US social-mobile ad revenues to hit $1.5bn in 2016 | Social Media | Mobile Entertainment

US social-mobile ad revenues to hit $1.5bn in 2016

Twitter promoted tweet
Zen Terrelonge

by

Social / Facebook / November 27th 2012 at 12:24PM

Smartphones and tablets to become key growth area for social media marketing.

Media advisor BIA/Kelsey recently claimed that US-based mobile local ad revs will hit $5.8bn in 2016 and now adds that mobile will be a huge boon for marketing through social media channels too.

The firm reports that social-mobile ad revenues will increase from $500 million in 2012 to $1.5 billion in 2016 at a compound annual growth rate of 28.5 per cent. This is to be driven by the rising use of mobile users accessing Facebook, Twitter and the like from their devices, as well as brands becoming more experimental with new advertising verticals.

Meanwhile, overall social media ad revenues in the States look to reach $9.2bn in 2016, up from $4.6 billion in 2012, a CAGR of 19.2 per cent. Comparatively, the local portion of US social media advertising revenues will grow from $1.1bn in 2012 to $3bn in 2016 at a CAGR of 28 per cent.

Jed Williams, program director, social local media, BIA/Kelsey, said: "The year 2012 can be viewed as social advertising's 'coming of age'.

"The continued development of native ads, such as Facebook's Sponsored Stories and Twitter's Promoted Tweets, and the acceleration of mobile monetisation will be the primary drivers of social advertising growth through 2016."

Previous reports have shown that Twitter mobile revs sometime outpace desktop revs, while Facebook generated 14 per cent of ad revenue from mobile in Q3.

* Like what ME does? Make sure you sign up to our free daily news headline service by clicking here. You can also follow/like us on Twitter and Facebook.