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Blog reveals rising revenue for major social networks

10/07/2015 by Sharon Shahzad


It has been announced by that three of the world’s major social networks, namely Twitter, LinkedIn and Facebook, have seen their ad revenues soar by almost 50% over the past 12 months. Releasing the report through the Salesforce Marketing Cloud, the figures show that ad revenue ‒ particularly from mobile smartphones ‒ has rocketed, making mobile-friendly marketing an area in which many companies might want to seek future opportunities.

Analysing the data from 2014’s first quarter period to the same quarter for this year, suggested that the rise in mobile gadgets and smartphones is likely to have led to the latest spike in ad revenue. With more people browsing the internet on their phone, in addition to using applications, there are many advertising opportunities for firms to take advantage of. Information was gathered from over 200 billion advertisement engagements and two trillion advertisement impressions made on the Salesforce Marketing Cloud.

The results of the analysis also discovered that the average cost per thousand impressions (CPMs) was affected by seasonal trends, dropping to $3.30 (£2.14) as a result. The fall marks an 11% decline between 2014’s fourth quarter and the first three months of 2015; meanwhile, the cost of mobile CPMs averaged 9% more than for Facebook Audience Network, even though there is a lower engagement on advertisements. There was also a 20% lower rate for click-throughs and a 3% lower rate for install conversion margins. As a result suggested that companies wanting to target Facebook audiences should utilise precautions to ensure that their desired API and high install conversion rates can be maintained.

Promotional opportunities on Twitter were also studied by Salesforce, which analysed the platform’s promoted accounts versus promoted tweets. The results revealed that both types were subject to lower minimal increases in costs per engagement and CPMs. After every three months promoted tweets in the US rose slightly to reach $0.45 (£0.29); however, engagements fell from 2.28% to just 2% and CPMs slumped to $8.92 (£5.78).

Finally, CPMs were also found to have fallen for professional network LinkedIn. Here CPMs in the United States dropped to $13.05 (£8.46) for the first three months of 2015. 40% of the social network's overall ad revenue stemmed from sponsored updates, which almost doubled the figures noted for 2014.

Overall, the revenue from mobile ad placement is on the rise; however, seasonal changes and the rising use of gadgets contributes to the gains, with several revenue areas actually falling in profitability.

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