Social Media Trends Report

Q4 2020 About the Report

In the Q4 2020 Social Media Trends Report, Socialbakers provides an Brands dramatically increased their investment in social media in Q4. At its analytical look at paid, organic, and influencer at the end of the Q4 peak, worldwide ad spend increased by 50.3% compared to the holiday peak in Q4 year and what it means heading into 2021.

2019. In Northern America alone peak spend increased by 92.3%. Doubling down in digital ad spend has become the new normal, as brands work to build lasting Highlights of this report include a 56% YoY increase in digital ad spend, as relationships with their customers and increase their online sales.

well as regional and industry breakdowns of ad spend and CPC. The report also details the performance of different post types on and The increasing popularity of Live Video content and the momentum around Instagram , offering a glimpse at the content distribution opportunities Live Shopping experiences highlights just how important social media is as a revenue available for marketers.

generation tool. Live shopping is already a megatrend with the Gen Z in China and it's rapidly gaining traction with brands and consumers in the West. ​

Additionally, Socialbakers takes a closer look at developments in influencer marketing, including the impacts of the pandemic on overall influencer ​When it comes to influencer marketing, 2020 saw a 17% decrease versus 2019 in the usage as well as changes in the use of influencers based on their follower usage of #ad on Instagram overall. However, Socialbakers' data shows that the number size. of brands working with influencers with an audience of more than 100K returned to

almost pre-pandemic levels at the close of 2020, as brands shift their focus away from 2020 was a year unlike any other, and many of the changes in user habit influencers with smaller audiences. will affect digital marketing in 2021 and beyond. This report from Socialbakers can help you make sense of the current landscape in order to Yuval Ben-Itzhak, President, Socialbakers make the best decisions moving forward.

Trends Report | Q4 2020 1 Table of Contents

Advertising 3-15 Distribution of Post Types 21 Ad Spend by Region 4 Interactions by Post Type 22 Ad Spend by Industry 5 Top Facebook Live by Interactions 23 Evolution of Brand Ad Spend 6 Proportion of Video on Instagram and Facebook 24 Evolution of CPC by Region 7 Proportion of Live Video 25 CPC by Industry 8 Evolution of Reach and Performance by Video Length 26 Evolution of CPC and CTR 9 Interactions and Reach by Video Length 27 CPC and CPM by Ad Placement 10 Post Interactions by Region 28 Relative Spend and CTR by Platform 11 Post Interactions by Industry 29 Distribution of Ad Spend 12 Organic Takeaways 30 Evolution of Facebook Ad Reach by Region 13 Influencers 31-36 Evolution of Facebook Ad Reach by Industry 14 Influencer Marketing and #Ad Usage 32 Paid Takeaways 15 Top Influencers Mentioning Brands 33 Organic Engagement 16-30 Brands Mentioned by Most Influencers 34 Number of Followers, Posts, and Interactions 17 Effective Influencer Campaigns 35 Fans Online Behavior 18 Influencer Takeaways 36 Distribution of Interactions by Industry 19 Methodology and Glossary 38-42 Evolution of Relative Interactions 20

Trends Report | Q4 2020 2 Advertising

Trends Report | Q4 2020 3 Advertising

Ad Spend by Region Peak Global Ad Spend Median Weekly Value Increases 50% YoY

The holiday season routinely sees the highest annual ad spend, and 2020 was no different. But this year spending was higher than 2019 across the globe.

Ad Spend

At its Q4 peak, worldwide ad spend increased by 50.3% compared to the holiday peak in Q4 2019. In Northern America, peak spend increased by 92.3%, while in Western Europe it increased by 39.6%.

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2019 2019 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 The global spend average increased steadily throughout Q4 and then

decreased right at the end as most holiday campaigns were ending. In East Asia Northern America Latin America Southeast Asia most regions, spend peaked in mid-December before decreasing at the Southern Europe Western Europe Central America Worldwide end of the year.

Chart Time Range: September 30, 2019 - January 03, 2020; Sample: Socialbakers Suite Benchmarks; Source: Socialbakers data Trends Report | Q4 2020 4 Advertising

Ad Spend by Industry Industry Ad Spend Median Monthly Value Increases 33% QoQ

According to Socialbakers data looking at median monthly values, the average industry ad spend increased by 33% in Q4 2020 compared to where it was in Q3.

Ad Spend Looking at the quarter-by-quarter breakdown, you can see how the pandemic impacted different industries. For example, Accommodation and Fashion decreased in Q2 before climbing back up, while Alcohol and Retail increased each quarter.

Auto Retail Alcohol Beauty Fashion Finance Ecommerce ad spend increased by 24.8% in Q4 compared to Q3, and it FMCG Food Ecommerce All Industries Accommodation was more than double where the spend had been in Q1. Q1 Q2 Q3 Q4

Chart Time Range: January 01, 2020 - December 31, 2020; Sample: Socialbakers Suite Benchmarks; Source: Socialbakers data Trends Report | Q4 2020 5 Advertising

Digital Ad Spend 2020 vs. 2019 Comparison of Ad Spend Increases 56% YoY Median Monthly Value

Digital ad spend for all brands was 56.2% higher at the end of 2020 compared to the end of 2019, according to Socialbakers data looking at median monthly values.

