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.
- Report: Desktops still lead online spending
- Video ad campaigns with subtitles outperform in brand awareness
- Two-thirds of ad execs Google prospective employees
- 61% of brand content on Snapchat is video
- Survey: Trust influences more consumers to share information
- Expert: Travel next up for programmatic direct
- Expert: How to reduce involuntary churn
- New service alerts marketers when competitors air new TV ads
Featured White Papers
- Learn Why 83% of Advertisers Are Reporting Superior Outcomes With People-Based Ads
Traditional digital display advertising doesn't work. The information in this report is based on an online survey of 350 senior...
- 2016 Email Marketing Metrics Benchmark Study
To build a world-class marketing program, it's crucial to compare yourself to the best performers - but competitor data can...
- 10 Ways to Use Customer Lifetime Value to Reinvent Your Marketing Strategy
CLV insights can help you to attract high-margin customers, target clusters of customers with untapped value, and retain high-value customers...
- 16 Innovative Loyalty Programs of 2016
Engaging customers in a loyalty program is no easy feat. Read how 16 brands grabbed headlines in 2016 by launching...