eMarketer Webinar: Key Trends in Social Advertising

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<ul><li><p> 2015 eMarketer Inc.</p><p>Made possible by</p><p>Key Trends in Social Advertising</p><p>April 23, 2015</p><p>Debra Aho Williamson</p><p>Principal Analyst</p></li><li><p> 2015 eMarketer Inc.</p><p>Agenda</p><p> Social Ad Spending: Up, up and away</p><p> Social Usage: Instagram is now bigger than Twitter, and messaging apps are coming on strong</p><p> Video Advertising: Why Facebook may be the next video star</p><p> Next-Gen Ad Networks: Social data offers new ways to target ads</p><p> Real-Time + Personalization: As programmatic buying takes hold, this is socials key strength</p></li><li><p> 2015 eMarketer Inc.</p><p>Social Ad Spending</p></li><li><p> 2015 eMarketer Inc.</p><p>US ad </p><p>spending </p><p>on social </p><p>networks </p><p>will approach </p><p>$10 billion </p><p>this year</p></li><li><p> 2015 eMarketer Inc.</p><p>A similar trend is happening worldwide:</p><p>$23.68 billion</p><p>Worldwide social network ad spending in 2015</p><p>Up 33.5% </p><p>Over 2014</p></li><li><p> 2015 eMarketer Inc.</p><p>In Western </p><p>Europe and </p><p>North America, </p><p>more than </p><p>one-third of </p><p>digital display </p><p>ad spending </p><p>will go to </p><p>social </p><p>networks in </p><p>2015</p></li><li><p> 2015 eMarketer Inc.</p><p>Facebooks share of US </p><p>social ad </p><p>revenue will </p><p>remain at </p><p>about 70% </p><p>through 2017</p><p>Wild card: These figures </p><p>dont include mobile messaging apps </p><p>(such as Snapchat)</p></li><li><p> 2015 eMarketer Inc.</p><p>Marketers are </p><p>drawing from </p><p>multiple </p><p>budgets to </p><p>fund social ad </p><p>spending</p></li><li><p> 2015 eMarketer Inc.</p><p>Whats behind the spending increases?</p><p> Better targeting = better results (= higher ad prices)</p><p> Q3 2014 Facebook CPM: $1.54</p><p> Q1 2014 Facebook CPM: $0.46 (Salesforce.com)</p><p> Video ads command higher CPMs</p><p> Social usage is very high: Advertisers want to reach people where they are spending their time</p></li><li><p> 2015 eMarketer Inc.</p><p>Social Usage</p></li><li><p> 2015 eMarketer Inc.</p><p>Instagram has more worldwide monthly users </p><p>than Twitter, but FB Messenger towers over both</p><p>600 </p><p>million288 million</p><p>Twitter (Q4 2014)Facebook Messenger</p><p>(Mar 2015)</p><p>300 </p><p>million</p><p>Instagram (Dec 2014)</p><p>Source: Company reports</p></li><li><p> 2015 eMarketer Inc.</p><p>Whats behind Instagrams strong </p><p>growth? </p><p>Millennials</p></li><li><p> 2015 eMarketer Inc.</p><p>Pinterest is </p><p>also catching </p><p>up in the US</p></li><li><p> 2015 eMarketer Inc.</p><p>Despite all the </p><p>Facebook is dead among </p><p>teens chatter, the vast </p><p>majority of </p><p>US teen </p><p>internet users </p><p>still access it</p></li><li><p> 2015 eMarketer Inc.</p><p>And Facebook remains a regular destination for </p><p>those teens, even if less so than in the past</p></li><li><p> 2015 eMarketer Inc.</p><p>Ones to watch: Facebook Messenger and </p><p>Snapchat</p><p> Messenger has strong </p><p>penetration </p><p>across age </p><p>groups</p><p> New features (payments, etc.) </p><p>will keep users </p><p>in the fold</p></li><li><p> 2015 eMarketer Inc.</p><p>Video Advertising</p></li><li><p> 2015 eMarketer Inc.</p><p>Marketers are changing how they think about </p><p>video in social media</p><p>We are looking at </p><p>social platforms at large </p><p>as a new video </p><p>distribution </p><p>opportunity.</p><p> Natalie Bokenham, </p><p>UM Worldwide</p><p>Its not just </p><p>YouTube anymore. </p><p>Its figuring out how to </p><p>incorporate snackable </p><p>video content on </p><p>channels like Instagram, </p><p>Vine, animated GIFs, </p><p>etc.</p><p> Kellee Montgomery, </p><p>Ford Motor Co.</p></li><li><p> 2015 eMarketer Inc.</p><p>Facebook and other social properties want a </p><p>share of the growing digital video market</p><p> US digital video ad spending is </p><p>expected to rise </p><p>33.8% in 2015, </p><p>to $7.77 billion</p></li><li><p> 2015 eMarketer Inc.</p><p>Facebook: redefining video advertising and a </p><p>potential challenger to YouTube</p><p> Facebook delivers over 4 billion video views per day (Source: Facebook, April 2015)</p><p> It is wooing video content producers to upload their videos directly to </p><p>Facebook rather than link to YouTube </p><p> It is aggressively marketing its autoplay video ads</p></li><li><p> 2015 eMarketer Inc.