Dash of Lime

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Good news for those who believe social media advertising revenues will be crushed by mobile: A researcher is estimating that the category will double by 2016 to become a $9.2 billion business, in the U.S. at least. BIA/Kelsey projects a 19.2% annual growth rate for the next four years for social media ads. The researcher believes that [...]

Good news for those who believe social media advertising revenues will be crushed by mobile: A researcher is estimating that the category will double by 2016 to become a $9.2 billion business, in the U.S. at least.

BIA/Kelsey projects a 19.2% annual growth rate for the next four years for social media ads. The researcher believes that so-called native ads like Facebook’s Sponsored Stories and Twitter’s Promoted Tweets will lead the growth. Such native social advertising will grow from $1.5 billion in 2012 to $3.9 billion in 2016 for a 26% annual growth rate. BIA/Kelsey predicts that Facebook, Twitter and others including StumbleUpon and Tumblr will be able to command higher prices for the formats.

Even the oft-derided social display ads — the ads you see on Facebook’s right-hand column or the banners on YouTube — will also grow from $3 billion in 2012 to $5.4 billion in 2016, which amounts to a compound growth rate of 15.2%.

Read more at Mashable.

 

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