Social Media Trends Report

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Social Media Trends Report 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 advertising in Q4. At its analytical look at paid, organic, and influencer marketing 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 Instagram and The increasing popularity of Live Video content and the momentum around Instagram Facebook, 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.
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