RSS feed Get our RSS feed

News by Topic

BizReport : Social Marketing : November 01, 2016

Research shows increased ad spend in social media

New targeting capabilities on social media platforms have been partly responsible for an increase in ad spend between the second and third quarters of 2016, according to new research from Kinetic Social.

by Helen Leggatt

Ad spend across major social media platforms rose 40% from Q2 2016 to Q3, according to Kinetic Social's research. The social advertising services firm helps brands purchase advertising across the major social platforms (Facebook, Instagram, Twitter and Pinterest) and the research was conducted only among those advertisers the company works with.

Mobile ad placements outperformed desktop placements for both CPC and CPA metrics, found the report, although such ads represent only about 60% of overall investment.

According to its Q3 2016 Social Trends Report, Kinetic saw a nearly 3.5X jump in investment in Pinterest in Q3 as compared to Q2, and a 5X increase over Q3 2015. This increase in investment was evenly spread across Pin Engagement and Website Click campaign objectives and reflects the more complete and robust first-party data offering from Pinterest. We noticed a 40% drop in CPM and CPC on website click campaigns compared to the prior quarter, while CPM increased on Pin Engagement campaigns.

"We're seeing Pinterest's advertising platform mature. As they continue to roll out new tools for advertisers, we anticipate it will become an even more important channel for sharing visual assets and appealing to consumers, especially for retail advertisers," said Kinetic Social CEO Matt Gilbert. "Our advertisers have increased their spending on Instagram in large part because it performs. Taken together with Facebook, the two networks are a powerful way to connect with consumers using a variety of targeting signals."

Tags: ad spend, advertising, research, social media

Subscribe to BizReport



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.