</p><p>Intrigued </p><p>by the </p><p>possibilities </p><p>of autoplay </p><p>video ads, </p><p>more </p><p>marketers </p><p>are </p><p>considering </p><p>using them</p></li><li><p> 2015 eMarketer Inc.</p><p>Facebook video ads offer a few key benefits:</p><p> Sharing: Marketers that have experimented with video ads on Facebook say they can get a great deal of organic distribution on top </p><p>of paid distribution. </p><p> Mobile: As mobile video grows, Facebook is well-positioned. In Q4 2014, 85% of its worldwide users accessed Facebook on mobile. </p><p> Targeting: Facebooks targeting is a key reason why its ad business has grown rapidly. Those same capabilities will be available to video </p><p>advertisers, enabling them to target people most likely to respond. </p></li><li><p> 2015 eMarketer Inc.</p><p>But there are drawbacks to be aware of:</p><p> Limited search capabilities: YouTubes search capabilities are strong. Finding videos on Facebook is much harder. </p><p> Not a library: Many marketers use YouTube as a library for their video assets. Facebook doesnt have the same capability. </p><p> CPM pricing: Facebook recommends advertisers use either CPM or reach-and-frequency buying optimized for video views. This can be a </p><p>drawback for advertisers that want to pay for ads based on a deeper </p><p>action than an impression. </p></li><li><p> 2015 eMarketer Inc.</p><p>YouTube faces new challengers</p></li><li><p> 2015 eMarketer Inc.</p><p>eMarketers perspective: A rising tide (of video ad opportunities) lifts all boats</p><p>I love Facebook video. I have no issue </p><p>with it all. But that doesnt mean Im going </p><p>to stop using YouTube. I want to use </p><p>as many platforms as I can to </p><p>push my message out. Steve Carbone, MediaCom USA</p></li><li><p> 2015 eMarketer Inc.</p><p>Next-Gen Ad Networks</p></li><li><p> 2015 eMarketer Inc.</p><p>Social properties are writing new rules for ad </p><p>targeting</p><p>Then:</p><p>Cookies</p><p>Now: </p><p>Profile data</p><p>Photos: Arvind Balaraman / FreeDigitalPhotos.net; ddpavumba / FreeDigitalPhotos.net</p></li><li><p> 2015 eMarketer Inc.</p><p>Enter People-Based Marketing</p><p>Helping marketers reach real people across devices, </p><p>platforms and publishers.</p></li><li><p> 2015 eMarketer Inc.</p><p>Social data powers three Facebook ad offerings</p><p> Atlas</p><p> For advertisers</p><p> Cross-platform, multi-device ad targeting and campaign management</p><p> Facebook Audience Network </p><p> For mobile app developers</p><p> Extends targeted ads on Facebook into third-party apps</p><p> LiveRail</p><p> Ad management platform for mobile and desktop publishers</p></li><li><p> 2015 eMarketer Inc.</p><p>Twitter is working in this realm as well </p><p> Syndicated Promoted Tweets</p><p> Places Twitter ads in Twitter content sections on third-party </p><p>apps and websites</p><p> Launched with Flipboard app and Yahoo! Japan</p></li><li><p> 2015 eMarketer Inc.</p><p>This form of ad targeting has a lot of potential, </p><p>but these are still early days</p><p> Privacy concerns, part 1: Will consumers accept that the travel ad they see on their mobile app was placed there because they posted </p><p>about a trip on Facebook? </p><p> Privacy concerns, part 2: Outside the US, governmental restrictions on data usage may hinder this form of targeting.</p><p> Limitations: Facebook and Twitter may have social data, but thats only one piece of the puzzle. Other datalocation, purchase behaviorwill come from other sources.</p></li><li><p> 2015 eMarketer Inc.</p><p>Real-Time + Personalization </p><p>+ Programmatic </p><p>= Socials Advantage</p></li><li><p> 2015 eMarketer Inc.</p><p>What is programmatic advertising?</p><p>Programmatic advertising is an automated, </p><p>technology-driven method of </p><p>buying, selling or fulfilling ad </p><p>placements.</p></li><li><p> 2015 eMarketer Inc.</p><p>In 2015, the spending scale will tip toward </p><p>programmatic</p><p>55% of all </p><p>US digital display </p><p>ads will be bought </p><p>programmatically </p><p>in 2015, worth </p><p>$14.88 billion</p></li><li><p> 2015 eMarketer Inc.