Stats, Facts & Future Trends: August 2017

Stats, Facts & Future Trends September 4th, 2017

This month, we track the ongoing rise in Snapchat and Instagram adoption, how social channels use video to capture attention, and just how far your influencer budget will go.

Instagram and Snapchat adoption still surging in the US and UK

Usage rates for Facebook, Instagram and Snapchat are running in parallel between the US and UK, with Instagram and Snapchat expected to rise by double digits. According to eMarketer’s latest forecasts of social network usage, leader Facebook will also see its user growth continue to slow in both countries as lessening usage among teens and young adults drags down overall user growth. The report found that:

  • Snapchat’s US user base is expected to grow 25.8% to 79.2m monthly, while Instagram will grow 23.8% to 85.5m.
  • In the UK, 16.7m will use Instagram each month this year, an increase of 34.8% over 2016, while 21.1%, or 14m people, will log on to Snapchat at least once per month in 2017, an increase of 20.2%.
  • The number of Facebook monthly users in the US will grow 2.4% this year to 172.9m
  • However, the social network’s monthly user base among the 12-17 age group will fall 3.4% to 14.5 million people.

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“We see teens and tweens migrating to Snapchat and Instagram,” said eMarketer senior forecasting analyst Oscar Orozco. “Both platforms have found success with this demographic since they are more aligned with how they communicate – that is, using visual content. Outside of those who have already left, teens and tweens remaining on Facebook seem to be less engaged, logging in less frequently and spending less time on the platform. At the same time, we now have ‘Facebook-nevers’ – children aging into the tween demographic who appear to be overlooking Facebook altogether, yet still engaging with Facebook-owned Instagram.”

Source: eMarketer

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Which online ads are playing all the way through?

A report by Extreme Reach has found that the completion rate of online advertising has increased across all devices, from connected TV and tablet to desktop and mobile. The report noted that:

  • 94% of videos play all the way through on connected TV, the closest platform to traditional TV. This represents 18% of all relevant impressions.
  • However, desktop provides the most impressions, gathering 35% of total online video ad views and 68% of ads played all the way through.
  • The tablet’s share of impressions has gone down by 10% to 15%, but the completion rate has showed a 20% growth to 71% of complete ad views.
  • Mobile has gained 7% in impression share, closing in on desktops, with 68% of video ads played all the way through.

Continuing the positive trends related to consumer engagement with video ad campaigns, Extreme Reach also noted that filtration rates for invalid traffic were down, as were instances of video being displayed in small player or less-than-optimal in-banner scenarios. Each of these signals align with larger moves by the industry to try and cut down on ad fraud and to hold video ad vendors accountable for campaign quality.

Source: Extreme Reach

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Email still king for many marketers

Email may now be a veteran of the marketing toolbox but it continues to thrive, with a survey finding that nine in 10 marketers in North America use email to engage their audiences. The report, carried out by Winterberry Group and the Data & Marketing Association (DMA), also found that:

  • Email is the most commonly used channel, more than digital display, owned web content and search.
  • Email also dominates across different industries, with all marketers in healthcare or pharma, as well as travel and hospitality, using email marketing
  • More than two-thirds (67.0%) of respondents to a Campaigner survey cited attracting new customers as a leading email marketing goal for 2017.
    • A total of 269bn emails will be sent worldwide every day in 2017. That number will grow by 4.4% annually to 2021, when 319.6bn emails will be sent and received daily.
  • 73% of in-house marketers worldwide said that email marketing provided a strong ROI in 2017.

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“While there is concern that newer messaging platforms will cannibalise the email audience,” said eMarketer analyst Jillian Ryan, “younger cohorts remain loyal to email. Still, as email volume increasingly grows each year, it’s likely that users are becoming more particular about their desire for more tailored messages.”