After the initial stages of the pandemic forced a decrease in ad spend as Ad Spend everything paused, digital spending increased significantly the rest of the year.

Part of that was certainly due to the fact that it made more sense for

marketers to put spend into digital channels that could reach people at Jan Mar May Jul Sep Nov home, as opposed to some other options like outdoor advertising or event sponsorships. 2019 2020

Chart Time Range: January 01, 2019 - December 31, 2020; Sample: Socialbakers Suite Benchmarks; Source: Socialbakers data Trends Report | Q4 2020 6 Advertising

Cost per Click by Region Median Weekly Ad Value Peak Global CPC 0.8 Increases 9% in Q4

0.6 The worldwide cost per click peak in Q4 2020 was 9% higher than it had been in Q4 2019 ($0.180 vs. $0.165). The global average mostly increased 0.4 throughout Q4, reaching a high in mid-December and then decreasing at the very end of the year.

0.2 Cost per Click (in USD) In Northern America the peak was nearly identical as last year, but the year-end CPC increased by 14.7% ($0.506 vs. $0.441), and East Asia 0 increased by 5.4% while Western Europe decreased by 4.5%.

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2019 2019 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020

Overall, the worldwide CPC ended 2020 35.6% higher than it started the East Asia Northern America Latin America Southeast Asia year ($0.141 vs. $0.104). After a tumultuous spring, these and other paid

Southern Europe Western Europe Central America Worldwide figures in this report show how important digital advertising was throughout the rest of the year.

Chart Time Range: September 30, 2019 - January 03, 2020; Sample: Socialbakers Suite Benchmarks; Source: Socialbakers data Trends Report | Q4 2020 7 Advertising

Industry CPC Climbs Cost per Click by Industry 27% in Q4 Median Monthly Value 0.25

0.20 The average cost per click for all industry brand pages increased by 27.4% in Q4 2020 compared to the previous quarter ($0.144 vs. $0.113), 0.15 according to Socialbakers data looking at median monthly values.

0.10 The overall trend – decrease in Q2, then a progressive increase the rest of the year – was seen in every industry that Socialbakers examined. There

Cost per Click (in USD) 0.05 were still outliers, though.

For example, Alcohol increased by 54.4% in Q4 compared to Q3, and 0

increased by 100.8% compared to Q2 ($0.247 vs. $0.123).

Auto Retail Alcohol Beauty Fashion Finance FMCG Food Ecommerce All Industries Accommodation Other industries like Ecommerce (16%) and Retail (24.4%) saw more Q1 Q2 Q3 Q4 moderate increases in Q4 compared to Q3.

Chart Time Range: January 1, 2020 - December 31, 2020; Sample: Socialbakers Suite Benchmarks; Source: Socialbakers data Trends Report | Q4 2020 8 Advertising

Cost per Click on Facebook and Instagram Brands

0.18 Cost per Click 0.15 0.12 Increases 25.2% QoQ 0.12 0.08 0.05 0.03

Cost per Click (in USD) 0 In Q4 2020, the cost per click for all brand ad accounts increased by 25.2% Nov Jan Mar May Jul Sep Nov 2019 2020 2020 2020 2020 2020 2020 ($0.174 vs. $0.139). According to Socialbakers data, that was the highest Cost per Click the CPC had been all year and it was 12.3% higher than the end of Q4 2019 ($0.155).

Click-Through Rate on Facebook and Instagram Brands Meanwhile, the click-through rate for all brand ad accounts remained quite 1.20 stable. It averaged 1.01% during Q4 2020. That was a small increase 1.00 compared to Q3 2020 (1%) but was a decrease compared to Q4 2019 0.80

(1.06%). 0.60

0.40

0.20

0 Click-Through Rate (in %) Click-Through Nov Jan Mar May Jul Sep Nov 2019 2020 2020 2020 2020 2020 2020 Click-Through Rate

Chart Time Range: October 01, 2019 - December 31, 2020; Sample: Brands Ad Accounts Benchmark; Source: Socialbakers data Trends Report | Q4 2020 9 Advertising

Cost per Click by Platform Position Top 5 by Relative Spend Facebook News Feed CPC 0.6 Increases 12% YoY 0.4 0.2

0.0 Cost per Click (in USD) Looking at the top 5 placements by relative ad spend in Q4 2020 vs. Q4 Feed Feed Stories Video Feeds Instream Video Facebook Instagram Instagram Facebook Facebook 2019, Facebook News Feed increased by 12.1% in CPC ($0.120 vs. Q4 2019 Q4 2020 $0.107) and 4.6% in CPM ($1.878 vs. $1.795).

Cost per Mille by Platform Position The top three placements had only small changes, but there was a little Top 5 by Relative Spend more change in CPM costs for Facebook Instream Video, which play during 2.50 a video that a user is watching, and Facebook Video Feeds, which show 2.00 ads in between organic videos.

