This advertising exodus is a boycott in protest of what they state are Facebook’s failures to stop the spread of violent, divisive and racists hate speech on social media. In addition to communicating that they don’t want to promote their ads in this kind of toxic environment, these brands are also conveying that they want more transparency and accountability from their social media partners.

As brands take a step back from these paid social platforms, they are reassessing the marketing landscape and actively evaluating alternative channels to allot their planned media investment to.

Progression to performance

It’s important to note that, even before the recent market turbulence caused by COVID-19, many marketing teams were pulling back on their paid marketing spend in the face of their leadership teams’ demands to show ROI of their marketing spending choices and channels.

In addition to wanting more transparency into where their marketing spend was going, these brands also wanted more control and accountability over how, where and when their marketing messaging and promotions were being displayed. 

For example, back in 2017, a number of brands and publishers in Europe boycotted Google’s network after discovering their ads were being displayed alongside content such as videos promoting terrorism and anti-Semitism. Others were finding ads for their brand appearing on alt-right sites, even after requesting they be blacklisted. 

As such, over the past few years, brands large and small have been gradually shifting their marketing spend away from programmatic, retargeting, display, paid social and paid search marketing and towards channels that give them more control and visibility into where their spend is going, and where and how their ads are being seen. 

What’s more is that many of these brands have come to realize that they prefer allocating spend to marketing channels where payment is made after performance has been driven, not before. This is a key reason why there’s been a notable increase in budget allocation in recent years to affiliate marketing programs; control, transparency and pay-on-performance are all core to the affiliate marketing model. 

Shifting spend

When the COVID-19 pandemic spread around the globe, impacting people’s personal and professional lives, consumption habits and shopping preferences, the gradual shift to pay-on-performance marketing abruptly accelerated. 

Numerous leading brands turned up the marketing volume and budget for their affiliate program and either paused or turned off their upper-funnel marketing channels, including display, retargeting and Google product listing ads. Having progressed in this direction pre-COVID-19, they understood how their affiliate channel could give them more control over their marketing spend and messaging, which was critical as they navigated the turbulent economic landscape caused by the pandemic. 

Now, as numerous leading brands boycott Facebook, we anticipate many will take a similar approach with their now available media spend and reallocate it to their affiliate marketing channel.

Key reasons

Whether it’s in response to a pandemic or a protest, there are many reasons brands are elevating the priority of their pay-on-performance affiliate marketing program:

Trust – an essential element of affiliate marketing that sets it apart from other channels is that it’s a relationship-based model. Brands with the most successful affiliate programs understand that the affiliates within their programs are their partners; they are marketing on their behalf as an extension of their brand and brand values. For brands wanting to work with partners they can trust, affiliate marketing gives them confidence that their partners will represent their brand in a way that’s aligned with their values.  

Transparency – in performance-based partnerships, companies and affiliate program managers know what types of partners are in the affiliate program, and how, when and where they are promoting and representing the brand. Companies also have significantly more transparency into the amounts they are paying their various partners as well as for what purpose.

Accountability – affiliate marketing’s cost per action model helps brands more effectively identify desired behaviours (e.g. leads or sales from specific channels), track and compensate partners based on those behaviours. More than ever, brands want to know where their ads or promotions are being displayed as well as what returns the marketing effort is generating. 

Affiliate marketing is built on a foundation of transparent, trusting relationships where brands and partners set clear expectations, including around KPIs and brand values. The brands boycotting Facebook because of how the social platform is handling misinformation and hate speech may find their dollars, time and energies better spent on marketing channels that allow them to pay for outcomes that matter. 

The post The Facebook Boycott and What Brands Want from their Marketing Partnerships appeared first on PerformanceIN.

Ad spend on social media is set to overtake ad expenditure on print, growing 20% this year to reach $84 billion, while in contrast, advertisers combined expenditure on newspapers and magazines will fall 6% to $69 billion, according to Zenith’s Advertising Expenditure Forecasts.

Breaking down ad spend across multiple channels, social media is due to become the third-largest paid channel for advertisers in 2019 with a 13% share of global ad spend. Paid search and television lead the top two with 17% and 29% respectively.

While social media is growing, the channel is slowly maturing with Zenith finding that ad spend is forecast at 17% in 2020 and 13% in 2021 – where it will account for 16% of all global ad spend.