Sources: DMA, Campaigner, Econsultancy

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Rewarded video ads get thumbs up from app publishers

A survey of mobile publishers worldwide found that rewarded video ads are the most effective way to generate revenue. In the AdColony survey, rewarded video ads – ads that give users rewards, generally in the form of credit for games being played in apps – were rated the most effective way to monetise apps. The survey found that:

  • 75% of respondents said that rewarded video ads were the most effective monetisation method for mobile apps.
  • Rewarded video outranked not only other ad formats, but also non-advertising tactics such as in-app purchases (63%) and interstitial video ads (44%).
  • Some of the least effective methods were paid subscriptions (14%), in-feed video ads (13%) and affiliate programmes (6%).
  • It’s estimated that there are over 202m mobile smartphone app users in the US, representing 97% of all smartphone users.

The survey also found publishers feel that rewarded video ads offer the best user experience, with 87% of respondents rating rewarded video ads as a positive user experience. No other ad type came close.

Sources: AdColony, eMarketer

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How social platforms are using video to capture audience attention

According to a new report, Facebook, Snapchat and Twitter are embarking on a massive land grab for video content, hoping to drive increased usage and capture a greater portion of digital video ad revenues with familiar ad formats such as pre-roll and mid-roll. The report, titled Video Advertising in Social Media 2017: Showtime for Facebook, Snapchat and Twitter, found that:

  • US digital video ad spending outsideof social platforms will reach $13.23bn this year, up 23.7% from 2016.
  • By 2021, spending will reach $22.18bn, representing 17.2% of total ad spend.
  • Rich media, which includes ad types such as flash, JavaScript and video that does not appear as part of a video player, will be a $10.33bn market in the US this year.

“Consumers, particularly young people, are viewing video programming on more devices and in more destinations than ever before, and social platforms want to capture their attention,” said Debra Aho Williamson, eMarketer principal analyst and author of the report.

Source: eMarketer

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Number of UK podcast listeners increases

Podcast listening continues to increase in the UK, according to data from Radio Joint Audience Research Limited (RAJAR) and Ofcom. Recent research has shown that 24% of UK adults ages 15 and older said they had listened to a podcast at least once, an increase of 2% year on year. Other findings include:

  • 42% of UK consumers listen to podcasts more often than in 2016, compared to 39% for digital music services and 33% for audiobooks.
  • More than a third (37%) of UK talk radio listeners also listen to podcasts, while more than half (55%) of people who listen to podcasts also tune in to talk radio.
  • 42% of podcast listeners were queuing up podcasts more often than they had been a year ago.
  • 51% of respondents listened to podcasts because they found them interesting, while 26% tuned in to “learn something new”.

Despite a growing user base, podcasts are difficult to place within the UK’s marketing and advertising ecosystem. With ad-free content a key draw among the country’s podcast listeners, it’s unsurprising that advertising in the format hasn’t attracted enough investment to warrant tracking. However, studies have found UK listeners are generally agreeable to ads in their podcasts, provided those podcasts are free to access and the ads are relevant to the topic discussed.

Sources: RAJAR, Ofcom

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Celebrity influencers command huge sums from brands

UK marketers are willing to pay celebrity influencers on Facebook up to £75,000 for a single post mentioning the brand they want to promote, a new survey has revealed. Yet despite the huge sums, Rakuten Marketing’s survey of 200 UK marketers who work directly on influencer campaigns, found surprisingly few are sure they help to drive sales. The survey found that:

  • Brands are prepared to pay celebrity influencers £67,000 for each YouTube video that mentions their brand.
  • Key influencers on Snapchat can expect to be paid as much as £53,000 per Snap.
  • However, 86% of marketers acknowledge they are not entirely sure how influencer fees are calculated, while 38% cannot tell whether a particular campaign drives sales.
  • Despite this, 75% of respondents still expect their spending on such influencer campaigns to rise over the next year and 35% expect their budget allocation to increase by more than 50%.

“Influencer marketing can be hugely effective but marketers are commissioning expensive posts without understanding the real impact on the purchase journey,” said James Collins, Rakuten Marketing’s SVP/MD of Global Attribution. “It’s essential that marketers question influencer fees and use attribution tools to measure the effect of this activity in order to create strong, value-driven relationships between brands and influencers.”

Source: Rakuten Marketing

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Commissioned by The CMA

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