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Research: TV Was Champ in 2011 Ad Spend, Hispanic Media Skyrocketed, Online a Mixed Bag

Published 2 years ago

Kantar Media has released its final tallies for 2011 ad spending across media, and the results are a mixed bag. They suggest that advertisers value TV, are losing faith in consumer magazines and newspapers (no news there), and are on the fence about digital advertising.

Surprisingly hard hit were Sunday magazines (like Parade, The Boston Globe Magazine and the New York Times Magazine). Presumably this is because print newspaper subscriberships are down, and readers tend to cut out the expensive Sunday editions to save money, before they cancel daily subscriptions.

Big winners: Spanish-language media, and TV syndication.

Spanish-language TV was up 8.3% year-over-year, versus 2.4% for TV overall. Spanish-language magazines were up 24.9% YoY, defying a 0.4% decline for all magazines.Syndicated TV was up 15.4% over that 2.4% for TV overall (due in part to the astounding success of “The Big Bang Theory” which hit syndication in Q3).

The Year Overall

Total advertising expenditures increased an unimpressive 0.8% in 2011 and finished the year at $144.0 billion. Ad spending during the fourth quarter of 2011 dropped 1.0% versus the year ago period, the first quarterly decline since the end of 2009. Since reaching a post-recession peak in Q3 2010, advertising growth rates have slowed sequentially for five consecutive quarters.

“The contrast of resilient TV spending and waning budget allocations to other traditional media was plainly evident at the end of 2011,” said Jon Swallen, SVP Research at Kantar Media Intelligence North America. “Some mature digital media formats were also touched by the year-end tide of reduced spending. Whether this is an isolated occurrence or an early sign of digital dollars moving more quickly towards emerging and unmeasured digital platforms bears watching as 2012 unfolds.”

Measured Ad Spending By Media
Television continued to lead the ad market in the fourth quarter. Network TV expenditures jumped 7.7% year-over-year and were helped by strong pricing for football, a baseball World Series that went the maximum seven games and the launch of “The X Factor” singing competition program. The rate of Cable growth eased during Q4, finishing at +2.4% as higher demand from restaurants and retailers was offset by reductions from consumer packaged goods. For the full year, Network TV decreased by 2.0% while Cable rose 7.7%.

Spanish language TV ad spending surged 19.1% in fourth quarter, paced by higher sell-out levels at over-the-air networks. For all of 2011, the segment increased 8.3%.
Syndication TV benefitted from higher spending by department stores and health & beauty brands and saw expenditures soar 11.0% in Q4. Full year spending advanced by 15.4%.

Spot TV expenditures fell 8.7% in the fourth quarter but the more significant indicator was that November and December spending were each down, despite easy comparisons against diminished, post-election spending volume of a year ago. Full year Spot TV spending dropped 4.5%.

Free Standing Inserts achieved healthy gains in the fourth quarter with spend rising 3.0%. Although manufacturers have been distributing fewer FSI coupons, retailer promotion pages have increased significantly and this contributed to the improvement.

Ad expenditures for measured digital media declined in the fourth quarter. Paid Search budgets were 6.4% lower versus a year ago with continuing reductions from financial, insurance and local service advertisers. Display investments decreased 5.9% in Q4, dragged down by smaller budgets from auto manufacturers, telecom providers and travel companies. For the entire year, Paid Search declined 2.8% and Display increased 5.5%.

Magazine ad spending eroded at year end. Consumer Magazines declined 5.2% in the fourth quarter due to deep cutbacks in auto, food and pharmaceutical advertising. Total year expenditures were level compared to prior year. Outlays in Sunday Magazines fell 9.8% in Q4, the sixth consecutive quarter of year-over-year declines, and were down 7.2% for all of 2011.

Local Newspaper ad expenditures fell 3.9% during the fourth quarter, hurt by the reallocation of retailer advertising budgets to other media channels during the key holiday shopping season. Full year spending was 3.8% lower. The losses in Newspaper spending are consistent with reductions in the amount of space sold.

