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Social Media AdvertisingNo more free lunch
Why is there social media advertising?
● Social media platforms are no longer startups in a garage but large companies that invest heavily in people and ICT
● They are publicly-listed companies, and need to show ROI to shareholders
● 2015 revenues: Facebook = $17.9bn, LinkedIn = $2.9bn, Twitter = $2.2bn
● Current market cap: Facebook is worth $318bn, LinkedIn $15bn and Twitter $12bn
Why do we advertise on social media?
Huge audienceSocial media is now mainstream, and companies have to consider advertising on this platform just as they would consider advertising on traditional media.
● FB has 1.59bn● Instagram has 400m● Twitter has 320m● LinkedIn has 100m
*Monthly average users
Audience targeting● Social media platforms offer
advanced audience targeting● Not just geographic location or
basic demographics, but also interests
● LinkedIn offers a professional audience that can be segmented for ads
Measurability● With analytics, advertisers are
able to get up-to-date information on the performance of ads, and costs
● Advertisers can track what users do after clicking on their links
● Twitter ads allows advertisers to see what works and what doesn’t, and make live changes
Reachpocalypse
● Facebook has been steadily reducing organic reach since 2012; bigger pages are harder hit
● Some believe organic reach will eventually end - FB Zero
● As more businesses join social media, they don’t just need good content, but advertising to give them reach
Advertising types
What is the objective?
Growing followers
Various types of engagement
Text ads
Sponsored posts
Tweet engagements Video views
Leads on Twitter Website clicks and conversions App installs and engagement
Promoted posts Video views
Website clicks and conversions
Facebook lead ads
What DUO has done
Huawei Enterprise
Examples of promoted posts
Huawei Enterprise
● Website clicks ad to drive people to sign up for the free webinar
● 96k reach, 1k clicks through to the registration website at under R2 CPC
Huawei Enterprise
● Promoted tweets to drive webinar registrations
● No engagement buttons or Twitter cards at this stage
● More expensive at R15 CPC
CloudGate● Website clicks
campaign to send people to the CloudGate Shopify page
● CPC of less than R2● Lack of integration
means that we could not track what happens to people after they leave Facebook
Where to from here?
More social media ads
● Increasing use of ad-blockers forces brands to turn to social media and native advertising
Video advertising
● SA mobile video consumption increased by 42% in 2015 - IAB
● Video to account for 78% of SA’s internet traffic by 2019 - Cisco VNI
● Africa online video consumption to increase by 55% p/a till 2019 - Ericsson CEO
Hyper-local ads
● Right place, right time
● Apps that use geo-location services
CRM-linked advertising
● Integrate customer info from CRM databases with social media targeting to serve ads based not on online interests, but actual purchasing behaviour
Less social media ads?
● Advertising overload; brain gets trained to ignore ads
● More tech to skip/block ads
● Subscription model
