Join eMarketer's Debra Aho Williamson as she discusses the seven trends to watch in social media advertising for the upcoming year.

1. NOVEMBER
2 1, 2 0 1 3
7 Social Media
Ad Trends for 2014
Sponsored by:
Debra Aho Williamson
Principal Analyst
©2013 eMarketer Inc.

2. Agenda
2014: A Year of Social Acceptance
Trend #1: The Video Opportunity
Trend #2: Social = Mobile
Trend #3: Native Expansion
Trend #4: Social Ads Get More Programmatic
Trend #5: Moving Beyond the Walled Garden
Trend #6: Location Makes a Comeback
Trend #7: New Venues, New Ad Opportunities
Twitter – #eMwebinar
©2013 eMarketer Inc.

3. 2014 will be a year of ‘social acceptance’
More US marketers are committing budget to
social media advertising
% of US marketers buying ads
on Facebook
% of US marketers buying
Promoted Tweets
Sept. 2013:
74%
Aug. 2013:
32%
Jan. 2013:
62%
Sept. 2012:
26%
July 2012:
55%
©2013 eMarketer Inc.

4. Advertisers are optimistic about spending
increases
“Media wants to be where the
audience is, and I expect to see
more paid-media growth as [social]
audiences continue to grow.”
—Nick Tran, head of social media at Taco Bell
©2013 eMarketer Inc.

5. Social media advertising is moving from a
nice-to-have to a necessity
“Social advertising is almost
mission-critical now.”
—Chris Bowler, vice president of social media
at Razorfish
©2013 eMarketer Inc.

6. The
percentage
of US
companies
using social
media for
marketing is
very high—
and still
rising
©2013 eMarketer Inc.

7. Nearly all US social media marketers are
using Facebook; Twitter use is gaining
Twitter – #eMwebinar
©2013 eMarketer Inc.

8. eMarketer
forecasts
US social
network ad
spending
will rise 37%
in 2013 and
27% in 2014
©2013 eMarketer Inc.

9. What’s driving the increases? Efforts to
make social advertising more effective
Data partnerships: Data from companies such as
Datalogix, Axciom and Epsilon helps Facebook advertisers
determine whether someone who saw an ad eventually
made a purchase. Twitter also has a partnership with
Datalogix.
Objective-based advertising: Marketers choose one
of eight objectives before buying advertising on Facebook,
and get recommendations for which types of ads to use to
meet those objectives.
Less focus on fans: After touting fan acquisition as a
goal in 2012, social media companies are now speaking in
terms advertisers know: sales, conversions and results.
©2013 eMarketer Inc.

10. The bottom line: It’s not only about being
‘social’ …
“That’s where the audience is.
It’s about scale.”
—Ritu Trivedi, managing director at Starcom MediaVest
Twitter – #eMwebinar
©2013 eMarketer Inc.

11. Trend No. 1: The Video Opportunity
Image courtesy of digitalart / FreeDigitalPhotos.net
©2013 eMarketer Inc.

12. Facebook will flex its muscle with video
ads
$1 million to $2.4 million: Estimated
daily cost for branding-oriented video ads.
(Reuters)
$1.31 billion: Projected 2014 video ad
revenue (Cowen & Company)
Challenges: Infuse video ads with social/shareable
features; will autoplay work?
Potential: Could unlock more premium dollars
from brand advertisers and shift TV ad budgets.
©2013 eMarketer Inc.

13. Twitter cozies up to TV
Metrics providers
Twitter Amplify:
Links advertisers
with real-time video
Short-form
video
©2013 eMarketer Inc.

14. Instagram ad test will show the demand
for mobile native video ads
Slow rollout: So far, advertisers are focused on
testing photo ads first.
Branding opportunities: 71% of Interbrand
100 advertisers use Instagram for marketing, up
from 40% in October 2012 (Simply Measured,
November 2013).
Challenge: User reaction to Instagram ads has
been mixed.
Potential: Pent-up demand for Facebook video
advertising could spill over to Instagram.
©2013 eMarketer Inc.