1.50

In CPM, Facebook Instream Video increased by 16.4% compared to Q4 1.00 2019, while Facebook Video Feeds increased by 29.4%. 0.50 0.00 Cost per Mille (in USD) Feed Feed Stories Video Feeds Instream Video Facebook Instagram Instagram Facebook Facebook Q4 2019 Q4 2020

Chart Time Range: October 01, 2019 - December 31, 2019 & October 01, 2020 - December 31, 2020; Sample: All Ad Accounts Benchmarks; Source: Socialbakers data Trends Report | Q4 2020 10 Advertising

Ad Spend by Platform Position Top 5 by Relative Spend

70 60 50 40 Highest Converting Ad 30 20 Placement Types 10

Relative Spend (in %) Relative 0 Feed Feed Stories Video Feeds Instream Video Facebook Instagram Instagram Facebook Facebook Relative Spend According to Socialbakers data, Facebook News Feed received 57.4% of the relative ad spend in Q4 2020. The next two channels were Instagram Click-Through Rate by Platform Position Feed and Instagram Stories, which combined to receive 27.1% of spend.

Top 5 by Relative Spend

2.00 Of the top five placements according to relative ad spend, Facebook News Feed had the highest click-through rate at 1.70%. Facebook Video Feeds 1.50 and Instream Video were at 0.98% and 0.84%, respectively, while 1.00 Instagram Feed (0.32%) and Instagram Stories (0.26%) were lower.

0.50

0.00

Click-Through Rate (in %) Click-Through Feed Feed Stories Video Feeds Instream Video Facebook Instagram Instagram Facebook Facebook Click-Through Rate

Chart Time Range: October 01, 2020 - December 31, 2020; Sample: All Ad Accounts Benchmark; Source: Socialbakers data Trends Report | Q4 2020 11 Advertising

73% of Ad Spend According to Socialbakers data, 73.7% of total ad spend went to the main feeds on Facebook and Instagram in Q4 2020. The only other somewhat significant placement was Instagram Stories, which Goes to Main Feeds got 10.9% of spend. The other 15.4% of spend was sprinkled throughout 17 other placements.

Facebook Instant Article

Instagram Facebook Stories Stories Rewarded Video Audience Network

Facebook Right Hand Column

An Classic Audience Facebook Messenger Inbox Instagram Feed Instream Network Facebook Feed Video All (Automated Facebook App Ads) Marketplace

Facebook Search

Facebook Facebook Facebook Groups Instant Article Stories Facebook Feed Instagram Explore Video Feeds Messenger All Messenger Inbox Placements Rewarded Video Facebook Right Hand Audience Column Facebook Network Search

All (Automated Messenger Stories App Ads)

Chart Time Range: October 01, 2020 - December 31, 2020; Sample: 10,420 Facebook Advertising Accounts; Source: Socialbakers data Trends Report | Q4 2020 12 Advertising

Ad Reach by Region Median Weekly Value 800K Facebook Ads Reach in

600K Northern America Increases 77.5% YoY 400K

Ad Reach Worldwide Facebook ad reach increased by 23% in Q4 2020 compared to 200K Q4 2019, according to Socialbakers data looking at median weekly values.

Facebook ad reach in Northern America increased by 77.5% compared 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec to the previous year, while in Latin America it increased by 41.8%. Other 2019 2019 2019 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 regions with notable increases included Central America (up 24.3%) and Southern Europe (up 19.1%). East Asia Northern America Latin America Southeast Asia

Southern Europe Western Europe Central America Worldwide

Chart Time Range: September 30, 2019 - January 03, 2020; Sample: Socialbakers Suite Benchmarks; Source: Socialbakers data Trends Report | Q4 2020 13 Advertising

Ad Reach by Industry FMCG Food and Alcohol Median Weekly Value Reach Leaps in Lockdown 1.5M

Looking at the quarterly breakdown of Facebook ad reach for brand pages 1M by industry, Socialbakers data showed the biggest changes during the year were in FMCG Food and Alcohol during the initial lockdown in Q2.

Ad Reach 500K Alcohol increased by 54.9% compared to Q1, while FMCG Food increased by 26.9%. It’s a reflection of the way people’s lives suddenly changed because of the coronavirus pandemic.

0

Looking specifically at Q4 changes, FMCG Food increased by 5.3% Auto Retail Alcohol Beauty Fashion Finance compared to Q3 2020, Alcohol increased by 9.9%, and Auto increased by FMCG Food All Industries Ecommerce Accommodation 12%.

Q1 Q2 Q3 Q4

Not all industries were trending in the same way, though. For example, Facebook ads reach for Beauty decreased by 6.3% in Q4 compared to Q3.

Chart Time Range: January 01, 2020 - December 31, 2020; Sample: Socialbakers Suite Benchmarks; Source: Socialbakers data Trends Report | Q4 2020 14 Advertising

Paid Takeaways

Digital marketing had a very strong push during the holiday season, as overall digital ad spend finished the year 56.2% higher than the end of 2019. It showed the extra emphasis of marketers to reach audiences on digital channels during this time of periodic lockdowns.

