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NOVEMBER

2 1, 2 0 1 3

7 Social Media
Ad Trends for 2014

Sponsored by:

Debra Aho Williamson
Principal Analyst
©2013 eMa...
Agenda

2014: A Year of Social Acceptance
Trend #1: The Video Opportunity
Trend #2: Social = Mobile
Trend #3: Native Expan...
2014 will be a year of ‘social acceptance’
More US marketers are committing budget to
social media advertising

% of US ma...
Advertisers are optimistic about spending
increases

“Media wants to be where the
audience is, and I expect to see
more pa...
Social media advertising is moving from a
nice-to-have to a necessity

“Social advertising is almost
mission-critical now....
The
percentage
of US
companies
using social
media for
marketing is
very high—
and still
rising

©2013 eMarketer Inc.
Nearly all US social media marketers are
using Facebook; Twitter use is gaining

Twitter – #eMwebinar

©2013 eMarketer Inc...
eMarketer
forecasts
US social
network ad
spending
will rise 37%
in 2013 and
27% in 2014

©2013 eMarketer Inc.
What’s driving the increases? Efforts to
make social advertising more effective
Data partnerships: Data from companies suc...
The bottom line: It’s not only about being
‘social’ …

“That’s where the audience is.
It’s about scale.”
—Ritu Trivedi, ma...
Trend No. 1: The Video Opportunity

Image courtesy of digitalart / FreeDigitalPhotos.net

©2013 eMarketer Inc.
Facebook will flex its muscle with video
ads
$1 million to $2.4 million: Estimated
daily cost for branding-oriented video ...
Twitter cozies up to TV

Metrics providers

Twitter Amplify:
Links advertisers
with real-time video

Short-form
video
©201...
Instagram ad test will show the demand
for mobile native video ads
Slow rollout: So far, advertisers are focused on
testin...
Trend No. 2: Social = Mobile

Social media will continue to play a leading role
in defining what mobile advertising looks ...
Facebook and Twitter are seeing strong
revenues from mobile
49%: Percentage of Facebook’s Q3 2013 ad revenue that
came fro...
The majority of social media use is
happening via smartphone

Source: RBC Capital Markets & Advertising Age, September 201...
What to watch for in mobile social
advertising
Demand for mobile ads
Is mobile social ad spending growth driven by demand ...
Trend No. 3: Native Expansion

Social media companies
proved in 2013 that
native advertising can
work.
In 2014, the challe...
Ad executives are enthusiastic but
concerned about native advertising
Industry executives believe news feed advertising de...
US mobile marketers consider native
advertising an important development

©2013 eMarketer Inc.
A cautionary note on native ads:

“As we think about the future, we do not expect to
significantly increase ads as a perce...
Trend No. 4: Social Ads Get More
Programmatic
The intersection of real-time marketing and
programmatic advertising will pl...
Programmatic techniques will help make
real-time marketing easier to do
Faster social ad placement: More tools will be
ava...
Trend No. 5: No More Walled Gardens

In 2014, advertisers will finally get what they’ve
been hoping for: the ability to us...
MoPub’s network: Small but growing

Sample Customers:

Net Revenue
2012:
$2.7 million
1H 2013:
$6.5 million
©2013 eMarkete...
Facebook Log-in: One way to track users
(and show ads) outside of Facebook

©2013 eMarketer Inc.
Advertisers recognize the value of social
data for targeting

“Twitter has a huge amount of insights
around what people ar...
Trend No. 6: Location Makes a Comeback

©2013 eMarketer Inc.
Data indicates increased willingness to
share location via mobile

of US adult smartphone owners use their phone to get
in...
Mobile app
users
worldwide
appreciate
locationbased
mobile
marketing

©2013 eMarketer Inc.
Geolocation capabilities will improve

If I tweet or Facebook this shot, I might be
a good target for hiking-gear ads.
©20...
Trend No. 7: New Venues, New Ad
Opportunities
Facebook, Twitter and LinkedIn dominate, but
there is room for more

Twitter...
Instagram: Think ‘Vogue’ for social
media

©2013 eMarketer Inc.
Pinterest: Boosting social
commerce
Promoted Pins test is aimed at marketers and
retailers with ecommerce goals

©2013 eMa...
Mobile messaging services: Growing fast
and could see ads in 2014
Snapchat is used by 9% of US mobile
phone users—many of ...
Conclusions

More marketers are using social media advertising, leading
to increases in total spending.
Efforts to prove t...
Conclusions

