For Kinetic Social, 2015 was a year of exciting growth, both with our existing ... to be an essential part of the media mix. ... Note: The data in this report reflects only the campaigns that ran through Kinetic Social's proprietary social marketing ...
Q1 2016 SOCIAL TRENDS REPORT
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Q1 TOPLINE SUMMARY Generally speaking, the advertising industry takes a breath in Q1. The pace slows a bit from the previous holiday-driven quarter, and we get the chance to both assess the events of the previous year and gear up for the year ahead. We watch the trends of the year start to take shape, as new campaigns gain traction. For Kinetic Social, 2015 was a year of exciting growth, both with our existing partners and with the launch of Pinterest’s programmatic advertising solution and Instagram’s integration into the Facebook API. In 2016, we are continuing to see the unique value of Pinterest’s products develop in the market. Existing advertisers are growing budgets and new advertisers are adopting the platform rapidly. New products, including pixel revenue tracking and CRM targeting are providing great tools for DR-focused initiatives. As a tool for visual search and planning for future purchases, Pinterest is proving to be an essential part of the media mix. At the same time, advertisers on more mature channels continue to enjoy the great creative and targeting capabilities available on Facebook, Instagram, and Twitter. New products are contributing to stronger DR performance, including dynamic ads, improved lookalike modeling, and cross-device conversion attribution. Consequently, we are seeing improved DR performance across all platforms. We are launching new ways to optimize and manage creatives across platforms, and have already seen strong performance. Tools including our Social Asset Manager, and services like our brand-focused Creative Studio allow our advertisers to apply cross-channel, integrated strategies to take advantage of strong video performance, dynamic ads, and new ad formats narrowly focused on solving specific problems. This quarter we saw more advertisers approach goals with a complete cross channel process, optimizing creative and targeting for each platform’s strengths, and evaluating and optimizing mid-campaign. Because of this, DR performance is improving, and people’s overall engagement with great content shows that it’s working. We are pleased to help advertisers adopt new techniques and tap into great results. Note: The data in this report reflects only the campaigns that ran through Kinetic Social’s proprietary social marketing platform in Q1 2016.
TABLE OF CONTENTS 3 - 8. FACEBOOK & INSTAGRAM 9 - 11. TWITTER 12 - 13. PINTEREST
Q1 2016 SOCIAL TRENDS REPORT FACEBOOK & INSTAGRAM CAMPAIGNS
Now that you can run campaigns across Facebook and Instagram, we’ve started to combine reporting for those two channels this quarter. As these new optimization technologies and ad units allow us to seamlessly place ads across both platforms, we want to show how advertisers perform crosschannel. Here are some findings on what’s working.
FACEBOOK OVERVIEW Facebook advertisers are increasingly adopting new ad products, finding different offerings to be particularly well suited to drive different KPIs. Video ads continue to be a standout product: over 50% of users who click to play a video ad on platform watch for at least 30 seconds. At the same time, autoplay has driven greater exposure for all video ads. Another ongoing trend centers on direct response: purchases, request for information, and other downfunnel advertiser goals have grow fastest among campaign objectives.
INSTAGRAM OVERVIEW Kinetic’s client campaigns really took off on Instagram this quarter. We saw increased spend, quarter on quarter, even before adjusting for seasonal differences. Video ad units are the fastest growing product on Instagram, showing a strong connection to the visual nature of the platform. CTRs are increasing as users become more familiar with the useful feature of native Instagram ads.
OVERVIEW OF KINETIC RUN CAMPAIGNS
eCPC
$0.60
FACEBOOK & INSTAGRAM
+107%
$0.56
$0.50 $0.40 $0.30
YEAR-OVER-YEAR
$0.27
$0.20
Facebook eCPC (effective cost per click) decreased in Q1 reflecting better optimizations and a seasonal adjustment in demand from the heavy period from Q4.
eCPM
$0.00
Q1 2015
Q2 2015
Q3 2015
Q4 2015
$5.00 $4.00
YEAR-OVER-YEAR
eCPMs (effective cost per thousand impressions) increased
Q1 2016
$5.95
$6.00
FACEBOOK & INSTAGRAM
+48%
$0.10
$4.03
$3.00 $2.00
as inventory became more valuable. This is a strong, positive trend for both advertisers and the platforms, as ad targeting and creative quality improves results.
$1.00 $0.00
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
1.60%
eCTR
1.40%
FACEBOOK & INSTAGRAM
+34%
1.20%
1.06%
1.00%
0.79%
0.80%
Q4 2015 TO Q1 2016
0.60%
eCTR (effective click-through rate) improvements
0.40%
underscore the increase in ad value. eCTRs are up
0.20%
sharply in Q1.
