7 Social Media Ad Trends for 2014
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1 N O V E M B E R 2 1, Social Media Ad Trends for 2014 Sponsored by: Debra Aho Williamson Principal Analyst
2 Agenda 2014: A Year of Social Acceptance Trend #1: The Video Opportunity Trend #2: Social = Mobile Trend #3: Native Expansion Trend #4: Social Ads Get More Programmatic Trend #5: Moving Beyond the Walled Garden Trend #6: Location Makes a Comeback Trend #7: New Venues, New Ad Opportunities Twitter #emwebinar
3 2014 will be a year of social acceptance More US marketers are committing budget to social media advertising % of US marketers buying ads on Facebook Sept. 2013: 74% Jan. 2013: 62% July 2012: 55% % of US marketers buying Promoted Tweets Aug. 2013: 32% Sept. 2012: 26%
4 Advertisers are optimistic about spending increases Media wants to be where the audience is, and I expect to see more paid-media growth as [social] audiences continue to grow. Nick Tran, head of social media at Taco Bell
5 Social media advertising is moving from a nice-to-have to a necessity Social advertising is almost mission-critical now. Chris Bowler, vice president of social media at Razorfish
6 The percentage of US companies using social media for marketing is very high and still rising
7 Nearly all US social media marketers are using Facebook; Twitter use is gaining Twitter #emwebinar
8 emarketer forecasts US social network ad spending will rise 37% in 2013 and 27% in 2014
9 What s driving the increases? Efforts to make social advertising more effective Data partnerships: Data from companies such as Datalogix, Axciom and Epsilon helps Facebook advertisers determine whether someone who saw an ad eventually made a purchase. Twitter also has a partnership with Datalogix. Objective-based advertising: Marketers choose one of eight objectives before buying advertising on Facebook, and get recommendations for which types of ads to use to meet those objectives. Less focus on fans: After touting fan acquisition as a goal in 2012, social media companies are now speaking in terms advertisers know: sales, conversions and results.
10 The bottom line: It s not only about being social That s where the audience is. It s about scale. Ritu Trivedi, managing director at Starcom MediaVest Twitter #emwebinar
11 Trend No. 1: The Video Opportunity Image courtesy of digitalart / FreeDigitalPhotos.net
12 Facebook will flex its muscle with video ads $1 million to $2.4 million: Estimated daily cost for branding-oriented video ads. (Reuters) $1.31 billion: Projected 2014 video ad revenue (Cowen & Company) Challenges: Infuse video ads with social/shareable features; will autoplay work? Potential: Could unlock more premium dollars from brand advertisers and shift TV ad budgets.
13 Twitter cozies up to TV Metrics providers Twitter Amplify: Links advertisers with real-time video Short-form video
14 Instagram ad test will show the demand for mobile native video ads Slow rollout: So far, advertisers are focused on testing photo ads first. Branding opportunities: 71% of Interbrand 100 advertisers use Instagram for marketing, up from 40% in October 2012 (Simply Measured, November 2013). Challenge: User reaction to Instagram ads has been mixed. Potential: Pent-up demand for Facebook video advertising could spill over to Instagram.
15 Trend No. 2: Social = Mobile Social media will continue to play a leading role in defining what mobile advertising looks like Social is going to continue to drive mobile usage and mobile spend. Scott Symonds, AKQA Media As we re thinking about social, we re not delineating it from mobile; our assumption is that if it s social it probably also is mobile. Jennifer Kasper, Macy s
16 Facebook and Twitter are seeing strong revenues from mobile 49%: Percentage of Facebook s Q ad revenue that came from mobile. (Facebook, October 2013) Over 70%: Percentage of Twitter s Q ad revenue that came from mobile. (Twitter, October 2013) 19%: Percentage of the US mobile ad market that Facebook and Twitter will account for in (emarketer, August 2013) 40%: Percentage of the US mobile display ad market that Facebook and Twitter will account for in (emarketer, August 2013) Twitter #emwebinar
17 The majority of social media use is happening via smartphone Source: RBC Capital Markets & Advertising Age, September 2013
18 What to watch for in mobile social advertising Demand for mobile ads Is mobile social ad spending growth driven by demand for mobile, or simply a reallocation of dollars from the desktop? Overload Will the number of ads in the feed top out lower than the social media companies expected? New ad products How will social companies evolve ads to take advantage of the uniquely mobile environment?
19 Trend No. 3: Native Expansion Social media companies proved in 2013 that native advertising can work. In 2014, the challenge will be to scale it without irritating consumers.
20 Ad executives are enthusiastic but concerned about native advertising Industry executives believe news feed advertising delivers results. But they worry that there will be backlash if too many ads crowd the feed. They are also concerned about the amount of time and effort it takes to produce native advertising Native-ad ad networks could provide a solution. Twitter #emwebinar
21 US mobile marketers consider native advertising an important development
22 A cautionary note on native ads: As we think about the future, we do not expect to significantly increase ads as a percentage of News Feed stories beyond where we were at the end of Q3. David Ebersman, Facebook s chief financial officer, during the company s Q earnings conference call
23 Trend No. 4: Social Ads Get More Programmatic The intersection of real-time marketing and programmatic advertising will play out more fully in Total social media advertising is expected to increase 35% in 2013, 35% in 2014 and 32% in We are attributing the growth in 2014 and 2015 to the rise in programmatic social buying that will begin to take hold.