The pace of spending in Radio media also sagged. Local Radio expenditures were down 3.8% and National Spot Radio plummeted 13.9% in the fourth quarter. The telecom, financial service and automotive categories were prime contributors to these quarterly decreases.

Measured Ad Spending By Advertiser
Spending among the ten largest advertisers in 2011 reached $16,061.6 million, a 2.8% decline compared to a year ago. Among the Top 100 marketers, a diversified group that represents over two-fifths of all measured ad expenditures, full year budgets were down 0.2%.

For the ninth consecutive year, Procter & Gamble was the top advertiser with spending of $2,949.1 million down 5.4% compared to last year. While TV is still the foundation of its advertising media buys, P&G’s 2011 budget allocation saw share gains for magazines at the expense of TV.

AT&T was the second largest advertiser in 2011 with expenditures of $1,924.6 million, a decline of 11.7%. Media budgets were severely curtailed during the fourth quarter when the company abandoned its attempted acquisition of T-Mobile, triggering large breakup fees and a huge earnings loss. At Verizon Communications, full year ad spending was $1,636.9 million, a decrease of 11.8%. After a string of quarterly budget cuts dating to early 2010, Verizon sharply boosted its spending during the last quarter.

The largest growth rate among the Top Ten marketers was posted by Chrysler, up 36.2% to $1,193.0 for the full year. The increase was driven by marketing introductions for several new or redesigned models, coupled with the improved sales climate for new vehicles. In contrast, General Motors lowered its 2011 outlays by 16.1% to $1,784.1 million. Q4 media budgets dropped 24.7%. As factory support has been trimmed, GM dealers have been bearing a larger share of the overall marketing effort.

L’Oreal investments in 2011 rose 18.1% to $1,343.5 million as the company expanded marketing support for the L’Oreal Paris, Maybelline and Garnier brand lines. Comcast (+11.3%, to $1,577.2 million) and Time Warner (+5.8%, to $1,279.4 million) also posted full year spending gains.

Measured Ad Spending By Category
Expenditures for the ten largest categories grew 3.3% in 2011 and reached $81,629.2 million.

Automotive was the leading category in dollar volume and finished 2011 at $13,890.4 million, up 6.3%. Category spending growth became increasingly bifurcated during the year with Tier 2 and Tier 3 dealer budgets continuing to expand and Tier 1 manufacturer expenditures flattening.

Miscellaneous Retail, which is comprised of all retail segments except Department Stores and Home Improvement purveyors, was the second largest category with 2011 expenditures of $10,019.5 million, up 4.0%. Robust ad spending during the critical year-end holiday season bolstered results.

Insurance registered the largest growth rate among the Top Ten categories with a 13.5% gain to $5,519.0 million. Aggressive competition among auto insurers to gain market share continues to drive media budgets higher.

Financial Services totaled $9,059.9 million of spending, a 3.6% increase. Growth has been fueled by the credit card segment, offsetting continued weakness in ad budgets for investment products and retail banking.

The Telecom category lost ground as 2011 expenditures fell 5.8% to $8,649.0 million. Declines were most pronounced among the leading wireless service advertisers. Aggregates expenditures from TV service providers also slowed.

Top Spending Advertisers Within Select Media
The top ten TV advertisers spent $10,115.4 million in the medium during 2011, down 0.8% from a year ago. This group accounted for 14.9% of total TV expenditures by all advertisers.

The ten largest Internet advertisers invested a total of $2,360.6 million in paid search and display campaigns, up 10.0% versus a year ago. Despite fragmentation on the web, the group accounted for 10.9% share of all Internet ad dollars.

The top ten advertisers in Hispanic Media spent $1,403.6 million during 2011, an increase of 29.2%. This group accounted for 24.7% of all Hispanic Media expenditures, the largest Top Ten share concentration of any medium.

 

“Forbes Life” Relaunch Joins Luxury Race

Published 2 years ago

Forbes Media announced the relaunch of its lifestyle title ForbesLife last November, and has just released its April issue. While for 22 years it was polybagged to 800,000 of Forbes' 900,000 subscribers, it will now be offered on newsstand, and available in replica form for Nooks, Kindles and iPads, providing cross-platform access to what Forbes calles “the best in luxury journalism.”

