Q SOCIAL TRENDS REPORT
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1 Q SOCIAL TRENDS REPORT
2 Q TOPLINE SUMMARY While the advertisers that Kinetic Social works with have spent fairly consistently across our social partners throughout the first half of the year, the Retail, CPG, and Travel verticals spent significantly more in this quarter than last quarter, so we have focused some of the following report on those industries. We expect these trends to continue as new campaigns gain traction through the remainder of the year. New ad features like Pinterest s interest and keyword targeting provided greater opportunities to advertisers and as a result, current advertisers are growing budgets, while new advertisers are adopting the platform rapidly. As a tool for visual search, discovery, and planning for future purchases, Pinterest is a growing part of the media mix. Facebook and Instagram conversion campaigns continue to gain traction among our advertisers, with over 4 of media spend focusing on these campaign objectives. In particular, we saw improved performance for conversion campaigns in the retail vertical this quarter, due to a shift in device targeting strategy. We have long seen the value of video as a tool for generating engagement and interest in our clients products, and this quarter continues to see high performance for shorter video ads on Twitter, demonstrating the importance of making an impact in the first few seconds of a video ad. While advertisers continue to achieve their marketing objectives by tapping each platform s unique strengths, integrated campaign strategies showed the strongest results as more people engage with great, relevant content. At Kinetic, we are continually innovating to optimize and manage creative assets across digital channels and have already seen great results. Visit our blog to learn more about new advances in our Social Asset Manager tool and Creative Studio services. Note: The data in this report reflects only the campaigns that ran through Kinetic Social s proprietary social marketing platform in Q TABLE OF CONTENTS 3-7 FACEBOOK & INSTAGRAM 8-10 TWITTER PINTEREST
3 Q SOCIAL TRENDS REPORT FACEBOOK & INSTAGRAM CAMPAIGNS OVERVIEW This quarter has seen Kinetic s Facebook and Instagram advertisers focusing primarily on conversion and engagement campaigns. Our findings show that Retail, CPG and Travel verticals in particular have seen significant benefits when tapping into the combined power of these platforms. Leveraging lookalike audiences further generated excellent results. The following charts share some of our findings, highlighting how advertising across these two networks helped our clients reach and exceed their campaign goals.
4 OVERVIEW OF KINETIC RUN CAMPAIGNS ecpc ON FACEBOOK & INSTAGRAM $0.60 $0.59 Overall, ad spend from Kinetic Social s Facebook and Instagram advertisers remained fairly constant from Q1 to Q CPC (Cost per Click) has remained level since Q CTR (Clickthrough Rate) is down this quarter to 0.87% (from 1.06%). We saw a spike in CPM (Cost per Thousand Impressions) in Q1, but Q2 s CPM leveled off closer to 2015 s cost. $0.50 $0.40 $0.29 $0.30 $0.20 $0.10 ectr ON FACEBOOK & INSTAGRAM ecpm ON FACEBOOK & INSTAGRAM $ $6.00 $ % $5.00 $4.00 $ $ $ $ < 15 sec sec sec 1-2 min > 2 min VIDEO VIEWS AFTER WATCHING 25% OF VIDEO AD Previously we reported that users tend to finish viewing an ad if they watched at least 25% of the content. This quarter, that held particularly true for shorter video ads (<1 minute) on Facebook. People didn t generally watch longer form videos to the end, though most did watch over 75% of the ads. It is therefore recommended that advertisers get their message out early and keep content under one minute. Stop Watching Watch 75% Watch 5 Finish the Video (95% Completion)
