There’s never a dull moment in social advertising, and the first few months of 2015 have made that clear. Topics in this webinar include: Why social ad spending is continuing to rise; Which platforms are growing fast and challenging Twitter in usage; Why Facebook may be the next video star, and what this means for advertisers; How social data is helping create a new generation of ad networks; Why the combination of real-time marketing and personalization will be social’s true strength.

1. © 2015 eMarketer Inc.
Made possible by
Key Trends in Social Advertising
April 23, 2015
Debra Aho Williamson
Principal Analyst

2. © 2015 eMarketer Inc.
Agenda
 Social Ad Spending: Up, up and away
 Social Usage: Instagram is now bigger than Twitter, and
messaging apps are coming on strong
 Video Advertising: Why Facebook may be the next video star
 Next-Gen Ad Networks: Social data offers new ways to
target ads
 Real-Time + Personalization: As programmatic buying
takes hold, this is social’s key strength

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Social Ad Spending

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US ad
spending
on social
networks
will approach
$10 billion
this year

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A similar trend is happening worldwide:
$23.68 billion
Worldwide social network ad spending in 2015
Up 33.5%
Over 2014

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In Western
Europe and
North America,
more than
one-third of
digital display
ad spending
will go to
social
networks in
2015

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Facebook’s
share of US
social ad
revenue will
remain at
about 70%
through 2017
Wild card: These figures
don’t include mobile
messaging apps
(such as Snapchat)

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Marketers are
drawing from
multiple
budgets to
fund social ad
spending

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What’s behind the spending increases?
 Better targeting = better results (= higher ad prices)
– Q3 2014 Facebook CPM: $1.54
– Q1 2014 Facebook CPM: $0.46 (Salesforce.com)
 Video ads command higher CPMs
 Social usage is very high: Advertisers want to reach
people where they are spending their time

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Social Usage

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Instagram has more worldwide monthly users
than Twitter, but FB Messenger towers over both
600
million288
million
Twitter (Q4 2014)
Facebook Messenger
(Mar 2015)
300
million
Instagram (Dec 2014)
Source: Company reports

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What’s behind
Instagram’s
strong
growth?
Millennials

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Pinterest is
also catching
up in the US

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Despite all the
‘Facebook is
dead among
teens’ chatter,
the vast
majority of
US teen
internet users
still access it

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And Facebook remains a regular destination for
those teens, even if less so than in the past

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Ones to watch: Facebook Messenger and
Snapchat
 Messenger
has strong
penetration
across age
groups
 New features
(payments, etc.)
will keep users
in the fold

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Video Advertising

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Marketers are changing how they think about
video in social media
“We are looking at
social platforms at large
as a new video
distribution
opportunity.”
— Natalie Bokenham,
UM Worldwide
“It’s not just
YouTube anymore.
It’s figuring out how to
incorporate snackable
video content on
channels like Instagram,
Vine, animated GIFs,
etc.”
— Kellee Montgomery,
Ford Motor Co.

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Facebook and other social properties want a
share of the growing digital video market
 US digital video
ad spending is
expected to rise
33.8% in 2015,
to $7.77 billion

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Facebook: redefining video advertising and a
potential challenger to YouTube
 Facebook delivers over 4 billion video
views per day (Source: Facebook, April 2015)
 It is wooing video content producers
to upload their videos directly to
Facebook rather than link to YouTube
 It is aggressively marketing its
autoplay video ads

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Intrigued
by the
possibilities
of autoplay
video ads,
more
marketers
are
considering
using them

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Facebook video ads offer a few key benefits:
 Sharing: Marketers that have experimented with video ads on
Facebook say they can get a great deal of organic distribution on top
of paid distribution.
 Mobile: As mobile video grows, Facebook is well-positioned. In Q4
2014, 85% of its worldwide users accessed Facebook on mobile.
 Targeting: Facebook’s targeting is a key reason why its ad business
has grown rapidly. Those same capabilities will be available to video
advertisers, enabling them to target people most likely to respond.

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But there are drawbacks to be aware of:
 Limited search capabilities: YouTube’s search capabilities are
strong. Finding videos on Facebook is much harder.
 Not a library: Many marketers use YouTube as a library for their
video assets. Facebook doesn’t have the same capability.
 CPM pricing: Facebook recommends advertisers use either CPM or
reach-and-frequency buying optimized for video views. This can be a
drawback for advertisers that want to pay for ads based on a deeper
action than an impression.

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YouTube faces new challengers

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eMarketer’s perspective: A rising tide (of video
ad opportunities) lifts all boats
“I love Facebook video. I have no issue
with it all. But that doesn’t mean I’m going
to stop using YouTube. I want to use
as many platforms as I can to
push my message out.”
—Steve Carbone, MediaCom USA

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Next-Gen Ad Networks

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Social properties are writing new rules for ad
targeting
Then:
Cookies
Now:
Profile data
Photos: Arvind Balaraman / FreeDigitalPhotos.net; ddpavumba / FreeDigitalPhotos.net

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Enter ‘People-Based Marketing’
“Helping marketers reach real
people across devices,
platforms and publishers.”

