According to BIA/Kelsey’s U.S. Local Media Forecast, social media advertising revenues will grow from $3.8 billion in 2011 to $9.8 billion in 2016, representing a compound annual growth rate of 21 percent. BIA/Kelsey, adviser to companies in the local media space, expects the local segment of U.S. social media advertising revenues to grow from $840 million in 2011 to $3.1 billion in 2016.
BIA/Kelsey defines social media advertising as money spent on advertising formats across social networks. The predominant social ad format continues to be display, spending on which will increase from $3.6 billion in 2011 to $9.2 billion in 2016 (CAGR: 20.6 percent), according to the forecast. BIA/Kelsey expects the social non-display segment to grow from $140 million in 2010 to $630 million in 2016.