Facebook and Twitter will start selling ads outside
their walls, providing new ways to use social data for
ta...
Data and campaigns are fragmented between
channels, teams and devices

Search
Display

Websites

Landing
Pages

Mobile
Vid...
The next phase of social marketing: bridge the
digital-social divide

Search
Display

Websites

Landing
Pages

Mobile
Vide...
Social marketing software for the enterprise
Build engaging social campaigns that drive real business results, and
measure...
To learn more about how to
generate ROI in social, visit
Wildfire at www.wildfireapp.com
or become part of our community.
...
Q&A Session
7 Social Media Ad
Trends for 2014

Learn more about digital marketing with an
eMarketer corporate subscription...
eMarketer Webinar: 7 Social Media Ad Trends for 2014
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eMarketer Webinar: 7 Social Media Ad Trends for 2014

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Join eMarketer's Debra Aho Williamson as she discusses the seven trends to watch in social media advertising for the upcoming year.

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Transcript of "eMarketer Webinar: 7 Social Media Ad Trends for 2014"

  1. 1. NOVEMBER 2 1, 2 0 1 3 7 Social Media Ad Trends for 2014 Sponsored by: Debra Aho Williamson Principal Analyst ©2013 eMarketer Inc.
  2. 2. Agenda 2014: A Year of Social Acceptance Trend #1: The Video Opportunity Trend #2: Social = Mobile Trend #3: Native Expansion Trend #4: Social Ads Get More Programmatic Trend #5: Moving Beyond the Walled Garden Trend #6: Location Makes a Comeback Trend #7: New Venues, New Ad Opportunities Twitter – #eMwebinar ©2013 eMarketer Inc.
  3. 3. 2014 will be a year of ‘social acceptance’ More US marketers are committing budget to social media advertising % of US marketers buying ads on Facebook % of US marketers buying Promoted Tweets Sept. 2013: 74% Aug. 2013: 32% Jan. 2013: 62% Sept. 2012: 26% July 2012: 55% ©2013 eMarketer Inc.
  4. 4. Advertisers are optimistic about spending increases “Media wants to be where the audience is, and I expect to see more paid-media growth as [social] audiences continue to grow.” —Nick Tran, head of social media at Taco Bell ©2013 eMarketer Inc.
  5. 5. Social media advertising is moving from a nice-to-have to a necessity “Social advertising is almost mission-critical now.” —Chris Bowler, vice president of social media at Razorfish ©2013 eMarketer Inc.
  6. 6. The percentage of US companies using social media for marketing is very high— and still rising ©2013 eMarketer Inc.
  7. 7. Nearly all US social media marketers are using Facebook; Twitter use is gaining Twitter – #eMwebinar ©2013 eMarketer Inc.
  8. 8. eMarketer forecasts US social network ad spending will rise 37% in 2013 and 27% in 2014 ©2013 eMarketer Inc.
  9. 9. What’s driving the increases? Efforts to make social advertising more effective Data partnerships: Data from companies such as Datalogix, Axciom and Epsilon helps Facebook advertisers determine whether someone who saw an ad eventually made a purchase. Twitter also has a partnership with Datalogix. Objective-based advertising: Marketers choose one of eight objectives before buying advertising on Facebook, and get recommendations for which types of ads to use to meet those objectives. Less focus on fans: After touting fan acquisition as a goal in 2012, social media companies are now speaking in terms advertisers know: sales, conversions and results. ©2013 eMarketer Inc.
  10. 10. The bottom line: It’s not only about being ‘social’ … “That’s where the audience is. It’s about scale.” —Ritu Trivedi, managing director at Starcom MediaVest Twitter – #eMwebinar ©2013 eMarketer Inc.
  11. 11. Trend No. 1: The Video Opportunity Image courtesy of digitalart / FreeDigitalPhotos.net ©2013 eMarketer Inc.
  12. 12. Facebook will flex its muscle with video ads $1 million to $2.4 million: Estimated daily cost for branding-oriented video ads. (Reuters) $1.31 billion: Projected 2014 video ad revenue (Cowen & Company) Challenges: Infuse video ads with social/shareable features; will autoplay work? Potential: Could unlock more premium dollars from brand advertisers and shift TV ad budgets. ©2013 eMarketer Inc.
  13. 13. Twitter cozies up to TV Metrics providers Twitter Amplify: Links advertisers with real-time video Short-form video ©2013 eMarketer Inc.
