“U.S. Social Media Ad Revenues to Reach $15B by 2018”

In its latest U.S. Social Local Media Forecast (2013-2018), BIA / Kelsey projects total U.S. social media advertising revenues will grow from $5.1 billion in 2013 to $15 billion in 2018, representing a compound annual growth rate (CAGR) of 24 percent.

This year represents the greatest year-over-year jump in social media ad revenues, growing to $8.4 billion in 2014, largely due to increases in mobile and native advertising. It was announced today, May 15.

According to the forecast, U.S. social display ad revenues will grow from $3.3 billion in 2013 to $5.6 billion in 2018 (CAGR: 11.3 percent).

During the same period, U.S. native social advertising, spurred primarily by Facebook’s News Feed ads and Twitter’s Promoted Tweets, will surge to $9.4 billion in 2018, up from $1.8 billion in 2013 (CAGR: 38.6 percent).

[ Also Read: Facebook Ad Business Grows, Dip in Revenue for Twitter: Report ]

In 2015, BIA / Kelsey expects native social advertising will eclipse social display for the first time.

The forecast also presents social advertising revenues by platform: desktop and mobile. Driven by Facebook and Twitter, U.S. social mobile ad revenues eclipsed $1.5 billion in 2013. U.S. social mobile ad revenues will reach $7.6 billion by 2018 (CAGR: 38.3 percent), surpassing social desktop for the first time.

BIA / Kelsey forecasts locally targeted social advertising in the U.S. to grow at a 31.6 percent CAGR, from $1.3 billion in 2013 to $5.2 billion in 2018.

BIA / Kelsey defines social media advertising as money spent on advertising formats across social networks.