Meanwhile, paid search advertising will exceed $100 billion for the first time, reaching $107bn by the end of 2019. Paid search will then grow at 8% a year and will amount to$123bn in 2021, accounting for 18% of total ad spend. 

Television advertising, however, continues to decline, slipping from $182 billion this year to $180 billion in 2021 – accounting for 27% of total ad spend in the latter year.

“Social media advertising gives brands the opportunity to drive growth by using automated tools to optimise their campaigns for key business objectives,” said Matt James, Zenith’s Global Brand President.

“By using first-party data from their own websites to identify potential customers on social media, brands can convert consumers who are already on the path to purchase and target look-a-like audiences more effectively.” 

With Brexit and political uncertainly looming, forecasts for Europe have been downgraded due to poor economic performance in key markets has eroded advertiser confidence. 

Germany and the UK registered small economic contractions in Q2, while year-on-year growth in Russia has fallen below 1%. Zenith now forecasts 1.9% ad spend growth in Western Europe this year, down from the 2.4% forecast in June, and 4.7% ad spend growth in Central & Eastern Europe, down from 6.1%. 

“As we move into the end of the year we can see that some of the optimism for 2019 has ebbed away with the year set to finish 3.3% up in 2018. A large part of this has obviously been due to the uncertainty surrounding Brexit,” said David Mulrenan, head of investment, Zenith UK.

“The lack of certainty has meant that advertiser budgets have continued to fluctuate throughout the year. However, as we move towards some resolution, 2020 is forecast to show greater growth at nearly 5%. Unsurprisingly, most of this growth is being driven by digital channels. However, this has more to do with traditional media owners digitising their inventory and estate than new players in the market,” he continued.

The post Social Media Overtakes Print to Become Third-Largest Advertising Channel appeared first on PerformanceIN.

Paid search continues to be a dominant channel for digital advertising, commanding 39% of advertisers’ budgets, although the playing field is levelling out, according to Marin Software’s State of Digital Advertising 2019 report.
 
Paid social claimed the second-largest share of advertisers’ budgets (18%) despite well-documented struggles with data privacy, followed closely by display (16%). 
 
Marin consulted the views of over 450 B2B and B2C digital marketing professionals in the US and the UK to understand their top priorities, challenges, and opportunities for 2019.  
 
According to the report, growth remains a top priority for advertisers as well as driving brand awareness as they continue to hit volume targets with paid search, social and accurate attribution in addition to leveraging audience data with e-commerce in a bid to drive more results through digital advertising.

Instagram and Amazon influencing ad spend

As brands increase their ad spend on Instagram, everyone is wondering if this comes at the expense of Facebook ad dollars. According to findings, the majority of respondents (67%) say Instagram spend will come from incremental budget rather than transferring from Facebook.
 
The last 12 months have been promising for Amazon, with 60% of advertisers planning to increase their ad spend over the next year as 55% see the platform as a significant growth opportunity, whereas one in four are looking to increase purchases at the lower end of the funnel.
 
Despite Amazon’s growth, the offering is not yet considered as sophisticated as Facebook or Google. 37% of those surveyed said the campaign management tools available on Amazon are not optimal and 23% state the reporting tools are not as established as other channels. 
 
In addition, 30% of responding advertisers say lack of expertise with Amazon ads is the primary reason why they are not yet using the platform, indicating a skills gap to close.  
 
Speaking of Google, the published emerged as the most trusted publisher, according to Marin, with an average rate score of 4.5 out of 5. 98% of respondents also rated Google a 4 or 5 on the trust index.

New ad formats

As brands tussle to capture consumer attention, advertisers are turning to new ad formats to break through the digital noise and drive awareness. 

84% of respondents who use paid search are currently using or planning to use Google’s new Responsive Search Ads format. Ad spend on shopping ad formats is also rising fast, with 65% saying their company’s use of Shoppable Images within search will increase in 2019.
 
Video advertising continues to lead the way in paid social, with 32% of survey respondents reporting that video is the most effective social ad format, followed by image ads (26%), Instagram Stories (23%), and carousel ads (19%).