  14. 14. Instagram ad test will show the demand for mobile native video ads Slow rollout: So far, advertisers are focused on testing photo ads first. Branding opportunities: 71% of Interbrand 100 advertisers use Instagram for marketing, up from 40% in October 2012 (Simply Measured, November 2013). Challenge: User reaction to Instagram ads has been mixed. Potential: Pent-up demand for Facebook video advertising could spill over to Instagram. ©2013 eMarketer Inc.
  15. 15. Trend No. 2: Social = Mobile Social media will continue to play a leading role in defining what mobile advertising looks like “Social is going to continue to drive mobile usage and mobile spend.” — Scott Symonds, AKQA Media “As we’re thinking about social, we’re not delineating it from mobile; our assumption is that if it’s social it probably also is mobile.” — Jennifer Kasper, Macy’s ©2013 eMarketer Inc.
  16. 16. Facebook and Twitter are seeing strong revenues from mobile 49%: Percentage of Facebook’s Q3 2013 ad revenue that came from mobile. (Facebook, October 2013) Over 70%: Percentage of Twitter’s Q3 2013 ad revenue that came from mobile. (Twitter, October 2013) 19%: Percentage of the US mobile ad market that Facebook and Twitter will account for in 2014. (eMarketer, August 2013) 40%: Percentage of the US mobile display ad market that Facebook and Twitter will account for in 2014. (eMarketer, August 2013) Twitter – #eMwebinar ©2013 eMarketer Inc.
  17. 17. The majority of social media use is happening via smartphone Source: RBC Capital Markets & Advertising Age, September 2013 ©2013 eMarketer Inc.
  18. 18. What to watch for in mobile social advertising Demand for mobile ads Is mobile social ad spending growth driven by demand for mobile, or simply a reallocation of dollars from the desktop? Overload Will the number of ads in the feed top out lower than the social media companies expected? New ad products How will social companies evolve ads to take advantage of the uniquely mobile environment? ©2013 eMarketer Inc.
  19. 19. Trend No. 3: Native Expansion Social media companies proved in 2013 that native advertising can work. In 2014, the challenge will be to scale it— without irritating consumers. ©2013 eMarketer Inc.
  20. 20. Ad executives are enthusiastic but concerned about native advertising Industry executives believe news feed advertising delivers results. But they worry that there will be backlash if too many ads crowd the feed. They are also concerned about the amount of time and effort it takes to produce native advertising Native-ad ad networks could provide a solution. Twitter – #eMwebinar ©2013 eMarketer Inc.
  21. 21. US mobile marketers consider native advertising an important development ©2013 eMarketer Inc.
  22. 22. A cautionary note on native ads: “As we think about the future, we do not expect to significantly increase ads as a percentage of News Feed stories beyond where we were at the end of Q3.” — David Ebersman, Facebook’s chief financial officer, during the company’s Q3 2013 earnings conference call ©2013 eMarketer Inc.
  23. 23. Trend No. 4: Social Ads Get More Programmatic The intersection of real-time marketing and programmatic advertising will play out more fully in 2014. “Total social media advertising is expected to increase 35% in 2013, 35% in 2014 and 32% in 2015. We are attributing the growth in 2014 and 2015 to the rise in programmatic social buying that will begin to take hold.” ©2013 eMarketer Inc.
  24. 24. Programmatic techniques will help make real-time marketing easier to do Faster social ad placement: More tools will be available to quickly place ads or tweak campaigns. External triggers: Data on pricing, inventory, weather and more will inform ad delivery in social media, enabling advertisers to make the most of fast-changing scenarios. More-dynamic creative: Technology will provide new ways to change up ad creative to meet targeting needs and cut the time it takes to develop real-time content and advertising. Twitter – #eMwebinar ©2013 eMarketer Inc.
  25. 25. Trend No. 5: No More Walled Gardens In 2014, advertisers will finally get what they’ve been hoping for: the ability to use rich social media user data to target consumers across digital channels. Twitter: Its acquisition of mobile ad network/technology company MoPub gives Twitter a new revenue stream and a way to test mobile native advertising. Facebook: It has restarted testing of a mobile ad network; although there are many privacy hurdles to cross, advertisers are very interested in using Facebook data to target consumers outside of Facebook. Twitter – #eMwebinar ©2013 eMarketer Inc.
