esome Social Advertising price index Q3|2018

Posted on November 05, 2018

The third social advertising quarter of 2018 has been characterized by decreasing advertising spend. Advertisers benefitted from rather low prices on social networks. 

For the first time, the inflation rate decreased slightly in the third quarter of 2018, meaning the prices increased less in Q3/2018. Also the advertising spend decreased in Q3/2018 and with it the CPM went down to the lowest value for a year. The most obvious reason for the recession in Q3 would be the typical summer low that hits many industries.  

The summer low in advertising spend could be observed on Facebook as well. The platform spend through esome sank again in Q3, though it was still higher than in Q3/2017. A climbing Click-Through-Rate (CTR) witnessed increasing user activity in Q3 and advertisers benefitted from a sinking click price.

Spend on Facebook may have decreased in Q3, but it seems as if budgets have simply been shifted to another platform within the Facebook universe: esome registered rising advertising spend on Instagram, again. The platform gained attractiveness for advertisers once more with a rising CTR, a sinking Cost per Link Click and a sinking CPM. Only in comparison to other Facebook-Platforms Instagram does not look as good: though the values went down, CTR and CPLC could not compete with other platforms from the Facebook universe. 

Here, meaning on Messenger and in Facebook Audience Network (FAN), esome observed sinking advertising spend as well. Still, advertisers spent six times more on Messenger in Q3/2018 than in the same quarter of 2017. 

Twitter continued its roller coaster ride. After advertising spend had risen in Q2, it sank again in Q3. Moreover, the CTR kept sinking and caused the highest CPLC on Twitter within a year. The overall trend on Twitter is unsteady, only the CPM continuously sank since Q3/2017 and reached the lowest value within the considered period. 

Besides Instagram, Snapchat could benefit from rising advertising spend as well. Advertisers' interest in the platform grew due to new features and targetings as well as cheap media buying thanks to a low CPM.

Spend on video campaigns sank for the first time ever in Q2/2017 and remained on that lower level in Q3. Reason enough to take a closer look at the development of the mega trend "Video", that seemingly could not find an end over the last years: 

On average, 40 percent of the advertising spend that has been managed by esome advertising since 2015 have been spent on campaigns with a video creative. 80 percent of this amount were spent on Facebook, though part of it has been shifted to Instagram since the beginning of 2018. The use of videos for campaigns with the optimization goal "Video Views" went down steadily over the last year but increased for video campaigns with the optimization goal "Reach". Advertising spend for video campaigns with this optimization goal are as high as ever. Overall, the mega trend "video" seems to have reached its peak so far. 

The next price index will traditionally focus on the effect of the Festive Season on Social Advertising activities as well as the newest placement "Stories".

Find out more about price development in Social Advertising here

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