It will have to be, to stand out. As Women's Wear Daily observes, "It’s only March and four luxury titles have revealed they will launch (or relaunch) to tell the tales of billionaire bachelors, fine Parisian restaurants and the latest antiaging skin procedures." February saw the launch of Bloomberg Pursuits, aimed at its Bloomberg Terminal clientele with their median household income of $452,000, 90% male. Jason Binn, founder of Niche Mediam, will publish Du Jour magazine in September, targeting readers with a net worth of more than $5 million and an average home value of $1.5 million. And Time has resurrected its Time Style & Design after a three-year hiatus. Advertisers include Harry Winston and Bulgari, and the magazine is delivered to 500,000 affluent subscribers.

ForbesLife and Time Style & Design of course share strong journalistic parentage. Forbes has easy access to the world's luminaries, which is the value proposition of ForbesLife. “With personality-driven covers, the new ForbesLife offers personal connections to the world’s tastemakers, with a focus on putting power in the hands of the consumer,” said the company in a release. “The magazine was re-imagined for the social world we live in." The April issue boasts a new modern look, photo-driven editorial content, first-person storytelling, and “unprecedented access to the most important people in the world...focused on giving candid glimpses into the biggest names in business, showing how the rich and ambitious really live."

“In integrating ForbesLife with its parent and introducing a dazzling design courtesy of the great Robert Preist and his associate, Grace Lee, we are amplifying our nearly 22-year-old founding mission of celebrating the rewards of success with flair and style,” said Robert Forbes, President of ForbesLife. ForbesLife readers represent elite influencers, spending more on travel, apparel and accessories, fine watches and jewelry, consumer electronics, home furnishings, and luxury vehicles than readers of any other business publication. 

In the newest issue, Warren Buffett writes about his decision to invest on his own at age twenty five, a choice that ended up netting him over $50 billion dollars.  The cover story takes readers inside the home of bachelor billionaire Elon Musk, South African tech-genius responsible for PayPal, Tesla, Space X, and supposedly was the inspiration behind Iron Man. (A dubious claim: the first “Iron Man” comic was released in 1963, Musk born in 1971, but perhaps ForbesLife is talking about the films.) John Paul DeJoria, cofounder of Patrón and Paul Mitchell hair products, takes ForbesLife for a ride on luxurious private train car, The Patrón Tequila Express. Jay Leno gives a tour of his $20 million garage, equipped with the most sought-after vehicles in the world.    Also showcased in the issue are the lives of philanthropist Susan Dell and car magnate Charles Royce; a wine tour of Paris by world renowned wine writer Robert Parker Jr.; and a satire by P.J. O’Rourke.

Additional highlights of the new ForbesLife include sections on the best in travel, auctions, charities, high-end sporting events and luxury goods as well as party pictures from exclusive Forbes branded events.

Is now the time to launch a luxury title? Absolutely, observes WWD, which observes that year-to-date, luxury title W is up 63 ad pages (20%), and Departures kicked off 2012 with a 22% rise in revenue and 10% hike in paging during Q1.

Research: 2011 U.S. Ad Spends Increased Barely, Digital Dipped Q4, TV Stayed Strong

Published 2 years, 1 month ago

Ad research think tank Kantar Media has released some media-specific results for 2011 (for retailers, on out of home adverts), but has just released its all-media, all-verticals results.
Total advertising expenditures increased 0.8% in 2011 and finished the year at $144.0 billion in 2011. Ad spending during Q4 dipped 1.0% over Q4 2010, which was the first quarterly decline since the end of 2009. Since reaching a post-recession peak in Q3 2010, advertising growth rates have slowed sequentially for five consecutive quarters.

