BIA/Kelsey a consulting firm in the local media industry, is projecting that US social media advertising will increase from $4.7 billion in 2012 to $11 billion in 2017. This would be an 18.6 percent in the compound annual growth rate (CAGR). The company believes that social media networking companies will continue to improve targeting and campaign metrics for companies and this will lead to the steady increase of social advertising. Ad revenues for locally targeted social ads will increase from $1.1 billion in 2012 to $3.6 billion in 2017, a CAGR of 26.4 percent.
Jed Williams, director of consulting and senior analyst at BIA/Kelsey said, “Social networks are evolving their ad products and features to improve performance. Native social formats, including video and mobile-social advertising will be the principal market growth drivers.”
Based on the forecast, display will be the dominant social ad unit, but ad formats such as Facebook Sponsored Stories and Twitter’s Promoted Tweets will depend on re-thinking the traditional display for campaign optimization, specifically on mobile platforms. BIA/Kelsey projects that US native social advertising revenues will increase from $1.6 billion in 2012 to $4.6 billion in 2017, a CAGR of 22.9 percent.
In addition, BIA/Kelsey released a new report about the Transformation in Local Media Sales Organizations. This report details information about six media companies whose sales have undergone a substantial degree of change. We already know that that the social media sales environment has changed dramatically over the last 10 years, but the report allows us to use the company’s experiences as examples of best practices going forward.
Charles Laughlin report author and senior vice president and managing director of BIA/Kelsey said, “The current local media sales environment bears little resemblance to what it was even a decade ago, straining traditional sales models and requiring change beyond simply adding new products, revamping training, or claiming to have been transformed. Our study illustrates there is no single magic template to transform sales within an organization. We’ve identified several common denominators-including emphasis on customer metrics rather than revenue-yet each of the common traits becomes unique to the culture of the company and demands organizational transformation from top to bottom.”
The report findings include:
You can’t separate sales transformation and organizational transformation;
Businesses that are making progress selling digital to small and medium sized companies share common characteristics – thoughtful segmentation of sales channels, innovation around training, and focus on driving the company on customer-centric key performance indicators;
The most overlooked component of transformation is execution.