Salesforce For Marketers Advertising Index

Salesforce for MarketersAdvertising IndexQ2 2016 Report

ContentsExecutive Summary.3Global Facebook Trends.4Global Instagram Trends.6Global Twitter Trends .8Global LinkedIn Trends .9Credits and Appendix.10What is Advertising Studio?.112 Q2 2016 Salesforce Advertising Index

Executive Summary Global Facebook CPM grew 65% year over year. In the e-commerce industry, Germany has the highest Facebook CTR at 1.62%, followed by theUnited States at 1.54%. Global Instagram CPM was 6.30, growing 42% quarter over quarter. Twitter CPM fell 18% year over year. Global LinkedIn CPM for Q1 2016 was 29.43.marketingcloud.com 3

Global Facebook andInstagram TrendsTrends at a GlanceFacebook continues to deliver value to advertisers everywhere,and its latest earnings report proves it. Facebook ad revenuereached 6.2 million, representing a 63% increase since Q22015. Facebook CPM rose 65% year over year globally to 6.33, with a global CTR of 1.29%.4 Q2 2016 Salesforce Advertising IndexQ2 2016 Global Facebook Trends

Performance by CountryAustraliaCanada and France experienced the highest growth inFacebook CPM with over 130% growth since last year, followedCPMCTRConsumer Packaged GoodsAUD 7.002.35%EntertainmentAUD 4.442.59%Financial ServicesAUD 8.860.94%Food and BeverageAUD 5.381.88%GamingAUD 9.542.71%Government and PoliticsAUD 13.650.96%RetailAUD 8.992.70%TravelAUD 6.302.02%FranceCPMCTRE-commerce 4.440.92%Gaming 2.410.63%Technology 3.532.08%GermanyCPMCTRE-commerce 5.321.62%Technology 5.391.98%gaming industry reached AUD 9.54, whereas retail CPMsUnited KingdomCPMCTRwere less expensive at AUD 8.99. In the United Kingdom, theAutomotive 2.411.64%entertainment industry had the lowest CPM at 1.21, with theE-commerce 4.700.99%highest CTR of 2.14%. In the United States, retail led in CTR atEntertainment 1.212.14%Professional Services 7.600.92%Gaming 4.100.52%Technology 7.411.60%Travel 4.021.70%by the United States, which grew 74% year over year. Australiahad the highest CTR at 2.02%, followed by Germany at 1.67%.The United Kingdom and Germany had increases in CPM yearover year at 44% and 46%, respectively.Q2 2016CPMGlobal* 6.3365%1.29%Australia 8.3548%2.02%Canada 5.54145%0.36%France 2.80137%1.36%Germany 4.4546%1.67%United Kingdom 3.9744%1.23%United States 7.2674%1.15%CPM YoY GrowthCTR*Global is an aggregation of the countries listed in the table (Australia, Canada,France, Germany, United Kingdom, United States)Trends by IndustryIn Australia, advertisers in gaming and retail saw the highestFacebook CTR at 2.71% and 2.70%. However, CPM for the2.50% but had the second lowest CPM at 5.37. The financialservices and e-commerce industries had some of the highestCPMs at 12.84 and 10.32, respectively.marketingcloud.com 5

CanadaCPMCTRE-commerce 13.530.64%Gaming 5.140.32%Global Instagram TrendsInstagram is growing as fast as ever, reaching 500 million usersin June 2016. With 80% of these users living outside theUnited States, it is clear that the platform is growing its globalfootprint, according to a recent blog post from the company.United StatesCPMCTRConsumer Packaged Goods 9.272.07%E-commerce 10.321.54%Education 8.341.01%Entertainment 1.011.65%Q2 2016Financial Services 12.841.76%Global 4.44 6.3042%Food and Beverage 7.061.22%Australia 5.49 7.6840%Gaming 7.150.71%United Kingdom 2.04 2.176%Professional Services 15.782.40%United States 5.10 7.1440%Retail 5.372.50%Travel 9.031.46%All industry numbers are in local currency.Mobile App InstallMobile App InstallCPMCPI*Global 7.65 4.01Australia 8.81 11.64Canada 7.93 8.30France 3.69 1.19Germany 6.09 1.71Italy 3.09 2.39Japan 8.36 2.86United Kingdom 6.68 3.24United States 9.62 4.88* All numbers in USD6 Q2 2016 Salesforce Advertising IndexThe global Instagram CPM for Q2 2016 was 6.30, rising 42%quarter over quarter. The United Kingdom increased by 6.4%, amuch lower growth rate than Australia and the United States.CPM (Q1 2016)All industry numbers are in local currency.CPM (Q2 2016)QoQ change

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Global Twitter andLinkedIn TrendsGlobal Twitter TrendsAccording to Twitter’s Q2 2016 earnings report, 40% ofPromoted TweetsCPMadvertising revenue was 535 million, rising 18% worldwide2015 Q2 5.26year over year. In Q2 2016, the global Twitter CPM fell 18% year2015 Q3 3.67over year to 4.29. From Q1 2016 to Q2 2016, CPM fell 38%2015 Q4 10.40from 6.93. Last year, the third-quarter CPM was lower than Q2.2016 Q1 6.932016 Q2 4.29its quarterly revenue was from international markets. TotalQuarterly advertising revenue grew 18% year over year, but amajor change since last year is the switch to Twitter video ads byadvertisers.8 Q2 2016 Salesforce Advertising Index

