News by Topic
- Search Marketing
- Email Marketing
- Loyalty Marketing
- Mobile Marketing
- Social Marketing
- Viral Marketing
- Trends & Ideas
- Internet Marketing 101
Forecast: Social Media Revenues to reach $9.8 billion but will ROI measure up?
The excitement of the impending Facebook IPO has prompted BIA/Kelsey to forecast social media revenues will increase by more than 20% annually through 2016. Meanwhile data from WordStream indicates Facebook's ad strength may not be ready for primetime.
According to a new forecast from BIA/Kelsey the social ad revenues will increase from $3.8 billion (2011) to nearly $10 billion in 2016. Local social media spending is expected to increase to more than $3 billion alone in the US, finds the report, a near-30% CAGR.
"Social advertising's local business penetration will steadily increase as SMBs' understanding of social media deepens, and as the networks continually improve the ease of onboarding and campaign management," said Jed Williams, analyst and program director, Social Local Media, BIA/Kelsey. "Facebook opening its Ads API to more partners, including those that work with SMBs, and Twitter's self-serve platform will help to 'democratize' social ads, which will ultimately lead to more local growth."
The biggest hitter in social media advertising continues to be the display unit; spending on display ads is expected to increase to at least $9 billion by 2016.
Meanwhile, in a direct comparison between Google Display Network and Facebook - excluding core search marketing on Google's part - WordStream's data indicates that Facebook's ad performance is quite a bit lower than that of Google. While Facebook hosts 1 trillion page views per month, Google grabs a mere 180 billion.
But, when it comes to clicking, Facebook's average CTR is 0.1% (via WebTrends) while Google's is 0.4%; Google's CPC is about $0.75. WordStream's data also notes Facebook doesn't support mobile ad, retargeting or keyword-based contextual targeting options while Google does.
- Happy birthday, email! Now, what can you do for me?
- Poll: Phone fraud tops $8 billion mark in America
- Webtrends: Top 3 tips to improve online bookings
- Driving website traffic revealed as retailers' biggest challenge
- Revenues from tablet games to triple in next five years
- Marketers must react to changing consumer behavior caused by technology
- Facebook launches Event ads to appear in Newsfeeds
- UK: Online Christmas shopping to exceed £13 billion
Featured White Papers
- Expert Panel: Brand Strategists Answer Top 5 Social Questions
During SXSW Interactive, we gathered a team of five leading brand strategists to answer the five most pressing social questions...
- The Truth About Cloud Security
"Security" is the number one issue holding business leaders back from the cloud. But does the reality match the perception?...
- 5 Ways to Personalize Beyond the Subject Line
Many marketers are still using batch and blast tactics for their emails and are often limited in their personalization efforts...