Social Media Ad Revenue to Record $8.3 Billion By 2015

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Success of any business model majorly gets counted by the potential revenue year on year. And Social Media is, apparently, heading towards the new heights of revenue milestones. From $2.1 billion as advertising revenue, Social Media is expected to record $8.3 billion by 2015. A compound annual growth of 31.6 percent will indeed be a significant achievement for much appreciated Industry.

According to U.S. Local Media Annual Forecast (2010 – 2015) from BIA/Kelsey, a local media adviser firm, the growth will have major contribution from display ads. In 2010 the Social Media ad revenue worth $2.1 billion was sole driven by display ads. However, non-display ads will hold around 8% of social media ad revenue by 2015. This non display ad revenue worth $600 million (by 2015) will be earned by other services, such as promoted tweets and accounts on Twitter, and advertisers’ confidence is expected to boost equally in such ad models.

However, BIA/Kelsey has not factored virtual goods and rewards, social gaming, social commerce, and social marketing into its revenue projections.

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Jed Williams, analyst and program director of the company’s social local media practice, said:

It’s no surprise that Facebook commands a dominant share of all social ad impressions served and ad revenues generated. As the social market leader, it already serves the most display ad impressions of any digital company, surpassing both Yahoo! and Google. We fully expect Facebook to increase both impression share and ad revenue, as buyer awareness accelerates and creative formatting and targeting improve to optimize performance.

As per another recently published report, the overall Internet Ad market has touched $26 billion as revenue in 2010 and display ads stand at second position with 38% of market share following search ad revenue of 46%.

With the latest analysis on Social Media Ad revenue projection, speculations are getting stronger for an alternative of Google Adsense – Facebook Adsense. Facebook entice the major revenue for Social Media Ad market through its display ads and with 1 Billion users – which is expected to reach by end of 2011 – company can roll out a successful and seamless “network ad display model” like Google Adsense.

Sensing something similar, Associate program director of social local media and Local SEO Guide owner Andrew Shotland said “Over the next few years, social media factors will become a core element of various ad networks, which will in turn drive increased advertiser spending and innovation. The market is ripe for a “social AdSense,” and we expect to see a number of players pushing this model in the future.”

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