</p><p>As a result, a new way of thinking about creative </p><p>is emerging</p><p>Historically, it was creating one piece of brilliant </p><p>creative to be fed to millions of people. Now its </p><p>about turning that upside down and saying, We </p><p>need a million pieces of brilliant </p><p>creative to be fed to each individual on </p><p>an as-needed basis. Douglas Kofoid, VivaKi</p></li><li><p> 2015 eMarketer Inc.</p><p>Social will be an important piece of the puzzle </p><p>when it comes to programmatic creative</p><p>Programmatic </p><p>creative is</p><p>Creative that is broken down into component parts and then </p><p>reassembled on the fly based on </p><p>whats known about the audience or individual to whom </p><p>the ad is served.</p><p>Photo: Salvatore Vuono / FreeDigitalPhotos.net</p></li><li><p> 2015 eMarketer Inc.</p><p>Elements of </p><p>real-time </p><p>personalization </p><p>are already being </p><p>used in social </p><p>mediasuch as the airline ad that </p><p>pops up minutes </p><p>after you shop for </p><p>a flight</p></li><li><p> 2015 eMarketer Inc.</p><p>Lexus customized 1,000 video ads on Facebook </p><p>for the 2015 Super Bowl</p><p> Ads were personalized </p><p>based on </p><p>Facebook data</p><p> Backgrounds and copy were </p><p>customized to </p><p>interests and </p><p>locationVideo ad images: Facebook</p></li><li><p> 2015 eMarketer Inc.</p><p>Snapchat is putting the pieces together as well</p><p>Real-time audience Geofiltering</p><p>This is prime real </p><p>estate for a brand.Nick Cicero of social </p><p>influencer marketing agency </p><p>Delmondo, writing in the </p><p>company blog, April 2015</p></li><li><p> 2015 eMarketer Inc.</p><p>Why this trend is importantand why social will be a big part of it:</p><p> Programmatic pipes provide the groundwork for ad personalization at scale</p><p> Data about individuals is a necessary component for personalized ads; social media is a key source of that </p><p>data</p><p> Social media is also a key place for real-time conversation</p><p> As all of these trends intersect, they will do so increasingly in social media</p></li><li><p> 2015 eMarketer Inc.</p><p>Key Takeaways:</p><p> Social ad spending is still growing substantially</p><p> Facebooks user base is enormous, but several other properties have hundreds of millions of active users</p><p> Digital video ad opportunities are increasing, and social will take a growing share</p><p> There will be a lot of development and momentum for next-generation ad networks powered by social data</p><p> Social platforms increasingly will be a home for real-time, personalized ads bought programmatically</p></li><li><p>Social &amp; Programmatic Ad Trends AdRolls recent findings</p><p>Jackie LampingSr. Director, Marketing@jackielamping</p></li><li><p>Marketers finding high ROI with </p><p>retargeting:intent signals + precise targeting + real-time personalization</p></li><li><p>Retargeting Arrives on Social Platforms: todays modern marketers driving ROI at scale</p><p>One platform to reach </p><p>your customers across:</p><p>Plus, 500+ publishers and </p><p>exchanges</p></li><li><p>Whether theyre 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.</p><p>B2C Case Study: Chubbies</p><p>Preston Rutherford, Co-founder </p></li><li><p>B2B Case Study: Tableau</p><p>AdRoll has made our customer acquisition and content marketing efforts seamless. It currently accounts for 14% of Tableaus monthly advertisement free trial and content leads.</p><p>Allison Perry, Online Marketing Manager</p></li><li><p>The Future of Retargeting is Social</p></li><li><p> 2015 eMarketer Inc.</p><p>Learn more about digital marketing with an </p><p>eMarketer corporate subscription</p><p>Around 200 eMarketer reports are published </p><p>each year. Here are some recent reports you </p><p>may be interested in:</p><p>Q&amp;A Session</p><p>Made possible by</p><p>You will receive an email tomorrow with a link to view the </p><p>deck and webinar recording.</p><p>To learn more: www.emarketer.com/products</p><p>800-405-0844 or webinars@emarketer.com</p><p>Debra Aho Williamson</p><p>Key Trends in Social Advertising</p><p> Millennials and Social Media: Gauging How Facebook and Other Networks Fit in Their Lives</p><p> Creating Ads on the Fly: Fostering Creativity in the Programmatic Era</p><p> Pinterest for Marketers: What You Need to Know</p><p> Worldwide Social Network Users: Q1 2015 Complete Forecast</p><p> Video Advertising: How Facebook, Twitter, Instagram, Tumblr and Snapchat are Changing the Rules</p></li></ul>