Overall, Q4 2020 delivered a healthy finish to a very uncertain year for many marketers. After recovering from the effects of the pandemic, cost per click and ad spend will decrease early in 2021 and then should fall into usual seasonal patterns. That means costs will be down, and there’s a chance for marketers to take what they learned about changing user behaviors – including changes in platform positions – and apply to them to future campaigns.

In many ways, users now feel catered to as brands had to work extra hard to reach them on their preferred channels and keep their attention. Brands that have grown comfortable adapting to those changing habits will need to continue to apply those skills to succeed in the future.

Trends Report | Q4 2020 15 Organic Engagement

Trends Report | Q4 2020 16 Organic Engagement

Instagram Audience Size Total Audience Total Posts Total Interactions 39% Larger Than Facebook

In Q4 2020, the total audience size of the 50 biggest brand profiles was 39% bigger on Instagram than Facebook. Looking at YoY results, Instagram’s audience grew by 11.3% compared to Q4 2019 while Facebook’s audience decreased by 17.6%.

Engagement remained significantly stronger on Instagram, which had 21.4x more interactions than Facebook, while 54.9% of all brand posts were on Facebook. The share of Instagram posts increased from Q3 2020, when Facebook posts made up 61.9% of all posts from the top 50 biggest brand accounts. Q4 2019 Q4 2020

Chart Time Range: October 01, 2019 - December 31, 2019 & October 01, 2020 - December 31, 2020; Sample: 50 Biggest Facebook & Instagram Brands Profiles Worldwide; Source: Socialbakers data Trends Report | Q4 2020 17 Organic Engagement

Facebook Fans’ Evening % of Page Fans Online by Time of Day Time Online Changes

60%

Looking at fans of Facebook brand pages in Europe, there were some noticeable Q4 changes in habit during the evening. For example, from 6-8 40% p.m., the percentage of fans online increased by at least 5%, and then from 10-11 p.m. it decreased by 4%.

20% Understandably, in 2020 people spent the most time online during Q2, when

% of Page Fans Online Fans % of Page the pandemic was new and things were changing rapidly. Nearly every hour of the day, the highest percentage of people online was during the spring. 0% 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Q1 Q2 Q3 Q4

Chart Time Range: January 01, 2020 - December 31, 2020; Sample: 6,945 European Facebook Pages of Brands; Source: Socialbakers data Trends Report | Q4 2020 18 Organic Engagement

Ecommerce 20.0% Retail 13.8% Distribution of Interactions Services 9.6% Fashion 6.6% Across Industries Electronics 6.0% Auto 5.5% FMCG Food 5.1% Finance 4.8% Looking at worldwide brand profiles, Ecommerce received the highest Others 28.6% percentage of interactions on Facebook and the second highest number of interactions on Instagram, behind only Fashion. The top 3 positions

remained unchanged from Q3 2020.

Fashion 24.0% Ecommerce 20.3% Overall, the shares didn’t change much from Q3 2020. Ecommerce grew by Beauty 10.3% Retail 9.9% 8.7% on Facebook, while Retail grew by 9.6% on Instagram. Auto 9.4% Electronics 5.1% Services 4.7% Sporting Goods 3.5% Others 12.9%

Chart Time Range: October 01, 2020 - December 31, 2020; Sample: Facebook Brand Pages & Instagram Brand Profiles Worldwide; Source: Socialbakers data Trends Report | Q4 2020 19 Organic Engagement

Evolution of Relative Post Interactions Interactions Decline at the End of the Year 100%

80% The relative post interactions for the 50 biggest Instagram brand profiles remained mostly steady over the last 15 months, but there was a noticeable 60% decrease at the end of Q4.

40% Meanwhile, the relative post interactions were relatively steady on Facebook, too, except for a large spike at the beginning of the coronavirus 20% pandemic. Outside of that there were only small fluctuations, although at the end of Q4 2020 the Facebook interactions were at their lowest point of the Relative Post Interactions (max 100) Interactions Post Relative 0% year.

Nov Jan Mar May Jul Sep Nov 2019 2020 2020 2020 2020 2020 2020 The declines could be part of a seasonal pattern – on Facebook the Instagram Facebook numbers in December 2019 and 2020 were very similar – but on Instagram it was more of an outlier as relative interactions were at their highest point during this time a year ago.

Chart Time Range: October 01, 2019 - December 31, 2020; Sample: 50 Biggest Facebook & Instagram Brands Profiles Worldwide; Source: Socialbakers data Trends Report | Q4 2020 20 Organic Engagement

Distribution of Post Types Video 17.3% Status 2.9% on Facebook and Instagram Live Video 0.8% Link 8.8% Image 70.3%

Looking at worldwide brand profiles, images made up around 70% of all content on both platforms.

On Facebook, video was the second most common post type (17.3%), followed by links and status updates. Facebook Live videos, which actually garner the highest number of organic post interactions (see next slide), were used only 0.8% of the time.

Video 16.1% Carousel 17.8% Image 66.0% On Instagram, video increased by 4.5% while image slightly decreased.

