According to BIA/Kelsey’s update to its most recent U.S. Social Local Media Forecast, native social advertising is growing significantly faster than social display, the predominant social ad format.
Details shared in the new report indicate that the native category experienced a 77 percent jump in revenues this year, from $1.4 billion in 2012 to $2.4 billion, driven by the surge in social media activity across mobile platforms, where native is the preferred format.
Based on the projections shared, social display ad revenues in the U.S. will grow from $4.3 billion in 2013 to $6.8 billion in 2017, a 12.6 percent compounded annual growth rate (CAGR).
During the same period, U.S. native social advertising, spurred primarily by Facebook’s Sponsored Stories and Twitter’s Promoted Tweets, will more than double, from $2.4 billion to nearly $5 billion, a 20.3 percent CAGR.
“Display remains the most prevalent form of social advertising throughout our forecast,” explains Jed Williams, VP of consulting at 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.”
To learn more, check out the full report here.
