The State of Media Q3 2018 - 4C Insights

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The State of Media Q3 2018 - 4C Insights
The State of Media
Q3 2018
The State of Media Q3 2018 - 4C Insights
Contents
INTRODUCTION...................................................... 2

DIGITAL ADVERTISING........................................... 3
Facebook.......................................................................................................4
Instagram......................................................................................................5
LinkedIn.........................................................................................................6
Pinterest........................................................................................................7
Snapchat........................................................................................................8
Twitter............................................................................................................9

TV RANKINGS....................................................... 10
US Broadcast & Cable TV Ad Rankings......................................................10
US NFL TV Ad Rankings.............................................................................. 11
UK TV Ad Rankings.....................................................................................12
TV Social Lift Rankings................................................................................13
Seasonal TV Social Lift Rankings.................................................................14

TRENDS................................................................. 15
Shoppable Advertising...............................................................................15
Stories Everywhere......................................................................................16
Data-Driven Content...................................................................................17

CONCLUSION........................................................ 18
Meet the Metrics.........................................................................................18
The State of Media Q3 2018 - 4C Insights
Introduction
We might want to name 2018 the year of change.
Another quarter has passed, and another wave of
changes have been made that dramatically alter the
advertising and media industries. Let’s recap.
During Q3 2018, the US Department of Justice
appealed the decision to allow AT&T to purchase Time
Warner, the result of which is yet to be determined,
but will most certainly give a clearer image of the
future of media consolidation. Meanwhile, Comcast
outbid FOX to acquire British broadcaster Sky in
a move that will give the telco giant a larger global
footprint as well as a robust digital and OTT presence.
Our CEO, Lance Neuhauser, describes the potential
impact of these changes in AdExchanger: “AT&T,
Verizon and Comcast are uniquely positioned in
the media landscape today to dominate the future
                                                          Read on for more insights into how marketers reached
of brand advertising. They have the trifecta — the
                                                          their audiences across channels and screens in Q3
technology, content and ad tech — required to create
                                                          2018, based on 4C’s exclusive data:
the seamless offering that could genuinely attract the
brand advertising budgets that are currently in play.”
                                                          DIGITAL ADVERTISING
Amid the macro changes, marketers continue to find
themselves embracing an audience-centric approach         •     Using a representative sample of brands active
to supercharge their strategies. In fact, Ilana Rosin,          on 4C across Facebook, Instagram, Twitter,
Associate Director at Resolution Media, tells us                LinkedIn, Pinterest, and Snapchat.
“every campaign we run for my client has an affinity      •     The total sample for our Q3 report included
or interest-based audience.” By using audience                  more than $300 million in media spend across
data to inform targeting, advertising formats, or the           1,000+ brands.
content itself, marketers are realizing the benefits of
putting their audiences first. Noam Dorros, Partner,      TV ADVERTISING
Director Search and Social at Mindshare, says his
teams are seeing “higher engagement by users as           •     Using 4C’s proprietary Teletrax™ TV monitoring
we are hitting our target audience with a tailored              technology, which tracks 2,100+ channels, we
message at the right time. That’s the key: know your            looked at which brands were advertising the
audience, provide them with a relevant message,                 most in the US and UK over the past quarter.
and reach them when they are most receptive.”             •     We measure cross-screen engagement,
                                                                combining TV and social data together to
                                                                determine which brands saw the biggest impact.

The State of Media Advertising Q3 2018                Page 2                                   ©2018 4C Insights, Inc.
The State of Media Q3 2018 - 4C Insights
Digital Advertising
                                              Digital advertising spend through 4C grew steadily
                                              in Q3, led by Pinterest and Twitter, with the highest
                                              increases in ad spend through 4C. Health, home
                                              & garden, and travel verticals led growth across
                                              publishers. With the summer travel and home
                                              improvement seasons wrapping up and cold and
                                              flu season rapidly approaching, advertisers in these
                                              verticals leveraged the power of digital platforms to
                                              reach their audiences.

