Marketing Cloud Advertising Index - Salesforce

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Marketing CloudAdvertising IndexQ1 2016 Report

ContentsExecutive Summary.3Global Facebook and Instagram Trends.4Global Twitter Trends .8Global LinkedIn Trends .92 Q1 2016 Salesforce Advertising Index

Executive Summary The global Facebook CPM grew 71% year over year In the retail industry, Australia has the highest Facebook CTR at 1.95%, followed by theUnited States at 1.71% As of Q1 2016, the global Instagram CPM was 4.44 Twitter’s CPM fell 4.9% year over year, but cost per engagement grew 216% The global LinkedIn CPM for Q1 2016 was 29.37marketingcloud.com 3

Global Facebook andInstagram TrendsTrends at a GlanceHistorically, media costs tend to be lower in Q1 than in Q4 dueto seasonal shopping habits, but this year’s global trend wasdifferent, with 14% quarter over quarter growth. Facebookmedia costs continue to rise year over year, with global CPMgrowing 71% to 5.75. The CTR also rose 20% to 1.00%overall.4 Q1 2016 Salesforce Advertising IndexQ1 2016 Global Facebook Trends

Performance by CountryAustraliaCanada experienced the highest growth in Facebook mediacost at 189%, followed by Germany and the United States, withCPMCTRConsumer Packaged GoodsAUD 5.552.46%Financial ServicesAUD 7.130.99%Food and BeverageAUD 4.931.63%GamingAUD 9.721.07%RetailAUD 10.321.95%TravelAUD 5.921.60%GermanyCPMCTRE-commerce 4.441.30%Gaming 3.350.51%United KingdomCPMCTRConsumer Packaged Goods 1.981.46%Gaming 4.150.56%Retail 3.260.96%United StatesCPMCTRConsumer Packaged Goods 5.401.72%at AUD 10.32, followed by gaming at AUD 9.72. Although itE-commerce 6.271.56%had the lowest CTR in Australia at 0.99%, the financial servicesGaming 3.090.51%industry had the third-highest CPM at AUD 7.13. In the UnitedRetail 6.331.71%Travel 7.942.52%both growing 86% year over year. The United States had thehighest CPM at 7.02, while Germany had the highest CTR at1.57%. France and Australia had the slowest growth rates forCPM year over year at 19% and 37%, respectively.Q1 2016CPMCPM YoY Growth %CTRGlobal* 5.7571%1.00%Australia 7.3437%1.57%Canada 6.72189%0.44%France 1.4919%0.49%Germany 4.2886%1.64%United Kingdom 4.2053%1.01%United States 7.0286%0.98%Trends by IndustryIn Australia, the retail industry had the highest Facebook CPMKingdom, gaming had the highest costs at a CPM of 4.15, butthe lowest CTR at 0.56%. In the United States, travel had boththe highest cost and engagement, with a CPM of 7.94 and aCTR of 2.52%. For the retail industry, CTR in the United Stateswas higher than the United Kingdom, at 1.71% compared to0.96%.Mobile App InstallThe cost per mobile app install in Germany, France, and Spaindecreased, consistent with an overall downward trend year overyear of media costs in these countries. In Australia, CPI grew140%, the highest of any country. The United Kingdom sawmarketingcloud.com 5

the lowest growth in costs for mobile app install campaigns at12%, followed by the United States at 26% growth.Global Instagram TrendsAdvertisers across the globe are adopting Instagram to reachFor Mobile App Install Ads, CountriesVary Widely in CPM and CPI (USD)and engage their audiences. In February 2016, Instagramannounced a milestone of 200,000 advertisers on the platform,which now has over 400 million users. The global InstagramCPM and CTR for Q1 2016 were 4.44 and 0.11% respectively.Japan had the highest Instagram CTR at 0.17%.InstagramCPM LocalCTRGlobal 4.440.11%Australia 5.490.09%Japan 5890.17%United Kingdom 2.040.09%United States 5.100.09%Q1 2016 Global Instagram TrendsMobile App InstallCPMCPICPI YoY % ChangeGlobal 7.29 3.8235%Australia 11.61 12.53140%Canada 7.86 8.3075%France 3.71 2.33-25%Germany 5.86 2.81-23%Italy 3.30 2.5341% 11.80 4.1854%Netherlands 5.26 4.0859%Spain 2.83 1.50-61%United Kingdom 6.60 4.0612%United States 8.49 3.8526%Japan6 Q1 2016 Salesforce Advertising Index

