Ad dollars follow eyeballs, and these days they are on social.
The increase in social-ad spending is driven by this continuously growing reach, particularly on mobile, better analytics and targeting, and performance. The rise of programmatic social platforms has also fueled growth.
New data from BI Intelligence finds that US social-media ad spend will top $8.5 billion this year and reach nearly $14 billion in 2018, up from just $6.1 billion in 2013.
In the report and associated PowerPoint presentation, BI Intelligence looks at all the numbers and explores the drivers of social ad adoption.
Here are some of the key takeaways:
- Social-media advertising spend will grow rapidly through 2018. It’s up 40% this year and will top $8.5 billion, growing to nearly $14 billion in 2018, a five-year compound annual growth rate (CAGR) of 18%.
- Social media ad spend has reached the mobile-tipping point. Spending on mobile social-media ads, including mobile app-install ads, will surpass non-mobile spend by the end of this year in the US. In 2018, two-thirds of social-media ad spend will go to mobile, creating a $9.1 billion social-mobile market.
Full article available via Business Insider at http://www.businessinsider.com/social-media-advertising-industry-trends-2014-11