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Page 1: 2017 Q1 Facebook & Instagram Trends(eng)

WISEBIRDS QUARTERLY REPORT2017 Q1 FACEBOOK &INSTAGRAM TRENDSCOPYRIGHT © WISEBIRDS CORP. ALL RIGHTS RESERVED.

Page 2: 2017 Q1 Facebook & Instagram Trends(eng)

INDEX

1Dynamic Ads

Facebook retargeting ads to auto-deliver related products

2’16 Q4 / ’17 Q1

Key Index

3Media

Key Updates

4Adwitt Updates

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Page 3: 2017 Q1 Facebook & Instagram Trends(eng)

Dynamic Ads

Dynamic Ads(DA) is an ad product which constantly delivers related products to target who searched particular product in productcatalog within website or

app. Once setting up DA campaign at the first step, campaign automatically creates and delivers single or multi ads reducing operator’s resource like time-

cost. Especially high-related items can be held as a product set to execute campaign on cross-devices to potent target. Dynamic Ads which easily induces

actual purchase or re-purchase from potent or existing clients is suitable to e-commerce or retail industry to increase purchaserate of visitors on website.

About Dynamic Ads

About Dynamic Ads

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Add to cart / Sign-up / Purchased /Viewed Deliver ads to target with particular action

within website

RetargetingRetarget not only users who

searched products on website, but also users who viewed category

*API Only

Search/View categoryAutomatically distinguish and create ad

with viewed products, which makes deliver amount products

easily and precisely*Do not need to make creatives

Auto-Setting

Expose ads with cross-device onto PC, Mobile and other devices utilizing cookie and Facebook log-in info

Cross-DevicesInduce conversion with filtering by brand name, price and product type to deliver

high-related products in order

Maximized Conversion

Page 4: 2017 Q1 Facebook & Instagram Trends(eng)

Dynamic Ads

Dynamic Ads has constantly enhanced its features since DA was launched in 2015. There are various changes from expansion of pixel events and

placements to new product; Dynamic Ads for Travel which are contributed to maximize Direct Sales. Since the number of Dynamic Ads products has

increased and functions has enhanced such as location targeting and Canvas, service environment has been improved. Advertisers can have sales

channel which connects between online and offline, on the other hand, users can enjoy shopping regardless of time and place.

Key Updates on Dynamic Ads

Key Updates on Dynamic Ads

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Reach Expansion

When someone browses items from one product set of items Advertisers can now cross-sell items from another categorye.g. Suggest products from product set of running shoes to the client who purchased product from product set of running closet

Cross-sell

Advertisers can up-sell a product within the same

category as the one a person viewed that may increase the

profitability to the advertisers

e.g. Suggest high-profitable luxury bag of another

brand to the client interested in luxury bag in product

set A

Up-sell

2016 Q2 2016 Q3 2016 Q42015 Q4

Maximize Direct Sales

Retargeting events not only View

Content, Add to Cart, Purchase but

also Search Product, view Category

Utilizing inventory of Instagram and

Audience Network

Dynamic Ads specialized with travel

and able to include available rooms or

start rating already rolled out 100%

Cards up to 30

Expect to increase purchase

intention by delivering more

products

When user swipes product, five

new products are loaded up to 30

DA for Retail

Deliver carousel ads to client near by store through targeting location

to induce to purchase already interested products in the store

If a client doesn’t want to buy offline, client can save the post to

purchase online later

Dynamic Ads has enhanced itself by constant updates

Page 5: 2017 Q1 Facebook & Instagram Trends(eng)

Dynamic Ads

Key Index on Dynamic AdsDynamic Ads is being magnified as hero product with its usability and intelligence. Furthermore, the efficiency of DR campaign has proven and increased year after year. Internal cases show increase in ROAS of Dynamic Ads compared to Website Conversion Ads since Dynamic Ads was executed. Functions of Dynamic Ads will be more enhanced and applied into other products, so Dynamic Ads is supposed to take larger portion within DR campaign.

