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US Social Media Ad Spend to Reach $9.2B in 2016

November 27, 2012

Buoyed by emerging "native" ad formats, US social media advertising* revenues are forecast to reach $9.2 billion in 2016, up from an estimated $4.6 billion in 2012, a compound annual growth rate (CAGR) of 19.2% over the five-year forecast period, according to BIA/Kelsey's US Local Media Forecast.

Social "native" ads are expected to grow faster than display over the forecast period (26.0% vs. 15.2% CAGR), reaching an estimated $3.85 billion in spending in 2016 (roughly a 41.6% share of total social ad spend), from $1.53 billion in 2012 (33.8% of social ad spend). 

"Native" social ads are defined in the report as social advertising as branded content integrated within a social network experience (e.g., the newsfeed or content stream).

Below, other projections issued by BIA/Kelsey.

The local segment** of US social media advertising revenues is expected to grow from $1.1 billion in 2012, to $3 billion in 2016, a 28% CAGR over the forecast period.

Mobile is also a growth area for social media.

Social-mobile ad revenues are forecast to rise from an estimated $500 million in 2012, to $1.5 billion in 2016, a 28.5% CAGR over the forecast period.

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