august 2012 - kenshoo.com · event 3 - 200 meters - average ctr athletes that compete in the 100...

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AUGUST 2012

2012 SOCIAL MEDIA ADVERTISING GLOBAL GAMES

Presented by:

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OPENING CERMONY

Tune in as we compare performance of di�erent countries based on various Facebook

advertising metrics.

WHAT TO WATCH FOR1. Countries with high Facebook penetration represent great opportunity for advertisers. Savvy

marketers can reach these connected populations through targeted mobile ads and take

2. Countries with the highest CPM and Cost per Click (CPC) rates reflect increased attention and

bid competition from marketers. Those countries also tend to have the lowest exposure rates,

and refresh creative assets often.

3. Countries with high click-through rates (CTR) indicate more willingness of consumers to

interact with Facebook ads. Couple this with lower Facebook recommended bid amounts and

you’ve found good markets to test. Look to keep Frequency down, though, so as not to over-

saturate the audience.

Now, on with the games!

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THE COMPETITORS

Check out the profiles below to see our competitors and how they all stack up. Our dataset included more than one hundred countries

but those selected reached a statistical significance of at least 100 million impressions from ads that were uniquely targeted to each

country. This levels the playing field and ensures each competitor’s performance can serve as a reasonable benchmark for global

social media ad campaigns.

Population

8.2 Million

Population

201 Million

Population

64.8 Million

Online Ad Spending

$386,000,000

Online Ad Spending

$766,000,000

Online Ad Spending

$2,600,000,000

% of Internet Users on Facebook

45%


70%


62%

Internet User Penetration

72.7%


36.2%


60.0%

GDP per Capita (USD)

$41,822


$11,769


$35,156

Mobile Phone Penetration

145.8%


50%


73%

Facebook Users

2.7 Million

Facebook Users

51.1 Million

Facebook Users

24.3 Million

AUSTRIA

BRAZIL

FRANCE

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Population

81.6 Million

Population

1.1 Billion

Population

60.8 Million

Population

112 Million

Online Ad Spending

$4,800,000,000

Online Ad Spending

$153,000,000

Online Ad Spending

$1,300,000,000

Online Ad Spending

$159,000,000


45%


84%


76%


103%


65%


5.4%


47.3%


31.0%

Note: Internet users are measured as those with wired connections and exclude mobile. In Mexico, there are more people

using Facebook overall than there are total “internet users.” This is because many Mexicans use Facebook via mobile device.


$37,897


$3,694


$30,464


$15,610


76.8%


33.0%


74.5%


49.0%

Facebook Users

23.7 Million

Facebook Users

49.8 Million

Facebook Users

21.9 Million

Facebook Users

35.6 Million

GERMANY

INDIA

ITALY

MEXICO

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Population

7.6 Million

Population

77.8 Million

Population

62.3 Million

Population

310 Million

Population: eMarketer Digital World Atlas

Internet User Penetration: eMarketer Digital World Atlas

Mobile Phone Penetration: eMarketer Digital World Atlas

Online Ad Spending: eMarketer Digital World Atlas

GDP per Capita (USD): International Monetary Fund

Facebook Users: Socialbakers.com Facebook Statistics

% of Internet Users on Facebook: Internal calculation

made by Kenshoo Social based on various sources.

Online Ad Spending

$580,000,000

Online Ad Spending

$264,000,000

Online Ad Spending

$6,300,000,000

Online Ad Spending

$26,000,000,000


44%


100%


69%


70%


83.9%


39.8%


70.7%


72.2%


$43,370


$14,517


$36,090


$48,387


123.6%


84.9%


82.0%


74.9%

Facebook Users

2.8 Million

Facebook Users

31.1 Million

Facebook Users

30.6 Million

Facebook Users

156 Million

SWITZERLAND

TURKEY

UNITED KINGDOM

UNITED STATES

DATA SOURCES:

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$0.35

$0.30

$0.25

$0.20

$0.15

$0.10

$0.05

$0.0

Turkey

Brazil

Austri

a

Mexico

India

France

Italy

Switzer

land

German

y

United

Kingdom

United

States

FINISH FINISH FINISH FINISH

EVENT 1 - MARATHON - CPM

The marathon is all about patience and perseverance. How long will your Facebook ad budgets last with a single unit

of spend? Which countries help you conserve resources and generate the most efficient rate for ad impressions?

