eMarketer Webinar: Social Ad Effectiveness—Four Things You Need to Know

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Social Ad Effectiveness:

Four Things You Need to Know

Debra Aho Williamson

Principal Analyst

September 15, 2016


“Half the money I spend

on advertising is wasted.

The trouble is, I don’t

know which half.”

—John Wanamaker

Image credit: William Curtis Taylor, National Portrait Gallery, Smithsonian Institution;

American National Biography Online


Measuring social ROI isn’t a new issue

#eMwebinar


It’s almost like marketers are stuck

Oklahoma, c. 1910

Image credit: Oklahoma Department of Transportation


Route 66 in Oklahoma, c. 1930s


But there’s

good news

(and smoother

road) ahead





#1

For some marketers,

social media advertising is

rivaling the effectiveness

of search


Important clarification:

Social marketing social advertising

Advertising: Bought with media dollars;

identified as “sponsored,” “promoted,” etc.

#eMwebinar

Marketing: Organic posts; funded by

marketing dollars

Image credits: Instagram

What we’re

talking

about today


As recently as a few years ago, most marketers

did not believe social advertising was effective

Most Effective Marketing Channel, 2013

Search Marketing: 45%

Social Display Advertising: 5%

Image credits: romzicon / The Noun Project; FBianchi / The Noun Project

Source: Experian Marketing Services’ December 2013 survey of marketers worldwide


Facebook’s

push for

people-based

advertising is

changing

marketers’

opinion

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Median Advertising ROI, June 2016

25%

Paid

Search

28%

Social

Media

Source: Direct Marketing Association and Demand Metric “2016 Response Rate Report” survey of US marketers

Image credit: Edward Boatman / The Noun Project


Ads that are effective for promoting content,

2015

56%

Search Engine

Marketing

50%

Social Ads

Source: Content Marketing Institute, “Content Marketing in the UK 2016: Benchmarks, Budgets, and Trends” August 2015

survey of UK content marketers

Image credit: Edward Boatman / The Noun Project

33%

Banner Ads

31%

Print/Offline


Most Effective Ad Channels, 2016

(Among US national brands that do local marketing)

Email

30% Direct Mail

29%

Social

Advertising

22%

Local TV

28%

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Brand Page

in Social

Media

19%Paid Search

10%

Source: Street Fight, “National-to-Local Marketers 2016,” June 2016


Advertisers’

opinion of

return on

investment

from Facebook

continues to

improve

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One key reason why: There’s growing similarity

between ad products from Facebook and Google

Dynamic Ads (FB) and Product Listing Ads (Google):

Image-based product ads that retailers can target to users based on

web browsing or searching behaviors.

Custom Audiences (FB) and Customer Match (Google):

A way to target ads to people an advertiser knows, such as customers

or email subscribers.

Lookalike Audiences (FB) and Similar Audiences

(Google): A way to target new potential customers who are similar to

ones the advertiser already knows.

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Google’s Product Listing Ads (PLAs) have been

highly successful

Introduced in 2010

Popular with

retailers

Clients of the

Merkle ad agency

increased PLA

spending 43% YoY

in Q2 2016

Source: Merkle, “Digital Marketing Report Q2 2016”

Image credit: Google


But Facebook’s Dynamic Ads are gaining fans

Ecommerce

clients of

ad automation

firm Nanigans

increased

spending on

Dynamic Ads

14% in Q2 2016

over Q1

Source: Nanigans, “Global Facebook Advertising Benchmark Report Q2 2016”

Image credit: Facebook


Custom Audiences meets its Customer Match

Target existing leads or

customers

Works on Facebook, Instagram,

Facebook Audience Network

Retarget website visitors

Find and target Lookalike

Audiences comparable to

people you know

Target existing leads or

customers

Works on search, Gmail,

display network, YouTube

Retarget searchers

Find and target Similar

Audiences comparable to

people you know


How Facebook’s tools improve on search

marketing

On Facebook, “we

can throw spears vs.

nets and find ideal

customers that are

not yet in-market.”