24 Programmatic techniques will help make real-time marketing easier to do Faster social ad placement: More tools will be available to quickly place ads or tweak campaigns. External triggers: Data on pricing, inventory, weather and more will inform ad delivery in social media, enabling advertisers to make the most of fast-changing scenarios. More-dynamic creative: Technology will provide new ways to change up ad creative to meet targeting needs and cut the time it takes to develop real-time content and advertising. Twitter #emwebinar
25 Trend No. 5: No More Walled Gardens In 2014, advertisers will finally get what they ve been hoping for: the ability to use rich social media user data to target consumers across digital channels. Twitter: Its acquisition of mobile ad network/technology company MoPub gives Twitter a new revenue stream and a way to test mobile native advertising. Facebook: It has restarted testing of a mobile ad network; although there are many privacy hurdles to cross, advertisers are very interested in using Facebook data to target consumers outside of Facebook. Twitter #emwebinar
26 MoPub s network: Small but growing Sample Customers: Net Revenue 2012: $2.7 million 1H 2013: $6.5 million
27 Facebook Log-in: One way to track users (and show ads) outside of Facebook
28 Advertisers recognize the value of social data for targeting Twitter has a huge amount of insights around what people are doing and expressing and sharing. The ability to take that knowledge and put it outside its walls is powerful. Dave Marsey, executive VP and managing director at Digitas San Francisco
29 Trend No. 6: Location Makes a Comeback
30 Data indicates increased willingness to share location via mobile of US adult smartphone owners use their phone to get information or directions based on their location, up from 55% in 2011 of US adult social media users have at least one account set up to tag their location, up from 14% in 2011 Source: Pew Internet & American Life Project, September 2013
31 Mobile app users worldwide appreciate locationbased mobile marketing
32 Geolocation capabilities will improve If I tweet or Facebook this shot, I might be a good target for hiking-gear ads.
33 Trend No. 7: New Venues, New Ad Opportunities Facebook, Twitter and LinkedIn dominate, but there is room for more Twitter #emwebinar
34 Instagram: Think Vogue for social media
35 Pinterest: Boosting social commerce Promoted Pins test is aimed at marketers and retailers with ecommerce goals
36 Mobile messaging services: Growing fast and could see ads in 2014 Snapchat is used by 9% of US mobile phone users many of them teens and young adults (Pew Research Center, 2013) LINE has 280 million users worldwide, and growing fast in South America, Turkey and Italy (LINE Corp. Q earnings report) WeChat Has 272 million users, predominantly in China (Tencent Q earnings report)
37 Conclusions More marketers are using social media advertising, leading to increases in total spending. Efforts to prove the effectiveness of social ads have paid dividends. Social will be a critical tool to reach mobile users in Efforts to scale native ads could be met with a backlash. More social ads will be bought programmatically. Twitter #emwebinar
38 Conclusions Facebook and Twitter will start selling ads outside their walls, providing new ways to use social data for targeting. Geolocation capabilities in social media will get better, leading to more real-time marketing opportunities. New ad venues such as Pinterest and Instagram will vie for marketers attention. Twitter #emwebinar
39
40 Data and campaigns are fragmented between channels, teams and devices Search Mobile Display Websites Landing Pages Video PAID DIGITAL CHANNELS SOCIAL MARKETING Microsites WEB PROPERTIES Google Confidential and Proprietary
41 The next phase of social marketing: bridge the digital-social divide Search Mobile Display Websites Landing Pages Video PAID DIGITAL CHANNELS SOCIAL MARKETING Microsites WEB PROPERTIES Google Confidential and Proprietary
42 Social marketing software for the enterprise Build engaging social campaigns that drive real business results, and measure your ROI Google Confidential and Proprietary
43 To learn more about how to generate ROI in social, visit Wildfire at or become part of our community. Wildfire by Google WildfireInteractive Google Confidential and Proprietary
44 Q&A Session 7 Social Media Ad Trends for 2014 Learn more about digital marketing with an emarketer corporate subscription Around 200 emarketer reports are published each year. Here are some recent reports you may be interested in: Social Media Advertising: Seven Trends for 2014 Social TV: Marketing to Viewers in Real Time Advertising in the Moment: Real-Time Strategies for Paid Social Media Debra Aho Williamson You will receive an tomorrow with a link to view the deck and webinar recording. Sponsored by: Wildfire by Google Worldwide Social Network Ad Spending Forecast: Robust Growth Set to Continue Through 2014 Native Advertising: An Emerging Consensus for a New Kind of Ad To learn more: or webinars@emarketer.com
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