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Nielsen paid-social-media-adv-report-2013
- 2. Methodology Executive Summary
A survey commissioned by Vizu, a Nielsen Social media has grown exponentially. One out of every 7 people in the world has
company, of more than 500 U.S. digital a Facebook page. Nearly 4 in 5 active internet users visit social networks and blogs.
marketing and media professionals was Accordingly, marketers are flocking to the medium. Whereas their customers are
conducted by Digiday in September adopting the medium with purpose, however, marketers are approaching with
-October 2012 on current attitudes and caution. Marketers are increasing budgets and using social media in conjunction
practices regarding paid social media with other advertising channels, but return on investment (ROI) continues to be
advertising. Participants were contacted a question. For this survey, we focused specifically on what marketers were doing
via email and asked to take an online around paid social media advertising.
survey. Participants were first asked to
• Paid social media advertising is growing – three quarters of advertisers surveyed
identify themselves as a Brand Marketer,
indicated that they use this channel, and 64 percent of advertisers said they were
Media Agency, or Publisher/ Social
increasing their paid social media advertising budgets in 2013, though for the
Platform. Each participant was then
most part the increase is modest.
presented with questions about their
approach to paid social media advertising • To fund this increase, advertisers are shifting budget from online and offline
specific to that classification. Results were budgets into paid social media advertising.
summarized and cross-tabbed in order to
• Advertisers are increasingly viewing paid social media advertising as an
identify consistencies or inconsistencies
integrated, cross-platform tactic, and are running it in conjunction with other
in each constituent’s viewpoints regarding
online and offline media.
paid social media advertising in 2013 and
opportunities to improve the outlook. A • Paid social media advertising is primarily being used to support branding-related
synopsis of those results is presented in efforts. As a result of this and the increasingly cross-platform way that advertisers
this whitepaper. are using the medium, advertisers “would prefer to use the exact same metrics
used in the offline medium, and additional metrics specific to the online medium”
to measure the effectiveness of their campaigns. Very few media sellers, however,
can actually provide this.
• Metrics such as likes, pins, and click-throughs are often used to measure paid
social media advertising ROI, though advertisers and agencies think sales
generated and brand lift, which are brand-related and have cross-platform
applicability, are the most appropriate metrics to use to determine ROI. Media
sellers and agencies would do well to ensure that they are able to provide these
specific metrics to attract more social advertising dollars.
• Unsurprisingly, many advertisers are doubtful or unconvinced about the
effectiveness of paid social media advertising, indicating that the growth of the
medium is being somewhat hampered by a lack of relevant, universally employed
metrics.
• There is a clear opportunity to get everyone on the same page, particularly around
metrics. Some of the things that advertisers and agencies said would increase
their use of paid social media advertising are:
–– A clear link between social media and sales generated and/or brand lift
–– Clarity around how to measure social media ROI
–– Social media benchmarks
Media sellers and agencies who invest in building out the capabilities required
to deliver these capabilities are likely to capture dollars related to social
media advertising.
2 Copyright © 2013 The Nielsen Company.
- 3. Introduction Fig. 1: How Advertisers and Agencies Use Social Media
Social media use among consumers has
exploded in recent years and shows no
sign of stopping. Facebook now has 1 89% 0%
billion active users, or one out of every
seven people in the world1. Nearly four
in five active U.S. Internet users visit
social networks and blogs2. Accordingly, 71% 6%
marketers have flocked to the medium in
order to stay in front of their customers.
USE FREE TOOLS DON’T DO ANYTHINg WITH
SOCIAL MEDIA
How Advertisers
and Agencies Use
Social Media 75%
The term “social marketing” or “social
media marketing” typically refers to two Advertisers
practices involving social media – the use
of free tools, such as Facebook, Twitter,
81% agencies
or YouTube, and paid media, such as
paid ads on Facebook or sponsoring blog PURCHASE MEDIA AND/OR SPONSOR
content. Unsurprisingly, free tools are CONTENT
popular – 89 percent of the advertisers we
surveyed indicated that they use free social
media tools. However, paid social media
advertising is close behind at 75 percent.
Among agencies, paid social media has Fig. 2: Advertisers: Percentage of 2012 Online Budget Dedicated to
overtaken the use of free tools. <Fig. 1> Social Media Advertising
Social marketing, whether free or paid, is
heavily used by advertisers and agencies.
Every advertiser that we surveyed indicated
that they did something with social media,
70%
and only 6 percent of agencies that we 1-10%
surveyed said that they did not do anything of budget
with social media.
