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esome Advertising Preis Index Q3|2017

esome publishes the social media price index for the third quarter in 2017. The index represents price developments of the previous quarters and operates as benchmark due to advertising campaigns implemented by esome. The current price index includes first insights into advertisement on Snapchat and can serve as an orientation for advertiser’s future campaigns on this interactive platform.

Within the third quarter social media advertising does not show any significant changes in advertising spend, which is still close to the top-selling level of the fourth quarter 2016. The trend of a rising contact price (CPM) is also continuing in Q3, yet with a regressive inflation rate in comparison to Q2.

Besides the increasing contact price, an overall elevated user activity was registered, which caused a reduction of the click prices on all platforms. Except for the facebook audience network: Due to the amendment of the metric “link click”, which now does not take account of unintended clicks, the Click-Through-Rate (CTR) sank drastically and led to a rising Cost-per-Click (CPC). Because of the changes of the metric, a comparison to previous quarters is obsolete.

When comparing platforms, Twitter gets more and more attractive for advertisers: The contact prices decreased within the last quarter, while the CTR and engagement rate increased and led to low interaction costs. Instagram had to put up with a slightly rising CPM and a slightly dropping CTR besides decreasing advertising budgets, which still are within a normal range, though. In Q3 Facebook took the biggest share in advertiser’s media planning again, due to the variety of advertising options that match the advertiser’s needs and are constantly adapted to those needs within all industries.

This year one of the newcomers in the platform portfolio is Snapchat. The results of the first campaigns show that the platform is keeping its promises. With an average CPM lower than two Euro, advertisers were able to reach a young audience and also benefited from the high interaction rate on Snapchat in Q3. Even though the fix placement prices were lower than the auction based contact prices, advertisers registered a two-digit utilization rate for the booking of Sponsored Lenses and a long interaction time of over one minute. The performance of Sponsored Lense depends on the quality of creatives, which shows once more, how important it is for advertisers to adapt their creatives to the specifics of each platform and formats.

The competition for advertising inventory on social media will expectedly accelerate within the current quarter. The impact of the Christmas season on social media prices will be evident in the coming year.

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