Global LinkedIn TrendsThe LinkedIn Q2 2016 earnings report shows that revenue fromits Marketing Solutions increased 29% year over year to 181million, and that over 60% of that revenue was from SponsoredContent. The demand for ad inventory on LinkedIn has grown,as have media costs for sponsored content. LinkedIn continuesto be a premium platform for advertisers — especially in B2Band financial services — as its CPM rose 13% year over year,reaching 29.43.Sponsored Status UpdateCPM2015 Q2 26.052015 Q3 27.172015 Q4 32.652016 Q1 29.372016 Q2 29.43% YoY Change13%marketingcloud.com 9

Credits and AppendixThe advertising data in this report covers hundreds of millions of adThe Salesforce Advertising Index report was authored by membersimpressions and engagements by Marketing Cloud customers usingof the Advertising Studio product marketing team at Salesforce, withour Advertising Studio platform from April 2016 through June 2016,support across wider teams. We acknowledge the work of Zacharyas well as comparative data from past periods. This includesReiss-Davis, Hilary Givens, and Kyle Graden in leading this effort, withadvertising on Facebook Audience Network, Instagram, Twitter, anddata support from Julien Grouteau and executive sponsorship fromLinkedIn across the globe. This aggregate data in no way representsChris Jacob and Liam Doyle.any official position of Facebook, Twitter, or LinkedIn for advertisingtrends, or for any individual advertiser.This report, or parts thereof, should in no way be published orredistributed without express written permission from an authorizedAggregate advertiser data is anonymized, categorized, and checkedSalesforce representative. Please email adsmarketing@salesforce.comfor consistency and accuracy before being included in any indexwith any feedback or questions about this report.presented in this report. This information is presented under safeharbor and should not be considered as any official statement byFor more Salesforce Advertising Studio content, check out the blog:Salesforce. Please seek appropriate advice and counsel prior tomarketingcloud.com/blog.making any advertising or business decision.Facebook is a registered trademark of Facebook Inc.Global and regional indexes were employed for a majority of thisInstagram is a registered trademark of Facebook Inc.report to control for factors like seasonality, vertical variances, andTwitter is a registered trademark of Twitter Inc.other factors. For some analyses, including when more than threeLinkedIn is a registered trademark of LinkedIn Corp.fiscal quarters of data are shown, a larger index of advertisers wasused. We encourage readers not to do much comparison with olderreports as we continue to evolve our methodologies with the goal ofmarket trend data that is more accurate.10 Q2 2016 Salesforce Advertising Index

What is Advertising Studio?Reach Your Customers Where They AreSecurely Connect Customer Data to AdvertisingAdvertising Studio is an end-to-end advertising platform thatCoordinate advertising with the rest of your marketing, sales,enables you to reach your customers where they are across alland customer service terms. All customer data is stored indigital advertising. Activate your customer data in SalesforceSalesforce, and any data that leaves the platform is encryptedto securely and powerfully reach your customers, find newand hashed before it is sent to any external advertising partner.prospects with lookalikes, and re-engage inactive users in theYour customer data is protected at every stage, and no externalcustomer journey. Create advanced campaigns and creativepartner can see it.variations with sophisticated targeting and optimize them atscale across Facebook, Instagram, Twitter, LinkedIn, and mobile.Enhance your email marketing goals with advertising andcoordinate campaigns across social, mobile, sales, and customerservice efforts.As a part of the Customer Success Platform, Advertising Studio is part of Salesforce forMarketers. The Customer Success Platform includes sales, service, marketing, community,analytics, and apps. Salesforce for Marketers and Advertising Studio are members of theFacebook Marketing partner program, Instagram Ads API partner program, and LinkedInSponsored Updates Ads Api Partner program. Salesforce is the world’s largest provider ofcustomer relationship management (CRM) software. For more information about SalesforceFive Key Ways to Make Advertising a 1-to-1 Channel(NYSE:CRM), visit salesforce.com.1. Acquire new customers: Build lookalikes of best customers tofind new ones with end-to-end lead automation.2. Re-engage inactive customers: Re-engage subscribers in anew channel, reducing risk to your email program.3. Extend the reach of email: Coordinate email and advertisingto increase your reach using Journey Builder.4. Exclude customers from ad campaigns: Increase ROI byexcluding existing or low-value buyers.5. Power ads using social listening: Advertise based on whatcustomers and prospects say on Twitter.marketingcloud.com 11

The Salesforce Advertising Index report was authored by members of the Advertising Studio product marketing team at Salesforce, with support across wider teams. We acknowledge the work of Zachary Reiss-Davis, Hilary Givens, and Kyle Graden in leading this effort, with data support from Julien Grouteau and executive sponsorship from