Though paid social media advertising is
increasing, it is still a relatively new practice
18%
among advertisers. Most of the advertisers 11-20%
and agencies surveyed indicated that of budget
they had been using paid social media
advertising for less than three years, with 20
percent indicating they had only started in
the last year, demonstrating that this is still
13%
a maturing field. 21%+
of budget
This is also supported by the share of
budget that marketers allocated to paid
social media advertising in the last year. The
majority of advertisers (70%) indicated that
less than one-tenth of their overall 2012
online advertising budget was dedicated to
paid social media advertising. <Fig. 2>
1
Facebook, October 2012
2
Nielsen, July 2012
Copyright © 2013 The Nielsen Company. 3
- 4. Paid Social Media Advertising Budgets are Growing, at the Expense
of Other Channels
The majority (64%) of advertisers surveyed indicated they expect to increase their paid social media advertising
budget for 2013 <Fig. 3>; however, those increases will be modest – between 1-10 percent. <Fig. 4>
Fig. 3: Advertiser Outlook for Paid Social
Fig. 4: Paid Social Ad BudgetS will grow by…
Advertising Budgets
2% 41%
34%
64%
15%
11%
Increase Stay the Same Decrease 1-10% 11-20% 21%+
64% of advertisers
surveyed indicated
they expect to
increase their
paid social media
advertising budget
for 2013.
4 Copyright © 2013 The Nielsen Company.
- 5. More than two-thirds (41%) of advertisers
Fig. 5: Where Dollars for Social Media Advertising are Coming From
surveyed said that “social media had its
own dedicated budget,” indicating that
their organization has dollars earmarked 23%
specifically for that purpose. <Fig. 5> 41%
However, most advertisers indicated that None, social From
they would be increasing their 2013 paid media has its online display
social media advertising budget at the own dedicated
expense of other channels. Nearly one- budget
quarter (23%) of advertisers indicated they
would be shifting budget away from online
display to paid social media advertising,
while 10 percent of advertisers indicated
10%
they would be shifting budget away from
other online channels – namely rich media 39%
and video.
From other From OFFLINE
Surprisingly, 39 percent of advertisers online channels CHANNELS
indicated that they would be shifting some
of their offline budget into online paid
social media advertising, pointing to a
growing consideration of paid social media
as a cross-platform tactic. Advertisers
Paid Social Media Advertising is an Integrated, Mostly Branding-Focused Tactic
Paid social media advertising is increasingly being viewed as an integrated tactic – 66 percent of advertisers indicated that they use
paid social media advertising in combination with other online advertising, and 51 percent of advertisers indicated that they run it in
conjunction with offline advertising. <Fig. 6, Fig. 7> Agencies reported a similar degree of integration. Only 5 percent of advertisers
responded that they “rarely” or “never” run their paid social media advertising efforts in conjunction with other online tactics,
indicating a low incidence of social-only campaigns.
Fig. 6: How Often Do You Run Social Ads with Fig. 7: How Often Do You Run Social Ads with
Online Advertising? Offline Advertising?
71% Advertisers
66% agencies
51%
41% 39%
31%
20%
18%
11% 11%
7% 5%
Most or all Half of the Rarely or Most or all Half of the Rarely or
of the time time or less never of the time time or less never
Copyright © 2013 The Nielsen Company. 5
- 6. When asked which online tactics they
Fig. 8: PAID SOCIAL MEDIA ADVERTISING OBJECTIVES
typically run their paid social media
advertising efforts in conjunction with,
advertisers’ top three responses were
Primarily branding related, 45%
online display (83%), online video (46%), e.g. raising awareness, influencing
and mobile (40%). In the offline world, brand opinions 31%
advertisers’ paid social media advertising
campaigns were mostly combined with
print (52%), followed by TV (37%). Primarily direct-response related, 16%
e.g. driving product trials
Advertisers said that the primary purpose or site visits 15%
of their paid social media ads was
branding-related (45%), such as raising
awareness and influencing brand opinions, A mix of both--more than 25%
whereas only 16 percent was primarily half is branding
direct-response related, such as driving 29%
product trials or site visits. <Fig. 8> In
addition, when the campaign was a mix of
both, a quarter (25%) of advertisers said A mix of both--more than 14%
more than half was branding-related. half is direct-response
25%
Brand marketers are viewing paid social
media advertising as a branding tool,
and more often than not are running it in
conjunction with other tactics across both Advertisers agencies
online and offline platforms. Agencies and
social media sellers should ensure they
can offer brand-relevant metrics that are
applicable to the online and offline spaces
to increase their share of brand advertising
dollars in the paid social medium. Paid
social media advertising is not being
treated as a stand-alone tactic, but being
as part of a set of marketing tools to
influence brand opinions.
