Appssavvy Social Activity Index

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Social Activity IndexMeasuring the effectiveness of Social Activity Advertising


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Table O Contents

Introduction 1

Social Activity Index The Equivalent Display Impression 3

Key Findings 4

Social Activity Compared to Other Forms o Online Advertising 4

Perormance by Social Activity Type 5

Social Activity Advertising Benchmarks 6

Conclusion 7

Appendix 8

Social Activity IndexMeasuring the effectiveness of Social Activity Advertising


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Introduction

With the emergence o social media, consumer behavior on the Internet has undergone amassive shit. People now spend more time online perorming social activities than they do on

email, content portals and instant messaging combined. Understanding people and their actionscreates a new opportunity or marketers, and enables brands to deliver contextually relevantads based on what people are doing rather than what they are viewing. This opportunity toconnect with actively engaged consumers has spawned a new segment o brand advertising

within display: social activity advertising. Results rom social activity campaigns run on theappssavvy Social Activity Platorm show social activity advertising amongst the most eective

ways to drive brand engagement. Social activity advertising outperorms both standard displayand rich media ormats, and rivals paid search.

Social Activity Advertising

Social activity advertising serves ad impressions against events rather than content. Publishersand applications developers identiy ad-enabled activities, just as they would designate spaceon a page or traditional online ad inventory. Upon completion o an enabled activity, a socialad is delivered. These ads combine brand messaging through video and interactive media withsocial calls to action such as sharing, ollowing, or Like-ing. Social activity ads typically ollowthe ow seen in fgure 1.

Figure 1: Example Social Ad Flow

1 2 3


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The most successul social activity ad units immerse themselves within the ow o activities thatoccur naturally within a website, app or game. Users perorming an activity are presented witha contextually relevant ad, styled similarly to unbranded activities, that integrates the brand

within the activity stream.

Figure 2: Example Social Activity Ad Unit

Measuring Social Activity

The Social Activity Index was established to uncover, track and benchmark online activitiesand the evolution o consumers social behavior across the Internet. The Index defnes a simple

yet robust metric that actors both engagement and cost to equate perormance across onlinemedia. Additionally, several benchmarks are set to establish perormance guidelines or socialactivity advertising and to help marketers, publishers and application developers manage andoptimize the perormance o their online initiatives.

The Index captures data rom hundreds o campaigns, hundreds o millions o socialactivities and billions o ad impressions run on the appssavvy Social Activity Platorm.Comparative data or ad ormats outside o the appssavvy platorm are compiled andsourced rom industry benchmarks.

SocialAd

2

Engage

3

PerormActivity

1


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Social Activity Index The Equivalent Display Impression

The appssavvy Social Activity Index tracks the cost-weighted impact o online advertisingmediums by measuring Equivalent Display Impressions (EDI). EDI is calculated or a given adtype by frst weighting its engagement rate to the click through rate (CTR) o display advertising,then discounting the dierence in perormance based upon dierences in the equivalent cost per

impression (eCPM). For example, i an ad type has an engagement rate 10 times that o stan-dard display ads, and is fve times more expensive, it rates at two EDI. Details o the calculationand methodology are shown in Figure 3.

Figure 3: Equivalent Display Impression Methodology

For a given media type, engagement rate is determined by dividing the sum o engagementevents by the total number impressions. The weighted impression cost or the same media type isthe eCPM o standard Display advertising divided by its eCPM.

The type and number o engagement events can vary by media type. This metric values allengagement types equally. See Table 3 or a breakdown o tracked engagement events.

Table 1: Engagement Events by Media Type

Media Type Engagement Event

Social Activity Click to site

Video view / Interaction Share Like / Follow

Rich Media Click to site Video view / Interaction

Search Click to site

Display Click to site

Display ClickThrough Rate

Equivalentdisplay impressions

Engagement eventsper impression

WeightedImpression cost

X


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Key Findings

Translating Social Activity perormance and cost to EDI demonstrates that Social Activityoutperorms standard display advertising by 11 times and doubles the perormance o rich

media. A summary o Equivalent Display Impressions by Ad Format is ound in Table 1.