“The contrast of resilient TV spending and waning budget allocations to other traditional media was plainly evident at the end of 2011,” said Jon Swallen, SVP Research at Kantar Media Intelligence North America. “Some mature digital media formats were also touched by the year-end tide of reduced spending. Whether this is an isolated occurrence or an early sign of digital dollars moving more quickly towards emerging and unmeasured digital platforms bears watching as 2012 unfolds.”

Measured Ad Spending By Media
Television continued to lead the ad market in the fourth quarter. Network TV expenditures jumped 7.7% year-over-year and were helped by strong pricing for football, a baseball World Series that went the maximum seven games and the launch of The X Factor singing competition program. The rate of Cable growth eased during Q4, finishing at +2.4% as higher demand from restaurants and retailers was offset by reductions from consumer packaged goods. For the full year, Network TV decreased by 2.0% while Cable rose 7.7%.

Spanish language TV ad spending surged 19.1% in fourth quarter, paced by higher sell-out levels at over-the-air networks. For all of 2011, the segment increased 8.3%.

Syndication TV benefitted from higher spending by department stores and health-and-beauty brands and saw expenditures soar 11.0% in Q4. Full year spending advanced by 15.4%.
Spot TV expenditures fell 8.7% in the fourth quarter but the more significant indicator was that November and December spending were each down, despite easy comparisons against diminished, post-election spending volume of a year ago. Full year Spot TV spending dropped 4.5%.

Free Standing Inserts achieved healthy gains in the fourth quarter with spend rising 3.0%. Although manufacturers have been distributing fewer FSI coupons, retailer promotion pages have increased significantly and this contributed to the improvement.

Ad expenditures for measured digital media declined in the fourth quarter. Paid Search budgets were 6.4% lower versus a year ago with continuing reductions from financial, insurance and local service advertisers. Display investments decreased 5.9% in Q4, dragged down by smaller budgets from auto manufacturers, telecom providers and travel companies. For the entire year, Paid Search declined 2.8% and Display increased 5.5%.

Magazine ad spending eroded at year end. Consumer Magazines declined 5.2% in the fourth quarter due to deep cutbacks in auto, food and pharmaceutical advertising. Total year expenditures were level compared to prior year. Outlays in Sunday Magazines fell 9.8% in Q4, the sixth consecutive quarter of year-over-year declines, and were down 7.2% for all of 2011.
Local Newspaper ad expenditures fell 3.9% during the fourth quarter, hurt by the reallocation of retailer advertising budgets to other media channels during the key holiday shopping season. Full year spending was 3.8% lower. The losses in Newspaper spending are consistent with reductions in the amount of space sold.

The pace of spending in Radio media also sagged. Local Radio expenditures were down 3.8% and National Spot Radio plummeted 13.9% in the fourth quarter. The telecom, financial service and automotive categories were prime contributors to these quarterly decreases.


Measured Ad Spending By Category
Expenditures for the ten largest categories grew 3.3% in 2011 and reached $81,629.2 million.

Automotive was the leading category in dollar volume and finished 2011 at $13,890.4 million, up 6.3%. Category spending growth became increasingly bifurcated during the year with Tier 2 and Tier 3 dealer budgets continuing to expand and Tier 1 manufacturer expenditures flattening.

Miscellaneous Retail, which is comprised of all retail segments except Department Stores and Home Improvement purveyors, was the second largest category with 2011 expenditures of $10,019.5 million, up 4.0%. Robust ad spending during the critical year-end holiday season bolstered results.

Insurance registered the largest growth rate among the Top Ten categories with a 13.5% gain to $5,519.0 million. Aggressive competition among auto insurers to gain market share continues to drive media budgets higher.

Financial Services totaled $9,059.9 million of spending, a 3.6% increase. Growth has been fueled by the credit card segment, offsetting continued weakness in ad budgets for investment products and retail banking.

The Telecom category lost ground as 2011 expenditures fell 5.8% to $8,649.0 million. Declines were most pronounced among the leading wireless service advertisers. Aggregates expenditures from TV service providers also slowed.

