emarketer webinar: key trends in social advertising

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Key Trends in Social Advertising

April 23, 2015

Debra Aho Williamson

Principal Analyst


Agenda

Social Ad Spending: Up, up and away

Social Usage: Instagram is now bigger than Twitter, and

messaging apps are coming on strong

Video Advertising: Why Facebook may be the next video star

Next-Gen Ad Networks: Social data offers new ways to

target ads

Real-Time + Personalization: As programmatic buying

takes hold, this is social’s key strength


Social Ad Spending


US ad

spending

on social

networks

will approach

$10 billion

this year


A similar trend is happening worldwide:

$23.68 billion

Worldwide social network ad spending in 2015

Up 33.5%

Over 2014


In Western

Europe and

North America,

more than

one-third of

digital display

ad spending

will go to

social

networks in

2015


Facebook’s

share of US

social ad

revenue will

remain at

about 70%

through 2017

Wild card: These figures

don’t include mobile

messaging apps

(such as Snapchat)


Marketers are

drawing from

multiple

budgets to

fund social ad

spending


What’s behind the spending increases?

Better targeting = better results (= higher ad prices)

– Q3 2014 Facebook CPM: $1.54

– Q1 2014 Facebook CPM: $0.46 (Salesforce.com)

Video ads command higher CPMs

Social usage is very high: Advertisers want to reach

people where they are spending their time


Social Usage


Instagram has more worldwide monthly users

than Twitter, but FB Messenger towers over both

600

million288

million

Twitter (Q4 2014)Facebook Messenger

(Mar 2015)

300

million

Instagram (Dec 2014)

Source: Company reports


What’s behind

Instagram’s

strong

growth?

Millennials


Pinterest is

also catching

up in the US


Despite all the

‘Facebook is

dead among

teens’ chatter,

the vast

majority of

US teen

internet users

still access it


And Facebook remains a regular destination for

those teens, even if less so than in the past


Ones to watch: Facebook Messenger and

Snapchat

Messenger

has strong

penetration

across age

groups

New features

(payments, etc.)

will keep users

in the fold


Video Advertising


Marketers are changing how they think about

video in social media

“We are looking at

social platforms at large

as a new video

distribution

opportunity.”

— Natalie Bokenham,

UM Worldwide

“It’s not just

YouTube anymore.

It’s figuring out how to

incorporate snackable

video content on

channels like Instagram,

Vine, animated GIFs,

etc.”

— Kellee Montgomery,

Ford Motor Co.


Facebook and other social properties want a

share of the growing digital video market

US digital video

ad spending is

expected to rise

33.8% in 2015,

to $7.77 billion


Facebook: redefining video advertising and a

potential challenger to YouTube

Facebook delivers over 4 billion video

views per day (Source: Facebook, April 2015)

It is wooing video content producers

to upload their videos directly to

Facebook rather than link to YouTube

It is aggressively marketing its

autoplay video ads


Intrigued

by the

possibilities

of autoplay

video ads,

more

marketers

are

considering

using them


Facebook video ads offer a few key benefits:

Sharing: Marketers that have experimented with video ads on

Facebook say they can get a great deal of organic distribution on top

of paid distribution.

Mobile: As mobile video grows, Facebook is well-positioned. In Q4

2014, 85% of its worldwide users accessed Facebook on mobile.

Targeting: Facebook’s targeting is a key reason why its ad business

has grown rapidly. Those same capabilities will be available to video

advertisers, enabling them to target people most likely to respond.


But there are drawbacks to be aware of:

Limited search capabilities: YouTube’s search capabilities are

strong. Finding videos on Facebook is much harder.

Not a library: Many marketers use YouTube as a library for their

video assets. Facebook doesn’t have the same capability.

CPM pricing: Facebook recommends advertisers use either CPM or

reach-and-frequency buying optimized for video views. This can be a

drawback for advertisers that want to pay for ads based on a deeper

action than an impression.


YouTube faces new challengers


eMarketer’s perspective: A rising tide (of video

ad opportunities) lifts all boats

“I love Facebook video. I have no issue

with it all. But that doesn’t mean I’m going

to stop using YouTube. I want to use

as many platforms as I can to

push my message out.”

—Steve Carbone, MediaCom USA


Next-Gen Ad Networks


Social properties are writing new rules for ad

targeting

Then:

Cookies

Now:

Profile data

Photos: Arvind Balaraman / FreeDigitalPhotos.net; ddpavumba / FreeDigitalPhotos.net


Enter ‘People-Based Marketing’

“Helping marketers reach real

people across devices,

platforms and publishers.”