Key Index on Dynamic Ads

73% X8 X13

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2016 Q1 VS 2017 Q1Increase In Rate of Budget

2016 Q1 VS 2017 Q1 Facebook DA ROAS Growth

2017 Q1 Dynamic Ads VS Website Conversion ROAS

Data source: ’16 Q1 ~ ’17 Q1 Execution Data from Wisebirds

Page 6: 2017 Q1 Facebook & Instagram Trends(eng)

INDEX

1Dynamic Ads

Facebook retargeting ads to auto-deliver related products

2’16 Q4 / ’17 Q1

Key Index

3Media

Key Updates

4Adwitt Updates

Spending share and efficiency by objective verse Q4, 2016

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Page 7: 2017 Q1 Facebook & Instagram Trends(eng)

Q4/Q1 Key Index

Dominant Shares: Mobile App Installs / Video Views/ Mobile App Engagement In Q1, 2017 on Facebook, the spending was high in the order of Mobile App Installs, Video Views, Mobile App Engagement. Compared to Q4, the ad spending of Mobile App Installs, Mobile App Engagement, Website Conversions and Product Catalog Sales have increased while Video Views, Website Traffic, Page Likes, Post Engagement have rather reduced.

PAGE LIKES POST ENGAGEMENT VIDEO VIEWS LEAD GENERATION MOBILE APP INSTALLS

MOBILE APP ENGAGEMENT WEBSITE TRAFFIC WEBSITE CONVERSIONS PRODUCT CATALOG SALES

100%

9.33% 17.90% 25.55% 0.1% 18.17% 9.69% 16.0% 1.16%

100%

7.50% 16.08% 0.2% 24.46% 15.52% 10.85% 8.28%

’16 Q4

’17 Q1

2.09%

13.96% 3.15%

Dominant Shares by Objectives

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Data source: ’16 Q1 ~ ’17 Q1 Execution Data from Wisebirds

1. Product Catalog Sales :Product Catalog isadocument including title, price andimage information. Ifadvertiser’s mainpurpose istomaximize volume ofsales ofProduct Catalog, choose Product Catalog Sales ascampaign objective whoseofficial nameoftheproduct isDynamic Ads

Page 8: 2017 Q1 Facebook & Instagram Trends(eng)

Q4/Q1 Key Index TAGETING

Q4 Q1

Website Conversions

5.78

1.48%

0.39

6.95

1.99%

0.51

CPC CTR CPM

Mobile App Engagement

0.44

1.62%

7.19

0.09

3.04%2.76

CPC CTR CPM

Page Likes

0.29

0.66

4.09

0.22

0.56

4.08

CPC CPL CPM

Mobile App InstallsMobile App Installs

1.640.66

41%1.78

0.116.24%

CPC CPI CVR

Website Traffic

0.26

1.51%

4.0

0.152.77%

2.94

CPC CPMCTR

Video Views

0.02

3.2

15.6%

0.01

2.78

14.70%

CPV VTR CPM

Post Engagement

0.03

3.07

9.7%

0.02

2.9010.94%

CPE ETR CPM

Product Catalog Sales

10,227%

0.23

5.02%

16,405%

0.24 4.72%

CPC CTR ROAS

Lead Generation

4.10

2.46

0.46%

1.30

1.86%

CPC CTR CPL

14.89

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* Only Facebook Page Likes campaigns apply Clicks (All, all clicks within ad are), and other campaigns apply Link Click **Campaign Data: 2017.1.1 –3.21 all campaigns by Wisebirds ( Korea Only) **** CVR: Conversion Rate, it represents Click/Installation. It is the conversion rate from the link clicks

**** There are some gap between data of Index for Q4, 2016 and Q1, 2017 since index for Q1, 2017 integrates data of Instant Article and Audience Network into Facebook

‘16 Q4 VS ’17 Q1 Average Efficiency by Objectives (Currency : USD )

Page 9: 2017 Q1 Facebook & Instagram Trends(eng)

Q4/Q1 Key Index TAGETING

Dominant Shares: Video Views / Website Traffic / Post EngagementDominant Shares on Instagram has similar trends with Q4, 2016. In Q1, 2017, the spending was high in the order of Video Views, Website Traffic, on the other hand, other objective for conversion like Mobile App Installs which is suitable for BR was low. There were cases of Website Conversion, Mobile App Engagement, Product Catalog Sales whose portions were much slight, so we’d like share data of major objectives except three above.

