Social Media Ad Revenue to Double in 4 Years

Social Media Ad Revenue is expected to double to over nine billion dollar by 2016 according to a new report released today by BIA/Kelsey, a firm that advises companies in the local media space. The rate of growth is over 19%. At the same time local ads will also expand, and at a faster pace, from $1.1 billion to $3 billion in the same time frame, a 28% compounded annual growth rate.

The key reasons are the emergence and adoption of Facebook’s Marketplace Ads and YouTube’s multiple display units (video, traditional banners) and by the higher premiums native social ad units command. Mobile ads on social platforms will also see growth and at a fast pace as well, growing to $1.5 billion, from $500 million.

“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.

For more detail, the full media forecast is available for purchase from BIA/Kelsey. Additional information is available at http://www.biakelsey.com, on the company’s Local Media Watch blog, Twitter (http://twitter.com/BIAKelsey) and Facebook (http://www.facebook.com/biakelsey).