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esome Social Advertising Price Index Q2|2017

esome publishes the social media price index for the second 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 inflation within the „Social“ channel and on the promotional utilization of Twitter.

The social media advertising section lists a further growth trend: The spendings in advertising grew significantly within the second quarter of this year and almost hit the height of the top-selling fourth quarter in 2016. Because of increasing online activities, the prices on Social Media rose as well. That is why the CPM increased 2.4 times during this period, while the inflation rate dropped.

Social Advertising prices rose within the last quarter, as well. The CPM reached its maximum value of the considered period and because of a flagging CTR, the CPC also rose to a maximum level.

Both Instagram and Facebook benefited from the growth of advertising budgets. Even though spendings on Instagram increased more than on Facebook, due to that prices per contact rose as expected. While CPC increased on Facebook, advertisers on Instagram benefited from a sinking CPC, which was due to a significantly rising CTR, wich again was based on the availabilty of that Dynamic Ads on Instagram.

The Facebook Audience Network lost this quarter: rising prices and a sinking CTR caused a decreasing investment in this platform. First supply and demand will have to settle down within the next few months because the constantly rising prices were caused by the increasing demand for ad inventory.

Spendings on Twitter rose slighty in Q2/2017 caused by a distinct rising CTR, which decreases the CPCs, caused by well-prepared content.  It underlines that campaigns perform better when the content is created in a way that suits the platform. Looking at this platform closely, one will see that advertisers mainly run branding or interaction campaigns on Twitter, so spendings will probably be spent on other platforms during the upselling and transaction driven Christmas season in Q4.

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