POST ENGAGEMENT VIDEO VIEWS WEBSITE TRAFFIC MOBILE APP INSTALLS

100%

13.0% 29.49%

100%

12.96% 49.11% 28.92% 3.68%

’16 Q4

’17 Q1

50.65% 3.86%

Dominant Shares by Objectives

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Data source: ’16 Q1 ~ ’17 Q1 Execution Data from Wisebirds

Page 10: 2017 Q1 Facebook & Instagram Trends(eng)

Q4/Q1 Key Index TAGETING

Mobile App Installs

34.53%

39%

CPC CPI CVR

2.38

0.63

0.92

1.82

Website Traffic

1.08

6.27

CPC CTR CPM

0.96%

0.94

4.7

0.50%

Video Views

0.022

CPV VTR CPM

18.3%

0.02

20.01%

4.074.04

0.08

5.39

CPE ETR CPM

6.12%

Post Engagement

0.07

8.13

10.3%

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Q4 Q1

‘16 Q4 VS ’17 Q1 Average Efficiency by Objectives (Currency : USD )

* Only Facebook Page Likes campaigns apply Clicks (All, all clicks within ad are), and other campaigns apply Link Click **Campaign Data: 2017.1.1 –3.21 all campaigns by Wisebirds*** CVR: Conversion Rate, it represents Click/Installation. It is the conversion rate from the link clicks

Page 11: 2017 Q1 Facebook & Instagram Trends(eng)

INDEX

1Dynamic Ads

Facebook retargeting ads to auto-deliver related products

3Media

Key Updates

4Adwitt Updates

Spending share and efficiency by objective verse Q4, 2016

2’16 Q4 / ’17 Q1

Key Index

Facebook and Instagram’s major updateson Q1, 2017

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Page 12: 2017 Q1 Facebook & Instagram Trends(eng)

Media Key Updates

Video Ads on FacebookAs user’s consumption portion of video content is getting larger, Facebook has tried to support various video format. Like Youtube, there is an short video ad within native video which expands not only video ad inventory but also opportunity to make users meetvideo contents. On the other hands, Facebook supports GIF format to give users fun to watch contents reducing advertiser’s burden for creating contents at the same time.

GIF for video ad can auto-play without network condition

Able to deliver the post with GIF link as adShort GIF creative can play like video and it loops

*If there is no GIF link, it can be created on GIPHY, one of GIF websites https://giphy.com

Insert short video ad within native video

Only for VIDEO VIEWS objective. Must be with Newfeed and available all options for targeting

Able to filter apps which are not proper with brand goal by exclusion option2

GIF

In-Stream Video Ad

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GIF Animation

1

Page 13: 2017 Q1 Facebook & Instagram Trends(eng)

Media Key Updates

Instagram StoryNow Full-Screen video ads can be delivered on Instagram which enables user to see not only friends’ Stories but also high quality and attractive brand’s video ads. There are temporary videos or photos with my daily life as Story. With Story, brand can address their stories briefly but impressively, on the other hand, users can communicate through lively Full-Screen video, not static images.

Instagram Story Ads

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Story Insights on Business Tool

IG Story for 1.5 billion DAU

70% of Instagram users are following brand business accounts and 1 out of 5 stories has received Direct Message. For now, Story ads is available with Reach objective and it already rolled-out 100% globally. Its objectives will be expanded

Full-Screen ad product within Story2

1

Airbnb

is using Instagram Stories to help build awareness and

buzz around its largest product launch to date—Trips

on Airbnb with a series of 15-second videos,.

Efficient campaign management with Story Insight

Within Business Tool, able to check out not only engagements of existing post but also Reach, Impression, comments and message on Story

Able to create contents or execute campaign with checking the responds of target audience in real-time

*But, insight for Live content is unavailable yet

Page 14: 2017 Q1 Facebook & Instagram Trends(eng)

Media Key Updates

Campaign Management & TargetingFacebook pursues constant development for various aspects such as not only ad product or format but also algorithm or targeting option. Recently Automated Rules function is updated to run and manage campaign automatically when putting simple rule on ad manage reducing operator’s efforts. Furthermore, according to launch of Canvas and Lead Generation, Facebook adds and enhances its targeting options to be more accurate.

