Home  › Social › Social Media
kelsey-socialad2016

Social Media Ad Spending to Reach $9.8 Billion

  |  May 15, 2012   |  Comments

BIA/Kelsey predicts local social ads to grow to $3.1B in 2016.

Social media advertising revenues in the United States will grow from $3.8 billion in 2011 to $9.8 billion in 2016, according to BIA/Kelsey’s U.S. Local Media Forecast (2011-2016). The leap would represent a compound annual growth rate of 21 percent. The measurement firm expects the local segment of social advertising to grow from $840 million in 2011 to $3.1 billion in 2016, representing a CAGR of 29.8 percent.

The report forecast a $4.8 billion social media ad spend in 2012.

BIA/Kelsey defines social media advertising as money spent on advertising formats across social networks, including native formats such as Facebook's Sponsored Stories and Twitter's Promoted Tweets.

The lion's share of that will come from national advertising spends, according to the research firm; however, local's share will increase from approximately 22 percent in 2011 to more than 32 percent in 2016.

That growth is to a great extent thanks to better geotargeting capabilities from social networks, notably Facebook and Twitter. At the same time, the report said, "Smaller businesses will learn how to better leverage multi- and micro-targeting to optimize results, while national brands will drive more traffic to individual store locations and target consumers with more personalized offers."

Better performance, richer media and wider creative options such as video also will drive this market growth, according to the report, released today. Display remains the dominant social ad unit.

kelsey-socialad2016

ClickZ Live Toronto Twitter Canada MD Kirstine Stewart to Keynote Toronto
ClickZ Live Toronto (May 14-16) is a new event addressing the rapidly changing landscape that digital marketers face. The agenda focuses on customer engagement and attaining maximum ROI through online marketing efforts across paid, owned & earned media. Register now and save!

ABOUT THE AUTHOR

Susan Kuchinskas

Susan Kuchinskas has covered interactive advertising since its invention. The former staff writer for Adweek, Business 2.0, and M-Business covers technology, business and culture from Berkeley, CA.

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

ion Interactive 9 Strategies to Engage Your Consumers White Paper

9 Strategies to Engage Your Consumers
Online marketing apps are highly engaging - taking visitors on short, but effective, conversion-focused journeys. This white paper illustrates 9 strategies to engaging consumers through app-like experiences.

eMarketer: Redefining Mobile-Only Users: Millions Selectively Avoid the Desktop

Redefining 'Mobile-Only' Users: Millions Selectively Avoid the Desktop
A new breed of selective mobile-only consumers has emerged. What are the demos of these users and how and where can marketers reach them?

Resources

Jobs

    • Sr. Paid Search Manager
      Sr. Paid Search Manager (Bisk Education) - TampaCurrently seeking a Sr. Paid Search Manager in Tampa, FL for Bisk Education! Bisk Education is a...
    • Contact Center Professional
      Contact Center Professional (TCC: The Contact Center) - Hunt ValleyLooking to join a workforce that prides themselves on being routine and keeping...
    • Recruitment and Team Building Ambassador
      Recruitment and Team Building Ambassador (Agora Inc.) - BaltimoreAgora, www.agora-inc.com, continues to expand! In order to meet the needs of our...