esome Social Advertising Price Index Q1|2016

esome publishes the social media price index for the first quarter in 2016. The index represents price developments of the previous quarters and operates as benchmark due to advertising campaigns implemented by esome. 

As predicted, advertising spendings have dropped significantly in the first quarter on 2016 – just as the considered KPIs (CPC, CPM, CTR). Due to a change in the click metrics we will from now on consider the more and more important video formats seperately.

The data for this price index has been aggregated from over 180 clients’ social advertising campaigns in the German market spanning all major industries. Data has been weighted depending on the clients’ spends and only data from campaigns in which a specific placement has been targeted has been included. Data from Q1/2015 serves as the basis and all subsequent quarters have been normalized against Q1/2015.

Facebook and Instagram are changing the definition of the click metric and will implement that gradually which has a major impact on the calculation of CPC and CTR in this price index. Where every interaction with an ad used to be counted as a click, now only link clicks are being counted as clicks. For this reason only campaigns with the objective “Clicks to website” have been considered for calculating CPC and CTR. This does not only eliminate irritating factors in the interpretation of CPC as a cost indicator but also makes the click metric comparable to the click metric of digital advertising channels. For CPM calculations we still considered campaigns of the particular period with all the different campaign objectives.

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