Study: Social media offers best online ad return

Sterling, Va. - Social media demonstrated the best cost-efficiency of all major online advertising channels in second quarter 2014, coming in at 70% below the industry average for cost and showing a 32% cost decrease quarter over quarter. According to the Q2 2014 Media Intelligence Report from Neustar Inc., social’s reach-efficiency was 286% better than the next channel, portals, and its ability to reach exclusive users (not seen in other channels) improved by 65% quarter over quarter.

Neustar analysis indicates the decrease in the cost of social stems in part from the growing use of efficient demand-side platforms to purchase social impressions.

In addition, the study indicates video is becoming a more common buy, no longer tied exclusively to specialized video networks. Driven by events like the FIFA World Cup, advertisers in the second quarter looked to major networks serving soccer-related content and bought more video impressions there. Networks continued to have solid upper funnel influence, providing strong awareness and leaving longer-lasting effects on users who are later re-messaged to.

While network costs rose 28% from the prior quarter, new and better video targeting and measurement tools give marketers the power to promote brand awareness, even as its costs increase

“By measuring customer and media activity in real-time, marketers can uncover incredibly valuable campaign insights, some of which may be surprising,” said Rob Gatto, senior VP, Neustar Media. “While many marketers still place emphasis on clicks for conversions, depending on their target audience they may find much greater growth opportunity in view-based conversions.”

 

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