Social Business
Nov 27, 2012

Social Media Advertising Spend Will Increase To $9.2 Billion In 2016

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Social Media Advertising Spend Will Increase To $9.2 Billion In 2016

Social media advertising continues to be a hotbed of activity for marketers and according to a new report by BIA/Kelsey, US spend will reach $9.2 billion in 2016. This is up from $4.6 billion in 2012. The report examined social media revenues, a likely key growth area.

Local social media advertising revenues will almost triple from $1.1 billion in 2012 to $3 billion in 2016. Spend on social display advertising is also expected to increase from $3 billion in 2012 to $5.4 billion in 2016. Social display advertising is defined as ads that appear in a sidebar, video, as a banner, etc.

Native social ads are on the rise and are defined as ads that appear within a stream. For example, Facebook Promoted Posts or Twitter Promoted Tweets. Spend on native social ads is expected increase from $1.5 billion in 2012 to $3.9 billion in 2016.

This is great news for Twitter and Facebook who are betting on in-stream ads as a good chunk of their revenue.

Mobile is expected to be a key growth area. Social media related mobile ads are estimated to increase from $500 million in 2012 to $1.5 billion in 2016. Rapid growth of consumers using social networks on mobile devices, more experimentation by marketers, and deeper integration are part of this growth.

Social media advertising is one of the hottest marketing segments and this report shows that even more money will be spent over the next several years.


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