 The cost of advertising on Facebook keeps climbing. Average CPM rates increased 8% and cost-per-click (CPC) rates rose 1% in the fourth quarter of 2011, compared to the prior quarter, across five major markets (U.S., U.K., France, Germany and Canada). That’s per TBG Digital on Facebook advertising, based on a total of 326 billion Facebook ad impressions in the year’s final quarter.
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In the U.S., CPC rates rose even faster, at 10%. U.S. cost per clicks shot up during the holidays, when rates spiked 55.7% between Nov. 21 and Dec. 17. “This could point to demand increasing as more brands are advertising on Facebook and supply plateauing as U.S. user growth slows,” noted the TBG report. |
During the same period, click-through rates have increased 18%, suggesting that advertisers are building better ad creative that piques users’ interest, while also getting more out of the available targeting options. Click rates had an average increase of only 7% between the third and fourth quarter, however -- pulled down by an 18% decrease in Germany and a 2% drop in the U.S. |
CPM rates across all five markets increased 23% between the first and the fourth quarter. |
Of the 18 ad categories measured, the top five -- finance, food and drink, games, retail and entertainment -- accounted for almost 70% of total impressions served in the fourth quarter. Among the leading segments, finance was the top-gainer, growing its share from 12% to 18% during the quarter. Telecom, which finished just outside the top five, saw impressions jump 21%. |
When it comes to click-through rates, food and drink were leading categories, followed by body and fitness, retail, home and garden, nonprofit. |
Among the 15 categories highlighted in the TBG study, finance had the lowest click rate. At the same time, finance accounts for more than 60% of impressions in campaigns that send users off Facebook to another site. |
For its part, Facebook would prefer that users would stay on the social networking site. A second-quarter study by TBG found that the company charged a 29% lower CPC for ads that kept traffic within the Facebook environment, rather then sending it off-site. |
In the fourth quarter, rates for campaigns that sent users to an advertiser's Facebook page or to a branded app within Facebook were an even better deal, at CPC rates 45% less than those driving to outside sites. |
A separate report released by Efficient Frontier Friday showed that spending on Facebook reached 2.7% of biddable online advertising in the fourth quarter. It is expected to double marketers’ fan bases by the end of 2012. The report also predicts that spending on the social network will reach 5% of all online ad dollars by year’s end. As advertisers improve their ability to acquire and engage fans, brands will continue to funnel incremental spending to Facebook. |
Market research firm eMarketer has predicted Facebook's U.S. display ad revenue will grow 81% to $2.2 billion this year, accounting for more than a fifth of all U.S. display ad dollars. |
 How did m-commerce wrap up 2011? According to a post-holiday study from Motricity, nearly four in 10 consumers (38%) used their mobile devices to purchase a gift, followed closely by using a digital coupon or signing up for a coupon (37% each).
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Almost three in 10 maintained a digital gift list, sent gift ideas to friends, gave contact information to a retailer or rated a product or service. The Motricity survey was conducted online from Dec. 27 to Jan. 3 by Wakefield Research among 664 U.S. adults who own a smartphone/and or tablet. |
Younger people were the most likely to make mobile purchases, with 41% of 18- to-34-year-olds buying at least one gift from their tablet or smartphone during the holiday season. Despite the abundance of location-based deals and “secret” online coupon codes, convenience rather than savings mattered most for mobile shoppers. |
Only 16% said savings was the biggest benefit of mobile, compared to about a quarter that cited its multitasking features and ability to help them avoid crowds. Overall, 93% said they had a positive mobile shopping experience over the holidays and more than two-thirds (64%) predict they will use their mobile device to shop more often in 2012. |
Separate data released by IBM on Jan. 10 showed that the proportion of mobile retail traffic and sales doubled in December compared to a year ago. Mobile traffic as a proportion of all online sessions last month increased to 14.6% from 5.6% in December 2010, while mobile sales rose to 11% of online sales from 5.5% in the year-earlier period. |
The iPhone and iPad drove the most retail traffic, while the iPad generated more mobile purchases than any other device. |
In another sign of growing m-commerce activity, eBay CEO John Donahoe said gross merchandise volume on mobile devices in 2011 hit $5 billion for eBay and $4 billion for its PayPal unit. He expects those figures to increase to $8 billion and $7 billion, respectively, in 2012. Nearly 900,000 eBay shoppers made their first purchase via mobile last year, more than double the total in 2010. |
The search engine rankings for December 2011, according to comScore, were:
- Google rose to 65.9 percent (up from 65.4 percent in November).