The State of Media Advertising Q3 2018   Page 3                                 ©2018 4C Insights, Inc.
The State of Media Q3 2018 - 4C Insights
Facebook
Facebook saw an increase in advertising spend quarter-over-quarter (QoQ) through 4C as the company
addressed privacy and security concerns.

               FACEBOOK          SPEND QoQ     CPM      CTR      CPC     CPM QoQ    CTR QoQ       CPC QoQ
                      Overall            7%    $4.92   0.97%     $0.51        6%         -14%             23%

The health and entertainment verticals drove advertising growth on Facebook through 4C this quarter, with
77% and 59% QoQ increases, respectively. With over 2 billion monthly active users, Facebook continues to
provide wide reach for advertisers with mass appeal. Through new features like the global expansion of Watch,
Facebook is providing more opportunities for advertisers to reach their audiences. “This is the leap advertisers
have been waiting for. It’s been on the cards for some time with the Premier League deal Facebook signed
earlier this summer, and at the start of the season it’s the perfect time to roll out the platform for users,”
explains our Marketing Director, EMEA, Kirsty Brice.

                 VERTICAL        SPEND QoQ     CPM      CTR      CPC     CPM QoQ    CTR QoQ       CPC QoQ
                      Health             77%   $5.94     1%      $0.57       -5%         -31%             38%
             Entertainment               59%   $5.45     2%      $0.35       46%         -29%           106%

See "Meet the Metrics" on page 18.

The State of Media Advertising Q3 2018                 Page 4                                  ©2018 4C Insights, Inc.
The State of Media Q3 2018 - 4C Insights
Instagram
Advertising spend on Instagram remained steady in Q3 and continued to grow its share of total ad spend with
Facebook, Inc. Marc Langenfeld, Precision Lead Singapore at Publicis, says “Instagram has certainly been a
growing channel for us with increased demand from clients as they have a better understanding of the product
and audiences available here. Newer formats such as Instagram stories, vertical video, and collection ads have
all been welcomed additions to the product suite and eagerly adopted.”

              INSTAGRAM          SPEND QoQ      CPM      CTR      CPC     CPM QoQ    CTR QoQ     CPC QoQ
                      Overall             1%    $4.11   0.19%     $2.12       -11%      1.3%            -12%

Health and home & garden verticals saw the largest increases in advertising spend on Instagram in Q3, with
218% and 74% QoQ increases through 4C. Instagram continues to provide creative opportunities for advertisers
through its highly visual nature, helping the platform grow.

                 VERTICAL        SPEND QoQ      CPM      CTR      CPC     CPM QoQ    CTR QoQ     CPC QoQ
                      Health             218%   $3.02   0.15%     $2.08       20%       -36%             88%
           Home & Garden                 73%    $6.03   0.34%     $1.77        6%        22%            -13%

See "Meet the Metrics" on page 18.

The State of Media Advertising Q3 2018                  Page 5                                ©2018 4C Insights, Inc.
The State of Media Q3 2018 - 4C Insights
LinkedIn
LinkedIn saw a slight decrease in ad spend overall in Q3 as compared to Q2, as a natural side effect of
seasonality. Oscar Romero, Managing Partner - Performance Practice at Publicis Media, says his teams
have seen “an increase in investment, particularly as greater B2C options are available. That, coupled with
the unique laser-focused audience targeting capabilities, offsets the perception of the platform as expensive
for some advertisers.” While LinkedIn regularly has the highest CPM through 4C, its capabilities for reaching
professional audiences are widely seen as a worthwhile investment.

                 LINKEDIN        SPEND QoQ       CPM      CTR       CPC     CPM QoQ   CTR QoQ     CPC QoQ
                      Overall             -5%   $30.77   0.34%     $8.93         2%        3%         -0.57%

New features like Carousel Ads helped draw advertisers to LinkedIn in Q3, and created appeal for travel
brands, which led growth through 4C alongside the services vertical. The ability to use multiple creatives in one
ad is a big draw for brands that rely on visual content like those looking to hook potential travelers.

