Integration of native ads on mobile.

Native – defined by BIA/Kelsey as “branded content integrated directly within a social network’s organic user experience" (i.e. the Facebook newsfeed or Twitter content stream)” – is expected to see a huge increase in revenues this year, per the report. In fact, BIA/Kelsey predicts that native social ad revenues will more than double from $1.8 billion last year to $4 billion this year. By next year, they’ll reach $5.4 billion, overtaking social display’s projected $4.7 billion in revenues. And by 2018, on account of their expected CAGR of 38.6%, native social ads are projected to account for more than 60% share of the $15 billion in social ad revenues.

Overall, BIA/Kelsey forecasts that US social ad revenues will grow from a total of $5.1 billion last year to $15 billion in 2018. Local-targeted social advertising’s share of those revenues will grow from about 25% last year to roughly 35% in 2018.

About the Data: BIA/Kelsey defines social media advertising as money spent on advertising formats across social networks. Currently the predominant ad format is display, though native advertising formats are quickly emerging as display alte.