“This year’s report shows a shift in advertising spend as marketers explore alternative channels and emerging ad formats. The digital advertising landscape continues to evolve, with advertisers struggling to close the skills gap as publishers innovate,” said Wes MacLaggan, SVP of Marketing at Marin Software.
 
“At Marin, we’re seeing a greater emphasis on video and new ad formats like Responsive Search Ads and Shoppable Images to gain mindshare and drive growth. The e-commerce landscape is a hotbed of innovation, presenting retail brands with many opportunities and some challenges to navigate,” MacLaggan concluded.

The post Paid Search Dominates as Instagram & Amazon Influence Ad Spend appeared first on PerformanceIN.

Social Media Week Bristol returned last month (June 10-14) following its breakthrough year in 2018, which saw keynote sessions from BuzzFeed, Facebook, Twitter and many more. Packed once again with inspirational talks and seminars on the latest developments from the world of social media and digital marketing, thousands gathered across multiple venues in the city of Bristol to listen to talks in the Engine Shed, Everyman Cinema and Origin Workspace to name a few.

The PerformanceIN team managed to catch a couple of interesting sessions, taking away some valuable insights on how brands can develop and grow their social media strategy for the year ahead.

The rise of Instagram Stories

We all know about the success of Instagram so it was no surprise that the platform would be getting a mention or two during Social Media Week. Gem Royston-Claire from digital agency Social Life delivered an insightful talk on the rise of Instagram Stories and why they are such a big deal for companies. Although Snapchat kicked off the Stories trend, it was Facebook and Instagram that took the format to the next level. It now has over 500 million daily active users (and rising) due to features such as polls, location tagging, gifs and more. Roston-Claire urged brands keen on using Instagram Stories to develop an effective strategy to target the growing younger audience (Gen Z) as a third of Stories viewed by users are from businesses while 33% of sponsored posts on the platform are Stories. Gem also stated that there was an 80% increase in watching videos on Instagram, which led to platform launching Stories and developing it into the format we see today – so why shouldn’t brands be using Stories to directly target their customers?

Using the power of inclusive marketing

We’ve heard a few things around inclusive marketing but it was the session from Joyann Boyce, founder of digital marketing agency The Social Detail, that really caught our attention. In the talk, Boyce discussed the concept of inclusive marketing, which she stated was about “creating content that makes people feel included” as well as content that represents your target audience. Showcasing good and bad examples from brands in the field – from Gillette’s intersexual ad campaign to Pepsi’s inauthentic campaign with Kendall Jenner, Boyce stressed the importance for companies to look beyond the persona and represent diversity and inclusion of all groups. Especially at a time where millennials are standing behind brands that present these areas and holding brands accountable if they fail to follow suit. Boyce added that inclusive marketing “is a movement” and brands should be keeping their content consistent and genuine as well.

Further highlights

While we may have only attended a couple of sessions, there were a few more highlights during Social Media Week Bristol. These included a number of topic areas on social media marketing, such as international B2B brands using social media, hosted by Business West, which covered tips and tricks businesses need to consider when trying to reach international audiences. Tips included creating content that talks to your audience, international personas and using relevant local platforms. 

Other sessions included the keynote from digital marketing agency Fourth Floor Creative who discussed the do’s and don’ts of working with influencers; a panel discussion of content creators sharing their thoughts on the latest industry trends, and the rise of video platform TikTok. There was also a talks on the transition of how users consume content on social media going forward and an exclusive panel discussion on the subject of activism in the digital age, featuring talks from activists Bess Hepworth, Bisi Alimi, and Shannon Power in addition to Russian punk band Pussy Riot, famously known for their activism in their home country. All parties shared their views on how activism is evolving through the use of social and digital channels to much effect.

Did you attend Social Media Week Bristol 2019? Share your comments below and check out more highlights on twitter via hashtag #SMWBristol.

The post Social Media Week Bristol 2019 – Key Takeaways appeared first on PerformanceIN.

In June 2019, Facebook will begin rolling out its new tool that shows users a summary of the apps and sites that are reporting their off-Facebook data to Facebook through Business Tools, as well as the Facebook Audience Network. Users will also be able to clear their history, deleting all previous off-Facebook data and resetting Facebook login connections, which can then no longer be used for targeting.

The tool was announced last year and global availability is expected to be complete by the end of September this year.

