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BizReport : Social Marketing : April 10, 2013

Forecast: Local Social to push $3b by 2017

Look for the local part of the social marketing space to at least triple over the next four years. That according to a new forecast out from BIA/Kelsey Group. Researchers believe that local social ad revenues will increase from $1.1 billion (2012) to just over $3 billion in 2017.

by Kristina Knight

Overall, the social advertising space is expected to push more than $11 billion in ad revenues by 2017, up from just over $4.5 billion this year. That is a combined annual growth rate (CAGR) of more than 18% and for the local spend side of things a CAGR of more than 26%.

"Social networks are evolving their ad products and features to improve performance," said Jed Williams, director of consulting and senior analyst, BIA/Kelsey. "Native social formats, including video, and mobile-social advertising will be the principal market growth drivers."

Display units will continue to push the bulk of ad spending. However native ad units like Twitter's Promoted Tweets and Facebook's Sponsored Stories will begin capturing more attention from marketers trying to engage consumers through social media. Native ad revenues are expected to increase from $1.1 billion (2012) to $4.6 billion (2017).

Meanwhile, mobile social ad revenues should also see a strong growth rate as more consumers switch to smartphones and tablets - and use those devices to stay connected to their social networks. In 2012 mobile social ad revenues reached just over $600 million and by 2017 are expected to account for $2.2 billion in ad spending.

Image via Shutterstock

Tags: BIA/Kelsey, local marketing, local social ad spend, social ad revenue, social marketing

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