                 VERTICAL        SPEND QoQ       CPM      CTR       CPC     CPM QoQ   CTR QoQ     CPC QoQ
                    Services             124%   $48.70     1%      $9.04        -8%      -20%             15%
                       Travel            80%    $55.43   0.29%     $19.35       60%      -54%           251%

See "Meet the Metrics" on page 18.

The State of Media Advertising Q3 2018                   Page 6                                ©2018 4C Insights, Inc.
The State of Media Q3 2018 - 4C Insights
Pinterest
With a 39% increase in ad spend over Q2, Pinterest was the platform with the largest QoQ increase through
4C this quarter. Heading into the back-to-school season in Q3, Pinterest anticipated seeing over 50 million
shoppers flock to the platform for inspiration.

                PINTEREST        SPEND QoQ      CPM      CTR      CPC     CPM QoQ    CTR QoQ       CPC QoQ
                      Overall            39%    $3.30     1%      $0.56         6%         -5%             12%

With its strength in inspiration and visual search, Pinterest continues to appeal to brands in the electronics and
apparel & fashion verticals, which led advertising growth through 4C this quarter.

                 VERTICAL        SPEND QoQ      CPM      CTR      CPC     CPM QoQ    CTR QoQ       CPC QoQ
                 Electronics             313%   $5.43   0.14%     $3.93        -5%          2%             -7%
         Apparel & Fashion               261%   $3.97   0.43%     $0.93       39%         -10%             55%

See "Meet the Metrics" on page 18.

The State of Media Advertising Q3 2018                  Page 7                                  ©2018 4C Insights, Inc.
The State of Media Q3 2018 - 4C Insights
Snapchat
Snapchat’s slight dip in advertising spend in Q3 reflects the “summer slowdown” that occurs with its younger
audience. However, as our CMO Aaron Goldman told Adweek, “Snap’s future is bright. Augmented reality
has taken off, with 70 million people engaging with AR Snaps each day for an average of three minutes
each, based on figures provided by the company. And the company has a passionate user-base who spends
disproportionate amounts of time immersed in the platform. There are no signs of slowdown when it comes to
the pace of innovation at Snap.”

                SNAPCHAT         SPEND QoQ      CPM      SUR      CPSU    CPM QoQ   SUR QoQ CPSU QoQ
                      Overall            -13%   $2.60   0.29%     $0.88       -7%      -14%              9%

In keeping with the overall trend, the home & garden and travel verticals saw the largest increases in Snap
Ads’ spend in Q3. The platform continues to be an efficient ad placement, with the lowest average CPM for
advertising through 4C in Q3. Snap’s new reach and frequency tool promises to help advertisers stick to
these efficient CPMs.

                 VERTICAL        SPEND QoQ      CPM      SUR      CPSU    CPM QoQ   SUR QoQ CPSU QoQ
           Home & Garden                 73%    $1.38     1%      $0.23        3%      -41%             76%
                       Travel            23%    $4.36     1%      $0.46      -36%      -34%             -3%

See "Meet the Metrics" on page 18.

The State of Media Advertising Q3 2018                  Page 8                               ©2018 4C Insights, Inc.
The State of Media Q3 2018 - 4C Insights
Twitter
Advertising spend through 4C grew double digits on Twitter in Q3. Laura Collins, Head of Paid Social at
Merkle|Periscopix, is seeing “larger clients invest more in Twitter as they become aware of its effectiveness
as a tool for branding. Their new suite of high-impact ad formats such as First View are ideal for clients that
need millions of eyes on their brand. And despite a high price tag, they actually still prove to be cost-effective
compared to traditional media designed to achieve the same goals.”