Facebook has spoken with businesses, agencies and industry bodies and as a result, has put together a list of points to keep in mind as the feature comes into play. They are:

• Transparency and control – when people are informed about how their information is used, it improves the way they feel about ads and the businesses they interact with online.
• Education – helping people understand how advertisers use their business tools will help people understand what data they share.
• May impact targeting – not having access to off-site activity may impact ad targeting. Facebook suggests keeping this in mind when developing campaigns in the second half of this year.
• Measurement will remain intact – Facebook said measurement and analytics tools have been carefully designed to protect people’s identity.

“Though Facebook retains the data after history is cleared, that information can no longer be used to target ads or other content to users on Facebook or Instagram, but can be used in aggregate by Facebook to provide analytics and measurement services for apps and website,” commented Emily Kramer, vice president, display media at Merkle.

“Going forward, the off-Facebook data generated from their activity on those apps and sites will not be used to personalise ads or other Facebook content,” she continued.

Will this affect all ad targeting on Facebook?

Advertisers will be limited by consumer choices, which is Facebook’s goal in providing this tool to the public. However, will it affect ad targeting on Facebook as a result?

“No. Off-Facebook Activity will not have an effect on any ad targeting derived from on-Facebook data, like interest targeting – which is derived exclusively from on-Facebook activity, or on CRM audience targeting. Only targeting based on data collected by Facebook’s Business tools, including pixel-based retargeting, will be affected,” said Kramer.

So what would be the potential impact?

“Significant consumer adoption would limit advertisers’ targeting and remarketing scale, and drive additional reliance on Facebook’s interest-based targeting solutions,” commented Kramer. She also believes that measurement won’t be affected as “Facebook will still be able to provide accurate reporting based on targeting that is available and in use.” Finally, “cost efficiency of media on Facebook may be impacted, as advertisers will have to target less specifically when consumers take advantage of the new capability,” continued Kramer.

What should you do?

Kramer recommends incorporating prospecting tactics to allow the algorithm to re-learn the most efficient way to target the users that clear history but do not opt out of future targeting. She also suggests incorporating lookalike audiences based on CRM lists into media plans to identify likely customers, regardless of their use of the off-Facebook activity offering, and to monitor off-Facebook targeting segments closely to evaluate performance and scale.

The post Will Facebook’s Off-Facebook Activity Tool Affect Ad Targeting? appeared first on PerformanceIN.

With Q1 done and dusted, Merkle’s latest Digital Marketing Report found that Facebook ad spend, excluding Instagram, fell 2% from Q1 2018. Since Merkle began its annual report in 2011, this is the first time there has been a year-on-year decline in ad spend on the social media platform.

Instagram continues to drive most of the increase in investment across Facebook properties, with advertisers spending 19% as much on the platform as they did on Facebook, and a 44% increase in ad spend from last year. Overall, paid social spend grew 24% in Q1, overtaking the 12% gain for traditional advertising.

Paid search spending continues to drop, with Google’s growth falling 16% from a year earlier and spend across Bing and Yahoo both down 3%. Google Shopping again was the primary driver of click growth, as spend for the format increased more than 40% year-over-year for the second straight quarter.

Facebook and Instagram saw less growth from advertisers across the two platforms whilst smaller platforms like Pinterest continue to gain momentum among retail advertisers. In addition, despite issues around brand safety, advertisers on YouTube roughly doubled spend.

It seems as though marketers are shifting their budgets to Instagram for paid social placements as the platform has recently launched new features, including the Checkout tool which lets consumers complete purchases in-app.

The report also highlighted the growth of e-commerce giant Amazon. Amazon advertisers saw sales attributed to its Sponsored Products and Sponsored Brands ad formats more than double, with spend growing 19% and 77% for those formats, respectively. Meanwhile, Sponsored Products accounted for 85% of all Amazon spend, with over half coming from placements other than the top search results.

“The report breaks down valuable data from the key media platforms and provides valuable lessons from some of the most impactful updates these platforms saw in Q1. As the marketing landscape continues to evolve, our team at Merkle is committed to ensuring our clients have thoughtful analysis and insight into the trends impacting their business,” said Erin Hutchinson, senior vice president of marketing at Merkle.