5 PERCENT OF SPEND BY OBJECTIVE Facebook and Instagram campaigns continue to emphasize conversions over post engagement. However we also saw a large spike in Brand Awareness campaigns, particularly among CPG brands Conversions Post Engagements Link Clicks Brand Awareness Video Views Lead Generation App Installs Page Likes Product Catalog Sales 4 2 Q Q Q Q Q CPG CAMPAIGNS SWITCH TO BRAND AWARENESS We saw a major shift in strategy this quarter, with many CPG (Consumer Packaged Goods) campaigns switching from a post engagement objective to a brand awareness objective. The result was clear: we saw a significantly larger number of unique impressions served, and the cost per 1,000 unique impressions dropped sharply. % of Spent ecpm (Unique) 10 $9.00 $ $7.00 $ $5.00 Video Views Lead Generation 4 $4.00 $3.00 Post Engagements Conversions Page Likes Brand Awareness 2 $2.00 Link Clicks $1.00 Q Q Q Q Q2 2016
6 ecpc ACROSS SELECTED VERTICALS ON FACEBOOK AND INSTAGRAM Overall, CPC is trending upwards for many verticals, but this could be due to a number of factors including advertiser creative, campaign objective, and the overall marketplace. Retail Travel & Tourism CPG Education $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 Q Q Q Q Q2 2016
7 Clickthrough Rate Q Q Q Q LOOKALIKE AUDIENCE PERFORMANCE: TRAVEL & TOURISM INDUSTRY Travel advertisers are leveraging first party data to take advantage of lookalike audiences for their link click campaigns. The clickthrough rate is significantly higher when these advertisers use lookalike audience targeting. The proportion of dollars spent targeting lookalike audiences doubled in Q2 for Travel & Tourism campaigns on Facebook and Instagram. All Verticals Travel & Tourism Lookalike Audiences Used No Lookalike Audience Used CONVERSION CAMPAIGNS FOR RETAIL ADVERTISERS SPEND BY PLACEMENT ON FACEBOOK AND INSTAGRAM CONVERSION CAMPAIGN COSTS ON FACEBOOK AND INSTAGRAM 2% Q Q % 84% The result of this targeting shift was a signicant improvement in performance (as measured by cost per conversion). This reflects mobile targeting s generally enhanced performance, which we have seen since Q $14.00 $ % Q % ecpcon (Cost per Conversion) $10.00 $8.00 $6.00 $4.00 $2.00 Desktop Desktop & Mobile Mobile Historically, we ve seen most Retail campaigns target desktop users but this quarter we noticed a shift to significantly greater targeting of mobile users. Desktop Mobile Overall ecpcon (Cost per Conversion) Desktop & Mobile
8 Q SOCIAL TRENDS REPORT TWITTER CAMPAIGNS OVERVIEW In addition to the overarching performance metrics, this quarter we re focusing on a few specific areas within the Twitter advertiser experience. For verticals, Retail and CPG clients continue to be significant spenders getting great results with Twitter advertising. For these category advertisers, CPLC (Cost Per Link Click) was much lower compared to others in Q2. In terms of ad units, we continued to see Twitter Video ads as a major performance driver this quarter. Our findings note that shorter video formats generated more completed views. The following charts share some of our findings, highlighting how video ads helped our clients reach and exceed their campaign goals.
