Our approach to Social Trends: Facebook leads the way

PHD is part of a global advertising network called Omnicom Media Group and due to this we have access to some fantastic resources. Resolution is one of those resources, a key special business unit where we concentrate our key digital expertise from the search and social advertising spheres.

We’re pleased to share with you this week a brief snapshot of our annual Social Media report, focusing on trends which are directly impacting social advertising campaigns and created by aggregating 2013 performance data from the social advertising campaigns of more than 20 clients worldwide.

Facebook’s success in driving direct response results drove advertising growth. This was especially true among retailers and other advertisers focused on achieving conversions that can be tracked directly and with multi-channel attribution technology. Considering what advertisers get in exchange for their investments, Facebook’s more extensive reach and generally lower prices enabled advertisers to achieve much greater impression and click volume, as illustrated by the following impression and click/engagement findings.

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The impressions offered by Facebook exceed those of Twitter by so much that Facebook consistently delivers more clicks despite offering a much lower CTR on average. In fact, Twitter delivered a much higher CTR throughout 2013.

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Twitter ads, on the other hand, generate clicks at a much higher rate as advertisers integrate them tightly with broad trends and conversations, serving up straightforward messaging and content directly into relevant conversation streams. Importantly, Twitter ads appear within a less cluttered environment than Facebook ads, in the user’s Twitter timeline with few additional advertisers. Throughout 2013, advertisers across all verticals sought to fine-tune Twitter ad strategies by integrating Twitter with other channels, relevant content, promotions, and news and announcements. These efforts collectively drove up the average CTR, reflecting a high level of engagement

New ad formats and targeting capabilities also drove growth in Facebook advertising campaigns. Not only did advertisers increase investments in successful ad campaigns; they also embraced various new alpha and beta Facebook advertising opportunities. The number of new Facebook advertising opportunities available to Resolution clients in 2013 outpaced Twitter, and mobile advertising offerings led the pack. For the most part, advertisers achieved positive results in comparison to key performance indicators (KPIs), and in many cases, this led alpha and beta campaigns to grow and develop into ongoing efforts. Facebook also launched Partner Categories, for example, enabling advertisers to leverage third-party data to target users based on online and offline purchase behavior.

Finally, Facebook’s relative maturity as a direct response channel, combined with these new ad offerings, explains much of the strategic thinking that drove advertisers to spend more with Facebook. Add to that the sheer reach and supply of advertising inventory offered by Facebook, and it’s easy to understand what led advertisers to spend more than twice their Twitter budgets with Facebook.

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Thank you for reading! If you would like more information about how PHD and Resolution can help your business, please just get in touch with christian.knoth@phdmedia.com.

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