Meiken

esome Social Advertising Price Index Q1|2017

esome publishes the social media price index for the first 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 focusses on the travel industry, that is why our esome travel specialist, Meiken Ehlers comments the developments of this industry.

The social media advertising section lists a general growth trend which is especially represented by increasing budgets in comparison to Q1/2017 to Q1/2016. Nevertheless, the last quarter demonstrates a light revival after the intense Christmas time: The budgets drop, CPM eases by 30% and clicks get auspicious.

Facebook campaigns have the biggest share of total capacity which is why the trend nearly runs parallel to total development. Campaigns in Facebook Audience Network (FAN) also rejoice in great popularity of advertiser: FAN offers convenient incremental reach and achieves thrice higher CTR than other social media platforms. Thus, the ad spends even raised on the platform between Q4/2016 and Q1/2017.

Instagram is used for sales generation to an increasing degree. As advertiser use the new function of the media sharing platform more and more. An increasing CPM, which is higher than on Facebook for the first time, can be observed despite high user rates on Instagram. The Twitter click rate powerfully gains due to increased usage of click-affine ad formats. The high CTR and lower CPM, 40% lower than previous quarter, cause a low CPC of all time. 

The travel industry struggled with challenges of geopolitical situation in the last months. Among other things social advertising strategies therefore were adapted which lead to dropping social media advertising spends in Q1 YOY rate. However, the reflection of single calendar weeks illustrates the dynamic of peak period and increased budget developments during the period. CPC develops as expected and continuous rises as off CW 1. Despite high ad spends CTR collapses in CW 3 due to decreased buying interest and in the subsequent week it increases possibly due to concretion of holiday plans.

The price index of the second quarter will focus Christmas business since the campaign planning should occur in the middle of the year. Thereby advertiser can benefit of low prices in contested Christmas time. Moreover, there will be a look on a full year of Twitter advertising and a deeper look at the developments of the platform.

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