Kinetic-Data-Report_-Q42015 (1).pdf

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Q4 2015 SOCIAL TRENDS REPORT

WWW.KINETICSOCIAL.COM



Q4 Topline Summary

Q4 is an exciting time of year in the advertising space. The speed of work picks up significantly as

brands clamor for share of wallet in the biggest consumer buying season of the year. This quarterly

report tells the story emerging from campaign data across all the advertisers we work with, and in Q4

it’s important to read that story within this holiday season context. Overall, we saw a sharp increase

in demand, correlating with greater competition for ad space and thus increased pricing. The majority

of that increase came in the form of performance or “direct response” advertising, driving to a specific

online action, which is to be expected in Q4. Below we’ll explain the implications of that shift by socia

network. Throughout the quarter, Kinetic helped all our clients, across a diverse swath of categories

including CPG, travel, financial services, fashion and education to reach their respective audiences

across social platforms.

These ndings are based on Kinetic’s client base specically and are not meant to be representative of al

advertising running on social networks. For more information about our data, please see the final page

of this report.

Table of Contents

3 - 8.

9 - 11. 12 - 13.

14 - 15. INSTAGRAM

FACEBOOK

TWITTERPINTEREST




FACEBOOK CAMPAIGNS

Facebook CTR dropped and eCPC increased signicantly

which on the surface looks like an aberration. Some of

that was due to increased demand typical of Q4. An eve

bigger factor was the shift of much of our clients’ busine

objectives to direct response. Today, best practices on

Facebook involve optimizing campaigns to users who arconverting or buying. Doing so de-emphasizes clicks and

focuses instead on those users who buy even if they don

click. As a result, CTR will drop and eCPC will increase, bu

more importantly Return on Ad Spend (ROAS) will impro

as non-clickers purchase at a greater rate.

Whereas in Q3 our most prominent campaign objective

Engagement, in Q4 it was Website Conversions, while Vi

Views decreased slightly. We expect those trends could

reverse somewhat in Q1 as we move away from the hol

buying season.The CPG vertical had both the highest CT

and lowest eCPC for Q3, highlighting the continued ec

of CPG advertising on Facebook.

Video ads continue to be very eective, with the lowest

eCPC and a high CTR. Link ads show the opposite, again

result of the focus on conversion rather than clicks.

Mobile inventory continues to dramatically outperform

Desktop inventory, and the Carousel Link ad unit conti

to be far more eective than other forms of Link ad un

FACEBOOK OVERVIEW



The decrease in CTR can be attributed to an

increased focus on conversions instead of

clicks in Kinetic’s optimization strategy.

Eective Cost Per Click (eCPC) is up 74% from last

quarter due to increased competition for ad spacein the holiday season and an increased focus on

conversion-based rather than click-based optimization.

Eective Cost Per Thousand (eCPM) remained

relatively at throughout 2015, moderately

increasing 10% year over year.

2014 Q4

2014 Q4

2014 Q4

2015 Q1

2015 Q1

2015 Q1

2015 Q2

2015 Q2

2015 Q2

2015 Q3

2015 Q3

2015 Q3

2015 Q4

2015 Q4

2015 Q4

FACEBOOK CTR

FACEBOOK eCPC

FACEBOOK eCPM

-32%

+10%

+74%

Q3 2015 TO Q4 2015

YEAR-OVER-YEAR

YEAR-OVER-YEAR

Social Trends Report - Facebook

OVERVIEW OF KINETIC RUN CAMPAIGNS

$0.00

$2.00

$1.00

$3.00

$4.00

$5.00

$0.00

0.0%

$0.40

$0.60

$0.20

1.30%

$0.32

$0.54

$4.43

$3.99

0.80%

1.6%

1.2%

0.8%

0.4%



CLICK THROUGH RATES

Video

Photo

Health & Wellness

Hobbies & Games

Tech & Computing

Link

Page Ad

Telco

Travel & Tourism

Click Through Rate (CTR) was highest

for Photo ad units in Q4 (1.7%), closely

followed by Video ads (1.5%).

Looking at the data by vertical, in Q4

CTR was incrementally highest for Telco

(2.64%) and Travel and Tourism (2.67%)

campaigns.

FACEBOOK CTR BY AD TYPE

FACEBOOK CTR BY VERTICAL IN Q4


2014 Q4

0.0%

1.0%

2.0%

3.0%

3.5%

2.5%

1.5%

0.5%

2015 Q1 2015 Q2 2015 Q3 2015 Q4

0.0%

1.0%

1.5%

2.0%

0.5%

2015 Q4

2.5%

3.0%



EFFECTIVE COST PER CLICK


Video

Photo

Health & Wellness

Home & Garden

Link

Page Ad

Tech & Computing

Travel & Tourism

Utilities

Video ad units continue to dominate,

garnering the lowest eective Cost Per

Click (eCPC), with an average eCPC of

$0.30 in Q4, with photo ads a close

second ($0.32).

Link ads eCPC increased due to holiday

period competition and an increased

focus on conversions rather than clicks.

