esome Price Index Q2/2017

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1 esome Price Index Q2/217

2 About this price index Twitter Spezial The data for this price index has been aggregated from more than 2 clients social advertising campaigns in the German market spanning all major industries. Data has been weighted depending on the clients spend. Data from Q2/216 serves as the basis and all subsequent quarters have been normalized against Q2/216. For the calculation of CTR and CPC, only campaigns with the objective Clicks to Website have been adducted. Video content has been considered separately. With this price index, we celebrate five quarters of Twitter API access and take a look at the complete YoY trend on Twitter. In the deep dive we investigate on the kinds of campaigns that advertisers run on Twitter. Moreover, we illustrate the inflation of prices for social advertising since 215. The trends presented consecutively bear on data from social advertising campaigns that have been executed by esome advertising. About esome advertising esome advertising is a social media advertising specialist located in Hamburg, Düsseldorf and Belgrade. The company currently employs more than 1 people and is a certified Facebook and Instagram Marketing Partner, as well as Twitter Ads Partner. esome advertising operates in the field of paid advertising and plans, executes and optimizes performance and branding campaigns in social media. The esome approach is based on comprehensive know-how and technology integration, aiming to achieve superior brand and performance KPIs. The proprietary esome technology and the team of experienced social media advertising experts are the heart of esome s work.

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4 Inflation Total Year YTD Quarter % 2 +29% +8% % % Reaching consumers on social networks with ads has become more and more expensive over the last years CPM has increased by 2.4 times during the last two years The rate of inflation dropped from 216 to 217 compared to the inflation rate of 215/

5 Total CPM CPLC LCTR 14,8% 12,7% 1,6% 8,5% 6 4,4%,3%,2% Spending rose considerably and nearly reached the level of Q4/216 CPM develops expectedly and rises by 32% to the maximum value of the considered period ,1%,% CTR sinks by.5% due to the CTR trend of Facebook Audience Network (FAN) The development of CTR and CPM cause a rising CPC CPC increases by 4% and reaches the maximum value of the considered period

6 Facebook CPM CPLC LCTR 14,8% 12,7% ,6%,5%,4%,3%,2%,1% Investment on Facebook went up by 35 percent form Q1 to Q2/217 CPM rose by the same degree and even exceeds the level of Q4/216 with it CTR rises again to.66% Still, CPC goes up ,%

7 Instagram CPM CPLC LCTR 14,45% 12,4%,35% 1,3% 8,25% 6,2% Spending on Instagram increases even more than on Facebook 4 2,15%,1%,5%,% Advertisers spent 7 percent more in Q2/217 than in the previous quarter Due to the fact that Dynamic Ads are now also available for Instagram, the CTR climbs up significantly The rising CTR causes a drop of the CPC to the lowest level of the considered period

8 Facebook Audience Network CPM CPLC LCTR 18 3,% ,5% 12 2,% ,5% 1,%,5%,% Spending on the Facebook Audience Network sank for the first time in four quarters Prices and CTR record a similar development as on Facebook CPM and CPC rise CTR decreases Spending might have decreased due to constantly rising prices that are caused by the increasing demand for ad inventory

9 Twitter CPM CPLC LCTR 14,7% 12,6% 1,5% 8,4% 6,3% Spending on Twitter rises slightly from Q1 to Q2/ ,2%,1%,% CPM reaches an all-time low at the same time and so does CPC The CTR rises considerably which is caused by well-prepared content It underlines that campaigns perform better when the content is created in a way that suits the platform and is relevant to the target group

10 Twitter Kampagnen Branding Interaction Transaction Advertisers mainly run branding or interaction campaigns on Twitter Under the premises of rising prices throughout the year, data hints at seasonal peaks in Q2 and Q3 This assumption is underlined by the fact that Twitter is rarely used for direct response campaigns: Advertisers mainly run performance campaigns in Q4, so budget will probably be spent on other platforms than Twitter and the investment in Q4 will decrease on Twitter

11 Video CPV CPV 1 VTR ,% 1 8,% 7,% 8 6,% ,% 4,% 3,% 2,% 1,% 1-seocond view rate remains on a similar level compared to Q1/217 Cost per View (both 3-second view and 1- second view) increases Rising CPV is caused by the more expensive overall ad inventory ,%

12 Forecast In the upcoming price index we will investigate on the influence of the summer season on advertisers activity on social networks. We will analyze whether certain industries are more active in summer than others and explore whether users behave differently in the warm and sunny months. Moreover we will illustrate how the esome weather targeting can be useful for advertisers. esome advertising technologies GmbH Hohe Bleichen Hamburg