Chart Time Range: October 01, 2020 - December 31, 2020; Sample: 163,939 Facebook Brands Pages & 55,972 Instagram Brands Profiles Worldwide; Source: Socialbakers data Trends Report | Q4 2020 21 Organic Engagement

Facebook Organic Interactions by Post Type Facebook Live Nearly

Live Video Triples the Interactions Link of Video Image

Status In Q4 2020, Facebook Live was by far the most engaging format on the Video platform with 39 median post interactions, according to Socialbakers data. 0 5 10 15 20 25 30 35 40 Images (14) and regular video (12) had the next highest amount of Median Post Interactions interactions on Facebook.

Instagram Organic Interactions by Post Type On Instagram, carousel was the most engaging format with 176 median post interactions. Carousel posts, which can contain both images and videos, have consistently outperformed image and video.

Carousel

Compared to Q3 2020, all formats on Instagram decreased organic Image interactions, and on Facebook only live video increased; all the other formats remained basically the same or decreased slightly. Video

0 20 40 60 80 100 120 140 160 180

Median Post Interactions

Chart Time Range: October 01, 2020 - December 31, 2020; Sample: 145,277 Facebook Brand Pages & 53,347 Instagram Brand Profiles Worldwide; Source: Socialbakers data Trends Report | Q4 2020 22 Organic Engagement

Interactions 458 995

Gaming, Giveaways Garner Most Live Interactions

According to Socialbakers data, two of the top three Facebook Live videos by interactions in Q4 2020 were centered around big sales holidays. Cdiscount, a French company, brought their audience together for Black Friday giveaways while Daraz Online Shopping in Bangladesh hosted an 11.11 giveaway show. However, the top video was from realme Philippines,

a smart phone company that hosted a three-hour egaming and rap battle Interactions show. 430 628

Interactions 320 798

Chart Time Range: October 01, 2020 - December 31, 2020; Sample: 154,683 Live Videos Published by Brands on Facebook; Source: Socialbakers data Trends Report | Q4 2020 23 Organic Engagement

Proportion of Video Posts to Total Content on Facebook Average Monthly Values

Video Usage Increases 17.5% 15.0% YoY and QoQ 12.5% 10.0% 7.5% 5.0% 2.5% The percentage of videos on both Facebook and Instagram increased 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec slightly in Q4 2020 compared to Q4 2019.

(in %) of Video Posts Share 2019 2020 On Instagram, video content accounted for 17.9% of all brand posts in Q4 2020, an increase of 5.9% compared to Q4 2019. On Facebook there Proportion of Video Posts to Total Content on Instagram was a higher overall percentage of video content in Q4 2020 (18.1%), Average Monthly Values but a smaller increase as that was 4.6% higher than the same time 17.5% period last year.

15.0% 12.5% There was also more video on both platforms than the previous quarter. 10.0% 7.5% On Instagram, video usage from brand accounts in Q4 2020 grew by 5.0% 6.5% compared to Q3, and on Facebook it grew by 4%. 2.5% 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Share of Video Posts (in %) of Video Posts Share

2019 2020

Chart Time Range: January 01, 2019 - December 31, 2020; Sample: 5,996,655 Facebook Posts from 17,613 FB Brand Profiles & 7,851,057 Instagram Posts from 18,219 IG Brand Profiles; Source: Socialbakers data Trends Report | Q4 2020 24 Organic Engagement

Proportion of Live Video Posts to Total Content on Facebook Facebook Live Usage Average Monthly Values Steady YoY

1.00%

0.80% The share of Facebook Live posts on brand accounts in Q4 2020 was basically the same as Q4 2019, according to Socialbakers data looking at

0.60% average monthly values.

0.40% After seeing a large increase to about 1% of all posts from brand accounts in Q2 2020, there was a decrease back to pre-pandemic levels. In

0.20% December, the share of Facebook Live posts was 0.74%, which was Share of Live Video Posts (in %) Video Posts of Live Share virtually the same as December 2019 (0.72%).

0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2019 2020

Chart Time Range: January 01, 2019 - December 31, 2020; Sample: 5,996,655 Facebook Posts from 17,613 FB brand profiles; Source: Socialbakers data Trends Report | Q4 2020 25 Organic Engagement

Monthly Evolution of Reach Monthly Median Reach by Video Length

Longer Videos Perform 15 000 12 500 Better on Facebook 10 000 7 500 5 000

Median Reach 2 500 The monthly reach of videos on Facebook decreased in Q4 2020, 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec according to Socialbakers data. For example, the reach of very long videos (longer than five minutes) decreased by 28.5% in Q4.

Very Short Short Medium Long Very Long

However, the performance of long and very long videos increased in Q4. Monthly Evolution of Performance According to Socialbakers’ performance index, those two lengths Ratio of Unique View and Unique Impression by Video Length improved at the end of the year and long videos – over 65.194 seconds

but shorter than five minutes – had the best performance index at 25.9%. 25.0%

Very long videos were close behind at 24.9%.

