By now, if you’re on iOS, you’ve no doubt fawned over Instagram’s new stand alone time lapse video app, Hyperlapse.
The app uses stabilization technology to allow the user to create videos that look cinematic versus a typical jittery movie most can make with a phone.
The increasing focus on video is hard to ignore — especially with the release of Hyperlapse and Amazon’s acquisition of Twitch happening on the heels of one another — but what does it mean for the future of marketing?
Even as the cost of Facebook advertising rises, is the social network’s offering the most efficient for marketers? According to a new study by Neustar, Facebook advertising in Q2 beat out other avenues (network, portal and exchange) in terms of reach efficiency and average cost.
Neustar’s study shows that Facebook’s cost efficiency in Q2 indexed 70 percent cheaper than the industry average. It was also the only channel that out-performed the indexed average for reach efficiency, beating ad portals by 286 percent.
Two of the major reasons for Facebook advertising’s popularity? Mobile and video. Rob Gatto, Neustar’s Senior Vice President of Media and Advertising, feels that we’ve only started to see video’s potential:
One interesting thing I see in video is that most advertisers are content to buy it simply with age and gender as an overlay. After all, that’s typical of how you buy television.
But in the digital world, you can buy video with a far deeper level of audience, attribution and behavior. Advertisers aren’t yet taking advantage of that.
There are all sorts of opportunities for sequential messaging with video: creative that moves a customer along at different touchpoints, aligned to the buyer journey. We already do a lot of these things in the display world, but haven’t yet duplicated them into video.
Facebook appears to making it easier for pages to utilize a call to action. As discovered by Memorado and Inside Facebook reader Matteo Gamba, some pages have the option to add a call to action when they upload a video.
Facebook has made the call to action button a powerful option for direct response through ads, but now it looks like page admins could get the ability to add such a button on non-advertised posts.
But how widespread has this been? Facebook released statistics Friday, showing that 15 million people across the social network have posted about, commented or liked a post related to the ALS Ice Bucket Challenge. People have also posted more than 1.2 million videos.
Facebook is knocking on the door of bringing in $3 billion in a single quarter — and that might just be a stepping stone.
The company announced Wednesday that Q2 was its highest-performance quarter to date, with revenues of $2.9 billion and worldwide growth in revenue-per-user. They’re just getting started.
Much of Facebook’s economic growth of late has come from mobile. The highly-touted mobile app install ad has led to more than 350 million app installs, and the ad format is moving beyond games and into retailers and consumer packaged goods verticals. CEO Mark Zuckerberg said that U.S. users spend an average of 40 minutes per day (including 1 of 5 minutes on mobile), but he wants a bigger slice of the digital media pie.
Mobile now accounts for 62 percent of Facebook’s ad revenue, and that figure could rise in the next couple years as Facebook develops more relevant and targeted video ads in concert with Audience Network — both of which are still in their infancies.
Facebook will announce its financial results for Q2 on Wednesday, but several other firms are reporting another great quarter for Facebook ad results. SocialCode, a Facebook Strategic Preferred Marketing Developer, said clients really performed well in Q2 — with the World Cup being a major motivating factor.
Max Kalehoff, SocialCode’s Senior Vice President of Marketing, summed up the company’s clients’ performance this quarter:
Q2 continued the same triple-digit growth we saw in Q1. Our portfolio of Fortune 500 advertisers nearly doubled total spend with us in Q2 versus Q1. We saw a lot of investment around the winter Olympics, but the World Cup was a whole different scale. It laid to rest any question about the potential of global events and real-time marketing to be an extraordinary catalyst to help brands reach and engage with their customers on social media.
Kalehoff also sat down with Inside Facebook for a closer look at how advertising on Facebook has grown in the past quarter.
As Instagram slowly starts to mix in some advertising, the major question for the photo-sharing app is how it will become a source of monetization for Facebook. While Facebook CEO Mark Zuckerberg or COO Sheryl Sandberg might address the early effects of Instagram advertising in its Q2 earnings call on July 23, it’s worth noting that Instagram ads are still in their infancy.
How new are Instagram ads? In a Fortune story published recently about Instagram, noting that CEO and Co-Founder Mark Systrom still personally reviews each ad the limited subset of advertisers design for the app. Instagram first allowed advertisers who already appealed to core segments of Instagram’s user base.
The feature story shed some light on newer features, such as Instagram Direct and video. In the past month, 45 million Instagram users (about 25 percent) have either sent or received a message through the app.
However, the video feature hasn’t been as successful, Fortune reports.
Facebook is testing a new way for users to discover more videos from their friends.
According to TechCrunch and sister site AllFacebook, Facebook for iOS users are seeing a prompt to watch more videos when the click on a friend’s movie. Facebook confirmed to TechCrunch that it’s something the site is testing:
This is a new feature we are testing on mobile to help people find more videos they might be interested in.
This does not appear on ads, only on videos that users have uploaded directly to Facebook, and not other sites such as YouTube.
Video ads are the next big thing for Facebook, something enforced by today’s news of Facebook’s acquisition of advertising tech company LiveRail. Terms of the deal were not disclosed.
LiveRail, founded in 2007 and based in San Francisco, has worked with ABC, Major League Baseball, A&E Networks and Gannett to improve the quality of ads seen in videos.
Brian Boland, Facebook’s Vice President of Ads Product Marketing, explained how LiveRail will help Facebook:
We believe that LiveRail, Facebook and the premium publishers it serves have an opportunity to make video ads better and more relevant for the hundreds of millions of people who watch digital video every month. More relevant ads will be more interesting and engaging to people watching online video, and more effective for marketers too. Publishers will benefit as well because more relevant ads will help them make the most out of every opportunity they have to show an ad.
We’re just getting started with our partnership with LiveRail, but we’re very excited about the future for video publishers and marketers. We believe that LiveRail’s excellent product – known in the industry as a video supply-side platform or SSP – and Facebook’s expertise with relevancy, delivery and measurement will help us make video advertising much better for everyone.
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