BIA/Kelsey‘s newest forecast published this week projects that U.S. social advertising revenues will continue to grow from $4.7 billion in 2012 to $11 billion in 2017.
If the anticipated growth manifests, it will represent a compound annual growth rate of 18.6 percent.
For now, display remains the dominant social ad unit, although native ad formats such as Facebook’s Sponsored Stories and Twitter’s Promoted Tweets could shake things up.
BIA/Kelsey expects social advertising’s local penetration to steadily increase as social networks continually improve the ease of onboarding, local targeting and campaign management for both brands and SMBs.
“Social networks are evolving their ad products and features to improve performance,” said Jed Williams, director of consulting and senior analyst for BIA/Kelsey. “Native social formats, including video, and mobile-social advertising will be the principal market growth drivers.”
Facebook and Twitter drove U.S. social mobile ad revenues close to $600 million in 2012.
BIA/Kelsey custom advisory service clients can log into the client resource center and download the full U.S. Social Local Media forecast now.