DBS: Nielsen Workshop: State of the Paid Social Advertising Industry

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Paid Social AdvertisingState of the Industry Survey

in conjunction with

December, 2012


What we doReach the Right People Influence their Opinion

Impact their Behavior

ReachResonance

Reaction


State of Social Media report

• Social media is still growing rapidly

• Mobile is fueling today’s growth

• Social is transforming the consumer TV viewing experience

• Social has revolutionized the way consumersand brands interact

Being released today!


About the Paid Social Ad Survey

• Surveyed brand advertisers, agencies and publishers

• Surveyed in September 2012

• 500+ responses


Paid Social is Part of the Marketer’s Toolkit

Don’t do anything with social media

Purchase media and/or sponsor content on social sites or platforms for social campaigns

Use free tools such as Facebook, Twitter, and YouTube to spread content organically

6%

81%

71%

0%

75%

89%

Advertisers Agencies

Q. Please describe your organization’s social media activities


Advertising on social networking sites(e.g. Facebook and Twitter ads)

Blogs / blog platforms

Social ad networks / platforms

Video sharing platforms

86%

55%

43%

43%

91%

54%

47%

46%

Agencies Advertisers

Q. Which paid social media advertising tactics have you leveraged in 2012?(top responses)

Paid Social Tactics Range Widely


Paid Social is Still Maturing

5+ years

4 years

3 years

2 years

1 year

Just getting started

24%

14%

27%

17%

13%

4%

14%

9%

25%

16%

16%

20%

AdvertisersAgencies

Q. How long has your organization used paid social media advertising?


Paid Social Spending is Increasing

Decrease

Stay the Same

Increase

2%

34%

64%

21% +

11-20%

1-10%

11%

15%

41%

Paid Social Ad Budgetwill grow by…

Brands: For 2013, do you expect your paid social media advertising budget to:


Advertisers are Shifting Dollars From Other Mediums

From offline channels

From other online channels – other

From other online channels – display

None, social media has its own dedicated budget

39%

10%

23%

41%

Advertisers

Q. In 2013, to what extent, if any, are you shifting budget from the following areas to your paid social media advertising budget?


Paid Social is Integrated with Other Tactics

Rarely ornever

Half of thetime or less

Most or allof the time

5%

7%

71%

11%

11%

66%

With Other Online Advertising

20%

39%

41%

18%

31%

51%

With Other Offline Advertising

AdvertisersAgencies

Q. How often are your paid social media advertising efforts run in conjunction with other types of advertising?


Paid Social is Primarily Used for Branding

A mix of both - more than half is direct-response

A mix of both - more than half is branding

Primarily direct-response related, e.g. driving product trials or site visits

Primarily branding related, e.g. raising awareness, influencing brand opinions

25%

29%

15%

31%

14%

25%

16%

45%

AdvertisersAgencies

Q. What is the primary purpose of your paid social media advertising campaigns?


I don't think it works

It’s a promising new tactic, but it’s effectiveness is unknown

I think it moves the needle when combined with other efforts, but I’m not sure how to measure ROI

It’s effective and produces measureable ROI (with ROI defined as metric achieved per dollar spent)

3%

27%

43%

27%

6%

33%

33%

29%


Q. How effective is paid social media advertising at meeting your marketing objectives?

The jury’s still out on ROI


There’s a clear disconnect between the metrics brands want, and what’s available to them

Metrics specific to the online medium

Some of the same metrics from the offline medium, and some metrics specific to the online medium

Exact same metrics as offline, and some additional metrics specific to the online medium

Exact same metrics as offline media, and nothing else

17%

29%

42%

12%

49%

29%

11%

12%

Metrics Brands Say They Want What Publishers Provide


There’s a clear disconnect between the metrics brands want, and what’s available to them

Used in the Past(top responses)

Brands• Likes/pins (77%)• Clickthroughs (73%)

Agencies• Likes/pins (86%)• Clickthroughs (79%)

Publishers• Clickthroughs (74%)• Views (68%)

Most Appropriate(top responses)

Brands• Sales generated (49%)• Brand lift (35%)

Agencies• Brand lift (52%)• Sales generated (46%)

Publishers• Brand lift (52%)• Shares/repost (38%)

Q. What metrics have you used in the past/think is most appropriate to measure paid social ROI?


The Industry Needs to Get on the Same Page

Define campaign’s primary advertisingobjective before campaign start

Establish metric that will be used tomeasure success before campaign start

Monitor performance for in-flightimprovements during campaign

Calculate ROI

98%

96%

96%

92%

32%

19%

23%

29%

Publishers Advertisers

What Advertisers Say Is Important for a Successful Campaign vs. What Publishers Say Actually Happens for Every Campaign


Opportunity for Improvement: Alignment Around Measurement

Clear link between social media advertising and Brand Lift

Clear link between social media advertising and Sales

0% 10% 20% 30% 40% 50% 60% 70%

53%

66%

46%

52%

AdvertisersAgencies

Q. What would increase your use of paid social media advertising?


Opportunity for Improvement: ROI and Benchmarks

Clarity around how to measure social media ROI

Social media benchmarks

65%

48%

58%

44%


Q. What would increase your use of paid social media advertising?

14% of brands said “no one” monitored the ROI

of their paid social media efforts

21% of brands said that they did not have social

media benchmarks


We’re working to bridge the gap

Nielsen will be releasing social media benchmarks

Benchmark the brand lift of your social media efforts against similar campaigns as measured by Vizu

A whitepaper with the results of this survey will be made available shortly

To obtain a copy, emailDarren Ellis at [email protected]

mailto:[email protected]

Documents

DBS: Nielsen Workshop: State of the Paid Social Advertising Industry