9 * The efficiencies in campaign performance noted in the following charts can be attributed to a variety of factors including an emphasis on event engagement content around music festivals like Coachella, product/gaming releases, new retail category campaigns and the autoplay video feature. ecpc FOR WEBSITE CLICK CAMPAIGNS While volume remains relatively consistent, click campaign costs have fluctuated fairly significantly since Kinetic began publishing results but the costs seem to have leveled off at a lower rate. $3.00 $2.50 $2.16 $2.00 $1.50 $1.00 $1.00 $0.50 ecpe FOR ENGAGEMENT CAMPAIGNS The cost of engagement campaigns continued to drift lower this quarter. COMPLETED VIDEO VIEWS PER 1,000 IMPRESSIONS As previously reported, Twitter users are very likely to finish watching short (< 15 sec) videos, but are less likely to watch longer videos. $0.30 $0.25 $0.20 $0.15 $0.10 $0.19 $0.11 Thus Kinetic recommends that advertisers with video assets stick to shorter formats for Twitter to drive more viewership. $ ecpv FOR VIDEO VIEW CAMPAIGNS Video campaigns continue to be a particularly good value, likely attributed to the autoplay feature which was introduced on Twitter in Q $0.60 $0.52 $0.50 $ $0.30 $ < 15 sec sec sec 1-2 min > 2 min Ad Length $0.10 $0.04
10 PERCENT OF SPEND BY OBJECTIVE Kinetic s advertisers continue to adopt diverse Twitter objectives, showcasing Twitter s ability to meet advertiser needs across multiple marketing objectives. Website click-driving campaigns remain the most popular choice since many advertisers seek to generate traffic to their own sites to learn more Website Clicks Followers 2 Video Views Custom Tweet Engagements App Installs Lead Generation App Engagements COST PER URL CLICK (ecpc) FOR RETAIL AND CPG These two verticals have historically outperformed the rest of Kinetic s advertiser verticals in Twitter, with improving performance (lower cost per URL click) over the last two quarters for both verticals. Retail CPG All Verticals $2.50 $2.00 $1.50 $1.00 $0.50 Retail and CPG vertical campaign clients are the two largest Kinetic customer segments on Twitter using the website click objective.
11 Q SOCIAL TRENDS REPORT PINTEREST CAMPAIGNS OVERVIEW It has been an exciting quarter for Pinterest. Since rolling out their new targeting features in Q2, more ad dollars are being spent on this platform. Brands using interest and keyword targeting as well as conversion tags generated excellent results. The following charts share some of our findings, highlighting how these targeting features and tags have helped our clients reach and exceed their campaign goals.
12 CASE STUDY: DRIVING WEBSITE TRAFFIC WITH PROMOTED PINS THE CHALLENGE The leader in creative and document solutions software sought a social and creative partner to promote their photo editor plan, driving traffic to the brand s website while maintaining a low CPC (cost per click). THE STRATEGY Leveraging Pinterest Promoted Pins, our Creative Studio developed six ad creatives to support the promotion. From there, our campaign management team deployed the ads and utilized the platform s interest and keyword targeting to find new potential customers for the brand. THE RESULTS THIS CAMPAIGN CAME IN UNDER THE CLIENT S INITIAL CPC TARGET BY 11%. WITH THE HELP OF PINTEREST INTEREST AND KEYWORD TARGETING, THE BRAND S CAMPAIGN HAD AN ER (ENGAGEMENT RATE) OF OVER 4%.
13 PERCENT OF SPEND BY OBJECTIVE Spend is roughly split between each campaign type on Pinterest, and their relative costs (as measured by CPM) are closer to parity this quarter than they were last quarter. Website Clicks Pin Engagement PIN ENGAGEMENT CAMPAIGNS PERCENT CHANGE IN PERFORMANCE 30 ecpm ecpe Last quarter, we reported increasing CPM and CPE for engagement campaigns, but this quarter we saw a marked drop in the cost of these campaigns WEBSITE CLICK CAMPAIGNS PERCENT CHANGE IN PERFORMANCE 10 ecpm ecpc There was a spike in CPM for website click campaigns with a corresponding spike in ecpc, however the cost per click has remained relatively efficient over the measurement period. 2-2
14 Two new products have begun to be adopted by our Pinterest advertisers: (1) interest targeting and (2) conversion tags. In both cases, we saw significantly greater adoption over the course of the quarter. PERCENT OF CAMPAIGNS USING INTEREST TARGETING April 2016 May 2016 June 2016 Interests No Interests PERCENT OF CAMPAIGNS TRACKING CONVERSIONS April 2016 May 2016 June 2016 Conversion Campaigns Engagement / Traffic Campaigns
15 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 2 Billion impressions in Q This report includes ad spend on Facebook, Instagram, Twitter and Pinterest, on both desktop and mobile, and for all ad types. We have broken out platform-specific 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, Instagram, Twitter or Pinterest 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, an Instagram Partner, a Twitter Official Partner and a Pinterest Marketing Developer Partner. More at
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