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BizReport : Advertising archives : May 16, 2014

Social-mobile ad revenues to outstrip desktop by 2018

Over the past year, social media sites such as Facebook and Twitter have generated dramatic revenue growth and, according to new forecasts, 2014 will see the biggest year-on-year growth in social media ad revenues.

by Helen Leggatt

Social media ad revenues in the U.S. reached $5.1 billion in 2013 and, with a 24% compound annual growth rate are expected to grow to $15 billion by 2018, forecasts ad consulting firm BIA/Kelsey.

In 2014, social media ad revenues will reach $8.4 billion representing the largest year-on-year growth to date, largely driven by mobile and native advertising.

Meanwhile, social display advertising revenues will rise to $5.6 billion by 2013 from 2013's $3.3 billion, a compound annual growth rate of 11.3%.

Native social advertising is growing faster than social display and is forecast to generate $9.4 billion by 2018 compared to 2013's $1.8 billion. BIA/Kelsey forecast native social ad revenues will eclipse display revenues next year.

As for mobile, BIA/Kelsey forecasts social-mobile ad revenues will reach $7.6 billion by 2018, surpassing social desktop for the first time.

"We were initially skeptical about the social-mobile market's ability to capture optimal wallet share because of mobile's limitations, such as smaller screen size, limited ad inventory and static creative," said Jed Williams, VP, consulting, BIA/Kelsey.

"Over the past year, however, Facebook, Twitter and other networks have generated dramatic revenue growth, primarily as a function of mobile ad acceleration and largely through natively integrated mobile ad formats. We expect this growth to continue throughout the forecast period."

Image via Shutterstock

Tags: advertising, mobile, native advertising, social media

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