BIA/Kelsey Forecasts Social Media Ad Spending to Reach $8.3 Billion
in 2015
Five-year outlook for social media advertising dominated by display
ads on Facebook
CHANTILLY, Va. (May 2, 2011) -
Social media advertising revenues will grow
from $2.1 billion in 2010 to $8.3 billion in 2015, representing a compound
annual growth rate of 31.6 percent, according to BIA/Kelsey’s
U.S. Local Media Annual Forecast (2010-2015).
BIA/Kelsey, adviser to companies in the local media space, defines
social media advertising as money spent on advertising formats across
social networks. Currently, the predominant ad format is display, spending
on which the firm expects will increase from $2.1 billion in 2010 to
$7.7 billion in 2015 (CAGR: 30.4 percent). Though revenues for non-display
ad formats, such as Twitter’s “promoted products,” are
minimal at present, BIA/Kelsey anticipates there will be a number of
format developments beyond display, and expects the social non-display
segment to grow from zero in 2010 to $600 million in 2015 (CAGR: 65
percent).
“It’s no surprise that Facebook commands a dominant
share of all social ad impressions served and ad revenues generated,” said
Jed Williams, analyst and program director of BIA/Kelsey’s
Social Local Media practice. “As the social market leader,
it already serves the most display ad impressions
of any digital company, surpassing both Yahoo and Google. We fully
expect Facebook to increase both impression share and ad revenue,
as buyer awareness accelerates and creative formatting and targeting
improve to optimize performance.”
BIA/Kelsey’s definition of social media advertising does not encompass
virtual goods and rewards, social gaming, social commerce or social marketing.
“Over the next few years, social media factors will become a core element
of various ad networks, which will in turn drive increased advertiser spending
and innovation,” said Andrew
Shotland, associate program director, Social
Local Media and proprietor of LocalSEOGuide.com. The market is ripe for a ‘social
AdSense’ and we expect to see a number of players pushing this model
in the future.”
The complete forecast is available to clients of BIA/Kelsey’s Social
Local Media (SLM) advisory service, which is dedicated to covering the growing
and dynamic social media ecosystem and the best opportunities for driving revenues
with social platforms. SLM coverage centers on new local monetization models
for social networks; metrics that measure social initiatives; social media
transactions; social media valuations and valuation models; social commerce;
Facebook’s continued evolution; social’s role in e-mail, reputation
and presence management; next steps for check-in services; and industry analysis
of how various media segments are utilizing social channels. To learn more
about the Social Local Media advisory service, visit http://www.biakelsey.com/Advisory-Services/Social-Local-Media,
or contact Steve Passwaiter at (703) 802-2973 or spasswaiter@bia.com.
About BIA/Kelsey
BIA/Kelsey advises companies in the local media space through consulting
and valuation services, research, Continuous
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 www.biakelsey.com,
on the company’s Local
Media Watch blog, Twitter at http://twitter.com/BIAKelsey and
Facebook (http://www.facebook.com/biakelsey).