The post Facebook Ad Spend Drops for the First Time Since Q1 2018, Merkle Finds appeared first on PerformanceIN.

Since launching in 2010, Instagram has quickly become a go-to platform for social content.

Currently, it has over one billion users, making it an invaluable tool for companies to boost brand awareness and drive engagement amongst target audiences. Of course, these benefits have not gone unnoticed by the 25 million businesses that have set up profiles on the platform, or its two million monthly advertisers.

However, despite such a large corporate presence, less than half of organisations say that they see a return of investment (ROI) from Instagram. Indeed, many brands admit they struggle to translate user interaction – whether that be likes or views – into measurable sales. This has been put down to the platform’s continuous updates and the difficulties associated with ensuring that social marketing strategies keep up.

There is no one set formula on how to drive social sales. However, below are a few key tips that brands can adopt in order to make the most out of Instagram’s commercial opportunities.

Minimise the steps to purchase

A convenient and easy shopping experience has the potential to drive key improvements for retailers. For example, it can increase conversion rates and dramatically reduce shopping cart abandonment, an issue that affects almost three quarters (74%) of online sales.

Instagram’s shoppable posts are achieving this by minimising steps to purchase. On a widespread scale, this enables product tagging within posts, while the latest update lets users checkout without leaving the app. Currently, this feature is exclusive to the US but, if successful, it could become a feature worldwide.

Almost half of e-commerce brands already incorporate such posts into their social activity, which alone is evidence of this feature’s success. What’s more, it capitalises on the 600 million people turning to Instagram to find new products. However, to make the most of this opportunity, brands need to maintain follower engagement. So, what is the best way to go about this?

Sharing is caring

Encouraging users to share content – and therefore reaching a completely new customer base – is just one way of boosting engagement.

To do this, businesses should leverage the power of user-generated content and urge customers to share images of their purchases. Establishing branded #hashtags and photo competitions will then build on this interaction.  

However, research found that a fifth (17%) of the UK’s leading e-retailers are currently stifling their brand’s reach by failing to incorporate sharing buttons onto their sites. This is an issue that urgently needs addressing.

Effective use of Stories

With a third of the most popular Instagram Stories coming from business accounts, the majority of retailers are already aware of this feature’s ability to boost brand engagement.

Until now, brands have predominantly featured product-related content on their feeds – utilising shoppable posts – and used Stories for more conversational, “behind the scenes” visuals. However, following the introduction of product stickers in Stories, companies need to showcase products across all aspects of their account.  

One way of doing this is by creating catalogue-style feeds consisting of simple product shots to generate initial interest. Stories can then include more detailed information on corresponding products (such as price) to engage and convert interested customers.

Given that users have to actively click on a story, they are naturally going to be more engaged in a brand. So, companies taking advantage of this feature will help maximise the number of social-generated sales.

Keep the ball rolling

With the above information to hand, brands can expect to effectively capitalise on the benefits that Instagram has to offer. However, with the ever-changing nature of the platform, social strategies need to be constantly updated. Therefore, to maximise social success, brands need to revise their approach to Instagram on an ongoing basis.

The post Making the Most of Instagram’s Commercial Opportunities appeared first on PerformanceIN.

Instagram is debuting its Checkout tool, having rolled out a series of shopping features in the last few years to make it easier for brands and consumers to sell and buy products through the app.

The social media platform is currently testing the shopping feature in the US, with 23 brands, including Nike, Zara, Burberry and Adidas all part of a closed beta. Instagram users will be able to buy the items they see and like on the platform directly through the app as opposed to being directed to the brand’s website. Instagram will then make an undisclosed commission on each purchase.

Seamless shopping experience

The new tool indicates that Instagram is looking to make more revenue, with the platform expected to make up 20% of Facebook’s overall revenue in 2019. The tool was created in response to the growing demand from brands on the app looking to better connect with their audiences.

Brands are able to make products shoppable via posts on the feed, in Instagram Stories, or in the shopping area in the Explore tab. According to Instagram, shoppers can make purchases with Mastercard, Visa, PayPal and Discover. In terms of data, users will just need to enter their contact information and shipping address the first time they check out. Notifications about shipment and delivery will be in the app, so users can keep track of their purchases.

All of this is enabling a more seamless shopping experience for users, with Instagram working with the likes of Shopify and BigCommerce to carry out its objectives.