Facebook Ads: Think “Fun,” as Movies Excite and Banking Bores

Published 2 years, 1 month ago

Facebook ads offer a strong value proposition, provided the brand is a fun one. Ads for movies and consumer electronics achieve astounding clickthrough rates (CTRs) and low cost-per-clicks (CPCs), reports eMarketer. The story is quite different for banking services, the lowest in engagement in 10 categories with the highest cost-per-click (CPC).

The CTRs and CPCs of Facebook campaigns by industry reveal that the platform is cost-effective in some, but not all industries. Facebook ad-solutions provider AdParlor analyzed more than 1,000 ad campaigns purchased through the company for the four-month period of September 2011 through February 2012. Industries typically perceived as more exciting—movies, electronics, automotives—garnered a higher average daily CTR. Ads for movies and entertainment (the #1 position out of 10 categories) outperformed ads for banking services (#10) nearly five-fold.

With that low engagement, merchant and banking services had the highest cost-per-click at $1.24 and a low average clickthrough rate of 2.52% (roughly a 25% improvement on direct mail).
Social media marketing company SocialBakers found much the same results. The company analyzed engagement on Facebook pages of companies worldwide between December and January, tallying the number of “likes” and comments the page received and divided the number by total fans.Airlines and automobiles saw the highest engagement rates, with 0.33% and 0.36%.

Interestingly—and as much as fans may seek engagement—some of these industries stink at response. SocialBakers found that automobile companies routinely ignore their fans, exhibiting only a 9.56% response rate. Airlines lead response rates at 44.66%, as they have come to use social media as a customer service portal.

Out-Of-Home Ad Spend Up 4% in 2011, Outpaces Media Overall

Published 2 years, 1 month ago

Out-of-home advertising revenue rose 4% in 2011 over 2010, to reach $6.4 billion, says the Outdoor Advertising Association of America (OAAA). That increase was consistent for each quarter of the year with total growth up 3.0% in the fourth quarter.

This comes as a bit of a surprise. As Media Life observed, when media think tank Kantar Media releases its final tallies for 2011 in March, out-of-home “will probably be the fourth-fastest-growing category, behind Spanish-language media, cable TV and the internet.” Out-of-home or OOH advertising at 4% significantly outpaced the 1.5% growth pace of overall advertising through the first three quarters of the year. It is also well ahead of radio, the only other media to announce full-year results so far, and which was up 1% in 2011.

Out-of-home advertisements come in the categories of 1) billboards, which includes posters, 2) street furniture like bus benches and kiosks, 3) transit like bus exteriors, and 4) alternative, a catch-all category that encompasses skywriting, blimps, cartons and cups and dry cleaning bags, among others.

“Out-of-home performed well last year,” said OAAA President & CEO Nancy Fletcher. “More brands are recognizing the value out of home advertising can add to a strategic media plan.”
Several industry categories performed well all year, most notably the Schools, Camps & Seminars sector, which was up 22.4% for the year. Other notable growth categories were Media & Advertising; Financial; and Miscellaneous Services & Amusements, which is comprised mainly of local brands. The Communications category flattened in 2011 after a decrease in the fourth quarter.

Four of the top five advertisers increasing out-of-home media spend last year were financial brands; namely Chase, Prudential, JP Morgan, and Citi. Five of the top 20 advertisers increasing out of home spend were in the Media & Advertising category.

“Out-of-home advertising outpaced the overall ad business and other local media last year,” said Stephen Freitas, OAAA Chief Marketing Officer. “The industry has grown steadily for the past seven quarters, and that growth trend is expected to remain strong.”

OAAA issues full industry pro forma revenue estimates that include, but are not limited to, Miller Kaplan and Kantar Media (which is not adjusted to reflect changes in data sources), and member company affidavits. Revenue estimates include billboard, street furniture, transit, and alternative media, as well as digital platforms for advertising spend.

comScore Ranks Top 50 U.S. Web Properties: Seasonal Boosts for Travel, Career, Taxes

Published 2 years, 2 months ago

Digital measurement thinktank comScore, Inc. has released its monthly analysis of U.S. web activity at the top online properties for January 2012, based on data from the comScore Media Metrix service.  Tax sites (including IRS.GOV), travel sites like Kayak.com and educational sites all saw strong gains.