15. Trend No. 2: Social = Mobile
Social media will continue to play a leading role
in defining what mobile advertising looks like
“Social is going to continue to drive mobile
usage and mobile spend.”
— Scott Symonds, AKQA Media
“As we’re thinking about social, we’re not
delineating it from mobile; our assumption
is that if it’s social it probably also is
mobile.” — Jennifer Kasper, Macy’s
©2013 eMarketer Inc.

16. Facebook and Twitter are seeing strong
revenues from mobile
49%: Percentage of Facebook’s Q3 2013 ad revenue that
came from mobile. (Facebook, October 2013)
Over 70%: Percentage of Twitter’s Q3 2013 ad revenue
that came from mobile. (Twitter, October 2013)
19%: Percentage of the US mobile ad market that
Facebook and Twitter will account for in 2014.
(eMarketer, August 2013)
40%: Percentage of the US mobile display ad market that
Facebook and Twitter will account for in 2014.
(eMarketer, August 2013)
Twitter – #eMwebinar
©2013 eMarketer Inc.

17. The majority of social media use is
happening via smartphone
Source: RBC Capital Markets & Advertising Age, September 2013
©2013 eMarketer Inc.

18. What to watch for in mobile social
advertising
Demand for mobile ads
Is mobile social ad spending growth driven by demand for
mobile, or simply a reallocation of dollars from the desktop?
Overload
Will the number of ads in the feed top out lower than the
social media companies expected?
New ad products
How will social companies evolve ads to take advantage
of the uniquely mobile environment?
©2013 eMarketer Inc.

19. Trend No. 3: Native Expansion
Social media companies
proved in 2013 that
native advertising can
work.
In 2014, the challenge
will be to scale it—
without irritating
consumers.
©2013 eMarketer Inc.

20. Ad executives are enthusiastic but
concerned about native advertising
Industry executives believe news feed advertising delivers
results. But they worry that there will be backlash if
too many ads crowd the feed.
They are also concerned about the amount of time
and effort it takes to produce native advertising
Native-ad ad networks could provide a solution.
Twitter – #eMwebinar
©2013 eMarketer Inc.

21. US mobile marketers consider native
advertising an important development
©2013 eMarketer Inc.

22. A cautionary note on native ads:
“As we think about the future, we do not expect to
significantly increase ads as a percentage of News
Feed stories beyond where we were at the end of Q3.”
— David Ebersman, Facebook’s chief financial officer,
during the company’s Q3 2013 earnings conference call
©2013 eMarketer Inc.

23. Trend No. 4: Social Ads Get More
Programmatic
The intersection of real-time marketing and
programmatic advertising will play out more
fully in 2014.
“Total social media advertising is expected to increase
35% in 2013, 35% in 2014 and 32% in 2015. We are
attributing the growth in 2014 and 2015 to the rise in
programmatic social buying that will begin to take
hold.”
©2013 eMarketer Inc.

24. Programmatic techniques will help make
real-time marketing easier to do
Faster social ad placement: More tools will be
available to quickly place ads or tweak campaigns.
External triggers: Data on pricing, inventory, weather
and more will inform ad delivery in social media, enabling
advertisers to make the most of fast-changing scenarios.
More-dynamic creative: Technology will provide new
ways to change up ad creative to meet targeting needs and
cut the time it takes to develop real-time content and
advertising.
Twitter – #eMwebinar
©2013 eMarketer Inc.

25. Trend No. 5: No More Walled Gardens
In 2014, advertisers will finally get what they’ve
been hoping for: the ability to use rich social
media user data to target consumers across
digital channels.
Twitter: Its acquisition of mobile ad network/technology
company MoPub gives Twitter a new revenue stream and a
way to test mobile native advertising.
Facebook: It has restarted testing of a mobile ad
network; although there are many privacy hurdles to cross,
advertisers are very interested in using Facebook data to
target consumers outside of Facebook.
Twitter – #eMwebinar
©2013 eMarketer Inc.

26. MoPub’s network: Small but growing
Sample Customers:
Net Revenue
2012:
$2.7 million
1H 2013:
$6.5 million
©2013 eMarketer Inc.

