U.S. Native Social Ad Revenues Surge to $2.4 Billion in
2013, Up 77 Percent Since 2012
The firm’s latest forecast indicates native social
ad revenues are growing at a significantly faster pace than social display,
the predominant social ad category.
CHANTILLY, Va. (Dec. 18, 2013) – The
fall update to BIA/Kelsey’s U.S.
Social Local Media Forecast indicates native
social advertising is growing significantly faster than social display, the
predominant social ad format. The native category experienced a 77 percent
jump in revenues this year, from $1.4 billion in 2012 to $2.4 billion, driven
by the surge in social media activity across mobile platforms, where native
is the preferred format.
According to the forecast, social display
ad revenues in the U.S. will grow from $4.3
billion in 2013 to $6.8 billion in 2017, a
12.6 percent compounded annual growth rate
(CAGR). During the same period, U.S. native
social advertising, spurred primarily by Facebook’s
Sponsored Stories and Twitter’s Promoted Tweets,
will more than double, from $2.4 billion to
nearly $5 billion, a 20.3 percent CAGR.
“Display remains the most prevalent form of
social advertising throughout our forecast,”
said Jed Williams, VP, consulting, BIA/Kelsey.
“At the same time, native advertising formats
are quickly emerging as alternatives to display
that can generate better engagement and performance.
The rapid growth in native is further accelerated
by the widespread usage of social networks
on mobile devices.”
Click graphic to expand/collapse.
Also driven by Facebook and Twitter, U.S.
social mobile ad revenues are expected to grow
from $1.6 billion in 2013 (up 250 percent from
2012) to $3.5 billion by 2017, a 21.3 percent
CAGR. Mobile represents the fastest-growing
social advertising segment.
BIA/Kelsey projects total U.S. social media
advertising revenues will grow from $6.7 billion
in 2013 to $11.9 billion in 2017, representing
a CAGR of 15.5 percent. Locally targeted social
advertising will grow at a 22.6 percent CAGR,
from $1.7 billion in 2013 to $3.9 billion in
New in this forecast update, which is published
for clients of BIA/Kelsey’s custom advisory services,
is a breakout of social ad revenue share by company
(Facebook, LinkedIn, Twitter, YouTube and others)
for 2013 and 2017. For information on gaining access
to the forecast as a BIA/Kelsey client, or for details
on purchasing the forecast, contact Steve Passwaiter,
VP, business development, at firstname.lastname@example.org or (703) 818-2425.
Defining Social Advertising
BIA/Kelsey defines social media advertising as money
spent on advertising formats across social networks.
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 as branded content integrated
directly within a social network’s user 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.
About the BIA/Kelsey U.S. Local Media Forecast
The U.S. Social Local Media Forecast is part of
BIA/Kelsey’s Annual U.S. Local Media Forecast (2012-2017).
The forecast draws from proprietary data; company,
industry and country information in the public domain;
and 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, updated in the fall, and published for
clients of the firm’s custom advisory services. More
information is available online at: http://www.biakelsey.com/Research-and-Analysis/Forecasts/US-Local-Media-Forecast/.
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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