Table 2: Social Activity Index Equivalent Display Impression by Ad Format

Ad Format Equivalent Display Impressions

Paid Search 12.2

Social Activity 11.4

Rich Media 5.3

Display 1.0

Source: appssavvy social activity platform, U.S. data January - December 2010, eMarketer

Within Social Activity, social games deliver the highest perormance, and outperorm all adormats including paid search. Ads within socially enabled apps and web sites driveengagement at nearly seven times display.

Table 3: Equivalent Display Impressions by Activity Platorm

Activity Platorm Equivalent Display Impressions

Gaming 15.2

Application / Web-

site

6.8


Additionally, 2.1 percent o all social activity ads are shared, resulting in signifcant earnedmedia impressions.

Social Activity Compared to Other Forms o Online Advertising

The EDI was established to index the perormance o any online media to a standard display

impression, accounting or both cost and engagement. This creates a single number that can beused to evaluate the perormance o an ad ormat or campaign against any other type o onlineadvertising.

Calculating the EDI or the most common orms o online advertising demonstrates that socialactivity is greater than 11 times more eective than standard display advertising at drivingbrand engagement, and twice as eective as rich media. Paid search is the most eective ormo online advertising, slightly outperorming social activity, and outperorming display morethan 12 times.


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Figure 4: appssavvy Social Activity Index (Equivalent Display Impressions)

Social activity ads perorm at high levels or two reasons. First, social activity advertising placesbrands and ads within highly interactive, social content that typically enjoys a loyal andengaged audience. This allows marketers to leverage naturally occurring activity to drive

signifcant engagement with their brands, and to deliver ads based on both context and intent.This explains why social activity ad perormance indexes alongside search.

Second, social activity ads oer a wider variety o calls to action versus other online ad ormats.Along with clicks to URLs, video views and other interactive elements, social activity ad unitsprovide several social calls to action such as sharing to Facebook or tweeting. These brandedcalls to action oten mirror unctionality and styling present throughout the website, game orapp, and can serve to enrich, rather than interrupt user experience.

Perormance by Social Activity Type

Within the Social Activity advertising category, gaming drives the highest cost-weightedengagement score, averaging 15.2 EDI vs. 6.4 or socially enabled apps or web sites.

The perormance o gaming advertising is driven by its exceptionally high activity rate anduniquely engaged audience. The average gamer may play a social game up to an hour perday, several days per week, during which time they complete multiple activities per minute.The highest EDI is observed when ads are incorporated into git giving, virtual good use and thecompletion o in-game missions and/or quests. These activities are central to everyday gameplay, and requently prompt gamers to share accomplishments with riends. Brands are able to

integrate with these events and become associated with something that enriches the everydaylie o the gaming audience.

Similarly, ads that ollow activities within social and mobile apps or web content are mosteective when the activities inherently involve a high level o interaction. Apps and websites thatdrive the creation o shareable content or encourage sel-expression through activities such asinteractive contest entries provide advertisers the best opportunity to oster brand engagement.

A detailed look at social activity advertising perormance by activity type can be ound inFigure 5.

Paid Search 12.2

Social Activity 11.4

Rich Media 5.3

Display 1.0


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Figure 5: Social Activity Index Detail by Activity Type (Equivalent Display Impressions)

Social Activity Advertising Benchmarks

Consumers strong engagement with social activity advertising translates directly intotaking actions to interact with brands. These actions include clicking through to a brand

website or an page, viewing a video, or engaging with interactive elements o the ad creative.Additionally, ads contain social calls to action such as sharing the ad with their riends, Like-inga page on acebook, or ollowing a brand on Twitter, to name a ew. Tracking all o these

interactions allows or the establishment o social activity advertising benchmarks.

Table 4: Social Activity Advertising Benchmarks

Metric Benchmark

Click Through Rate 1.4%

Share Rate 2.1%

Video View / InteractionRate

2.0%

Observed CTRs on ads ollowing social activities averaged 1.4 percent. Interaction rates with

video and other rich media elements averaged two percent.

Additionally, social activity ads average a share rate o 2.1 percent, meaning that two percento all Social Activity Advertising impressions result in branded content being shared to socialnetworks such as Facebook or Twitter.

Sharing provides a brand signifcant added value through earned media impressions to riendsollowers, or connections on social networks, which extends the reach o campaigns and drivesorganic engagement with branded content.