                   TWITTER       SPEND QoQ      CPM      CTR       CPC    CPM QoQ    CTR QoQ       CPC QoQ
                      Overall            12%    $6.56   0.79%     $0.83     -0.65%      -0.79%           0.14%

Heading into the US midterm elections, government advertisers saw the largest increase in Twitter advertising
spend through 4C this quarter with a 697% increase QoQ. As politics continue to play out on Twitter, political
campaigns are using the platform to capture like-minded potential voters.

                 VERTICAL        SPEND QoQ      CPM      CTR       CPC    CPM QoQ    CTR QoQ       CPC QoQ
               Government                697%   $8.09     1%      $1.00       72%         -24%           126%
                        Retail           109%   $7.93     1%      $1.09        -2%          3%             -5%

See "Meet the Metrics" on page 18.

The State of Media Advertising Q3 2018                  Page 9                                  ©2018 4C Insights, Inc.
TV Ad Rankings
Without a doubt, TV and digital video are converging as the media landscape adapts to the new reality
of consumers watching video content anytime, anywhere. Our Chief Product Officer, Anupam Gupta,
described this phenomenon in MarTech Series: “Linear TV still amasses huge audiences and delivers strong
engagement and reach. Today’s digital- and mobile-obsessed industry headlines often neglect that fact,
but linear is still massively relevant within the media mix and remains a critical proving ground for the same
strategies that marketers have undertaken in digital video. The worlds of linear TV and digital video are
rapidly converging.” During Q3, events like the World Cup and the start of the NFL season were perfect
examples of this trend, capturing attention across screens around the globe.
Using our proprietary Teletrax™ technology, we found which advertisers were picking up the most TV
advertising time this quarter. In the US, Toyota and Geico retained the top spots for broadcast and cable
advertising, with film producers Warner Bros. and Universal Pictures joining the top 10 for cable during the
summer movie season.

               BROADCAST PRIMETIME                                                 CABLE PRIMETIME
 RANKED             AD       AD                       PREV       RANKED            AD       AD                            PREV
 ADVERTISER         MINS     SPOTS       QoQ   YoY    RANK       ADVERTISER        MINS     SPOTS    QoQ         YoY      RANK

 1. Toyota          578       1,294      22%   13%     1         1. Geico           8,348   16,846 22%           8%          1
 2. Nissan          574       1,174      21%   -6%     2         2. Progressive     6,158   12,337 34%           38%         3
 3. Ford            554       1,158      60%   8%      4         3. DirecTV         4,926   9,858    -20%        -34%        2
 4. Chevrolet       544       1,095      22%   10%     3         4. Domino’s        4,788   14,478   30%         31%         5
 5. Geico           427       888        30%   -7%     5         5. Liberty Mut.    4,777   12,720 38%           61%         6
 6. Verizon         345       682        29%   25%     10        6. Verizon         4,094   9,420    21%         15%         7
 7. Progressive     337       676        45%   37%               7. Humira          4,088   4,094    4%          1%          4
 8. Lyrica          336       355        11%   16%     8         8. Esurance        3,716   8,867    158%        74%
 9. Honda           331       662        18%   -12%    9         9. Warner Bros.    3,710   6,491    235%        153%
 10. T-Mobile       311       644        46%   -24%              10. Universal      3,232   6,706    30%         265%

See "Meet the Metrics" on page 18.

The State of Media Advertising Q3 2018                       Page 10                                       ©2018 4C Insights, Inc.
US TV Ad Rankings
The NFL season kicked off in Q3, and despite being
embroiled in political controversy, ratings are on the
rise. Verizon and Microsoft took the top two spots for
advertising during NFL programming.

                     NFL FOOTBALL
     RANKED                  AD          AD
     ADVERTISER              MINS        SPOTS   YoY
    1. Verizon                217        532     41%
    2. Microsoft              161        344     124%
    3. Bud Light              152        416     101%
    4. Progressive            149        297     67%
    5. Geico                  144        295     54%
    6. Ford                   106        217     178%
    7. J.G. Wentworth         105        122     219%
    8. Toyota                 104        242     55%
    9. Lexus                  100        288     12%
    10. Hyundai               89         191     24%

See "Meet the Metrics" on page 18.

