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U.S. Social Media Ad Revenues Predicted to Grow from $4.6B in 2012 to $9.2B in 2016

Social Media

Nov. 26, 2012 – BIA/Kelsey, local media industry advisor, forecasts U.S. social media ad revenues to reach $9.2 billion in 2016, up from $4.6 billion in 2012, representing a compound annual growth rate of 19.2%. BIA/Kelsey defines social media advertising as money spent on advertising formats across social networks.


Source: BIA/Kelsey U.S. Local Media Forecast 2012-2016


In addition, according to the latest update to BIA/Kelsey’s U.S. Local Media Forecast 2012-2016, the local segment of U.S. social media advertising revenues will grow from $1.1 billion in 2012 to $3 billion in 2016 (CAGR: 28%).


Source: BIA/Kelsey U.S. Local Media Forecast 2012-2016




“The year 2012 can be viewed as social advertising’s ‘coming of age,’” Jed Williams, program director, Social Local Media, BIA/Kelsey, is quoted as saying. “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.”


About: BIA/Kelsey defines the local media advertising marketplace as those media that provide local audiences to all types of advertisers. Social advertising is included in BIA/Kelsey’s display revenue forecast, which falls within the online/interactive advertising category of the firms U.S. Local Media Forecast. To prepare this forecast, BIA/Kelsey analysts gathered proprietary and secondary information as available by segment; generated preliminary forecasts by segment, which are discussed with leaders within key segments; include third-party and public company reports to adjust and fine-tune forecasts; tie a bottom-up approach with a top-down approach; and utilized long-standing industry expertise and knowledge to adjust drivers and key assumptions. The forecast is issued annually each spring and updated in the fall.

Source: BIA/Kelsey news release, BIA/Kelsey Forecasts U.S. Social Media Ad Revenues to Grow from $4.6B in 2012 to $9.2B in 2016, November 26, 2012.