjust
and fine-tune forecasts; tied a bottom-up approach
with a top-down approach; and utilized long-standing
industry expertise and knowledge to adjust
drivers and key assumptions. The forecast is
issued annually each spring and updated in
A special “Full Edition” of the
forecast is available for purchase. For more
information, visit http://www.biakelsey.com/Research-and-Analysis/Forecasts/US-Local-Media-Forecast-Full-Edition/ or email firstname.lastname@example.org.
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 http://www.biakelsey.com,
on the company’s Local
Media Watch blog, Twitter (http://twitter.com/BIAKelsey)
and Facebook (http://www.facebook.com/biakelsey).
For more information contact: