U.S. Social Media Ad Revenues to Hit $9.2 Billion in 2016, Mobile to Be Key Growth Area
BIA/Kelsey projects U.S. social media ad revenues to rise to $9.2 billion in 2016, double the $4.6 billion this year and reflecting a compound annual growth rate (CAGR) of 19.2 percent.
According to the company, the local segment of U.S. social media ad revenues will hit $3 billion in 2016, nearly three times the $1.1 billion in 2012 and reflecting a CAGR of 28 percent. “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,” according to Jed Williams, program director of social local media at BIA/Kelsey.
Social display advertising will continue to account for a large share of revenues, thanks mostly to Facebook’s Marketplace Ads and YouTube’s display units. Spending on social display advertising will hit $5.4 billion in 2016, according to BIA/Kelsey.
Mobile is a key growth area for social media, as social-mobile ad revenues will rise from $500 million this year to $1.5 billion in 2016, reflecting a CAGR of 28.5 percent. (BIA/Kelsey)