- Bing rose to 15.1 percent (up from 15 percent in November).
- Yahoo dropped to 14.5 percent (down from 15.1 percent).
- Ask remained at 2.9 percent.
- AOL remained at 1.6 percent
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More than 18.2 billion explicit core searches were conducted in December. This is up 2 percent from November. Google lead the way with 12 billion of the total searches; Bing ended up with 2.7 billion, followed close by Yahoo with 2.6 billion. Ask Network with 531 million searches, followed by AOL with 287 million. |
In the world of search advertising, mobile phones and tablets continue to outpace performance of search ads on PCs, although they still represent only a fraction of impressions and investment, according to a new report.
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Quarterly figures from Marin Software indicate that mobiles and tablets accounted for 10 percent of all search ad clicks in the U.S. in Q4 2011. That is double the amount of clicks seen on those devices in Q3 2011. |
On tablets, search ads—the ad units that typically appear alongside a search made through engines such as Google (NSDQ: GOOG), Yahoo (NSDQ: YHOO) or Bing—also accounted for the highest of all click-through rates. |
Tablets’ CTR (the ratio of clicks/the number of times the ad appears) for the quarter, according to Marin, was 1.31 percent, compared to 0.95 percent on desktop computers. Smartphones had nearly as high of a CTR, at 1.25 percent. Marin does not break out which devices are proving “more” interactive, although recent figures from Jumptap indicate that at least on its network Apple (NSDQ: AAPL) devices continue to dominate in interactivity. |
Search advertising is currently the most-popular form of interactive advertising, above display, and video and other rich media. It’s the case as well in mobile, where search is projected to have accounted for $349 million of the estimated $1 billion spent on mobile ads. But overall, PCs are still a vastly more popular platform for searches, and subsequent search ads. Marin notes that in the last quarter, mobile devices accounted for just seven percent of impressions on search ads, with PCs taking 93 percent: |
On PCs search ads were estimated to have accounted for 25.6 percent of $73.8 billion spent on online advertising, or $18.9 billion, according to Publicis’ ZenithOptimedia. |
Marin, which offers an online advertising management platform to brands and agencies, says that it based its conclusions on its own Marin Global Search Index. This includes more than 1,000 advertisers and agencies that invest over $2.7 billion annually in paid-search, which each brand or agency typically spending over $1 million annually on paid-search, social and display. |
There are a couple of reasons why the numbers could be higher for tablets and mobile phones, which are worth pointing out here. As mobile ad skeptics have pointed out in the past, it can be much easier to “click” accidentally on ads on a touchscreen compared to a PC. That is partly due to the touch element, but also because of the smaller screen sizes. At some point advertisers might start demanding better metrics to try to account for accidental clicks on touchscreen and other mobile devices. |
The other issue that could account for the rise in clicks in Q4 in particular is the fact that it covered the holiday season. As we’ve seen from other studies, mobile devices had a double-whammy for increased use over that time period, as people received or bought new devices for themselves as presents; and others used them to look for goods other information related to the holiday shopping season. We’ll have to keep an eye out how numbers look in Q1 of this year to see whether the increased clicks are a trend, or a seasonal blip. |
Google’s Admeld unit and AppNexus ranked as the “leaders” in the so-called “supply-side platforms” segment of the online display advertising marketplace, according to a new report from influential advertising services market researcher Forrester Research. |
The report, which is the latest installment from the Forrester Wave series, described Admeld as a leader, given the “breadth of its current offering and its early innovation around features such as private exchange capabilities, variable price floor controls, and advertiser-level bid reporting. |
“Although other vendors have recently added similar features and functionality,” the report continues, “Admeld’s legacy of innovation means that these mechanisms are often more refined today and that it can aggressively push forward into new development areas.” |
Forrester named AppNexus a leader because of its “product’s deep flexibility and extensibility and its ambitious vision for how publishers will purchase and utilize ad technology. |
“Although it doesn’t have the prettiest user interface, AppNexus provides a solid foundation for large publishers with lots of ad product strategists, technology developers and experienced operations pros.” |
The report ranked PubMatic and Rubicon Project below Admeld and AppNexus, but said they rated “closely behind” the two market leaders, suggesting that the overall SSP market is close to a parity proposition. |
In fact, the next closest competitor, Google’s DoubleClick ADX, didn’t rank far behind any of the market leaders, and Forrester gave it kudos for its “high reliability and integration into the popular DoubleClick publisher technology stack.” Given Google’s recent acquisition of Admeld, Forrester speculated that DoubleClick ADX is “bound only to improve.” |