FACEBOOK eCPC BY AD TYPE

FACEBOOK eCPC BY VERTICAL

2014 Q4

$0.00

$0.20

$0.40

$0.80

$0.60

2015 Q1 2015 Q2 2015 Q3 2015 Q4

In Q4, eCPC was lowest for Healthcare and Wellness

($0.25), followed closely by Travel & Tourism ($0.27).

$0.00

$0.20

$0.40

$0.10

$0.30

2015 Q4

HEALTH & WELLNESS SHOWSLOWEST eCPC BY VERTICAL IN Q4




CAROUSEL vs NON-CAROUSEL ADS - LINK CLICK CTR

Carousel units continue to out-perform

non-Carousel units in terms of link click

CTR. The best performance occurred in

the month of November, when these

Carousel units outperformed the non-

Carousel link click CTR by a factor of 4.4x.

JUL AUG SEP OCT NOV DEC0.00%

0.40%

0.80%

1.20%

1.60%

Carousel Ads - Link Click CTR

Non-Carousel Ads - Link Click CTR

Q4 VIDEO CTR & eCPC

- MOBILE vs DESKTOP

Mobile continues to dramatically

outperform Desktop from both a CTR

and eCPC perspective and we expect

this trend to continue.

0.00% $0.00

News feed on desktopNews feed on mobile

0.50%

1.00%

$0.40

1.50%

2.00%

$0.80

$1.20

$1.60

eCPC CTR

Q4 VIDEO VIEWS 100% COMPLETION BY VIDEO LENGTH

Video length continues to be heavily

correlated with completion rates, with

considerable drop-o for any videos

longer than 30 seconds. We recommendadvertisers should therefore focus on

engaging and impactful short form

video messaging.

15 sec 30 sec 1 min 2 min 3 min > 3 min0%

10%

20%

30%

40%

50%

TotalClick to PlayAuto-Play

FACEBOOK CAROUSEL AND VIDEO ADS



2014 Q4

20%

0%

40%

60%

80%

100%

2015 Q1 2015 Q2 2015 Q3 2015 Q4

Link

Photo

Video

Other

Page Ad


SPEND BY AD TYPE

COMPOSITION OF FACEBOOK SPEND BY AD TYPE

Use of link ads in the 4th quarter

increased by roughly 20% due to the

shift of more of our business to direc

response, to be expected in Q4.

Website Conversions

Post Engagement

Website Clicks

Video Views

Mobile App Installs

Other

Website conversions overtook

Engagements as the most popular

objective in client campaigns in Q4 vs Q3.

Dynamic Product Ads, Carousel, and

Conversion optimization are all product

enhancements that have made direct

response increasingly ecient and

attractive for advertisers.

COMPOSITION OF FACEBOOK SPEND BY OBJECTIVE

0

0.10

0.20

0.40

0.30

2015 Q3 2015 Q4




TWITTER CAMPAIGNS

Twitter shifted drastically in November and December

from primarily being a branding platform to becoming

more of a direct response or performance marketing

platform, with website clicks being the objective for

nearly 55% of all media running in December. This is to

be expected during the holiday period.

The cost of those clicks, however, increased signifcantly

over prior quarters. This is likely due to increased

competition among advertisers during this period of

heavy media investment.

Twitter video continues to perform extraordinarily well

and increasingly so. December showed the lowest Cost

Per View (CPV) Kinetic has seen on Twitter, and nearly

35% of video viewers completed the video, higher than

the rate we see on Facebook.

TWITTER OVERVIEW



Social Trends Report - Twitter

CPE hovered around $0.30 for most of 2015,

with the exception of June and July.

The primary campaign objective shifted drastically

toward performance or direct response as the holidays

approached. The vast majority (about 88%) of all

advertising by Kinetic clients on Twitter in Q4 targetedthree primary objectives:

| Tweet Engagement

| Video Views

| Total Clicks

CPV has held very steady since July, when it underwent

a dramatic drop overnight with the launch of Autoplay.

December was its lowest month ever, showing Twitter

continues to improve as a video branding vehicle.

CPC was abnormally high throughout Q4, especially

December, suggesting intense competition for

performance marketers during the holiday season.