Gaming 15.2

Application /Website 6.8

Gift

User Generated Content

Decorative Item

Social Video

Mission / Quest

Contest

Environment

Pledge

Mini Games

Consumable

37.0

16.6

21.5

6.7

21.0

6.5

4.7

2.4

3.7

3.6

Poll 1.8


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Conclusion

While online advertising has remained mostly unchanged, the emergence o social media hasdriven signifcant change in consumer behavior. Social activity advertising gives brands accessto previously untapped ad inventory and provides a new way to engage with customers at a

time when they are actively involved with relevant activities. These lean-orward events allowcontext and intent to be captured beore ads are delivered, and have paved the way or a newsegment o display advertising that signifcantly outperorms other display media, including richmedia and video, and indexes alongside search. As the internet continues to evolve and timespent online continues its shit towards social media and games, social activity advertising willbecome an increasingly powerul way to reach and impact online audiences.


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Appendix

Defnition o Activity Types

Activity Plat-orm

Activity Description

Gaming Git Virtual good (decorative item, consumable), sent to a riend through social gaming network.

Giting provides the opportunity to engage withgamers and have messaging spread virallythrough a core element o social gaming. Gitsprovide a tangible beneft to a recipient that isassociated with the brand.

Decorative Item Decoration, such as a building, or article oclothing, that is placed in a gamers virtual worldor on their avatar.

Acquisition and use o an item are both activitiesthat are typically sharable to social networks.

Mission / Quest A series o related tasks within a game that, whenperormed together, tell a story and / or unlocklimited edition items or content.

Completion o each task as well as completion othe mission / quest and receipt o rewards aresharable within social gaming network.

Environment A location within a social game.

Both visiting the environment and completing tasksspecifc to the environment provide opportunitiesor gamers to complete activities that may earnrewards or be shareable to social networks.

Mini Game A game within a game.

Successul completion o a mini game mayunlock rewards and is sharable to social networks.Playing mini games is typically a daily behavioror active gamers.

Consumable A virtual item that can be used to provide tem-porary beneft, such as additional energy orincreased speed.

Both earning and using consumables are typicallyshareable activities.


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Activity Plat-orm

Activity Description

App / Website User Generated Content Any activity that allows sel expression through thegeneration o unique content.

These activities generally occur in apps whose coreunction is to drive interaction amongst riends andsharing to social networks.

Social Video A video ad unit integrated with social calls to action.

Contest Similar to user generated content, consumers submitcontest entries such as photos or drawings. Theseentries are then both share with riends and voted onby the entire user base o an app or website.

Pledge Users are provided with the opportunity to alignwith a brand, cause, event, etc. This alignment, orpledge, is then broadcast to a social network.

Poll Multiple choice question, typically used to share anopinion and measure the aggregate opinion o auser base.

Defnition o Metrics

Metric Defnition

Click through rate Percentage o ad impressions that result in a click to a specifed URL,such as a brand website or Facebook page.

Common across all orms o online advertising.

Interaction rate The number o rich media or social activity ad interactions divided bythe number o impressions. Each interaction is counted only onceper impression.

Interactions include: Mouse over Exit link click Video start Expansion

Share rate The number o circles to share a social activity ad dividedby the total number o impressions. Each available share type(eg, Facebook, Twitter) is only counted once per impression.

Equivalent DisplayImpression Metric established by the Social Activity Index to allow orcomparison o ad perormance in terms o both engagementrates and cost.

See the section o this report titled Social Activity Index The Equiva-lent Display Impression or a detailed explanation o the metric andhow it is calculated

Defnition o Activity Types Continued


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About appssavvy

appssavvy rethinks the relationship between delivery and reception o advertising. We partnerwith leading web publishers and developers to uncover what people are doing across the Internet.Understanding people and their actions is what enables appssavvy, and the brands and agenciesthat we work with, to leverage and experience social activity. In short, appssavvy is a platormthat connects people and brands through social activity. For more inormation, visit

www.appssavvy.com

Contact:

Main Phone - 212.941.5759

For inquires about the appssavvy Social Activity Index please contact:Mark KoperaProduct Manager, Brands & [email protected]

To learn more about appssavvys products and services please contact:Jack BambergerChie Client [email protected]

For press inquires please contact:Steve Stratz

Illuminate Public Relations or [email protected]

appssavvy locations:

NY Headquarters SF594 Broadway, Suite 207 701 Sutter Street, 5th Floor

New York, NY 10012 San Francisco, CA 94109

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Appssavvy Social Activity Index