27. Facebook Log-in: One way to track users
(and show ads) outside of Facebook
©2013 eMarketer Inc.

28. Advertisers recognize the value of social
data for targeting
“Twitter has a huge amount of insights
around what people are doing and
expressing and sharing. The ability to take
that knowledge and put it outside its walls
is powerful.”
—Dave Marsey, executive VP and managing director at
Digitas San Francisco
©2013 eMarketer Inc.

29. Trend No. 6: Location Makes a Comeback
©2013 eMarketer Inc.

30. Data indicates increased willingness to
share location via mobile
of US adult smartphone owners use their phone to get
information or directions based on their location, up from
55% in 2011
of US adult social media users have at least one account
set up to tag their location, up from 14% in 2011
Source: Pew Internet & American Life Project, September 2013
©2013 eMarketer Inc.

31. Mobile app
users
worldwide
appreciate
locationbased
mobile
marketing
©2013 eMarketer Inc.

32. Geolocation capabilities will improve
If I tweet or Facebook this shot, I might be
a good target for hiking-gear ads.
©2013 eMarketer Inc.

33. Trend No. 7: New Venues, New Ad
Opportunities
Facebook, Twitter and LinkedIn dominate, but
there is room for more
Twitter – #eMwebinar
©2013 eMarketer Inc.

34. Instagram: Think ‘Vogue’ for social
media
©2013 eMarketer Inc.

35. Pinterest: Boosting social
commerce
Promoted Pins test is aimed at marketers and
retailers with ecommerce goals
©2013 eMarketer Inc.

36. Mobile messaging services: Growing fast
and could see ads in 2014
Snapchat is used by 9% of US mobile
phone users—many of them teens and
young adults (Pew Research Center, 2013)
LINE has 280 million users
worldwide, and growing fast in South
America, Turkey and Italy (LINE Corp. Q3 2013
earnings report)
WeChat Has 272 million users,
predominantly in China (Tencent Q3 2013
earnings report)
©2013 eMarketer Inc.

37. Conclusions
More marketers are using social media advertising, leading
to increases in total spending.
Efforts to prove the effectiveness of social ads have paid
dividends.
Social will be a critical tool to reach mobile users
in 2014.
Efforts to scale native ads could be met with a
backlash.
More social ads will be bought programmatically.
Twitter – #eMwebinar
©2013 eMarketer Inc.

38. Conclusions
Facebook and Twitter will start selling ads outside
their walls, providing new ways to use social data for
targeting.
Geolocation capabilities in social media will get better,
leading to more real-time marketing
opportunities.
New ad venues such as Pinterest and Instagram will vie
for marketers’ attention.
Twitter – #eMwebinar
©2013 eMarketer Inc.

40. Data and campaigns are fragmented between
channels, teams and devices
Search
Display
Websites
Landing
Pages
Mobile
Video
PAID DIGITAL CHANNELS
Microsites
SOCIAL MARKETING
WEB PROPERTIES
Google Confidential and Proprietary

41. The next phase of social marketing: bridge the
digital-social divide
Search
Display
Websites
Landing
Pages
Mobile
Video
PAID DIGITAL CHANNELS
Microsites
SOCIAL MARKETING
WEB PROPERTIES
Google Confidential and Proprietary

42. Social marketing software for the enterprise
Build engaging social campaigns that drive real business results, and
measure your ROI
Google Confidential and Proprietary

43. To learn more about how to
generate ROI in social, visit
Wildfire at www.wildfireapp.com
or become part of our community.
+Wildfire
@wildfireapp
Wildfire by Google WildfireInteractive
Google Confidential and Proprietary

44. Q&A Session
7 Social Media Ad
Trends for 2014
Learn more about digital marketing with an
eMarketer corporate subscription
Around 200 eMarketer reports are published
each year. Here are some recent reports you
may be interested in:
Social Media Advertising: Seven Trends for 2014
Social TV: Marketing to Viewers in Real Time
Advertising in the Moment: Real-Time Strategies for
Paid Social Media
Debra Aho Williamson
You will receive an email
tomorrow with a link to
view the deck and
webinar recording.
Sponsored by:
Worldwide Social Network Ad Spending Forecast:
Robust Growth Set to Continue Through 2014
Native Advertising: An Emerging Consensus for a
New Kind of Ad
To learn more: www.emarketer.com/products
800-405-0844 or webinars@emarketer.com
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