0.00%
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
TOTAL SPEND BY OBJECTIVE
60%
FACEBOOK
PERCENT OF TOTAL SPEND
50%
Direct Response campaigns continue to increase as a percent of our advertising spend
40%
mix. Advertisers are finding great results on Facebook and Instagram, and building on best
30%
practices to guide new campaigns. 20%
10%
0%
Website Conversions
Mobile App Installs
Post Engagement
Lead Generation
Link Clicks
Page Likes
Video Views Q3 2015
Q4 2015
Q1 2016
80%
INSTAGRAM
70%
PERCENT OF TOTAL SPEND
60%
As advertisers test pixel based 50%
optimizations on campaigns run across Facebook and Instagram, link click
40%
campaigns are shifting to conversion goals on Instagram.
30%
20%
10%
0%
Website Conversions
Mobile App Installs
Post Engagement
Lead Generation
Link Clicks
Page Likes
Video Views Q3 2015
Q4 2015
Q1 2016
TOTAL SPEND BY AD TYPE FACEBOOK
INSTAGRAM
PERCENT OF TOTAL SPEND
PERCENT OF TOTAL SPEND
100%
100%
80%
80%
60%
60%
40%
40%
20%
20%
0%
0%
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Q3 2015
Q4 2015
Q1 2016
GRAPH LEGEND
FACEBOOK & INSTAGRAM
COMBINED PERCENT OF TOTAL SPEND
Carousel
Photo
Page Ad
Other
Video
Link
100%
ANALYSIS On Facebook, carousel and link ads continue
80%
to grow in popularity as advertisers discover their power to drive direct response goals. 60%
At the same time, Kinetic has seen a surge in popularity for video ads on Instagram as advertisers are finding ways to connect to
40%
user behavior on the highly visual platform.
20%
0% Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
CAMPAIGN PERFORMANCE BY OBJECTIVE
ENGAGEMENT CAMPAIGNS FACEBOOK & INSTAGRAM
eCPM
eCPA
$7.00
$0.25
$6.00
As ads become more engaging and relevant to users, cost per engagement continues to drop,
$0.20 $5.00
largely led by video and carousel ads.
$0.15
$4.00 eCPA eCPM
$3.00
$0.10
$2.00 $0.05 $1.00
$0.00
VIDEO VIEW CAMPAIGNS FACEBOOK & INSTAGRAM
Cost per video view continues to drop as this product scales. This is to the benefit of
$0.00 Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
eCPM
eCPA
$8.00
$0.04
$7.00 $0.03
$6.00
advertisers, because even as costs decrease, effectiveness is increasing, as shown in the
$5.00
video completion rate chart in this report.
$0.02
$4.00 eCPA eCPM
$3.00
$0.01
$2.00
$1.00
$0.00
$0.00 Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
SUMMARY OF VIDEO CAMPAIGNS Users who click to play a video are far more likely to watch longer format videos than those who watch autoplay videos. Video completion rates and length of time watched has increased, which benefits advertisers, as videos on platform are becoming more effective at brand lift and influencing conversions. It is important to note that while the percentage of completed views is higher for click to play videos, overall video views are still greater for autoplay. Charts include the proportion of viewers who watch a video in its entirety.
VIDEO COMPLETION
Auto-Play
FACEBOOK & INSTAGRAM
Click to Play
PERCENT OF VIEWS THAT COMPLETED VIDEO
70%
60%
50%
40%
30%
20%
10%
0%
Q4 2015
Q1 2016 15 sec
Q4 2015
Q1 2016 30 sec
Q4 2015
Q1 2016 60 sec
VIDEO LENGTH
BASED ON THESE RESULTS, KINETIC RECOMMENDS SHORTER VIDEO FORMATS OF 30 SECONDS OR LESS, TO ADVERTISERS.
Q1 2016 SOCIAL TRENDS REPORT TWITTER CAMPAIGNS
TWITTER OVERVIEW Costs for Twitter engagements were down in Q1 across engagement, video and click oriented campaigns. Kinetic is seeing more diversity among campaign objectives across the advertisers we work with, with a decreased emphasis on tweet engagement and an increased emphasis on more specific campaign goals. Reduced cost per website click reflects improved DR results for the advertisers that work with Kinetic, driven by new and improved tools.
eCPC FOR WEBSITE CLICKS Cost per click was relatively constant, but down compared to Q4 likely due to decreased competition in the market. eCPC in 2016 Q1 was very similar to the performance in 2015 Q1.
$0.80
$0.60
$0.51
$0.50
$0.40
$0.20
$0.00 Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
eCPE FOR TWEET ENGAGEMENTS Cost per engagement (CPE) declined compared to both last quarter and the same period last year.
$0.40
$0.30 $0.30
$0.20
$0.16
$0.10
$0.00
eCPM ON TWITTER
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
eCPM (Effective Cost per Thousand impressions) is down quarter on quarter and in comparison to the
eCPV FOR VIDEO VIEWS
same period last year.
