Performics Weekly Digital Research Recap


Posted by Cristina Lucero & Christina Mannarino, Performics Research & Insights Team

United States

Channel Insights

Social

-eMarketer Report: Google+: Influencing the Integration of Search and Social

  • Report highlights:Google+ engagement and participation aren’t up to speed with other social networks, and that has become a major obstacle for turning Google+ into a relevant social network
  • As of March, 50 million people who are signed in to Google+ access “enhanced products” connected to the service—such as search or YouTube—at least once a week.  With the rich data set from the activity of users across the entire Google network, marketers will reach more specific audiences and Google will improve its ads.  Brands have seen an increase in their participation as more users joined their Circles. 
  • In February 2012, 15% of the Top 100 brands posted on Google+ more than three times a week. This was up from 11% in December 2011.  This brings to light the main challenge for Google+: it needs more users to not only join, but also use the site to interact with brands, which will increase participation from brands, benefiting Google overall.

-TBG Digital: Global Facebook Advertising Report

  • Average CPM rates for non-premium display ads on Facebook in the first quarter are up 41% from a year ago, and up 15% from the fourth quarter of 2011. At the same time, click-through rates dropped 8% from the prior quarter.
  • TBG explains the increase in CPMs and decrease in clicks as, “The supply has increased, and all things being equal, rates should have gone down. But due to significant demand, across the board, rates are still rising.”
  • Rounding out the top five ad categories on Facebook by impression were food and drink (19%), finance (14%), entertainment (11%), games (11%), and all others (22%)
  • Read the full report here

Mobile

-Forrester Report: Wearable Devices: The Next Battleground For The Platform Wars

  • Forrester argues that wearables will move mainstream once they get serious investment from the Big Five platforms—Apple, Google, Microsoft, Amazon, and Facebook—and their developer communities, and gives advice to product strategists who want to stay ahead of the wearables curve.
  • Wearables are here, and more innovation is coming
  • Wearables need backing from the big five platforms to succeed.  Apple has the most polished marketing, channel, and brand. Google has an open platform and gives license to dabble. Microsoft has the best depth sensor yet.
  • Wearables will heighten the platform wars – and Google may actually win. Google's open Android platform will inspire broader experimentation for entire wearable solutions.

Search

-PPC & Mobile Marketing Tips from Q1 2012 Industry Analysts (Search Engine Land)

  • Covario just released their “Q1 Global Paid Search Spend Analysis” report, which focuses on activity in the high-tech and consumer electronics sectors, showing a 15 percent YoY increase in PPC ad spend in the Americas, in line with the general trend shown by other analysts
  • Marin Software and the Rimm-Kaufman Group (RKG) just published their Q1 reports, the “U.S. Online Advertising Report” (Marin) and the “Digital Marketing Report for Q1 2012” (RKG).  RKG found that total paid search spend grew at 30 percent YoY in Q1 2012. Mobile comprised 12 percent of all organic search visits in Q1 and 13 percent of all paid search clicks.  Marin Software also found that increased click volume (46 percent higher YoY) more than made up for lower CPCs, with resultant robust growth in Google ad budgets leading to higher spend.
  • The summary of all 3 reports can be read here. Access Covario’s report here, RKG’s report here and Marin’s report here.

-Google Proposes New Metrics for Online Advertising (Google)

  • Dubbed Brand Activate, the plan is designed to “reimagine online measurement for brand marketers"
  • The idea is that with better metrics, marketers will feel more comfortable allocating more of their money to online advertising
  • Google introduced the first two components of Brand Activate: Active View and Active GRP.  Active view: a “viewed” impression as one that “is at least 50% viewable on the screen for at least one second.”  Active GRP: a digital version of the metric used by TV that will calculate the reach and frequency of a campaign, but — unlike standard GRPs — lets advertisers react in real time.
  • Read the full article here

Video

-From Clicks to Completion: Online Video Ad Effectiveness (eMarketer)

  • A recent study, which examined video ads served in the U.S. in 2011, found that ad completion rate was a much more useful metric of ad effectiveness than CTR.  High CTRs for video ads are being misinterpreted as a sign of success, since many users are clicking on ads in an attempt to make them go away.
  • Ads served in long-form video had a higher completion rate, 88%, compared with 76% for ads placed in short-form content.  That’s because viewers who have committed to watching a long-form program are more willing to sit through ads, especially mid-roll ads.
  • Marketers can expect ad functionality to change and improve as video ad technology, and the way it is applied, continues to develop.

Demographics

Hispanics

-Nielsen Report: State of the Hispanic Consumer: The Hispanic Market Imperative

  • A growing, evolving population, Latinos are a fundamental component to future business success, with a buying power of $1 trillion in 2010 that is projected to grow 50 percent to $1.5 trillion in 2015
  • Hispanics spend 68 percent more time watching video on the Internet and 20 percent more time watching video on their mobile phones than non-Hispanic whites
  • Hispanics make fewer shopping trips per household than non-Hispanics, for instance, and spend more per trip
  • Read the full report here

Global Insights

Channel Insights

-Forrester Report: Asia Pacific Online Retail Forecast, 2011-2016

  • Highlighting online retail sales in five different markets in Asia Pacific: China, Japan, Australia, South Korea and India, Forrester predicts:The combined size and growth of China's eCommerce market are unprecedented
  • China's online retail market surpassed $100B in 2011 and continues to grow at a breakneck pace – when the U.S. online retail market was the same size as the market in China today, growth was considerably slower.  Growth rates in Japan, South Korea and Australia are more tempered. 
  • In contrast to China, online retail sales in Japan, South Korea and Australia will grow at rates more in line with those of the U.S. and developed eCommerce markets of Europe

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