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BIA/Kelsey: SocMedia revenues to approach $10b by 2016
To date social media has been a consumer tool - staying in touch, sharing content and information and playing games. But over the past year some ads have begun showing up in the social space. A new forecast from BIA/Kelsey suggests social media ad revenues will skyrocket over the next four years - nearly doubling by 2016.
Social media ad revenues are expected to hit $4.6 billion this year; by 2016, the forecast suggests the revenues will reach $9.2 billion.
"The year 2012 can be viewed as social advertising's 'coming of age,'" said Jed Williams, program director, Social Local Media, BIA/Kelsey. "The continued development of native ads, such as Facebook's Sponsored Stories and Twitter's Promoted Tweets, and the acceleration of mobile monetization will be the primary drivers of social advertising growth through 2016."
The biggest revenue getter, researchers believe, will be social display, which should see a $3 billion spend in 2012, growing to more than $5.4 billion in 2016. However, 'native' social ads - branded content integrated with a newsfeed or stream - will see some of the highest growth rates (26%) during the forecast period. Native social ads currently account for about $1.5 billion of the social spend but by 2016 are expected to account for nearly $4 billion.
Meanwhile, expect mobile to make itself known in the social space as well. As mobile devices take over from PCs and laptops, more ad dollars will shift into the mobile social space. Researchers believe mobile-social will show a CAGR of 28% to reach $1.5 billion in 2016, up from $500 million in 2012.
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