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BizReport : Social Marketing : December 18, 2013

Forecast: 77% increase in native social ad revs

By the end of 2013, BIA/Kelsey predicts native social ad revenues will surpass the $2 billion mark - a 77% increase Year over Year (YoY). In fact, that pushes native social ad revenues past social display revenues - social display has been the ad leader to date.

by Kristina Knight

Look for the mobile ad space to continue to expand over the next three years, especially the mobile social space. According to a new BIA/Kelsey report the mobile space is pushing revenues lines from native social ad revenue. As more consumers switch to mobile and engage with social networks across mobile devices, these ads are pushing engagement and interactivity.

"Display remains the most prevalent form of social advertising throughout our forecast," said Jed Williams, VP, consulting, BIA/Kelsey. "At the same time, native advertising formats are quickly emerging as alternatives to display that can generate better engagement and performance. The rapid growth in native is further accelerated by the widespread usage of social networks on mobile devices."

Some interesting findings from the report include:

• Social Display Ad revenues will increase 12% between 2013 and 2017 ($4.3b to $6.8b)
• Native Social Ad revenues will increase from $2.4b (2013) to $5b (2017), a 20% increase
• Overall mobile social ad revenues will increase 21% to reach $3.5b (2017)

For the entire social media space, the BIA/Kelsey forecast predict a combined annual growth rate of more than 15%. US social media ad revenues are expected to push to nearly $12 billion by 2017.

Image via Shutterstock

Tags: BIA/Kelsey, native advertising, native social advertising, social commerce, social marketing, social network trends

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