JAN

JAN

MAY

MAY

MAY

SEP

SEP

SEP

MAR

MAR

JUL

JUL

JUL

NOV

NOV

NOV

FEB

FEB

JUN

JUN

JUN

OCT

OCT

OCT

APR

APR

AUG

AUG

AUG

DEC

DEC

DEC

$0.00

$0.00

$0.00

$0.20

$0.40

$0.60

$0.80

$1.20

$0.10

$0.20

$0.40

$0.20

$0.30

Website Clicks

Tweet Engagement

Video Views

Lead Generation

Custom

Followers

App Engagements

App Installs

$0.60

$1.00

$0.80

CPE FOR 2015 CAMPAIGNS

DRIVING ENGAGEMENTS

PERCENT OF SPEND BY OBJECTIVE ON TWITTER BY MONTH - SECOND HALF, 2015

CPV FOR 2015 CAMPAIGNS

DRIVING VIDEO VIEWS

CPC FOR 2015 CAMPAIGNS

DRIVING TOTAL CLICKS

$0.24

$0.53

$0.39

$0.32

$0.11

$1.04

10%

0%

JUL AUG SEP OCT NOV DEC

20%

30%

40%

50%

60%



Social Trends Report - Twitter

$0.00

$0.60

$0.20

$0.80

$1.20

$0.40

$1.00

$1.40

2014 Q4 2015 Q1 2015 Q2 2015 Q42015 Q3

CPG

Financial Services

Style & Fashion

Travel & Tourism

Kinetic’s Financial Services advertisers doubled Twitter ad spend

quarter on quarter and saw a comensurate increase in eCPE given

the competitive bidding environment in the holiday period.

The Style and Fashion vertical saw the lowest eCPE in this quarter,

though it also experienced a modest increase in eective cost per

engagement.

The CPG category experienced an increased eCPE for the rst time in

4 quarters, matching the overall trend in rising prices we saw around

the holiday season.

*Data based on the biggest verticals by ad spend for which Kinetic

ran campaigns in Q4.

TWITTER TOP 4

eCPE BY VERTICAL*




PINTEREST CAMPAIGNS

Kinetic has seen incredible growth in both the

number of advertisers and the amount of ad spend

on this platform as Pinterest’s advertising program

matures.

PINTEREST OVERVIEW



Social Trends Report - Pinterest

SUM OF EARNED MEDIA METRICS

Q4 saw a large uptick in earned media, with a 62%

increase vs. the 3rd Quarter.

This attests to the channel’s hugely engaged audience

and should sound a positive note for marketers

seeking lasting value from their promotions.

2015 Q42015 Q3

PERCENTAGE INCREASE IN SPEND & ADVERTISERS QUARTER OVER QUARTER

As Pinterest’s advertising program

matures, we’ve seen an 80% increase in

the number of advertisers quarter onquarter with an ad spend increase of

200% in Q4.

66% 0%

2015 Q42015 Q3

68%

70%

50%

72% 100%

74%

76%150%

78%200%

80%

% increase in Advertisers

% increase in Spend

+62%Q3 2015 TO Q4 2015




INSTAGRAM CAMPAIGNS

This platform rolled out its API program just a few

months ago and is already showing tremendous

growth in both the number of advertisers and in ad

dollars spent. About 35% of Kinetic’s active Facebook

advertisers also included Instagram in their Decembe

media buys.

INSTAGRAM OVERVIEW



Social Trends Report - Instagram

Spend on Instagram continues to grow at

a fast clip, with a 30% month-over-monthgrowth rate in the number of advertisers

running, signaling strong adoption of

Instagram as an advertising product.

* The blue line denotes the % of our H2

spend that occurred in each month.

AUG SEP OCT NOV DEC

0%

10%

20%

30%

50%

40%

Percent of Spend per Month

Percent of Advertisers Active per Month

RETAIL ADVERTISER

RETURN ON INVESTMENT BY MONTH

One retail advertiser experienced a mind-blowing 21x return on

investment in Q4, proving Instagram as an eective platform for

direct response advertising.

0

OCT NOV DEC

20

10

30x

PERCENT OF SPEND AND ACTIVE ADVERTISERS ON INSTAGRAM PER MONTH



Kinetic Social’s social marketing platform and team of experts help brands create welcome, engaging and

empowering experiences for consumers. Through every level of service, we design and manage campaigns

across social channels and the open web. Our powerful, intuitive technology reects how the modern marketer

thinks and works. We combine that proactive innovation with strategic thinking at every step to deliver quality

encounters that delight consumers, build brand value and drive sales. Kinetic is based in New York with oces

in Toronto, Chicago and San Francisco. We are a Facebook Marketing Partner, a Twitter Ocial Partner, a

Pinterest Marketing Developer Partner and an Instagram Partner. More at www.kineticsocial.com

The data in this report reects all of the campaigns that ran through Kinetic Social’s proprietary social marketingplatform, serving over 3.3 Billion impressions in Q4 2015. This report includes ad spend on Facebook, Twitter,

Pinterest and Instagram, on both desktop and mobile, and for all ad types. We have broken out platform-

specic data and indicated the corresponding platform in each chart. This data report reects a mix of

awareness, engagement and direct response campaign initiatives.

The social marketplace rapidly and constantly evolves; thus, this report should be taken strictly as an indicator

of current marketplace trends that Kinetic has observed, and not necessarily an indication of future trends.

The data in this report represents Kinetic campaigns only and should not be used as an indicator of the entire

current or future Facebook, Twitter, Pinterest or Instagram landscape.

KINETIC IS A PROUD PARTNER

ABOUT KINETIC SOCIAL

WWW.KINETICSOCIAL.COM

ABOUT THIS REPORT

http://www.kineticsocial.com/

http://www.kineticsocial.com/

Kinetic-Data-Report_-Q42015 (1).pdf

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