“In January, the average U.S. Internet user spent a record 36 hours online, reflecting the growing importance of digital media to Americans’ daily lives,” said Jeff Hackett, executive vice president of comScore. “Among the biggest category gainers in this heavy month of Internet usage were Travel and Career sites, which posted double-digit gains, and of course Tax sites as the non-procrastinators among us decided to get an early jump on getting their refunds.”

Travel Sites
Several Travel subcategories were among the top-gainers in January, including Transaction sites which grew 28% to 3.7 million visitors. TravelPN.com led the category with 798,000 visitors (up 11%), followed by Viator.com with 642,000 (up 9%), WWTE.com with 442,000 (up 86%) and OneTime.com with 278,000 (up 48%).

Car Rental sites jumped 22% to 6.2 million visitors during the month, led by Enterprise Rent-A-Car Company with 3.2 million visitors (up 14%). Avis Budget Group ranked second with nearly 2 million visitors (up 19%), followed by Hertz with 1.3 million (up 21%), CarRentals.com with 793,000 (up 30%) and Dollar Thrifty Automotive Group, Inc. with 790,000 (up 27%).

Hotels/Resorts also ranked among the fastest-growing Travel sites. The category attracted 33.2 million visitors in January, representing an 18-percent increase. Marriott secured the #1 position in the category with 5.1 million visitors (up 30%), followed by Disney Parks & Travel with 4.8 million (up 36%), Hilton Hotels with 4.6 million (up 25%) and Expedia Hotels with 3.3 million.

Career and Education
As the new year began, Americans turned their focus to career services and education. Traffic to Job Search sites grew 27% in January to 24.2 million visitors. Indeed.com Job Search ranked as the category leader with 13.7 million visitors (up 33%), followed by CareerBuilder.com Job Search with 9.8 million (up 27%), Monster.com Job Search with 5 million (up 28%) and SimplyHired.com with 3.5 million (up 42%).

Training and Education sites also gained traction, with a sizeable increase of 23% to 14.7 million visitors. LiveCareer.com topped the list with 1.2 million visitors (up 58%), followed by AesopOnline.com with 940,000 (up 44%), FastWeb.com with 736,000 (up 30%) and Learn4Good.com with 599,000.

Tax Sites Spike as Season Begins
Visitation to Tax sites swelled in January as millions decided to get a jump on filing and hopefully getting a refund check from Uncle Sam. More than 30.7 million Americans visited a Tax site in January, up 359% to rank as the fastest growing category.

Top 50 Properties

Google Sites ranked as the #1 property in January with 187.4 million visitors, followed by Microsoft Sites with 179.2 million and Yahoo! Sites with 177.2 million. LinkedIn.com jumped 8 positions to rank #29 with 36.8 million visitors, while Everyday Health, which helped many fulfill their New Year’s resolutions to be healthier, leapt 10 positions to #38.

Top 50 Ad Focus Ranking

Google Ad Network led the January Ad Focus ranking with a reach of 92.9% of Americans online, followed by AOL Advertising (85%), Yahoo! Network Plus (84.8%), ShareThis (82.4%) and AT&T AdWorks (82.3%).

“The Economist” Banks that China Section Will Draw Readers, Advertisers

Published 2 years, 2 months ago

Beginning with this week’s issue, The Economist will run a section devoted entirely to China. This is only the third time in 170 years that the magazine has created a country-specific section. But as Editor in Chief John Micklethwait told Audience Development, “China is getting so large that trying to constrain it in a section like geo-politics was difficult.”

China is a broadly-interesting topic, Micklethwait believes, affecting the magazine’s entire global readership. The British-born magazine took the same stance during WWII with its still-existing U.S. section.

Circulation of The Economist within China is a miniscule 3,740, and Micklethwait is not counting on it growing; rather, he is counting on it increasing readership long-term in the U.S., among “That group [that] wants to know more about China than what they’re being told.”