Most retailers won’t equip associates with tablets for at least a year |
When in-store mobile retail solutions firm AisleBuyer surveyed retailers in December, about 20% said they had a mobile app that enabled usage of their ecommerce site. More likely have a mobile-optimized website, but for those with an m-commerce app, functionality was often limited. |
Fewer retailers had apps intended specifically for in-store use, at 14%, and these had even fewer features. A majority (54%) included QR code scanners, while half had GPS-enabled score locators and slightly fewer sported old-fashioned 1-D barcode scanners. But features like buy in-store and ship home, or mobile self-checkout, were uncommon. |
Similarly, mobile points of sale where store associates are armed with tablets, smartphones or an iPod touch remain far in the future for most retailers—if they are even on the horizon. |
Many of these options will not make sense for all brick-and-mortar stores, especially considering the time and effort of training associates to use new devices when the need for self- or mobile checkout might not be there. But as shoppers become accustomed to using mobile devices for more shopping-related purposes, they will expect fully featured apps or mobile websites to assist them both in-store and before they get there. |
While most included a store locator and the option to browse the site’s catalog or check prices, only a slight majority allowed users to buy online and ship items either to a store or their home, or even to search. |
Brands and companies can connect and build buzz among their audiences by hosting various types of contests on Pinterest. Contests can range from creating the “Best Board” to a earning the most Repins. Users could post photos of the best outfits they put together or of sculptures built from products bought at a specific store. Similar to photo contests on Facebook or Twitter, Pinterest offers a way for brands to build visually stunning interaction between themselves and their patrons. |
When launching a new product, whether a new dress, dinner dish or cellphone, companies want to determine initial reactions to the product’s look and feel. Because of Pinterest’s commenting ability, it’s an ideal platform on which to introduce a new product and gather firsthand opinions. Because Pinterest’s popularity hasn’t reached the caliber of Facebook, brand managers can easily organize, analyze and determine sentiment from the results. As users Repin a photo, brand managers can gather more intelligence, and ultimately decide whether their companies should move forward with mass production. Think of it as a social media focus group. |
3. Showcase Brand Personality |
For companies that don’t necessarily have product lines to show off, the social networks allows photos to communicate a brand’s personality. For instance, a mayoral candidate could have a Pinterest Board of photos that features his philanthropic outreach and community relations. A magazines can post past and present photos that showcase places it has sent journalists, events it has covered, etc. Each Pin allows for a description and a link to the original story. Therefore, any company can quickly connect an audience with its story, mission and future plans, all via photo Pin. |
4. Display Various Sectors of a Company |
Larger operations can use Pinterest to nicely organize areas of focus and relay them to the public. For instance, an integrated marketing agency may host several individually themed Boards. One Board showcases photos of its public relations efforts, while a design department Board displays logos and web pages it has created, and a final Board hosts photos of employees in action. These types of organized displays would also allow other businesses to view similar work, effective strategies and innovative teams, making Pinterest a strong B2B community. |
5. Creative Communication Between Brands and Customers |
Using Pinterest, brands can create Pins and Boards that feature customers’ product interpretations, and then showcase them for entire audiences. This way customers can further relate to products, and brands have a way to thank to their supporters by integrating them into their communities. For example, a clothing company Pins a photo of a shopper in one of its outfits, and writes caption “Brandy A. paired this floral dress with our black lace stockings and brown leather boots to create the perfect fall ensemble.” Brandy feels special because the brand recognized her involvement and creativity, and thus is inspired to return, and the company creates content that keeps fans constantly involved. |
Pinterest holds immense potential for brands to interact with their audiences and to visually entice current and potential customers. Using the power of image, companies can create buzz around products, display more in-depth aspects of their businesses, and ultimately create more personal and visually pleasing social experiences for their audiences. |
A recent report by Borrell Associates shows that small business spending for social media marketing is growing. But you don’t need a fancy study to tell you that. The interesting part of this article is that more small businesses feel that social media is a more important marketing channel than paid ads. Some experts have put these two findings together to predict that small businesses are going to be willing to spend more on social media marketing than paid search in 2012. |
Why Spend More?