MEXICO

$0.069

TURKEY

$0.073

BRAZIL

$0.130

Average Cost-per-Thousand (CPM) for Facebook Ads

Source: 2012 Social Media Advertising Global Games | © 2012 Kenshoo, Inc.

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EVENT 2 - 100 METERS - AVERAGE CPC

For those focused on sprinting to immediate results, the cost per click (CPC) model can be a good bidding option to ensure payment

is tied to performance. Which countries burst out of the gates with low CPCs?

MEXICO

$0.19

TURKEY

$0.25

INDIA

$0.33

Turke

yInd

ia

Austri

a

Mexico

Brazil

Italy

German

y

Switz

erlan

d

France

United

King

dom

United

State

s

$1.00$0.90$0.80$0.70$0.60$0.50$0.40$0.30$0.20$0.10

$0

Average Cost-per-Click (CPC) for Facebook Ads


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EVENT 3 - 200 METERS - AVERAGE CTR

Athletes that compete in the 100 meters often run the 200 meter race and successful results are highly correlated. How closely are CPC

(refer back to Event 2) and click-through rate (CTR) correlated in the Social Media Advertising Global Games?

INDIA

0.048%

ITALY

0.039%

MEXICO

0.036%

Italy

Mexico

Turke

yInd

ia

United

State

sBraz

il

Switz

erlan

d

German

y

United

King

dom

Austri

a

France

0.06%

0.05%

0.04%

0.03%

0.02%

0.01%

0.0%

Average Click-through Rate (CTR) for Facebook Ads


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EVENT 4 - ARCHERY - FREQUENCY

In archery, the goal is to hit a bullseye. With frequency, there’s a sweet spot of how many times an ad should be displayed before its

effectiveness begins to decay. In our first Social Media Insights report, we revealed that conversion rates drop off significantly after

the sixth ad impression. So, which countries hit the bullseye of six impressions or fewer?

SWITZERLAND

5.81

AUSTRIA

5.86

ITALY

6.12

02468101214161820

SwitzerlandAustria

Italy

United States

GermanyFrance

United Kingdom

India

Mexico

Brazil

Turkey

Average Frequency for Delivery of Facebook Ads


www.kenshoo.com/socialmediainsights

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EVENT 5 - FOOTBALL - EXPOSURE RATE

Football (or Soccer for our American fans) is all about putting the ball in the goal. In social media, you don’t necessarily want to cast a wide

net. Rather, you want to reach the target audience that best meets your goal. Exposure Rate is a key metric we uncovered in our first Social

Media Insights report and represents the percentage of the entire desired target audience that a brand is actually reaching and exposing to its

message. Therefore, the higher the number, the better. It’s worth noting that countries with high CPMs (refer back to Event 1) are handicapped

here, as it would require higher budgets to reach the total targeted audience. Which countries made the most impact on the pitch?

TURKEY

51%

INDIA

45%

AUSTRIA

23%

Turkey

India

Austri

a

Mexico

Brazil

Italy

German

y

Switzer

land

France

United

King

dom

United

States

60%

50%

40%

30%

20%

10%

0%


Average Exposure Rate for Delivery of Facebook Ads



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EVENT 6 - BMX - MAXIMUM RECOMMENDED BID

Having just been introduced as an official sport in 2008, BMX has had the least amount of time to generate competition at the

highest global levels. Along the same lines, countries that boast the lowest maximum recommended bids from Facebook signal

lower levels of competition in ad auctions. Which countries are good places to start your training?

ITALY

$0.28

MEXICO

$0.30

TURKEY

$0.34

Maximum Recommended Bids for Facebook Ads


Italy

Mexico

Turkey

India

Brazil

Austri

a

German

y

Switzer

land

United

States

United

States

France

$1.20

$1.00

$0.80

$0.60

$0.40

$0.20

$

$3.00

$2.50

$2.00

$1.50

$1.00

$.50

$0

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Thank you for tuning into the 2012 Social Media Advertising Global Games brought to you by Kenshoo Social. Congratulations to all

our winners!

HIGHLIGHTS AND COMMENTARY1. Countries with high Facebook penetration represent great opportunity for advertisers. Mexico and Turkey have as many Facebook users

as they do broadband subscribers, indicating that Facebook is being used heavily via mobile devices in those countries. Savvy marketers

can reach these connected populations through targeted mobile ads and take advantage of efficient Facebook CPMs.

