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27 November 2012

Report predicts social media ad revenue to top $9b in 2016

Rachel Hawkes, account director, Elemental By Rachel Hawkes

BIA/Kelsey social ad revenue reportA new report forecasts that advertising revenue across social media is to grow by almost $5 billion USD in the next few years.  The report, which comes from research and advisory company BIA/Kelsey, states that ad revenue will grow from $4.6 billion this year to $9.2 billion by 2016 – a compound annual growth of 19.2 per cent.

BIA/Kelsey has looked at two forms of social advertising; social display (looking at banners, video overlays, Facebook Marketplace ads etc.,) and native social ads (such as Promoted Tweets, Sponsored Stories etc.)  The report expects that social display advertising will grow from $3 billion this year to $5.4 billion in 2016, whilst native ads it forecasts will more than double, swelling from $1.5 billion this year to $3.9 billion.

Speaking about the report, Jed Williams, the program director of Social Local Media at BIA/Kelsey says that this last year has been a ‘coming of age’ for advertising across social media.  Williams continues, “The continued development of native ads, such as Facebook Sponsored Stories and Twitter’s Promoted Tweets, and the acceleration of mobile monetization will be the primary drivers of driving social advertising growth through 2016.”

Another key area highlighted in the report is the growth of social advertising on mobile devices.  BIA/Kelsey estimate that ad revenue in this market will triple, with a compound annual growth rate of 28.5 per cent; growing from $500 million in 2012 to an estimated $1.5 billion in 2016.  The company attributes this to the “rapid social-mobile consumer usage growth, active experimentation by vendors and deep integration of native ad units on the platform.”

Categories: Social media, News

Tags: social media advertising, social network advertising, social display, native social, report, advertising, advertising revenue, BIA/Kelsey, marketplace, sponsored stories, promoted tweets

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