marketingcloud.com 7

Global Twitter andLinkedIn TrendsGlobal Twitter TrendsIn its latest earnings report, Twitter announced that 86% ofPromoted TweetsCPMCPE2014 Q4 7.66 0.212015 Q1 7.29 0.25from Q4 2015 to Q1 2016 for both CPM and CPE, falling to2015 Q2 5.26 0.21 6.93 and 0.79, respectively.2015 Q3 3.67 0.412015 Q4 10.40 1.382016 Q1 6.93 0.79its advertising revenues came from mobile. In Q1 2016, theglobal CPM for Twitter fell 4.9% year over year, but the cost perengagement rose 216%. Media costs significantly decreased8 Q1 2016 Salesforce Advertising Index

Global LinkedIn TrendsAccording to LinkedIn’s Q1 2016 earnings reports in April,global user adoption surpassed 433 million users and revenuefrom Marketing Solutions increased 29% year over year to 154 million. LinkedIn continues to be a premium platform foradvertisers, with a global CPM of 29.37 for Q1 2016.2016 Q1Sponsored Status UpdateCPM 29.37marketingcloud.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 January through March 2016support across wider teams. We acknowledge the work of Zacharyand comparative data from past periods. This includes advertisingReiss-Davis, Hilary Givens, and Kyle Graden in leading this effort withon Facebook Audience Network, Instagram, Twitter, and LinkedIndata support from Julien Grouteau, and executive sponsorship fromacross the globe. This aggregate data in no way represents any officialChris Jacob and Liam Doyle.position of Facebook, Twitter, or LinkedIn for advertising trends, or forany 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,Twitter is a registered trademark of Twitter Inc.and other factors. For some analysis, including when more thanLinkedIn is a registered trademark of LinkedIn Corp.three-quarters of data are shown, a larger index of advertisers wasused. We encourage readers not to do much comparison to olderreports as we continue to evolve our methodologies with the goal ofmarket trend data that is more accurate.10 Q1 2016 Salesforce Advertising Index

What is Advertising StudioWhat is Salesforce Advertising Studio?Activate your customer data.Advertising Studio is Salesforce Marketing Cloud’s enterpriseUse the data you already know about your customers from theirsolution to digital advertising. Drive real business results andemail, mobile push interactions, and purchases on your site tomanage your advertising campaigns at scale with Advertisingsecurely sync with Facebook and Twitter. Engage with them at theStudio Campaigns. In addition, unlock your CRM data inright moment along the customer journey, or find new customersSalesforce to securely and powerfully reach your customers,who have behaviors similar to your best ones. Advertising Studiotarget lookalikes, and optimize advertising within the customerAudiences also integrates with the major CRM onboardingjourney with the help of Advertising Studio Audiences.partners, so you can connect your data with the entire DMP andDSP ecosystem.Manage advertising at scale.Reach customers on any device or channel with advertisingAs a part of the Customer Success Platform, Advertising Studio is part of Marketingpowered by identity-based targeting via Facebook, Instagram,Cloud. The Customer Success Platform includes sales, service, marketing,Twitter, LinkedIn, and mobile publishers. Advertising Studiocommunity, analytics, and apps.Campaigns has helped large agencies and brand teams aroundmembers of the Facebook Marketing partner program, Instagram Ads API partnerthe world run millions of campaigns with sophisticated businessprogram, and LinkedIn Sponsored Updates Ads Api Partner program. Salesforce isgoals. Whether it is creating complex campaigns, facilitatingthe world’s largest provider of customer relationship management (CRM) software.efforts and intelligence across advertising teams, or visualizingFor more information about Salesforce (NYSE:CRM), visit salesforce.com.Marketing Cloud and Advertising Studio areand reporting on performance, you can tailor your advertisingapproach to your digital marketing strategy with AdvertisingStudio Campaigns.marketingcloud.com 11

What is Salesforce Advertising Studio? Advertising Studio is Salesforce Marketing Cloud's enterprise solution to digital advertising. Drive real business results and manage your advertising campaigns at scale with Advertising Studio Campaigns. In addition, unlock your CRM data in Salesforce to securely and powerfully reach your customers,

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