BIA/Kelsey Forecasts U.S. Social Ad Revenues to Reach $11B in 2017
Locally targeted U.S. social ad revenues to grow from $1.1B in 2012
to $3.6B in 2017
CHANTILLY, Va. (April 10, 2013) – BIA/Kelsey,
advisor to companies in the local media industry,
forecasts U.S. social advertising revenues to grow from $4.7 billion
in 2012 to $11 billion in 2017, representing a compound annual growth
rate (CAGR) of 18.6 percent.
BIA/Kelsey expects social advertising’s local penetration to
steadily increase as social networks continually improve the ease of
onboarding, local targeting and campaign management for both brands
and SMBs. Locally targeted social ad revenues will grow at a 26.4 percent
CAGR, from $1.1 billion in 2012 to $3.6 billion in 2017.
“Social networks are evolving their ad products and features
to improve performance,” said Jed Williams, director of consulting
and senior analyst, BIA/Kelsey. “Native social formats, including
video, and mobile-social advertising will be the principal market growth
According to the forecast, display remains the dominant social ad
unit, although native ad formats such as Facebook’s Sponsored
Stories and Twitter’s Promoted Tweets require re-thinking of
traditional display to optimize social campaigns, especially on mobile
platforms. BIA/Kelsey forecasts U.S. native social advertising revenues
to grow from $1.6 billion in 2012 to $4.6 billion in 2017 (CAGR: 22.9
Also driven by Facebook and Twitter, U.S. social mobile ad revenues
approached $600 million in 2012, and are expected to grow to $2.2 billion
by 2017 (CAGR: 29.9 percent).
BIA/Kelsey custom advisory service clients can log into the client
resource center to download the full U.S. Social Local Media forecast.
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Forecast Methodology and Definitions
BIA/Kelsey defines the local media advertising marketplace as those
media that provide local audiences to all types of advertisers.
BIA/Kelsey defines social media advertising as money spent on advertising
formats across social networks. Currently the predominant ad format is display,
though native advertising formats are emerging as display alternatives. Social
advertising is included in BIA/Kelsey’s display revenue forecast, which
falls within the online/interactive advertising category. BIA/Kelsey specifically
delineates native social advertising, which the firm defines as branded content
integrated directly within a social network experience (i.e., the newsfeed
or content stream). These integrated, advertorial qualities differentiate native
ads from traditional display. BIA/Kelsey’s definition of social advertising
does not include revenues derived from virtual currency; social marketing/measurement
platforms and services; or social commerce.
BIA/Kelsey’s Annual U.S. Local Media Forecast (2012-2017) draws from
multiple sources. These include proprietary data – company, industry
and country information in the public domain – as well as discussions
with clients and non-clients about the direction and pace of development in
the local media marketplace. The forecast is issued annually each spring and
updated in the fall.
BIA/Kelsey custom advisory service clients receive a full forecast report.
For information on gaining access to the forecast by becoming a BIA/Kelsey
client or for details on purchasing the forecast, contact Steve Passwaiter
at email@example.com or (703) 818-2425.
BIA/Kelsey advises companies in the local media space through consulting and
valuation services, research and forecasts, Custom 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).
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