The State of Media Advertising Q3 2018                  Page 11   ©2018 4C Insights, Inc.
UK TV Ad Rankings
In the UK, Direct Line jumped to the top spot for overall TV and Pay TV Peak advertising this quarter, with
Compare the Market coming in first for Free to Air Peak TV.

                           OVERALL                                                        FREE TO AIR PEAK
 RANKED                       AD         AD                    PREV     RANKED                AD      AD                      PREV
 ADVERTISER                   MINS       SPOTS   QoQ     YoY   RANK     ADVERTISER            MINS    SPOTS   QoQ      YoY    RANK

 1. Direct Line               7,081 14,210 67%          42%     5       1. Compare The Market 1,447   4,296   27%     53%        3

 2. Compare The Market        5,847 14,628 32%          63%     4       2. McDonald’s         1,343   2,771   -32%    4%         1

 3. Gtech                     4,592 6,011        125%   -33%            3. Currys PC World    1,275   2,685   73%     29%

 4. Oral-B                    4,405 8,674        -1%    -26%    3       4. Samsung            1,091   3,157   35%     22%

 5. McDonald’s                4,221 8,708        -28%   -5%     1       5. Direct Line        1,030   2,071   120%    52%

 6. Currys PC World           4,220 8,958        57%    -1%             6. Kayak              968     4,928   44%     595%

 7. Samsung                   4,183 11,149 24%          2%              7. Confused.com       906     1,736   57%     -40%

 8. Kayak                     4,061 21,289 33%          359%            8. Aldi               881     2,613   -3%     62%

 9. TalkTalk                  3,452 4,615        36%    84%             9. ASDA               879     2,665   32%     37%

 10. Confused.com             3,440 6,877        32%    -29%            10. Oral-B            842     1,654   41%     -20%

                        PAY TV PEAK
 RANKED                      AD      AD                        PREV
 ADVERTISER                  MINS    SPOTS       QoQ    YoY    RANK

 1. Direct Line              827     1,664       141% 10%                See "Meet the Metrics" on page 18.
 2. Oral-B                   699     1,377       -14%   -31%    1
 3. Trivago                  552     1,142       69%    -22%

 4. Currys PC World          530     1,138       86%    5%

 5. Lloyds Bank              528     1,042       44%    13%

 6. McDonald’s               482     999         -29% -4%       3
 7. Nationwide               454     557         9%     -57%

 8. Amazon                   435     1,270       110% 579%

 9. Halifax                  434     797         -16%   -14%    6
 10. Sixt                    420     1,035       21%    509%

The State of Media Advertising Q3 2018                              Page 12                                   ©2018 4C Insights, Inc.
TV Social Lift Rankings
Each quarter, we use our Teletrax™ TV monitoring technology and social media engagement data to generate
TV Social Lift Rankings, where we chart the brands that experienced the greatest lift in social engagement
following TV ads. This quarter, Samsung jumped to the top spot for broadcast advertisers, with ads poking fun
at rival Apple. Netflix came out on top of the cable rankings, thanks in part to ads for popular returning shows
like Ozark and new programming like The Haunting of Hill House and Maniac.

                           US CABLE                                                      US BROADCAST
 RANKED               TV SOCIAL      TV      SOCIAL MEDIA   PREV       RANKED             TV SOCIAL     TV      SOCIAL MEDIA     PREV
 ADVERTISER           LIFT IMPACT    SPOTS   ENGAGEMENTS    RANK       ADVERTISER         LIFT IMPACT   SPOTS   ENGAGEMENTS      RANK

 1. Netflix          98%             2,582   461,560                  1. Samsung          286%          735     72,447

 2. LEGO             86%             7,275   101,805                  2. Applebee's       86%           416     32,704             2
 3. Olive Garden     77%             24,164 212,341          6        3. Oreo             82%           353     124,229

