Social advertising rises 50% in final quarter of 2015
Spend on social advertising rose 50% in the last quarter of 2015 compared to the same period last year as the maturation of the market and its offerings prompted huge growth.
The figures are based on Kenshoo’s analysis of more than 550 billion impressions, 11 billion clicks and $6 billion in advertiser spend made through its Infinity Suite, and show that social ad spend was fuelled by a number of changes in the market. These included the introduction of new ad types such as Facebook Dynamic Product ads which made up 26% of all search impressions thanks to their heavy use by retailers using them for product focussed seasonal campaigns last year.
Changes in bidding strategies also drove growth in the market – again instigated by Facebook. The company changed the definition of cost per click to make it easier for marketers to bid on offsite clicks (ie taking them to an advertiser’s landing page or app) rather than social engagement clicks such as likes, comments and shares. The company also introduced easier and simpler bidding and optimisation processes during the period.
Thirdly the move by Instagram to allow marketers of any size around the world to begin buying and managing Instagram ads on a self-service basis also drove change and growth in the market.
The figures show that impressions for social ads in the quarter fell but the click through rate (CTR) rose by 64% year on year – resulting in 30% more clicks and a 10% rise in CPC compared to the previous year.
Rob Coyne, Kenshoo’s managing director for EMEA said that the changes in social ad types, how they are bought and how customers engage with them – as well as the ability to buy Instagram advertising – had led to a big impact on both spend and performance in the final quarter of 2015. “They have helped to make social clicks more valuable and disrupted previous trends in both CPC and CTR, with the greater competition amongst retailers during the holiday shopping season likely to have exacerbated the effects,” he said.