20.0%

15.0%

Performance index = (unique video view ÷ unique impressions) x 100 10.0%

5.0%

Performance Index % 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Very Short Short Medium Long Very Long

Chart Time Range: January 01, 2020 – December 31, 2020; Sample: Facebook posts with type video from brand profiles only; Source: Socialbakers data Trends Report | Q4 2020 26 Organic Engagement

Distribution of Median Reach Median Reach by Video Length Video Length Correlates to 10000 8000 Interactions and Reach 6000

4000

Median Reach 2000 Videos longer than a minute achieved the highest median interactions and 0 median reach on Facebook, according to Socialbakers data.

Very Short Short Medium Long Very Long

Median Reach In 2020, the median reach for very long videos (longer than five minutes) was around 9,700, which was 44.8% more than long videos.

Distribution of Median Interactions

Median Interactions by Video Length In fact, for both reach and interactions there was a correlation that showed 100 the longer a video was, the further it reached and the more interactions it

80 received.

60

40 Socialbakers’ metrics for video length are very short (less than 11.882

20 seconds), short (more than 11.882 and less than 24.362 seconds), medium

Median Interactions 0 (more than 24.362 and less than 61.248 seconds), long (more than 61.248 Very Short Short Medium Long Very Long seconds and less than five minutes), and very long (more than five Median Interactions minutes).

Chart Time Range: January 01, 2020 – December 31, 2020; Sample: Facebook posts with type video from brand profiles only; Source: Socialbakers data Trends Report | Q4 2020 27 Organic Engagement

Brand Profile Interactions Interactions on Profile Post by Region Decrease YoY Q4 2020 vs. Q4 2019 40%

Looking at Q4 year-over-year trends, worldwide interactions on 20% Instagram brand profile posts decreased by 6.3% while interactions on

Facebook brand profile posts decreased by 5.4%.

0%

The interactions changed in different ways for many regions or countries. -20% For example, in Europe, Asia-Pacific, and the United Kingdom, Facebook interactions decreased while Instagram interactions climbed. But in Interactions on Profile Posts (in %) on Profile Interactions North America it was the opposite, with Facebook increasing 11% and -40%

US CEE GCC Instagram decreasing by 10%. Africa DACH Europe Benelux Worldwide Asia-Pacific Middle East South Korea Latin America North America Southern EuropeUnited Kingdom South Eastern Asia Instagram Facebook Australia and New Zealand

Chart Time Range: October 01, 2019 - December 31, 2019 & October 01, 2020 - December 31, 2020; Sample: Instagram and Facebook Brand Pages; Source: Socialbakers data Trends Report | Q4 2020 28 Organic Engagement

Interactions on Profile Post by Industry Ecommerce Interactions Q4 2020 vs. Q4 2019 Grow on Both Platforms 40%

20% Looking at year-over-year results for Q4, the overall interactions for brand accounts decreased on both Facebook (down 5.4%) and Instagram (down

0% 6.3%).

Beauty and Fashion mirrored the overall trend with noticeable decreases on -20% both platforms, while Ecommerce grew on both Instagram (up 14.4%) and

Interactions on Profile Posts (in %) on Profile Interactions Facebook (up 1%).

-40%

Auto Retail Interestingly, some industries experienced very different results depending Beauty Brands Alcohol Fashion Finance Ecommerce FMCG Food on the platform. For example, Alcohol decreased 33.7% on Facebook yet Accommodation remained virtually unchanged on Instagram. Meanwhile, FMCG Food Instagram Facebook decreased 13.9% on Facebook and increased 14.9% on Instagram.

Ask Socialbakers to see a report on your industry.

Chart Time Range: October 01, 2019 - December 31, 2019 & October 01, 2020 - December 31, 2020; Sample: Instagram and Facebook Brand Pages; Source: Socialbakers data Trends Report | Q4 2020 29 Organic Engagement

Organic Takeaways

It was a year ago when the Instagram audience size of the top 50 brands surpassed the Facebook audience size for the first time. Now that Instagram audience is 39% bigger and gets 21.4x the amount of interactions as Facebook, entrenching itself as the place to go for larger followings and engagement while Facebook still provides conversion value.

There was an overall decrease in interactions on both Instagram and Facebook in the final quarter, while the use of Facebook Live largely leveled off to pre-pandemic levels. However, the percentage of regular video posts to total posts rose in Q4 2020 and the reach that can be achieved with those videos will continue to impact marketer decisions in the future.

As we get further away from the initial stages of the pandemic, audience habits will become routine. As a marketer, make sure to follow this data in order to create campaigns that resonate in 2021.

Trends Report | Q4 2020 30 Influencer Marketing

Trends Report | Q4 2020 31 Influencer Marketing

Influencer #Ad Usage Evolution of #Ad Usage by Influencers Decreases 17% YoY 20 000 15 000

10 000

In Q4 2020, the number of Instagram influencers who used #ad in their Influencers 5 000 posts decreased by 17.6% compared to Q4 2019. While there was still 0 an overall increase for the holidays, it didn’t reach last year’s levels.

Nov Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 Influencers Looking closer at the size of Instagram influencers cooperating with brands, XL influencers (more than one million followers) were the only group to grow in Q4 2020 compared to Q4 2019.