—Mike Mothner, Wpromote

Search

“Running shoes”

Social

“People like my customers who may

also be interested in specialty running

shoes”

Image credits: Juraj Sedlak / The Noun Project; Stephen Copinger / The Noun Project

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Not every advertiser is seeing strong ROI from

Facebook, however

On Facebook,

“We targeted

too much,

and we went

too narrow.”

—Marc Pritchard, CMO,

Procter & Gamble, in The

Wall Street Journal, August

2016

Brand advertisers still

struggle with right mix of

targeting and reach

P&G found that targeted

advertising didn’t work as

well as it hoped

It plans to maintain

Facebook spending levels,

but do less targeting

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#2

Facebook and others are

laser focused on proving ad

effectiveness—and they’re

showing real progress


Two Facebook ad products that can help show

online, offline conversion

Conversion LiftOffline Conversions API

Image credits: Facebook

Measure in-store visits

and sales that happen

after a mobile ad

campaign

Compare conversions in

a test group and a

control group

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Twitter is also improving conversion tracking

Introduced

universal website

tag in March 2016

Enables

advertisers to use

a single site-wide

tag rather than a

snippet of code

for each event

Image credit: Twitter

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These tools

make it easier

for

advertisers to

track harder

metrics

That said, softer

engagement metrics are

still most popular

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Facebook’s work in attribution is also starting to

show results

What is attribution? The practice of assigning credit to any

advertising- or marketing-driven interaction or other brand-imposed

touchpoint.

Why is it important? With proper attribution, marketers know

which of their ads had the most impact and can prioritize spending.

Why is Facebook getting involved? The better the company

can get at helping marketers know whether an ad on Facebook

resulted in an action or a purchase, the less marketers will need to rely

on last-click attribution, which overwhelmingly favors search engines.

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Attribution is

a priority for a

majority of US

marketers

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Key elements of Facebook’s attribution work

Cross-device

measurement

Chain-length

modeling

Self-serve

attribution tools

Lift

measurement

Image credits: Gregor Cresnar, M Ryan, Plain Icon, Pham Thi Dieu Linh (The Noun Project)

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As Facebook gets closer to figuring out

attribution, it will help marketers

“Facebook is evolving its capabilities a lot. They are aware of

the attribution issue and are trying to not just make

sense of it, but to actively solve for it.”

—Sanjay Teckchandani, Director, Paid Social, Elite SEM

“As ad strategies across [search and social] increasingly converge, it’s becoming more and more important to

get measurement and attribution together, so we can

give deserved credit to those channels and optimize budgets

accordingly.”—Monica Lay, Senior Product Marketing Manager, Adobe Media Optimizer

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#3

The social platforms are

key players in improving

mobile ad measurement


Marketers rate

mobile most

effective for

top-of-funnel

activities

But there’s plenty of room

for improvement across

the board

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Why getting

mobile

measurement

right is

critically

important:

Over three-quarters of

digital ad spending will

flow to mobile in 2020

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Tracking the entire customer journey relies

heavily on mobile’s unique identifiers

Cookies give insight

about desktop behaviors,

but their use is limited on

smartphones and tablets,

particularly within apps

But social platforms can

track across devices

thanks to their

people-based identifiers

Image credits: Rashida Luqman Kheriwala / The Noun Project; Delwar Hossain / The Noun Project

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Cross-device

targeting

+

Social user

data

_______________

More effective

mobile

advertising

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#4

Snapchat’s improved

measurement capabilities

will drive swift increases

in revenue


There was strong criticism from those who

experimented with Snapchat’s ads early on

Last fall, Snapchat

received a C- grade

from brand

advertisers and

agency executives

for how well it drove

return on investment

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But opinions have swung from bad to good in a

matter of months

“My impression is more bullish

today than it was just a few

months ago. Snapchat’s new ad

models and third-party verification

capabilities solve some major issues

and make them easier to buy.”

