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US Social Ad Revenues to Grow $4.6 Billion by 2016

US Social Ad Revenues to Grow $4.6 Billion by 2016


US social media ad revenues could reach $9.2 billion in 2016, up from $4.6 billion in 2012. The figures equate to compound annual growth predictions of 19.2%, according to BIA/Kelsey.

Many believe this year to be the year of mobile, but Social Local Media Program Director at BIA/Kelsey, Jed Williams, thinks otherwise. “The year 2012 can be viewed as social advertising’s ‘coming of age,’” he opined.

The local segment of US social media advertising is seeing a rise in revenue from $1.1 billion in 2012 to $3 billion in 2016, a compound annual growth rate of 28%. The local media advertising marketplace is defined as the media that provides local audiences to all types of advertisers.

Spending on social display advertising is set to increase from $3 billion in 2012 to $5.4 billion in 2015, according to the forecast. It’s unsurprising given some of the various new options now available for social marketers like Facebook Exchange and its updated Marketplace Ads.

Social mobile ad revenue will more than double

The findings stipulate how social mobile ad revenues will climb from 2012’s $1.5 billion to $3.9 billion in 2016. BIA/Kelsey believes a surge in consumer usage, active experimentation by vendors and further integration of ads on social platforms will be the cause.

So what’s behind the new levels of ad spend being predicted over the next few years? Williams cites the constant evolution of platforms like Facebook and Twitter when reasoning why advertisers are loosening their social purse strings.

“The continued development of native ads, such as Facebook’s Sponsored Stories and Twitter’s Promoted Tweets, and the acceleration of mobile monetisation will be the primary drivers of social advertising growth through 2016,” he explained.

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Simon Holland

Simon Holland

Simon is the news and research reporter at Existem. Previously a technology journalist, he now spends his time investigating both future and developing trends in performance marketing whilst producing editorial content for

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