2. Facebook advertising in the United States and United Kingdom are highly popular. These countries have the highest CPM and CPC rates,

reflecting increased attention and bid competition from marketers. The U.S. and U.K. also had the lowest exposure rates, meaning it’s

more difficult for brands to reach their targets in these countries. For advertisers to effectively compete, they must use advanced targeting

techniques, sophisticated bid algorithms, and refresh creative assets often.

3. Italy is a diamond in the rough, winning the most medals of any European country. A high CTR indicates that Italians are willing to interact

with Facebook ads. Italy also has a low max recommended bid from Facebook so ads can be placed relatively inexpensively. Advertisers

that want to test Pan-European campaigns can find Italy a good point of entry.

We invite you to join us in 2016, when the field of competitors and events (not to mention the social networks themselves) will likely be

radically different.

CLOSING CEREMONY

FINAL STANDINGS1ST 2ND 3RDLeaders

Mexico

Turkey

India

Italy

Austria

Switzerland

Brazil

2

1

1

1

0

1

0

4

4

3

3

2

1

1

1

2

1

1

1

0

0

1

1

1

1

1

0

1

TOTAL

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JUDGING CRITERIA (GLOSSARY)

EVENT 1: Cost-per-Thousand- Impressions (CPM)

EVENT 4: Frequency

EVENT 5: Exposure Rate

EVENT 6: Maximum Recommended Bid

EVENT 3: Click-Through Rate (CTR)

EVENT 2: Cost-per-Click (CPC)

DESCRIPTION

The average cost per thousand impressions, calculated as the total cost divided by the thousands of impressions received.

The average cost per click, calculated as Total Cost/Total Clicks

Total Clicks/Total Impressions

The average number of times a targeted Facebook user has been served an ad, calculated as Total Impressions/Unique Impressions.

How much, of the entire desired target audience, a brand is actually reaching and exposing to its message, calculated as Unique Impressions/Targeted Audience

The maximum bid recommended by Facebook for an ad. This is only a recommendation and bids can exceed the maximum. Actual click costs will vary.

ATHLETIC REQUIREMENTS (METHODOLOGY)

This report reflects aggregated global data across a wide range of brands whose Facebook ad campaigns are managed on the

Kenshoo Social platform. Industry verticals represented include entertainment, finance, retail, and insurance, among others. The

dataset examined for this report spans nearly 65 billion Facebook ad impressions and 20 million Facebook ad clicks during the

12-month period beginning March 1st, 2011 and ending February 29th, 2012. The dataset included more than one hundred countries

but those selected for inclusion in this report reached a statistical significance of at least 100 million impressions from ads that were

uniquely targeted to each country.

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ABOUT KENSHOO SOCIALThe mission of Kenshoo Social is to illuminate the value of social media for brands through dynamic technology. Kenshoo Social delivers

as possible. Through Kenshoo Social, marketers can create and optimize scalable social advertising campaigns while leveraging

sophisticated measurement capabilities across owned, paid, and earned social media initiatives. Please visit www.Kenshoo.com/Social

or www.Facebook.com/Kenshoo for more information.

ABOUT KENSHOOKenshoo is a digital marketing software company that engineers technology solutions for search marketing, social media and online

advertising. Brands, agencies and marketing providers use Kenshoo Enterprise, Kenshoo Local and Kenshoo Social to direct more

than $25 billion in annual client sales revenue. The Kenshoo Universal Platform delivers automation, intelligence, integration and scale

to make better marketing investments. With campaigns running in more than 190 countries, Kenshoo clients include CareerBuilder,

Expedia, Facebook, KAYAK, Havas Digital, Hitwise, iREP, John Lewis, LendingTree, Resolution Media, Sears, Starcom MediaVest Group,

Tesco, Travelocity, Walgreens, and Zappos. Kenshoo has 16 international locations and is backed by Sequoia Capital and Arts Alliance.

Please visit www.Kenshoo.com for more information.

Facebook® is a registered trademark of Facebook, Inc. Other company and brand names may be trademarks of their respective owners.

CONTACTAriel Rosenstein, Director of Marketing Research, Kenshoo

[email protected]

http://www.kenshoo.com/

www.kenshoo.com/social

http://www.facebook.com/Kenshoo

august 2012 - kenshoo.com · event 3 - 200 meters - average ctr athletes that compete in the 100...

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