 4. Amazon.com       74%             17,075 3,477                     4. Johnson & Johnson 79%          451     38,235

 5. Arby's           69%             18,019 76,242           1        5. Arby's           78%           608     76,242             4
 6. Target           67%             26,062 76,242           8        6. Target           73%           1894    76,242

 7. Oreo             65%             4,643   124,229                  7. Olive Garden     71%           1070    212,341            6
 8. Sprite           63%             3,088   55,920          5        8. T-Mobile         71%           1029    3,347

 9. Southwest        60%             2,523   28,463                   9. Subway           71%           553     139,190

 10. Taco Bell       57%             50,866 63,016                    10. DirecTV         68%           665     113,639            1

                             UK TV
 RANKED                TV SOCIAL     TV      SOCIAL MEDIA   PREV        See "Meet the Metrics" on page 18.
 ADVERTISER            LIFT IMPACT   SPOTS   ENGAGEMENTS    RANK

 1. Virgin Media      168%           6,141   162,939         1
 2. O2                142%           4,624   43,360          7
 3. Chanel            128%           1,039   347,996

 4. Argos             106%           6,342   23,667

 5. Tesco             98%            5,242   145,537         3
 6. Channel 4         98%            11,933 774,892

 7. Morrisons         96%            5,143   157,897         2
 8. EE                91%            2,368   69,749

 9. Halifax           91%            4,734   14,827

 10. Amazon.com       86%            10,420 91,916

The State of Media Advertising Q3 2018                             Page 13                                      ©2018 4C Insights, Inc.
Seasonal TV Social Lift Rankings
Television events around the world capture audience attention throughout the year, and this quarter we looked
into how audiences were responding to advertising during World Cup and NFL programming. We included a
preview of World Cup TV Social Lift in our Q2 report, and this quarter, we have rankings for the full tournament,
where Suzuki saw the greatest lift in engagement after TV ads in the UK. During NFL preseason and regular
season programming in August and September, Subway saw the greatest lift in social media engagement
following TV ads.

                                                                              WORLD CUP
                                                            RANKED               TV SOCIAL     TV         SOCIAL MEDIA
                                                            ADVERTISER           LIFT IMPACT   SPOTS      ENGAGEMENTS

                                                           1. Suzuki             1,590%        2         5,237
                                                           2. Morrisons          412%          11        58,800
                                                           3. Vodafone           365%          17        16,293
                                                           4. Mercedes UK        353%          17        3,139
                                                           5. Halifax            340%          9         5,582
                                                           6. EE                 308%          14        17,647
                                                           7. HSBC               257%          4         11,592
                                                           8. Ford               221%          14        71,810
                                                           9. Lloyds             197%          16        7,793
                                                           10. Virgin Media      184%          15        47,589

                                                                                  NFL
                                                            RANKED               TV SOCIAL     TV        SOCIAL MEDIA
                                                            ADVERTISER           LIFT IMPACT   SPOTS     ENGAGEMENTS

                                                            1. Subway            733%          16        67,975
                                                            2. DirecTV           319%          28        54,629
                                                            3. T-Mobile          299%          8         174,760
                                                            4. Gillette          283%          4         39,185
                                                            5. Audi              216%          14        159,621
                                                            6. Applebee's        165%          5         72,069
                                                            7. Olive Garden      156%          1         44,851
                                                            8. Toyota            145%          88        59,124
                                                            9. Jeep              139%          19        252,956
                                                            10. Verizon          1.351         70        101,474

                                                           See "Meet the Metrics" on page 18.

The State of Media Advertising Q3 2018                Page 14                                      ©2018 4C Insights, Inc.
Trends
SHOPPABLE ADVERTISING
As the holiday season heats up, shoppable advertising
is exploding across digital publishers. Pinterest and
Instagram both currently offer shoppable ads, with
Instagram expanding its organic shopping capabilities
this quarter. Between Pinterest’s strength as a platform
where users indicate purchase intent through their search
behavior, and Instagram’s highly-visual, magazine-like
user experience, shoppable advertising across both
platforms is a natural fit for retailers this holiday season.
“It goes without saying that Q4 is huge for retail, and
it means bigger budgets and a need to reach a bigger
audience,” said Laura Collins, Head of Paid Social
at Merkle|Periscopix. “Pinterest is a really valuable
platform for retailers across many product categories,
and it’s already featured in several of our media plans to
finish off 2019.”

