A new report has shown that this figure will be reached by these ads by the year 2018.
According to a new report that has been issued by BIA/Kelsey, the total revenues from social media marketing in the United States will rise from last year’s $5.1 billion, to reach $15 billion by the year 2018.
This year’s own ad revenues will represent the largest year over year increase seen so far.
It is expected to rise to break the $8.4 billion mark by the end of 2014. This is being attributed to the massive rise in native app and mobile social media marketing and advertising. The same report also suggested that revenues generated from American social display ads will increase from last year’s $3.3 billion, to become $5.6 billion in 2018.
At the same time, native social media marketing in the U.S. will be spiking over the next few years.
Within this same span of time, native social ads will be taking off to reach $9.8 billion by the end of 2018. This is a tremendous increase, considering that the 2013 figure had been $1.8 billion. The primary driver in this category is expected to be the News Feed ads on Facebook, as well as the Promoted Tweets on Twitter. BIA/Kelsey has also predicted that next year, for the first time ever, native social ads will overshadow the currently larger category of social display advertising.
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Also forecasted within the report were the revenue predictions by social media based on desktop and mobile platforms. By 2018, mobile will surpass desktop for the very first time. To start, social media ad revenues over mobile, last year, came in at $1.5 billion. By 2018, the mobile ad revenues are expected to reach $7.6 billion.
The BIA/Kelsey vice president of consulting, Jed Williams, explained that “We were initially skeptical about the social-mobile market’s ability to capture optimal wallet share because of mobile’s limitations, such as smaller screen size, limited ad inventory and static creative.” He added that throughout the last year, the various networks such as Facebook, Twitter, Google+, and so on, have been seeing a considerable acceleration of their advertising over social media marketing greatly because of integrated mobile ad formats.