According to the latest data and corresponding forecasts from BIA/Kelsey, social media advertising revenues will grow from $3.8 billion in 2011 to $9.8 billion in 2016.
If so, that activity will represent a compound annual growth rate of 21 percent.
BIA/Kelsey’s U.S. Local Media Forecast (2011-2016) suggests that the local segment of U.S. social media advertising revenues will similarly grow from $840 million in 2011 to $3.1 billion in 2016.
“Better performance, coupled with richer formats and creative elements, like video, will be the principal social ad market growth drivers,” says Jed Williams, analyst and program director for Social Local Media at BIA/Kelsey.
BIA/Kelsey defines social media advertising as money spent on advertising formats across social networks.
“Social advertising’s local business penetration will steadily increase as SMBs’ understanding of social media deepens, and as the networks continually improve the ease of onboarding and campaign management,” Williams adds. “Facebook opening its Ads API to more partners, including those that work with SMBs, and Twitter’s self-serve platform will help to ‘democratize’ social ads, which will ultimately lead to more local growth.”
