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Global Facebook and Instagram ad spend rose 43% year over year in the third quarter, with social media advertising costs continuing to climb


Emplifi’s Q3 data shows that brand investment in social media is growing faster than ever as social platforms become an integral part of consumers’ lives. Not only is ad spend increasing, advertisers are gaining three times as much engagement with live video and seeing remarkable improvements in customer response times through social channels

Emplifi, the leading unified customer experience platform, today released its State of Social Media and CX report for the third quarter of 2021, which provides key insights into social media advertising results, organic social media brand efforts and CX -Trends offers. According to the latest data from Emplifi, global ad spend on Facebook and Instagram increased 43.4% year-over-year in the third quarter of 2021, driven by a 10.5% growth between Q2 and Q3. As advertising expenditure rose, so did advertising costs, with cost-per-clicks (CPCs) reaching their highest level since the end of 2020.

Investing in Facebook ads is a clear sign of the times as ad spend related to the accommodation industry grows 94% year over year as countries reopen their borders and resume travel around the world.

The advertisers’ click-through rates (CTRs) have remained stable with only minor fluctuations since then last year. Emplifi’s data shows that Facebook ad reach has taken a remarkable turn in the right direction, up 3.7% year-over-year – a slight increase but a stark contrast to the 12.4 decline reported last quarter %.

Emplifi’s report includes results on both paid and organic social media data covering CPC, CTR, and ad spend distribution by placement. Trends are broken down by geographic region and industry. The report examines brand engagement based on hashtags, post types, influencer marketing numbers, and brand reaction times on Facebook.

One of the most interesting findings on the organic side of social media trends is that Facebook instream live video from brands generated three times more engagement with fans and followers compared to other types of posts.

“Although brands need to invest more of their advertising budget to reach consumers through social media platforms, there are still tremendous opportunities for B2C advertisers to include live video in their social media marketing and social commerce initiatives use, ”said Emplifi CMO Zarnaz Arlia. “Live video experiences on Facebook and Instagram offer advertisers a new and fresh way to connect with their main audience and provide real-time conversational features that generate measurable e-commerce profits. Unfortunately, many brands in the US have not fully embraced social video tactics, which leaves a lot of room for improvement in this area. ”

Emplifi’s data shows that Facebook Instream Video and Facebook News Feed are the top ad rankings in the CTR for both Facebook and Instagram ads, a remarkable data point for any brand looking to increase their social commerce efforts. Of the brands going live on Facebook, those in the beauty, gaming, and e-commerce industries generate the highest number of comments and interactions compared to other industries.

Based on industry reports, social commerce is becoming increasingly important for brands in the United States. eMarketer predicts the U.S. social commerce market will hit $ 36 billion by the end of this year, with that number expected to double by 2025. Facebook and Instagram rank as the top social commerce platforms: eMarketer expects 22.3% of US consumers will buy at least one item on Facebook at some point this year.

An Ipsos study from 2021 confirmed that 65% of US consumers state that they either bought a product directly on a social media platform or discovered products through their social media channels.

“Consumers want a seamless shopping experience, from product discovery to purchase. Social commerce enables brands to sell their products directly in an app where the consumer is already shopping. The brands that understand the value of meeting customers where they are – on social platforms – will have a significant competitive advantage in the months ahead, ”said Arlia. “This is especially true for the brands that enable features like live video to create more impactful experiences and incorporate sophisticated CX tools to improve and enhance the customer journey.”

Overall, Emplifi found that the patterns of organic engagement on social media are shifting as consumers become more likely to use social platforms for customer support. As a result, brands are accelerating their response times to customer service requests received through social platforms. Emplifi’s data shows that several industries improved their response times on Facebook in the third quarter – a definite step forward as more consumers rely on their social media accounts for customer care.

Reporting methodology: Emplifi’s Social Media and CX Health Report examines third-quarter trends using data downloaded in early October. The full report can be downloaded here.

About Emplifi

Emplifi is the leading unified CX platform that brings marketing, commerce and maintenance together to help businesses bridge the gap in customer experience. More than 7,000 brands, including Delta Air Lines, Ford Motor Company, and McDonald’s, rely on Emplifi to deliver outstanding experiences to their customers at every touchpoint. More information is available at www.emplifi.io.


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