—Steve Carbone, Managing Director and

Chief Digital and Analytics Officer, MediaCom

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Sample internal measurement capabilities for

Snapchat ads

Standard Snap Ads

Impressions

Reach and frequency

Duration of video viewed

Completion rate

Number of swipe-ups

Snap Ads with

Attachments

View duration and completion rate (for long-form video attachments)

Completion rate (for article attachments)

Number of app installs (for app install attachments)

Image credit: Snapchat

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Ad

tracking/viewability

Snapchat measurement partners

Resonance

Audience

composition

measurement

Reaction

measurement


Advertisers are

flocking to Snapchat

“We’re committed to

bringing targeting and

all the major

measurement

solutions that

advertisers need

to our platform.” —

Bryan Kim, Manager,

Strategy Group, Snapchat

Image credit: Snapchat

#eMwebinar


Snapchat’s

worldwide

advertising

revenue is

predicted

to reach

$366.7 million

in 2016, a 519%

increase over

2015

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Takeaways


Still feeling stuck?

Oklahoma, c. 1910



Summary

Marketers still believe it is difficult to show ROI from

social marketing, but ad effectiveness is improving

For some objectives, social rivals paid search

Facebook is leading the way with its work in conversion

tracking and attribution modeling

Social platforms are key players in refining mobile

measurement

A focus on effectiveness metrics will help Snapchat

quickly grow its ad revenues

#eMwebinar

44 Loyalty and Advertising Solutions | 10/19/15

Closing the Loop: Using

Transactional Data to Measure

ROI in Social Media

Mike Lemberger, SVP Loyalty + Offers, Visa

This presentation is furnished to you solely in your capacity as a customer of that the information contained herein (the “Information”) is confidential and subject to the confidentiality restrictions contained in Visa’s operating regulations and/or other confidentiality agreements, which limit your use of the Information. You agree to keep the Information confidential and not to use the Information for any purpose other than in your capacity as a customer of Visa Inc. or as a participant in the Visa payments system. The Information may only be disseminated within your organization on a need-to-know basis to enable your participation in the Visa payments system. Please be advised that the Information may constitute material non public information under U.S. federal securities laws and that purchasing or selling securities of Visa Inc. while being aware of material non public information would constitute a violation of applicable U.S. federal securities laws.

Notice of confidentiality

Case studies and practice recommendations are intended for informational purposes only and should not be relied upon for marketing or other advice. Results are not guaranteed. Visa makes no representations and warranties as to the information contained herein.

Disclaimer

Visa does more than power the

world’s largest retail electronic payment network.

We help businesses move forward

by using transactional insights

to transform marketing.

Case Study: Twitter helps advertisers measure their ROI

Target and Measure digital advertising Visa Advertising

Generate lift in customers Visa Commerce Network

Expand program engagement Rewards Redemption

Deliver real-time messages Visa Offers APIs

Drive activation and usage Visa Loyalty Platform Service

Increase sales Merchant Offers Program

Visa Loyalty + Offers Solutions Designed to help our clients acquire and engage customers

48 Loyalty and Advertising Solutions | 10/19/15

How to measure the effectiveness of your ad campaigns

Assess the impact of ad exposure on actual purchase behavior

Optimize based on sales, not just impressions

Evaluate campaign performance in nearly real time

Pinterest measures sales impact of Promoted Pins

• 70% of sales driven by Promoted Pins campaigns came from new customers

• Users who engaged with Promoted Pins

spent 7x more than those who didn’t

• Promoted Pins saved by users and seen by

other users drove 18% of incremental sales

Source: Pinterest

Study of 16 retailer Promoted Pin campaigns found that:

“After months of joint development with Pinterest and Visa, we are excited to enable retailers… to measure Pinterest’s direct impact on not only online purchases, but also in-store sales”

Eric Roza, Oracle Data Cloud SVP

Aimee Lapic, Banana Republic CMO

“Promoted Pins have been a successful way for our brand to showcase the versatility of our products and reach new audiences in an effective and relevant way.”


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Debbie Williamson



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