Instagram Influencers Cooperating With Brands Total influencers split by their audience size Advice often steers marketers toward smaller influencers, and the data 12 000 shows that XS and S influencers are used far more often than other 10 000 groups. But at the end of 2020, it was the usage of XL and L influencers 8 000 growing while others decreased.

6 000 4 000 2 000 The Socialbakers data factors in regional and other sponsored hashtags, 0 including #sp, #paid, and #promo, as well as #ad usage. Influencer sizes Unique Influencers Total Nov Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 are XS (less than 10k followers), S (10k-50k), M (50k-100k), L (100k-1m) XS S M L XL and XL (greater than 1m).

Chart Time Range: October 01, 2019 - December 31, 2020; Sample: Instagram profiles associated with Brands Worldwide; Source: Socialbakers data Trends Report | Q4 2020 32 Influencer Marketing

Influencers With the Highest Effectiveness Scores

Ilzy Sousa In Q4 2020, the top influencers mentioning brands on Instagram included Ilzy Sousa from Brazil, Fiona from Germany, Sissy Sheridan from the US, and Matt Bernstein from the US.

The Socialbakers influencer score measures their effectiveness based on their interactions per 1,000 followers, the number of followers, and their posting activity.

Candy Aguilar

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Chart Time Range: October 01, 2020 - December 31, 2020; Sample: Instagram profiles associated with Brands Worldwide; Source: Socialbakers data Trends Report | Q4 2020 33 Influencer Marketing

Brands Mentioned by the Most Influencers

In Q4 2020, iDeal Of Sweden was the top brand Instagram profile in the world associated with influencers. The online retailer was mentioned by 1,304 influencers and received 1,649 total mentions.

Walmart was in second place with 1,802 mentions from 1,037 influencers; these two first places remained unchanged from Q3 2020. Other profiles with successful influencer partnerships included beauty brand L'Oréal Paris, media empire Netflix US, fashion brand Pretty Little Thing, and beauty brand Sephora.

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Chart Time Range: October 01, 2020 - December 31, 2020; Sample: Instagram profiles associated with Brands Worldwide; Source: Socialbakers data Trends Report | Q4 2020 34 Influencer Marketing

Effective Influencer Campaigns

The Instagram brand profile worldwide that had the best influencer marketing efficiency in Q4 2020 was Just Eat Danmark, which had a cooperation efficiency of 1,759,610.42x and only 2.63% of the overall posts featured by influencers. Other profiles that did well in this area include Beauty in Oficial, Richester, and U-Power.

Cooperation Efficiency is the ratio of average interactions on an influencer’s post mentioning the brand compared to a post published by the brand itself.

Chart Time Range: October 01, 2020 - December 31, 2020; Sample: Instagram profiles associated with Brands Worldwide; Source: Socialbakers data Trends Report | Q4 2020 35 Influencer Marketing

Influencer Takeaways

In what might count as a surprise, the use of large and extra large influencers actually increased at the end of 2020 while the use of small and extra small influencers decreased. That’s an interesting trend to monitor for those watching to see how influencer marketing will progress in 2021.

While there will always be more smaller influencers cooperating with brands, many had predicted a near total collapse of the use of mega influencers in the wake of the pandemic. Socialbakers’ data suggests that’s not the case, though it’s important to follow how influencer usage develops beyond the holiday.

To get a full grasp on the pandemic’s effect on the state of influencer marketing, download Socialbakers’ special influencer report.

Trends Report | Q4 2020 36 Socialbakers is the trusted social media management partner to thousands of enterprise brands and SMBs. Leveraging the largest social media dataset in the industry,

Socialbakers’ unified marketing platform helps brands large and small ensure their investment in social media is delivering measurable business outcomes. With over 2,500 clients across 100 countries, Socialbakers is the leading social media management platform.

Socialbakers has been a Facebook Marketing Partner since 2011, a Marketing Partner since 2017, and a LinkedIn Marketing Partner since 2017. Socialbakers was named in the 2018 Inc. 5000 list of the fastest-growing private companies in Europe. www.socialbakers.com

Trends Report | Q4 2019 49 Methodology and Glossary

Methodology and Glossary Additional thresholds are applied for specific data sets:

Total interactions distribution at a minimum of 300

The Socialbakers quarterly trends report reflects the state of the Internal Ads-Benchmarks at a minimum of 200 active Socialbakers database during the quarter analyzed in the report benchmarks for a region or industry

(or if an extended period is used - the state during that period).

The data is collected only once for the defined period.

#AD hashtags at a minimum of 10 #AD hashtags per month in the influencer section

The minimum threshold for the report to be generated is 50 Profiles on Instagram and 50 Pages on Facebook for any given

category.

Trends Report | Q4 2020 38 Methodology and Glossary

Reactions: Social media landscape

The sum of Like, Love, Haha, Wow, Sorry and Anger reactions on posts Audience size: published by a Page on Facebook. Sum of all Followers (or Fans) of the profiles in the sample

Interactions: Activity volume: Interactions on Facebook are calculated as a sum of all Reactions, Sum of all posts published in given time period (stories are not

Comments included)

and Shares on posts published by a Page. Interactions on Instagram are calculated as a sum of Likes and Comments on posts published by a Profile. User engagement: Sum of all interactions on posts published in a given time period.