  26. 26. MoPub’s network: Small but growing Sample Customers: Net Revenue 2012: $2.7 million 1H 2013: $6.5 million ©2013 eMarketer Inc.
  27. 27. Facebook Log-in: One way to track users (and show ads) outside of Facebook ©2013 eMarketer Inc.
  28. 28. Advertisers recognize the value of social data for targeting “Twitter has a huge amount of insights around what people are doing and expressing and sharing. The ability to take that knowledge and put it outside its walls is powerful.” —Dave Marsey, executive VP and managing director at Digitas San Francisco ©2013 eMarketer Inc.
  29. 29. Trend No. 6: Location Makes a Comeback ©2013 eMarketer Inc.
  30. 30. Data indicates increased willingness to share location via mobile of US adult smartphone owners use their phone to get information or directions based on their location, up from 55% in 2011 of US adult social media users have at least one account set up to tag their location, up from 14% in 2011 Source: Pew Internet & American Life Project, September 2013 ©2013 eMarketer Inc.
  31. 31. Mobile app users worldwide appreciate locationbased mobile marketing ©2013 eMarketer Inc.
  32. 32. Geolocation capabilities will improve If I tweet or Facebook this shot, I might be a good target for hiking-gear ads. ©2013 eMarketer Inc.
  33. 33. Trend No. 7: New Venues, New Ad Opportunities Facebook, Twitter and LinkedIn dominate, but there is room for more Twitter – #eMwebinar ©2013 eMarketer Inc.
  34. 34. Instagram: Think ‘Vogue’ for social media ©2013 eMarketer Inc.
  35. 35. Pinterest: Boosting social commerce Promoted Pins test is aimed at marketers and retailers with ecommerce goals ©2013 eMarketer Inc.
  36. 36. Mobile messaging services: Growing fast and could see ads in 2014 Snapchat is used by 9% of US mobile phone users—many of them teens and young adults (Pew Research Center, 2013) LINE has 280 million users worldwide, and growing fast in South America, Turkey and Italy (LINE Corp. Q3 2013 earnings report) WeChat Has 272 million users, predominantly in China (Tencent Q3 2013 earnings report) ©2013 eMarketer Inc.
  37. 37. Conclusions More marketers are using social media advertising, leading to increases in total spending. Efforts to prove the effectiveness of social ads have paid dividends. Social will be a critical tool to reach mobile users in 2014. Efforts to scale native ads could be met with a backlash. More social ads will be bought programmatically. Twitter – #eMwebinar ©2013 eMarketer Inc.
  38. 38. Conclusions Facebook and Twitter will start selling ads outside their walls, providing new ways to use social data for targeting. Geolocation capabilities in social media will get better, leading to more real-time marketing opportunities. New ad venues such as Pinterest and Instagram will vie for marketers’ attention. Twitter – #eMwebinar ©2013 eMarketer Inc.
  39. 39. Data and campaigns are fragmented between channels, teams and devices Search Display Websites Landing Pages Mobile Video PAID DIGITAL CHANNELS Microsites SOCIAL MARKETING WEB PROPERTIES Google Confidential and Proprietary
  40. 40. The next phase of social marketing: bridge the digital-social divide Search Display Websites Landing Pages Mobile Video PAID DIGITAL CHANNELS Microsites SOCIAL MARKETING WEB PROPERTIES Google Confidential and Proprietary
  41. 41. Social marketing software for the enterprise Build engaging social campaigns that drive real business results, and measure your ROI Google Confidential and Proprietary
  42. 42. To learn more about how to generate ROI in social, visit Wildfire at www.wildfireapp.com or become part of our community. +Wildfire @wildfireapp Wildfire by Google WildfireInteractive Google Confidential and Proprietary
  43. 43. Q&A Session 7 Social Media Ad Trends for 2014 Learn more about digital marketing with an eMarketer corporate subscription Around 200 eMarketer reports are published each year. Here are some recent reports you may be interested in: Social Media Advertising: Seven Trends for 2014 Social TV: Marketing to Viewers in Real Time Advertising in the Moment: Real-Time Strategies for Paid Social Media Debra Aho Williamson You will receive an email tomorrow with a link to view the deck and webinar recording. Sponsored by: Worldwide Social Network Ad Spending Forecast: Robust Growth Set to Continue Through 2014 Native Advertising: An Emerging Consensus for a New Kind of Ad To learn more: www.emarketer.com/products 800-405-0844 or webinars@emarketer.com Wildfire by Google ©2013 eMarketer Inc.
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