As some comments in the article suggest, the findings do not break down what “spend” really means. Does this consist of training, set up, consulting and other fees? And what do you plan to do with these assets after your accounts are created? As social networks become more popular, it’s also important for small business owners to have a good idea of the ROI on their investment for social media. Putting money into a marketing strategy without proper research or followup doesn’t guarantee success. In fact, investing the same amount into a paid search campaign may be even more productive for your business. There is no “right” answer and you can even choose a mix of both. |
Google+ may not have membership numbers as strong as Facebook, but it recently had its strongest-month ever and, at least according to one analyst, is on track to reach 400 million users by the end of the year. |
Experian Hitwise sent out a tweet on Monday that Google’s social networking site experienced a huge traffic jump in December and more than doubled its traffic in just one month. |
“Google+ total US visits reach more than 49 million in Dec-11, biggest month to date & up 55% compared to Nov-11 ow.ly/i/oT3R,” Experian Hitwise tweeted. |
Meanwhile, Experian Hitwise tweeted last Friday that U.S. visits for Google+ have grown eight out of the last nine weeks. |
Although Google+ has declined to comment on its membership numbers, analyst Paul Allen — who is also the founder of Ancestry.com — told the Daily Mail that the site recently surpassed the 62 million members mark. Of that, 25% of the site’s user base signed up in December alone. |
This growth rate is significant since Facebook didn’t pass 60 million members until nearly four years after its debut. At this rate, Allen said he expects Google+ will reach about 400 million users by the end of 2012. |
This has been a year where search marketing truly matured. Mobile became one of the largest growth components, with its share of the overall search market now reaching 20 percent.
Looking ahead, expect 2012 to be the year when we push further into the Mobile Semantic Web 3.0, which presents opportunities that will drastically change SEO as we know it. |
1. QR Codes
Quick Response or QR codes in 2012 will be near ubiquitous both online and offline in the U.S. to easily send people with mobile devices to online destinations.
QR codes are increasingly being used on billboards and various signage as nearly 50 percent of U.S. mobile users have a smartphone. Mobile devices themselves are ubiquitous with their users and are used often in tandem with using other media, such as magazines and television.
I envision these pixelized matrix barcodes present in the corner of all televised programs, especially news. Viewers will then be able to receive and share the latest updates on that televised news or programming with their mobile devices online. Television use will also be the medium which will explain how to use QR codes as its being used, so it takes hold in the mainstream understanding. |
2. Voice
There will be reduced dependency on text for search and logins in 2012, especially on mobile devices.
Voice actions on Android and recently Siri on the iPhone have provided users a more direct way of getting answers and producing actions on their mobile devices. Just as Google used its free 411 service to build the database for voice actions, I feel it will, in turn, use the database from voice actions as a free/paid service to business users for logins and purchasing online by just using your voice. |
3. Fragmentation
Search will be further fragmented in 2012 as mobile search is itself already fragmented by device-type to encompass feature phones, smartphones and tablets – with each offering different results not only between one another, but also with desktops.
The current landscape of mobile search to desktop is outlined with data and action items in a recently published Covario mobile SEO white paper. I envision that the search results of the three mobile types, as well desktop, will differ even more in 2012, as consumers’ ultimate search intentions and actions are different based on the device they are using. |
4. Personalization
There will be further personalization in 2012 search results as Google – with its secure login, Google+ and Android -- know what you're searching for, where you are when you search, what you like, and who your friends and influencers are.
“The perfect search engine would understand exactly what you mean and give back exactly what you want,” according to Google CEO Larry Page. Generalized search tactics become even murkier as results become so individualized to time, place, preference, and personal social trends.
Summary
The year ahead will also bring opportunities in the search space as we clarify and universalize our sites in the Mobile Semantic Web 3.0 with microformats and HTML5, while also being more granular by location and device with paid campaigns such as local paid inclusion. |
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Facebook CPMs Rising, Click-Throughs Too