Median interactions in time: The bubble sizes are calculated for each metric separately in order to Median value for profiles (pages) in the sample. The value is the compare each pair of metrics between platforms sum of Interactions gathered on posts published in a given month. ADS Relative median interactions in time: Organic means not promoted (not paid to be shown in the feed). We use Same as Median Interactions in time, but the values are the ratios of the Socialbakers' internal algorithm that detects with almost 100% accuracy maximum value in the given time period (separately for each platform). whether a post has been promoted or not.

Median weekly value: Cost per Click (CPC) or Impressions by Device Platform: Calculated as median weekly ad account spend. Per each account we look at Median of given metric for all available Ad Accounts. As an Ad Account weekly spend value and from all of these ad accounts in one category we can be used on Facebook, Instagram in Messenger or Audience Network, calculate median value. data is for all platforms together.

Trends Report | Q4 2020 39 Methodology and Glossary

Cost per Click (CPC) and Cost per mille (CPM) by Platform Position: influencers

Median for all available Ad accounts. Platform positions are different for Influencer: Facebook and Instagram. The chart shows only the top 5 positions by Instagram business profile of a person followed by more than 1000 profiles.

relative spend (see below).

Evolution of #AD Usage: Relative Spend by Platform Position: The total number of distinct Influencers who have posted #AD (or available Identifies on which positions the highest budget was allocated. The data is local equivalent) aggregated by month. To be included, the post must contain normalized (%) and shows the average distribution of an account's spend. both the #AD hashtag and a mention of a profile from the given region and category.

Click-Through Rate (CTR) by Platform Position: CTR median values of the top 5 positions by relative spend. CPC, CPM and Influencer's score: Spend metrics are in USD. The score represents influencer's relative performance in key metrics: the

sum of interactions, Interactions per 1000 followers, number of followers and Post grade: their posting activity.

Post grade is a metric provided exclusively by Socialbakers for performance

prediction and uses an A+ to D grading system to show how each post is Top Influencers Mentioning {category} Profiles: predicted to perform based on the previous 72 hours organic performance. Ranking of influencers who mentioned at least one profile from a given category and region in the given time range. Influencers are not filtered by country and therefore may occur in multiple rankings.

Trends Report | Q4 2020 40 Methodology and Glossary

Influencer Marketing Efficiency: % Paid Media: percentage of all posts on promoted posts

Is the ratio of Interactions acquired on influencer's (e.g. Hermione Granger) post mentioning the profile (e.g. Hogwarts Express) compared to Activity: post published by the Hogwarts Express itself. Average posts published by a profile on the platform in a given time period.

The higher the score is, the more efficient the cooperation. To be included in Community Size: the ranking, the influencers posts must include both #AD (or local equivalent) Average Fans/Followers/Subscribers count on the platform

and a profile mention (@Hogwarts_Express) to be displayed in the report (transportation brands in the UK). Interactions: Average Interactions per page received on posts published in the given APPENDIX time period % Comments: the percentage of total interactions on comments

#AD Usage: % Reactions: the percentage of total interactions on reactions The total number of influencers who used #AD (or available local equivalent) in Instagram posts Extended glossary available on Socialbakers website % Shares: the percentage of total interactions on shares Reach (Total): % Live Video: the percentage of all posts on live video posts The number of people who had any content from your Page or about your Page enter their screen. This includes posts, check-ins, ads, social % Other Than Like: shows the percentage of reactions excluding like information from people who interact with your Page and more. (Unique reactions (love, haha, wow, sorry, anger) Users)

Trends Report | Q4 2020 41 Methodology and Glossary

Paid Reach: Southern Europe: Albania, Andorra, Bosnia and Herzegovina, Croatia, The number of people who had any content from your Page or about your Gibraltar, Greece, Vatican City State, Italy, Macedonia, Malta, Montenegro, Page enter their screen through paid distribution such as an ad. (Unique Portugal, San Marino, Serbia, Slovenia, Spain Users)

South America: Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Organic Reach: Falkland Islands, French Guiana, Guyana, Paraguay, Peru, Suriname, The number of people who had any content from your Page or about your Uruguay, Venezuela

Page enter their screen through unpaid distribution. This includes posts, stories, check-ins, social information from people who interact with your Page East Asia: China, Hong Kong, Japan, North Korea, South Korea, Macao, and more. (Unique Users) Mongolia, Taiwan

Ad Benchmarks Regions Southeast Asia: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Western Europe: Austria, Belgium, France, Germany, Liechtenstein, Philippines, Singapore, Thailand, Timor, Vietnam Luxembourg, Monaco, Netherlands, Switzerland

Central America: Belize, Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama

Northern America: Bermuda, Canada, Greenland, Saint Pierre and Miquelon, United States

Trends Report | Q4 2020 42 Methodology and Glossary

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Trends Report | Q4 2019 54