ROI is still a Tricky Question But Cross-Platform Consistency is Preferred
Advertisers are taking a more cross-platform approach with paid social media advertising, so it’s not surprising that advertisers
desire metrics that can span across both online and offline mediums and allow them to measure the different tactics they
employ in a consistent manner. When asked what metrics they would like to use to calculate ROI, brand marketers indicated
by a wide margin that they would prefer to use the “exact same metrics used in the offline medium, and additional metrics
specific to the online medium.”<Fig. 9> This is reinforced by the fact that the majority of their campaigns’ primary objective is
brandingrelated, as relevant brand metrics are commonplace in the offline world but scarce in the online medium. This response
also demonstrates, however, that advertisers recognize there is a unique aspect of the online medium that does not exist offline
that they can use to their advantage – for example, the opportunity to validate the effectiveness of the campaign directly against
the campaign audience.
Unfortunately, only 11 percent of media sellers surveyed indicated they were able to provide these types of metrics. <Fig. 10>
The majority of media sellers surveyed indicated they could provide metrics that were “specific to the online medium.” As only
17 percent of advertisers surveyed were interested in online-specific metrics, there is clearly a disconnect between the metrics
advertisers want and what is available to them.
6 Copyright © 2013 The Nielsen Company.
- 7. Fig. 9: Metrics Advertisers Would Like to Use Fig. 10: Metrics Publishers Can Provide
49%
42% Advertisers PUBLISHERS
29% 29%
17%
12% 12% 11%
Exact same Exact same Some of Metrics Exact same Exact same Some of Metrics
metrics metrics the same specific to metrics metrics the same specific to
as offline as offline, metrics from the online as offline as offline, metrics from the online
media, and and the offline medium media, and and the offline medium
nothing some medium, nothing some medium,
else additional and some else additional and some
metrics metrics metrics metrics
specific to specific to specific to specific to
the online the online the online the online
medium medium medium medium
Reflecting the fact that media sellers specific actions that a computer can count Fig. 11: TOP METRICS FOR SOCIAL ROI
typically report online-specific metrics, the out. However, what the industry really
top two metrics advertisers and agencies wants is insight into the campaign’s impact
said they had used to measure paid social on the audience – brand lift and sales What Media Sellers Indicate They Use
media advertising ROI in the past were generated. It is not a coincidence that these
“likes/pins” and “click-throughs.” <Fig. metrics translate to both offline and online
11> Media sellers indicated that they mediums. Media buyers should ensure that
were using “click-throughs” and “views.” they are using these relevant metrics to get Likes/pins
However, when asked what metric is most an accurate assessment of campaign ROI.
Click-throughs
appropriate to measure paid social media
advertising ROI, advertisers and agencies Unsurprisingly, the “metrics morass” has
left the industry unsure of paid social Views
responded “brand lift” (52% and 35%,
respectively) and “sales generated” (49% media advertising’s effectiveness. Two-
and 46%). Media sellers also thought that thirds of advertisers surveyed said that
“brand lift” was the most appropriate paid social advertising “moves the needle
metric to measure paid social advertising when combined with other efforts, but
What Advertisers and Agencies
ROI (52%), in addition to “shares/reposts” [they are] not sure how to measure ROI”
Indicate are Most Appropriate
(38%). There is a clear opportunity for or that “it’s a promising new tactic, but
media sellers to capture more brand dollars its effectiveness is unknown.” <Fig. 12>
by offering relevant brand lift metrics. Six percent of advertisers surveyed flat
out said that paid social media advertising
This “metrics morass,” or data overload, Sales Generated
does not work. Media sellers who are able
is preventing marketers from clearly to provide relevant brand metrics, and who Brand Lift
understanding the effectiveness of their proactively make improvements to ensure
paid social media advertising campaigns. the campaign’s effectiveness, will have the Shares/Reposts
The industry is going after the low hanging upper hand in capturing dollars from those
fruit when it comes to ROI metrics. Likes/ advertisers on the fence about paid social
pins, click-throughs, and views are online- media advertising’s effectiveness.
Copyright © 2013 The Nielsen Company. 7
- 8. Improvement Fig. 12: Media Buyer Views on Paid Social Media Advertising Effectiveness
Opportunity
Getting on the Same Page
There is a clear opportunity for increased
29% 33%
collaboration between media buyers and
sellers. Nearly all advertisers indicated
that “defining the campaign’s primary
advertising objective before campaign
27% 43%
start” and “establishing the metric
that will be used to measure success
It’s eFFective and produces I think it moves the needle when
before campaign start” was either “very
measurable ROI (with ROI deFIned as combined with other eFForts, but
important” or “somewhat important”
metric achieved per dollar spent) I’m not sure how to measure ROI
for a successful paid social media
advertising campaign. However, the media
sellers surveyed indicated that these
communications were actually happening
less than one-third of the time. <Fig. 13> 33% 6%
Advertisers indicated that it was important
to calculate ROI—it speaks to the metrics
morass that this figure is not 100 percent—
though media sellers indicated that this 27% 3%
was actually happening less than one-third
of the time.
