LeadÂing media and adverÂtisÂing adviÂsoÂry firm BIA/Kelsey has just released a new study which sugÂgests that spendÂing on social ads will soar from this year’s total of $4.6 bilÂlion to $9.2 bilÂlion in 2016 – a litÂerÂal douÂbling in under four years.
The foreÂcast, which will intrigue all involved in the online adverÂtisÂing sales busiÂness from adverÂtisÂing sales manÂagers to busiÂness develÂopÂment manÂagers and beyond, preÂdicts that the bulk of the spendÂing ($5.4 bilÂlion of it) in 2016 will go to disÂplay ads for social netÂworks. But the fastest growÂing tarÂget, capÂturÂing a third of the total spend at $3.85 bilÂlion, will be native social ads which tightÂly inteÂgrate with user experience.
Will native adverÂtisÂing realÂly work?
Although many comÂpaÂnies stand to benÂeÂfit from the trend, FaceÂbook – which relies heavÂiÂly on disÂplay adverÂtisÂing – may well reap the biggest rewards, even if some comÂmenÂtaÂtors think it needs to focus more on native ads. But many anaÂlysts believe that FaceÂbook is finalÂly makÂing adverÂtisÂing work on social media, espeÂcialÂly in the field of native ads for mobile. That’s two of the biggest growth areas in one firm.
HowÂevÂer, proÂjecÂtions aren’t stone cold cerÂtainÂties and, to be frank, the jury is still out over the issue of native advertising’s actuÂal effiÂcaÂcy. FaceÂbook and its social media comÂpetiÂtors probÂaÂbly still face tough chalÂlenges, although there are few to zero voicÂes claimÂing that social adverÂtisÂing will do anyÂthing othÂer than expand draÂmatÂiÂcalÂly in the comÂing years.
An uphill struggle?
AdverÂtisÂers, though, are still strugÂgling to get an accuÂrate hanÂdle on ROIs from social camÂpaigns; they’re notoÂriÂousÂly difÂfiÂcult to calÂcuÂlate and the task is cerÂtainÂly not made any easÂiÂer with native ad offerÂings. It’s also not clear at this stage how social media users are going to respond to havÂing their social netÂworkÂing activÂiÂty increasÂingÂly infilÂtratÂed by adverÂtisÂing – some may take a sharp disÂlike to it, driÂving behavÂior that any adverÂtisÂers will not find espeÂcialÂly conÂducive to their aims.
PerÂhaps there’s still quite a bit of eduÂcatÂing and informÂing to be done amongst Joe PubÂlic to make these trends fly accordÂing to plan. And FaceÂbook and othÂers will still need to put their shoulÂders into their curÂrent efforts withÂout let or hindrance.