In addition to mainstream business and politics, The Economist has reporters on the ground to cover rural life, social changes and emerging trends.

The Economist claims a 2011 circulation of 1,486,838, and a modest year-over-year growth of 3.03%. But Omniture clocked the digital edition with a swift 7,610,593 unique visitors in December 2011, and 34,124,539 page views.

Research: Facebook Ads Offer 45% Cost-Per-Click Savings

Published 2 years, 3 months ago

Facebook enables advertisers to make “considerable savings” in online marketing, found TBG Digital (TBG) in its latest Global Facebook Advertising Report.

As a Facebook advertising firm, TBG is certainly vested in proving great results. But, it had its methodology and findings vetted by the UK’s University of Cambridge, and drew data from its own heavyweight client base, including JetBlue, CapitalOne, Dell and Heineken.

The report, which was based on 326 billion impressions in 205 countries, and from 256 TBG clients. It reveals these findings:

  • Strong incentives for advertisers to stay within Facebook, with potential 45% reduction in cost-per-clicks (CPCs)
  • Stabilizing Facebook growth in US created an increase in advertising costs
  • Facebook earned 23% more in ad rates since Q1 2011
  • Ad performance improved by 18% in 2011
  • The top five Sectors comprised almost 70% of total impressions
  • The financial sector accounted for more than 60% of impressions in offsite campaigns
  • CPCs increased from Thanksgiving to Saturday December 17

TBG discovered reductions in CPCs for advertisers that run campaigns to recruit fans or that require users to install applications. Savings reached 45%, in contrast with those that direct traffic away from Facebook. That is a strong incentive for companies to build presence within Facebook. For example, financial services firms often direct users back to their own websites to complete a quotation or sign up, but tailored applications that perform the same functions within Facebook drives down advertising costs.

Cost per Thousand Impressions (CPM) rates, the other core cost comparator which indicates how much Facebook earns every time an advert is shown to a user, increased by 8% on average over Q4, for a total increase of 23% in 2011.

Click-Through Rates (CTRs) also increased by 18% during for the entire year2011. This, believes TBG, indicates that ad output is resonating with users more, and indicates a greater that Facebook advertisers have a better understanding and use of targeting methods like time of day, demographics and user interests.

TBG assessed 18 “bellwether industry sectors” for volume and effectiveness. The top five sectors, ranked by volume, were finance; retail; food and drink; games; and entertainment, which accounted for nearly 70% of total impressions on Facebook. TBG Digital CEO Simon Mansell commented that “Users are increasingly discerning about what they view on social media networks, so it is in all advertisers’ interests to ensure that their content resonates with their target audiences and fits with their usage habits. Food and drink recorded the highest CTRs, largely due to successful fanning campaigns in that sector.

 

 

Device’s Screen Size May Determine Conversion Likelihood

Published 2 years, 5 months ago

While search advertisers experience higher click-through-rates for mobile phone and tablet search campaigns than for desktop search campaigns (at 166% and 137% respectively) according to a November 2011 report from Macquarie Group, those clicks are less likely to convert to sales in a direct relationship to screen size. The report employed Efficient Frontier advertiser data. Efficient Frontier found that mobile conversion rates were at just 31% of the average desktop campaign’s, while tablet conversion rates were much more on par (96%). Meanwhile, the average cost-per-click (CPC) on mobile phone search campaigns was slightly higher (108%) than for desktop search campaigns, although CPCs for tablet campaigns were on average 85% of desktop search campaign CPCs.

Chart: U.S. Finance Sector Data, Q2 2011

Published 2 years, 9 months ago

U.S. Finance Sector Data About this chart: Source: Efficient Frontier / Context Optional, "Global Digital Marketing Performance Report," July 2011. The analysis was completed based on data from Efficient Frontier search engine marketing customers and the resulting Efficient Frontier’s Customer Index. The Efficient Frontier Customer Index represents a subset of Efficient Frontier clients who have spend data for six consecutive quarters or more whose resulting SEM metrics are then normalized to average industry category contributions established by multiple third party data providers.