Automated Rules

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Page Engagement Custom Audience

Classify users who engaged with page to be core target group Easily operate campaign with rules

Able to set condition and action rules by campaign, ad set and ad. Rule execution frequency, alert and receiver for rule results can be set as well

Even though you don’t manage campaign frequently, designed rules operate campaign automatically

2

1classify users who engaged with page into detailed subcategories to use as Custom Audience

• Everyone who engaged with your Page• People who engaged with any post or ad• People who sent a message to your Page

• People who saved your Page or any post• People who clicked any call-to-action button • Anyone who visited your Page

Page 15: 2017 Q1 Facebook & Instagram Trends(eng)

Media Key Updates

New Formats on Facebook & InstagramIn this Q1, there is an effort to achieve two goals; to maximize user’s experience and revenue of brand as before. With constantefforts of Facebook, now Instagram is able to use carousel images up to 10 and Lead Generation which already shows good performance on Facebook. Furthermore, Facebook is coming up with new product, Collection, composed of strengths of Canvas, DA and post with album format. Collection lets users enjoy shopping within Facebook App like website.

Carousel Format

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Lead Generation Collection Ad Format

Share images and videos up to 10 on ad or post IG, Lead Generation availableProducts with main image/video as carousel

User can add images or videos up to 10 on organic post and those are seen by swiping

Carousel Ads can show 2~10 creatives and there are in order you want. If using Dynamic Ordering, the most popular content shows up first

2

1 Lead generation was available only on Facebook,

but now IG can utilize this product

It was rolled-out before the end of Feb, 2017

Collection suitable with Brand Awareness and DR is located on the below of main image or video and if single product is clicked, it is landed on designed landing page.(max 50 products)

Users are more likely to directly purchase product when they see various products than only single product

2

1

*Rolling out globally

Page 16: 2017 Q1 Facebook & Instagram Trends(eng)

Media Key Updates

Other UpdatesIn addition to big updates, Facebook has improved itself through minor but important updates for users. Facebook has welcomednew Audience Network partner to expand its volume of reach and revised details such as UX or report environment as the part of Facebook’s struggling to give users better services.

Enhancement to maximize user’s business performance

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New partner for Audience Network, Korea Bitmango

When executing campaign on Audience Network, there is

Avg. 16% increase in reach rate than Native only. Recently,

total 9 partners are joined in existing AN

Auto-sound when mobile is on sound

It needed to click to turn on video before, but now if

mobile sound’s on, it will turn on automatically. It’s

rolling out

Facebook provides Ad Manager for Excel

Ad Manager for Excel is available after downloading

on Microsoft Office Store. Report can be created with

data of several accounts and also into user’s own

format to download whenever it needs

Page 17: 2017 Q1 Facebook & Instagram Trends(eng)

INDEX

1Dynamic Ads

Facebook retargeting ads to auto-deliver related products

4Adwitt Updates

Spending share and efficiency by objective verse Q4, 2016

2’16 Q4 / ’17 Q1

Key Index

Facebook and Instagram’s major updateson Q1, 2017

3Media

Key Updates

Recent Adwitt updates

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Page 18: 2017 Q1 Facebook & Instagram Trends(eng)

New Campaign Type; Brand AwarenessNew Campaign Type is added on Adwitt; Brand Awareness. Brand Awareness campaign is to reach out to people who are more likely to pay attention on ads.

As the below, choose “Auction” as Buying Type, and then check “Brand Awareness” as Campaign type.

Adwitt Updates TAGETING

Update on 3/29

*For now, Desktop Right Column is unavailable, but available to create campaign with DB URL

Brand Awareness Campaign Type

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Notes for Brand Awareness campaign type

In the case of Single Creative, If check “Add a Link” option, it enables to click a link on the creative, but if “Adda Link” is unchecked, creative is made without link. And Multi Creative is the same as before

When setting a bid , There are two options for Optimize For; Brand Awareness and Reach, but once a campaign starts, Option for Optimization cannot be revised.

1

2

Page 19: 2017 Q1 Facebook & Instagram Trends(eng)

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