Video view costs continue to decline, likely due to Autoplay introduction in Q3 2015.
$10.00
$0.30
$8.00
$0.28
$6.87 $6.00
$0.20 $5.06 $4.00
$0.10
$2.00
$0.07
$0.00 Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
$0.00 Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
SPEND
100%
BY CAMPAIGN OBJECTIVE 80%
Kinetic saw a slightly increased emphasis on lead gen, follower, and video view campaigns with a decreased emphasis on website clicks and tweet
60%
engagements in the quarter.
40%
20%
Website Clicks
Followers
Video Views
Custom
Tweet Engagements
App Installs
Lead Generation
App Engagements
0% Q1 2015
Q2 2015
Q3 2015
Q4 2015
eCPE BY VERTICAL
TWEET ENGAGEMENTS CAMPAIGNS
Q1 2016
WEBSITE CLICKS
$0.70
$1.40
$0.60
$1.20
$0.50
$1.00
$0.40
$0.80
$0.30
$0.60
$0.20
$0.40
$0.10
$0.20
$0.00
$0.00
2015 Q1
2015 Q2
2015 Q3
2015 Q4
2016 Q1
For the advertisers Kinetic works with, engagement campaign costs have declined across several verticals: Media & Entertainment, Home & Garden and CPG. Cost per click was down across many verticals (Financial Services, Media & Entertainment, Style & Fashion) with the exception of the CPG category, where clicks were more expensive relative to Q4 2015.
2015 Q1
2015 Q2
Retail Home & Garden CPG Media & Entertainment Style & Fashion Financial Services
2015 Q3
2015 Q4
2016 Q1
Q1 2016 SOCIAL TRENDS REPORT PINTEREST CAMPAIGNS
PINTEREST OVERVIEW Ad spend on Pinterest continues to grow among Kinetic’s clients as engagement metrics rise. As a result, the cost of those engagement campaigns is increasing as competiton increases. Both engagement rates and CTRs are increasing as optimization and targeting techniques improve.
PINTEREST AD SPEND BY CAMPAIGN OBJECTIVE 100%
Engagement campaigns continue to grow in popularity and ad spend. At the same time, there is a decreased emphasis on click focused campaigns.
75%
But those engagement campaigns are becoming more expensive (see ‘eCPM vs eCPE on Pinterest’ charts
50%
below) on Pinterest, which could be due to increased competition as the platform matures. We also saw a
25%
decline in the cost of click-oriented campaigns, perhaps due to lesser demand.
0% Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Website Clicks
Pin Engagement
eCPM vs eCPE ON PINTEREST eCPM
eCPE
PINTEREST eCPM
PIN ENGAGEMENT eCPM
eCPE $0.40
$8.00
eCPM for Pin engagement campaigns has increased steadily while the eCPM for click campaigns has decreased slightly.
$0.30 $6.00 $0.20
$4.00
$0.10
$2.00
$8.00
$6.00
$0.00
$0 Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
WEBSITE CLICKS
$4.00
$2.00
$2.50 $0.00 Q1 2015
$2.00
Q2 2015
Pin Engagement
$1.50
$1.00
$0.50
$0 Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Q3 2015
Q4 2015
Website Clicks
Q1 2016
ABOUT THIS REPORT The data in this report reflects all of the campaigns that ran through Kinetic Social’s proprietary social marketing platform, serving over 1.7 Billion impressions in Q1 2016. This report includes ad spend on Facebook, Twitter, Pinterest and Instagram, on both desktop and mobile, and for all ad types. We have broken out platformspecific data and indicated the corresponding platform in each chart. This data report reflects a mix of awareness, engagement and direct response campaign initiatives. The social marketplace rapidly and constantly evolves; thus, this report should be taken strictly as an indicator of current marketplace trends that Kinetic has observed, and not necessarily an indication of future trends. The data in this report represents Kinetic campaigns only and should not be used as an indicator of the entire current or future Facebook, Twitter, Pinterest or Instagram landscape.
KINETIC IS A PROUD PARTNER
ABOUT KINETIC SOCIAL Kinetic Social’s social marketing platform and team of experts help brands create welcome, engaging and empowering experiences for consumers. Through every level of service, we design and manage campaigns across social channels and the open web. Our powerful, intuitive technology reflects how the modern marketer thinks and works. We combine that proactive innovation with strategic thinking at every step to deliver quality encounters that delight consumers, build brand value and drive sales. Kinetic is based in New York with offices in Toronto, Chicago and San Francisco. We are a Facebook Marketing Partner, a Twitter Official Partner, a Pinterest Marketing Developer Partner and an Instagram Partner. More at www.kineticsocial.com
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