Social media advertising revenue is expected to grow by more than 18% over the next five years and be worth $11 billion by 2017 according to a recent study by media advisory firm BIA/Kelsey.
The study took a range of proprietary and client information as part of the firm’s biannual ‘Local Media Forecast’.
The driver of financial growth will come through video and mobile social ads and mobile social advertising will also make up for a lot of the increased revenue. BIA/Kelsey also predict the frequent use of Facebook and Twitter on mobile devices will lead the sector to more than $2 billion in revenue by 2017.
Director of consulting and senior analyst at BIA/Kelsey Jed Williams, says, ”Social networks are evolving their ad products and features to improve performance.
“Native social formats, including video and mobile-social advertising will be the principal market growth drivers.”
Over the next few years, the findings predict social networks will improve their social ad offerings which will then lead to the drastic increase in revenue. Local ad targeting and campaign management will also continue to improve moving into 2017.
Twitter Promoted Tweets and Facebook Sponsored Stories will lead to advertisers rethinking their campaign strategies. The study estimates that native social advertising revenues will grow more than $3 billion by 2017.