That spending on social media advertising is on the rise should be a surprise to absolutely no one, but research firm BIA/Kelsey is putting a
ring number on it.
In the United States, BIA/Kelsey says, ad spending on social networks is expected to grow at a compound annual growth rate of 21 percent, reaching $9.8 billion by 2016 (up from from $3.8 billion in 2011).
Almost all of this ($9.2 billion) will go to display ads, the firm goes on.
BIA/Kelsey (which advises companies in the local media space) further forecasts the local segment of US social media ad revenues to grow from $840 million in 2011 to $3.1 billion in 2016, driven by better performance and richer ad formats like videos.
The firm says Twitter and Facebook will be a boon for local businesses and “democratize social ads” by offering self-service ad creation, distribution and analytics tools.
Pssst, hey you!
Do you want to get the sassiest daily tech newsletter every day, in your inbox, for FREE? Of course you do: sign up for Big Spam here.