BIA/Kelsey Forecasts U.S. Social Local Advertising Revenues to Reach $2.3 Billion in 2015
BIA/Kelsey’s first forecast of geotargeted social media projects the local segment of U.S. social media advertising revenues will grow from $400 million in 2010 to $2.3 billion in 2015, representing a compound annual growth rate of 33.3 percent. During the same forecast period, the firm expects overall U.S. social media ad revenues to grow from $2.1 billion in 2010 to $8.3 billion in 2015 (CAGR: 25.7 percent).
Local vs. National Spend in Social
“To date, local targeting has not been widely adopted by SMBs or national brands,” said Jed Williams, analyst and program director of BIA/Kelsey’s Social Local Media practice. “However, the paradigm is moving to performance, with Facebook and other networks focused on improving format, creative and targeting to boost rates and drive deeper ad engagement. We expect social local ad spend to steadily increase through 2015, especially as smaller businesses learn how to leverage targeting features to optimize results.”
The predominant social ad format continues to be display, spending on which will increase from $2.1 billion in 2010 to $7.7 billion in 2015 (CAGR: 24.2 percent), according to the forecast. BIA/Kelsey expects the social non-display segment to grow from $50 million in 2010 to $610 million in 2015 (CAGR: 51.6 percent).
BIA/Kelsey defines social media advertising as money spent on advertising formats across social networks. It does not encompass virtual goods and rewards, social gaming, social commerce or social marketing.
The social local media forecast is part of the midyear update to BIA/Kelsey’s U.S. Local Media Forecast (2010-2015). It is available to clients of BIA/Kelsey’s Social Local Media (SLM) advisory service, which is dedicated to covering the growing and dynamic social media ecosystem and the best opportunities for driving revenues with social platforms. To learn more about the Social Local Media advisory service, visit http://www.biakelsey.com/Advisory-Services/Social-Local-Media, or contact Steve Passwaiter at (703) 802-2973.