                         We also expect brands to increase
                         investment in Pinterest in Q4,
                         as an extension of paid search
                         activity, particularly for online
                         retailers. Pinterest’s integration
                         with API partners like 4C means
                         advertising on Pinterest is more
                         accessible and sophisticated than
                         previous years.
                         OSCAR ROMERO,
                         MANAGING PARTNER – PERFORMANCE
                         PRACTICE AT PUBLICIS MEDIA

Snapchat is also testing shoppable Snap Ads following
the release of Shoppable AR lenses this spring. The
expansion of shoppable advertising gives marketers the
ability to create a more seamless shopping experience by
connecting with audiences across platforms and screens.
Amazon, arguably the world’s foremost shopping
destination, is also making a play for retail ad budgets
this holiday season. The online shopping giant has
recently taken steps to bolster its advertising business
with a consolidation of its ad products under the Amazon
Advertising name, and expanded API integrations,
including one recently announced with 4C.

The State of Media Advertising Q3 2018                  Page 15   ©2018 4C Insights, Inc.
STORIES EVERYWHERE
Competition for consumer attention is constantly increasing, meaning marketers need to find ways to connect
with their audiences by not just aligning with their interests and values, but also with their preferred content
experience. If recent numbers are any indication, their preferred content experience is Stories.

                           We are primarily utilizing (Stories on Instagram and Snap) to test the
                           placements' abilities to drive lower-funnel outcomes.
                           JAIME BECKETT, ASSOCIATE DIRECTOR, SOCIAL MEDIA AT OMD

One of the fastest growing content formats for digital platforms, the ephemeral nature of Stories across
platforms like Instagram, Facebook, and Snapchat adds a level of authenticity that consumers love, helping
the format grow across platforms. In June, Facebook announced that Instagram Stories had reached 400
million daily active users, growth of 150 million over last year. According to Facebook, one-third of the most
viewed Stories on Instagram are from businesses and ~50% of businesses on Instagram have created a story
in a typical month. Instagram also has multiple ad formats for Stories including Carousel Ads and Canvas. Our
CMO, Aaron Goldman, says “Across the brands on our platform, we’ve seen triple-digit increases Instagram
ad spend on a year-over-year basis. Stories adoption is at the center of that.”
As Stories continue to grow in popularity across platforms, Marc Langenfeld, Precision Lead Singapore at
Publicis, describes some advertising best practices. “We’re using Stories across Instagram as well as Facebook,
and have typically found performance increase by upwards of 20% compared to in-feed ads. From a best
practice and recommendation perspective, obviously use fit-for-purpose creative built for the execution, utilize
video or carousel formats, and finally be explicit in your creative on what you want consumers to do, such as
indicating they can swipe up to buy or get more information.” It's also important to understand how Stories
advertising can work in conjunction with other ad placements. Kim Hoeu, Head of Paid Social (APAC) at Essence,
says her team has seen "better results in terms of brand uplift" when using Instagram Stories in combination
with in-feed ads on Facebook and Instagram.

