Advertising on social networks (a.k.a. Facebook) is a booming business. BIA/Kelsey reports today that social media advertising revenues will grow from $2.1 billion in 2010 to $8.3 billion in 2015. BIA/Kelsey defines social media advertising as money spent on advertising formats across social networks.
The research company says that the currently, the predominant ad format on social networks is display, spending on which the firm expects will increase from $2.1 billion in 2010 to $7.7 billion in 2015. While revenues from non-display ad formats (i.e. Twitter’s “promoted products”) are currently minimal, BIA/Kelsey expects that in the coming years non-display formats will continue to grow as an ad genre on social networks, and expects the social non-display segment to grow from zero in 2010 to $600 million in 2015.
“It’s no surprise that Facebook commands a dominant share of all social ad impressions served and ad revenues generated,” said Jed Williams, analyst and program director of BIA/Kelsey’s Social Local Media practice. “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.”
For more information listen to the Cliqology Outloud podcast – featuring special guest Chris Mycek, SVP Marketing & Development for IMC2 and learn about how brands can tap agency expertise on Social Media.
- Facebook Ads May Approach $8.34 Billion By 2015 (allfacebook.com)
- Social Media Ad Spending To Hit $8.3B in 2015 [STUDY] (mashable.com)
- BIA/Kelsey: Social Media Advertising Topped $2 Billion In 2010 (techcrunch.com)