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Social data powers three Facebook ad offerings
 Atlas
– For advertisers
– Cross-platform, multi-device ad targeting and campaign
management
 Facebook Audience Network
– For mobile app developers
– Extends targeted ads on Facebook into third-party apps
 LiveRail
– Ad management platform for mobile and desktop publishers

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Twitter is working in this realm as well
 Syndicated Promoted
Tweets
– Places Twitter ads in Twitter
content sections on third-party
apps and websites
– Launched with Flipboard app
and Yahoo! Japan

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This form of ad targeting has a lot of potential,
but these are still early days
 Privacy concerns, part 1: Will consumers accept that the travel
ad they see on their mobile app was placed there because they posted
about a trip on Facebook?
 Privacy concerns, part 2: Outside the US, governmental
restrictions on data usage may hinder this form of targeting.
 Limitations: Facebook and Twitter may have social data, but that’s
only one piece of the puzzle. Other data—location, purchase
behavior—will come from other sources.

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Real-Time + Personalization
+ Programmatic
= Social’s Advantage

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What is programmatic advertising?
“Programmatic advertising is an
automated,
technology-driven method of
buying, selling or fulfilling ad
placements.”

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In 2015, the spending scale will tip toward
programmatic
55% of all
US digital display
ads will be bought
programmatically
in 2015, worth
$14.88 billion

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As a result, a new way of thinking about creative
is emerging
“Historically, it was creating one piece of brilliant
creative to be fed to millions of people. Now it’s
about turning that upside down and saying, ‘We
need a million pieces of brilliant
creative to be fed to each individual on
an as-needed basis.’” — Douglas Kofoid, VivaKi

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Social will be an important piece of the puzzle
when it comes to programmatic creative
Programmatic
creative is
“Creative that is broken down
into component parts and then
reassembled on the fly based on
what’s known about the
audience or individual to whom
the ad is served.”
Photo: Salvatore Vuono / FreeDigitalPhotos.net

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Elements of
real-time
personalization
are already being
used in social
media—such as
the airline ad that
pops up minutes
after you shop for
a flight

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Lexus customized 1,000 video ads on Facebook
for the 2015 Super Bowl
 Ads were
personalized
based on
Facebook data
 Backgrounds
and copy were
customized to
interests and
location Video ad images: Facebook

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Snapchat is putting the pieces together as well
Real-time audience Geofiltering
“This is prime real
estate for a brand.”
—Nick Cicero of social
influencer marketing agency
Delmondo, writing in the
company blog, April 2015

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Why this trend is important—and why social will
be a big part of it:
 Programmatic “pipes” provide the groundwork for ad
personalization at scale
 Data about individuals is a necessary component for
personalized ads; social media is a key source of that
data
 Social media is also a key place for real-time
conversation
 As all of these trends intersect, they will do so
increasingly in social media

41. © 2015 eMarketer Inc.
Key Takeaways:
 Social ad spending is still growing substantially
 Facebook’s user base is enormous, but several other
properties have hundreds of millions of active users
 Digital video ad opportunities are increasing, and social
will take a growing share
 There will be a lot of development and momentum for
next-generation ad networks powered by social data
 Social platforms increasingly will be a home for
real-time, personalized ads bought programmatically

42. Social & Programmatic Ad Trends
AdRoll’s recent findings
Jackie Lamping
Sr. Director, Marketing
@jackielamping

43. Marketers finding high ROI with
retargeting:
intent signals + precise targeting + real-time personalization

44. Retargeting Arrives on Social Platforms:
today’s modern marketers driving ROI at scale
One platform to reach
your customers across:
Plus, 500+ publishers and
exchanges

45. “Whether they’re friending us on Facebook or following
us on Twitter, we try to build a brand that gets people
excited. AdRoll helps accomplish our goals, makes our
customers smile, and reminds them why they checked
out the site in the first place.”
B2C Case Study:
Chubbies
—Preston Rutherford, Co-founder

46. B2B Case Study:
Tableau
“AdRoll has made our customer acquisition and content
marketing efforts seamless. It currently accounts for
14% of Tableau’s monthly advertisement free trial and
content leads.”
—Allison Perry, Online Marketing Manager

47. The Future of Retargeting is Social

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Debra Aho Williamson
Key Trends in Social Advertising
 Millennials and Social Media: Gauging How Facebook and
Other Networks Fit in Their Lives
 Creating Ads on the Fly: Fostering Creativity in the
Programmatic Era
 Pinterest for Marketers: What You Need to Know
 Worldwide Social Network Users: Q1 2015 Complete Forecast
 Video Advertising: How Facebook, Twitter, Instagram, Tumblr
and Snapchat are Changing the Rules