Technology

Advertising on social networks takes on color

Social networks and real life are inextricably linked, especially when it comes to advertising. As the second wave of Covid-19 hits Europe, we can see that the slackening of the third quarter of 2020 saw advertising spending on social networks soar. With lockdowns in many countries around the world last spring and widespread uncertainty, advertisers had braked four irons. But, according to the figures from Socialbakers, the return (almost) to normal this summer has been more than beneficial.

The data is clear and the increase is impressive. Between Q2 and Q3 2020, spending on social platforms overall increased by 56.4%. In North America, the increase is even more striking with + 67%. In Central America, the increase is 55.6%. Finally, in Western Europe, it is a growth of 50.4% that we observe.

According to analysts, advertising investments should continue to increase. Despite the re-containment in many countries and the second wave of Covid-19, online sales are likely to be overexploited as the end of the year holidays approach.

Higher costs

More and more advertisers are betting on social networks. Result: the advertising market sometimes tends to saturate and the placement of ads is logically more expensive. The CPC (cost per click) has never been so high. Globally, the latter increased by 42.4% between the second and third quarters of 2020. In Western European countries, the increase is 30.8%.

Obviously, most of the advertising on social networks is broadcast on Facebook and Instagram. While the click-through rate remains roughly stable, the cost per click on these platforms has increased by 32.1%; or about 0.14 dollar.

Finally, regarding advertising formats, only instream videos on Facebook saw their CPC grow by 9.4%; rising on average from 0.23 to 0.254 dollars. Moreover, on closer inspection, Facebook and Instagram feeds represent the places where the expenses are the highest. However, the number of clicks remains higher on Facebook than on Instagram with a CTR (click rate) of 1.82% against 0.33%.

With the re-containment, the success of online sales and the upcoming arrival of the holiday season, advertising on social networks should probably break new records!

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