Social data powers three Facebook ad offerings

Atlas

– For advertisers

– Cross-platform, multi-device ad targeting and campaign

management

Facebook Audience Network

– For mobile app developers

– Extends targeted ads on Facebook into third-party apps

LiveRail

– Ad management platform for mobile and desktop publishers


Twitter is working in this realm as well

Syndicated Promoted

Tweets

– Places Twitter ads in Twitter

content sections on third-party

apps and websites

– Launched with Flipboard app

and Yahoo! Japan


This form of ad targeting has a lot of potential,

but these are still early days

Privacy concerns, part 1: Will consumers accept that the travel

ad they see on their mobile app was placed there because they posted

about a trip on Facebook?

Privacy concerns, part 2: Outside the US, governmental

restrictions on data usage may hinder this form of targeting.

Limitations: Facebook and Twitter may have social data, but that’s

only one piece of the puzzle. Other data—location, purchase

behavior—will come from other sources.


Real-Time + Personalization

+ Programmatic

= Social’s Advantage


What is programmatic advertising?

“Programmatic advertising is an

automated,

technology-driven method of

buying, selling or fulfilling ad

placements.”


In 2015, the spending scale will tip toward

programmatic

55% of all

US digital display

ads will be bought

programmatically

in 2015, worth

$14.88 billion


As a result, a new way of thinking about creative

is emerging

“Historically, it was creating one piece of brilliant

creative to be fed to millions of people. Now it’s

about turning that upside down and saying, ‘We

need a million pieces of brilliant

creative to be fed to each individual on

an as-needed basis.’” — Douglas Kofoid, VivaKi


Social will be an important piece of the puzzle

when it comes to programmatic creative

Programmatic

creative is

“Creative that is broken down

into component parts and then

reassembled on the fly based on

what’s known about the

audience or individual to whom

the ad is served.”

Photo: Salvatore Vuono / FreeDigitalPhotos.net


Elements of

real-time

personalization

are already being

used in social

media—such as

the airline ad that

pops up minutes

after you shop for

a flight


Lexus customized 1,000 video ads on Facebook

for the 2015 Super Bowl

Ads were

personalized

based on

Facebook data

Backgrounds

and copy were

customized to

interests and

locationVideo ad images: Facebook


Snapchat is putting the pieces together as well

Real-time audience Geofiltering

“This is prime real

estate for a brand.”

—Nick Cicero of social

influencer marketing agency

Delmondo, writing in the

company blog, April 2015


Why this trend is important—and why social will

be a big part of it:

Programmatic “pipes” provide the groundwork for ad

personalization at scale

Data about individuals is a necessary component for

personalized ads; social media is a key source of that

data

Social media is also a key place for real-time

conversation

As all of these trends intersect, they will do so

increasingly in social media


Key Takeaways:

Social ad spending is still growing substantially

Facebook’s user base is enormous, but several other

properties have hundreds of millions of active users

Digital video ad opportunities are increasing, and social

will take a growing share

There will be a lot of development and momentum for

next-generation ad networks powered by social data

Social platforms increasingly will be a home for

real-time, personalized ads bought programmatically

Social & Programmatic Ad Trends AdRoll’s recent findings

Jackie LampingSr. Director, Marketing@jackielamping

Marketers finding high ROI with

retargeting:intent signals + precise targeting + real-time personalization

Retargeting Arrives on Social Platforms: today’s modern marketers driving ROI at scale

One platform to reach

your customers across:

Plus, 500+ publishers and

exchanges

“Whether they’re friending us on Facebook or following us on Twitter, we try to build a brand that gets people excited. AdRoll helps accomplish our goals, makes our customers smile, and reminds them why they checked out the site in the first place.”

B2C Case Study: Chubbies

—Preston Rutherford, Co-founder

B2B Case Study: Tableau

“AdRoll has made our customer acquisition and content marketing efforts seamless. It currently accounts for 14% of Tableau’s monthly advertisement free trial and content leads.”

—Allison Perry, Online Marketing Manager

The Future of Retargeting is Social


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Debra Aho Williamson

Key Trends in Social Advertising

Millennials and Social Media: Gauging How Facebook and

Other Networks Fit in Their Lives

Creating Ads on the Fly: Fostering Creativity in the

Programmatic Era

Pinterest for Marketers: What You Need to Know

Worldwide Social Network Users: Q1 2015 Complete Forecast

Video Advertising: How Facebook, Twitter, Instagram, Tumblr

and Snapchat are Changing the Rules

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