“Instagram’s shoppable posts are providing the answer to this and have already been adopted by almost half of e-commerce businesses due to their sales-boosting abilities. The platform’s latest update is therefore set to build on this success by enabling shoppers to make a purchase without even leaving the app – maximising ease of purchase,” said Daniel Dixon, head of social at e-commerce agency Visualsoft.

“Shopping via social media removes a number of pain-points on the customer buying journey, and could virtually eradicate shopping cart abandonment; an issue which affects almost three quarters (74%) of online retail sales. Considering that UK retailers enjoy an average social media reach of over 1 million, the growth opportunities are tremendous for businesses who can take advantage of this new trend. However, if this is to be successful on a wide scale, retailers need to keep followers engaged on an ongoing basis. This can be achieved through creative Instagram stories and social posts,” he continued.

Instagram has revealed there are more plans in the pipeline for its shopping experience as the platform continues to be a vital channel for businesses, but only time will tell if it will increase consumer engagement as the organic nature of the app declines.

The post Instagram’s New E-Commerce Checkout Tool Has Landed appeared first on PerformanceIN.

Social media app Instagram saw a 120% increase in ad spend year-on-year during the fourth quarter of 2018 as it continues to be a major driver of social advertising growth,  a report by Kenshoo found

Instagram Stories grew faster than Instagram feeds, with Stories ads now making up 10% of all Instagram spend, up from 8% in the previous quarter. What’s more, brands that advertise on Facebook and Instagram rarely spend more than 50-60% of their total budget on Instagram.

A big part of this growth was down to existing Instagram advertisers increasing their ad spend on the platform. Advertisers who have been using Instagram Ads since 2017 spent four times more on the platform compared to those who only started spending on Instagram Ads in 2018. The report is based on findings from more than 3,000 advertiser and agency accounts across 20 vertical industries and over 60 countries.

Another report from Merkle found that Instagram continues to drive significant revenue growth for Facebook and for the median advertiser spending on both Facebook and Instagram, Instagram investment rose to 27% that of Facebook in Q4 2018, triple that 9% in Q1. Marin Software’s Q4 2018 report found that Instagram received 18% of total Facebook spend, with 34% of that spend allocated to Instagram Stories. 

It seems that ad clicks and spend are almost entirely coming from mobile devices as the social media giant continues to outpace most other digital marketing platforms in terms of mobile dependence.

Although Instagram is a leading platform, many advertisers still consider it a fairly new channel and need to take time to learn before they spend heavily on the platform. Instagram continues to be a key force in 2019, so advertisers need to “be on top of new formats and strategically test them out earlier in the year when costs are lower and the risk is less so you can go aggressive when it matters most,” read the Kenshoo report.

The post Ad Spend from Long-Term Advertisers Driving Instagram’s Growth appeared first on PerformanceIN.

The Facebook Marketing Partners (FMP) program has added a new brand safety capability following advertisers requests for third parties to help them manage their brand safety controls for campaigns on Facebook. Ad measurement platform, DoubleVerify and video content rating platform, OpenSlate are the first two companies to be certified.

The brand safety capability for FMP aims to help Facebook advertisers “connect with trusted third parties like DoubleVerify and OpenSlate to apply their preferred controls on campaigns.” The program is a step towards addressing the need for more brand safety controls and offers some much-needed transparency on the platform. Facebook said it will continue to enable partners to build new solutions that will assist advertisers in reviewing content options and controlling where their ads appear.

DoubleVerify enables advertisers to target their ads away from undesirable apps. In a press release, DoubleVerify’s CEO, Wayne Gattinella said “Protecting brand reputation is critical for large digital advertisers. We share Facebook’s commitment to maintain a trusted and transparent marketplace, and we’re excited about this new initiative.”

OpenSlate allows advertisers to visualise, optimise and automate targeting on major video platforms and provides advertisers with brand-suitable targeting solutions, as opposed to simply monitoring exposure to inappropriate content.

Facebook’s brand safety certification could potentially increase the number of advertisers on the platform.

Let us know your thoughts on this in the comments section below, or reach out to us on social media.

The post Facebook Introduces Brand Safety Certification, Giving Advertisers More Control appeared first on PerformanceIN.