While display will remain the dominant social media advertising unit, native ad formats (such as Facebook Sponsored Stories and Twitter’s Promoted Tweets) should grow rapidly over the coming years, according to the latest social media ad forecast from BIA/Kelsey. At a 22.9% compound annual growth rate (CAGR) between 2012 and 2017, native ad formats will outpace display’s growth (16.1% CAGR) to represent almost 42% share of social media ad revenues in 2017, up from roughly 35% last year.
BIA/Kelsey defines native social advertising as “branded content integrated directly within a social network’s standard user experience (i.e., the Facebook newsfeed or Twitter stream), rather than positioned in reserved advertising real estate.”
Overall, social media ad revenues are expected to grow at a compound annual rate of 18.6%, from $4.63 billion last year to about $11 billion in 2017. During that period, revenues from native ads will almost triple, from $1.63 billion to $4.57 billion. Read the rest at MarketingCharts.