The State of Media Advertising Q3 2018                   Page 16                             ©2018 4C Insights, Inc.
DATA-DRIVEN CONTENT
In order to capture increasingly elusive consumer attention,
content creators and advertisers are beginning to use
audience data to create stronger campaign strategies and
inform the content itself. Our, CEO, Lance Neuhauser,
writes in AdExchanger about the power of audience data.
Content disruptors “know in advance whether a piece
of content has an audience and when that audience will
go from watching an entire episode to an entire season
to an entire series. In other words, they know whether
that audience is worth the investment and exactly when
they’ll get the return. Their mindset has shifted from their
understanding of content to the data that helps them
understand their audience, and TV networks have an
opportunity to follow suit."
In a recent article for MarTech Series, our Chief Product
Officer, Anupam Gupta, described how advertisers are

                         It’s time for TV advertisers to
                         put data to use in a way that lets
                         them target their true audiences,
                         not just vague proxies for the
                         real consumers they are trying to
                         reach. That moment is finally here.
                         ANUPAM GUPTA, CHIEF PRODUCT OFFICER
                         AT 4C

using social media engagement data to inform audience
discovery, competitive intelligence, and creative insight.
With abundant data on audience viewing habits, traditional
TV networks and OTT providers are in a position to push
into new, non-disruptive advertising formats like dynamic
product placement. As networks refine their approach
to using audience data to inform advertising, the finish
line for the future of video advertising is clear: a highly
engaging, highly valuable experience for the consumer.

The State of Media Advertising Q3 2018                 Page 17   ©2018 4C Insights, Inc.
In Conclusion
Heading into the final quarter of 2018, marketers are leveraging tools like shoppable advertising and Story
formats across publishers to reach their audiences this holiday season. We’ll be back with another report in
January to review Q4 digital and TV advertising, as well as global TV moments like UK Christmas advertising
and the MLB World Series.

Meet the Metrics
CPM: Cost-Per-Thousand Impressions based on total spend               SUR: Swipe-Up Rate based on total impressions and Swipe-Ups
and impressions across all publisher's campaigns. Includes all        across all Snapchat campaigns. Includes all objectives.
campaign objectives.
                                                                      TV Ad Rankings: To understand which brands are most active on
CPC: Cost-Per-Click based on total spend and total clicks across      TV, 4C tracks ads across broadcast and cable networks, covering
all publisher's campaigns. Includes all campaign objectives.          more than 2100 channels in 76 countries. Advertisers are ranked
                                                                      according to total ad minutes aired in each category.
CTR: Click-Through Rate based on total impressions and clicks
across all publisher's campaigns. Includes all campaign objectives.   TV Social Lift: By comparing each brand’s social media
                                                                      engagements in the two-minute period after the start of a TV
Total Spend YoY: Change in publisher's social advertising spend
                                                                      ad to the brand’s average social media engagement rate, 4C
through 4C from Q3 2017 to Q3 2018.
                                                                      calculates the TV Social Lift Impact. Ultimately this is a measure
CPM YoY: Change in publisher's CPM from Q3 2017 to Q3 2018.           of how much more likely a consumer is to engage with the brand
                                                                      on social media after seeing its TV ad.
CPC YoY: Change in publisher's CPC from Q3 2017 to Q3 2018.
CTR YoY: Change in publisher's CTR from Q3 2017 to Q3 2018.
CPSU: Cost Per Swipe-Up based on total spend and total
Swipe-ups across all Snapchat campaigns. Includes all campaign
objectives.

The State of Media Advertising Q3 2018                           Page 18                                          ©2018 4C Insights, Inc.
ABOUT 4C
4C is global marketing technology company that delivers a unified platform for
audience discovery, media execution, and performance analysis. Leading brands,
global agencies, and media owners trust the Scope by 4C™ platform to identify their
most valuable audiences and reach them across channels and devices. With nearly $2
billion in annualized advertising spend running through Scope, 4C enables self-service
activation on a4, Amazon, Apple News, Facebook, Instagram, LinkedIn, NBCUniversal,
Pinterest, Snapchat, and Twitter as well as TV synced ads via display, search, social, and
video. The company also provides paid, earned, and owned media analytics leveraging
its Teletrax™ television monitoring network which detects over 400 million TV asset
airings on an annual basis. Founded in 2011 and based in Chicago, 4C has staff in
16 worldwide locations across the United States, United Kingdom, the Netherlands,
France, Hong Kong, India, Singapore, and the Philippines. Visit www.4Cinsights.com
for more information.
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