Media sellers and buyers should invest It’s a promising new tactic, but its I don’t think it works
eFFectiveness is unknown
in systems that allow everyone involved
in the campaign to directly collaborate
around improving the campaign’s brand
performance. This investment would help Advertisers agencies
media buyers increase campaign ROI,
and media sellers’ ability to offer such
collaboration would attract more
brand dollars.
Fig. 13: What Advertisers Say is Important for a Successful Campaign
Improvement (and vs. What Publishers Say Happens for Every Campaign
Business) Opportunity
Define campaign’s primary 98%
Align Campaign Measurement advertising objective before
around Sales and Brand Lift campaign start 32%
Speaking to the same “metrics morass”
that plagues the industry, 58 percent of Establish metric that will 96%
advertisers and 65 percent of agencies be used to measure success
indicated that “clarity around how 19%
before campaign start
to measure social media ROI” would
lead them to increase their use of paid
92%
social media advertising. <Fig. 14> The Calculate ROI
confusion is so prevalent that 14 percent 29%
of brands said “no one” monitored the
ROI of their paid social media efforts.
Advertisers PUBLISHERS
8 Copyright © 2013 The Nielsen Company.
- 9. Specifically, 52 percent of advertisers
Fig. 14: ROI Clarity Would Increase Paid Social Media Advertising Use
and 66 percent of agencies said a “clear
link between social media advertising
and sales” would increase their use of
paid social media advertising. <Fig. 15>
Roughly half of advertisers (46%) and
agencies (53%) also indicated a “clear
link between social media advertising Clarity around
and brand lift.” As noted, these are the 58% how to measure 65%
metrics that advertisers and agencies social media ROI
think are the most appropriate for
measuring the ROI of their paid social
media advertising efforts.
Advertisers agencies
Improvement
Opportunity
Social Media Benchmarks Fig. 15: What Would Increase Media Buyer Use of Paid Social
Media Advertising
In addition to clarity around how they
are doing, marketers have indicated that
they would also like to understand how
they’re doing in comparison to the rest 52% 46%
of the industry. Nearly half of advertisers
(44%) and agencies (48%) said that the
availability of “social media benchmarks”
would lead them to increase their use
of paid social media advertising, as well 66% 53%
as provide some context for their social
media performance. <Fig. 16> Currently,
advertisers receive benchmarks from a Clear link between social media Clear link between social media
disparate variety of sources, ranging from advertising and Sales advertising and Brand Lift
internal benchmarks they keep themselves
to benchmarks from their agencies and
vendors. However, one-fifth (21%) of
advertisers say that they do not have any Fig. 16: Social Media Benchmarks Would Increase Media Buyer Use
social media benchmarks, leaving them of Paid Social Media Advertising
in the dark as to how they compare to
the rest of the industry. When evaluating
partners to work with, or measurement
tools to adopt, media sellers and buyers
44%
should look for the ability to compare
their campaign to industry norms or to
48%
internal benchmarks.
SOCIAL MEDIA BENCHMARKS
Advertisers agencies
Copyright © 2013 The Nielsen Company. 9
- 10. CONCLUSION
Marketers are increasingly viewing and using paid social media advertising as an integrated tool. Social media is no longer
being viewed as its own discrete medium but instead used alongside other tactics to achieve an overall, usually branding-
related, objective. However, there is a gap between how marketers would like to use the medium and the current reality.
This gap is the most pronounced when it comes to measuring ROI. There is an opportunity for the industry to work together
and get on the same page, especially around providing and using the right metrics.
By addressing the “metrics morass” that plagues advertisers, agencies, and media providers alike, the industry can address
the challenges highlighted and help grow the medium so that advertising spend on social media equates to consumer usage.
About VizU
Vizu, a Nielsen company, brings offline advertising effectiveness metrics to the online medium. By providing the first real-time,
enterprise technology platform that allows digital advertisers and their partners– publishers, ad networks, exchanges and demand-
side platforms – to collaborate directly around measuring and optimizing brand lift metrics, Vizu enables brands to move consumers
through the purchase funnel, from building awareness to creating intent and preference. Used by over 60% of Advertising Age’s Top
100 Brand Advertisers and the majority of the 50 largest online publishers and networks, Vizu’s platform is now part of the Nielsen
Brand Effect and Nielsen Campaign Ratings suites, which deliver advertising reach and resonance metrics across media. To learn
more, visit www.brandlift.com.
ABOUT NIELSEN
Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in
marketing and consumer information, television and other media measurement, online intelligence, mobile measurement,
trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York,
USA and Diemen, the Netherlands.
For more information, visit www.nielsen.com.
Copyright © 2013 The Nielsen Company. All rights reserved. Nielsen and the Nielsen logo are trademarks or registered trademarks of CZT/ACN
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10 Copyright © 2013 The Nielsen Company.