Social media advertising revenues will grow at a compound annual rate of 31.6 percent through 2015, reaching a total of $8.3 billion, compared with $2.1 billion in 2010, according to U.S. Local Media Annual Forecast (2010-2015) from local media adviser BIA/Kelsey.
The bulk of advertising in the social media sector comes from display ads, which the company sees rising from $2.1 billion in 2010 to $7.7 billion in 2015, but revenue from non-display formats, such as promoted products on Twitter, is where BIA/Kelsey sees significant growth, from zero in 2010 to $600 million in 2015.
BIA/Kelsey said virtual goods and rewards, social gaming, social commerce, and social marketing were not factored into its totals.
Jed Williams, analyst and program director of the company’s social local media practice, said:
It’s no surprise that Facebook commands a dominant share of all social ad impressions served and ad revenues generated. As the social market leader, it already serves the most display ad impressions of any digital company, surpassing both Yahoo! and Google. We fully expect Facebook to increase both impression share and ad revenue, as buyer awareness accelerates and creative formatting and targeting improve to optimize performance.
Associate program director of social local media and Local SEO Guide owner Andrew Shotland added:
Over the next few years, social media factors will become a core element of various ad networks, which will in turn drive increased advertiser spending and innovation. The market is ripe for a “social AdSense,” and we expect to see a number of players pushing this model in the future.