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  • Vijesti

    Wüsthof Sharp Systemic Brand Identity with Gigodesign wins Red Dot Award

    How to win a Grand Prix in Cannes?

    The best of Latvian and Estonian advertising

    Enjoy the summer with Cinedays Film Factor 20

    Lokomotiva and SentecaCommerce signed a partnership for 12 European markets

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  • Tema sedmice
    daljinski-naslovnica

    Television Audience Measurement: In Serbia, the media are in a race to the bottom for every extra “click”, while in Croatia HTV has undermined the principle of joint monitoring

    This global pandemic, coronavirus, cuts across all geographical borders regardless of cultures and language. What is the role of Public relations today?

    Slaven Fischer: Creativity doesn’t reside in buildings but in people, no matter where they are. It’s natural for people to work from home.

    Janja Božič Marolt: As in every crisis, there will be a lot of victims and some winners in the communications industry of the region.

    Shortcutting Video: New Study Highlights the Effectiveness of 2-second Ads

    Topic of the Day: Can artificial intelligence replace human intelligence and emotions. Is technology a servant or a master?

  • Intervju

    Miranda Mladin: Keeping consumers’ attention is every brand’s biggest challenge

    Nataša Mitrović: I understood that the Balkans should be my primary target area and that, once I had become a shark in the Balkans, then I could make my way “back” into the big world and swim in the sea with the other sharks.

    Ivan Stanković: I admit to having great fun and enjoying myself enormously working on my show, What I am to you and who I am to myself.

    Scott-Gould-naslovnica

    Scot Gould: Stop doing anything that you do that isn’t valuable, tell everyone about that offering, and don’t stop!

    lazar-naslovnica

    Lazar Džamić: We are experts at preferring the byways, swamps, and chasms, so that we can keep on going in circles, lost in space

    Irena-naslovna

    Irena Kurtanjek: Contributing to the Communities in which we Operate is the Foundation of Nestlé’s Business

  • Kolumna

    Sponsors? What that?

    misa-naslovnica

    Miša Lukić: What can start-ups learn from sperm?

    Do Brands Always Need to Sell Aggressively to Grow?

    Price of Hate

    The Advertising Industry: From Alchemists to Distributors and Back Again

    Milena Garfield: It’s not long since I said: If it ain’t live, it’s dead

  • Dnevnik

    Diary of a Methuselah #176 Will our industry come out of this better and smarter?

    Diary of a Methuselah #159: Ivo Pogorelić and Zoran Todorović weren’t attractive enough for sponsors in Sarajevo

    Diary of a Methuselah #157: The Young Leaders of Tomorrow, a great event for young people who are ready to assume responsibility for the future of industry

    Diary of a Methuselah #156: I’ve been writing my Diary for three years now, and I don’t think I wrote anything smart

    Diary of a Methuselah #154: Three days at the PRO.PR Conference

    Diary of a Methuselah #153: Portal Media Marketing starts a new life today

  • Mladi lideri

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    Mladi liderji – Saša Droftina, Luna \TBWA: Želela bi, da bi se spremenil odnos do pitchev

    Mladi Lideri Kristina Gregorc

    Mladi liderji – Kristina Gregorc, Mercator: Zelo sem optimistična in izjemno ponosna in vesela, da sem del tako velike in uspešne ekipe

    Mladi Lideri

    Mladi liderji – Maša Crnkovič, Futura DDB: Največji izziv je vpeljava podatkov in feedback-a uporabnikov v procese dela

    Young leaders – Aneta Nedimović, New Moment Belgrade: Articulating ideas and the value of those ideas is an art form and a skill

    Mladi liderji – Matjaž Muhič, ArnoldVuga: Želel bi več časa za razmislek, za delo, za raziskovanje

  • Tri pitanja

    Robert Wester: Strategic communications is at the top of the European Commission’s agenda

    Chris Pomeroy: Tourism in 2019 accounted for 1 in 10 jobs on the planet and until now it was resilient to all manner of crisis

    Andrey Barannikov: The role of PR in Russia is changing and becoming more strategically important both for brands and communication agencies

    francis-ingram-naslovnica

    Three questions for Francis Ingham, Managing Director of the Public Relations and Communications Association (PRCA) & Chief Executive of the International Communications Consultancy Organization (ICCO)

    3 questions for Svetlana Stavreva, President of the International PR association (IPRA): Today, people are demanding that organizations do what they promised

    Three questions for Petra Krulc, Senior Vice President of Celtra

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WARC Global Advertising Trends – The social slowdown

Social advertising growth halved over the last year. Facebook looks to new revenue streams as ad market begins to cool

04/07/2019
in Featured, News
6 min read

Drugi jezik na kojem je dostupan ovaj članak: Bosnian

WARC, the global marketing intelligence service, has found that advertising revenues among key social and messaging companies rose 26.2% year-on-year during the first three months of 2019 to reach $17.9bn – the second-highest total on record.

However, while this growth outpaced all other advertising sectors, it was roughly half the rate of expansion seen just one year earlier (51.6% in Q1 2018). All six companies studied in the report – Facebook, Pinterest, Snap, Twitter, Tencent (WeChat/QQ), Weibo – recorded an easing in ad revenue growth during Q1 2019.

In North America, the largest market for social advertising ($8.0bn in Q1 2019), user growth has stalled over the last 12 months. Time using social platforms has also stagnated in the region, remaining at two hours per day for the last three years. Facebook has 186m daily users in North America, Snap 80m, and Twitter 28m – numbers that are mostly flat or down from the previous year.

Further, European user growth across Facebook’s social properties (including WhatsApp and Instagram) slowed to its lowest rate on record (1.4%), while Snap’s users in the region fell for the first time. Daily social media usage fell by four minutes to 1:49 (hours:minutes) across Europe year-on-year, according to GlobalWebIndex.

Instead, growth is emanating from Asia, in particular from India, Indonesia and the Philippines. Daily social time is also ticking up in the region, reaching 2:11 compared to 2:09 a year earlier. But users here monetise at a far lower rate than their Western counterparts.

Consumer trust is a growing issue

The slowdown in social ad growth comes at the same time as the tech sector in general, and Facebook in particular, is under pressure over its use of consumer data. Recent research by YouGov, Dentsu and Universal McCann, among others, finds that half of consumers believe tech and social media companies have too much power and influence, while a similar proportion feel more industry regulation is required.

Two-thirds of consumers don’t trust the information that comes from social media, with rates as high as 82% in Great Britain and 70% in the US. As many as three-quarters of consumers now limit their online footprint, citing the misuse of personal data as the biggest cause of distrust. And less than half of consumers trust influencers on social platforms, a rate tracking downwards from a peak in 2014.

Platforms look to social commerce for revenue growth

As advertising revenue growth cools, social media companies are increasingly looking to diversify. Facebook has already announced its intention to launch a new cryptocurrency, Libra, by 2020, with emerging markets being its prime focus, alongside ‘Calibra, a digital wallet which will be integrated into Messenger and WhatsApp.

While social shopping is still nascent on Western platforms, in China, the ease of mobile payment has made social shopping a norm. Tencent made RMB21.8bn ($3.2bn) from FinTech in the first three months of this year. But in the US, security and privacy are cited as major concerns for the development of social commerce, and this is a core challenge Facebook will need to confront.

Summing up, James McDonald, Managing Editor, WARC Data, and author of the research, says: “The social sector is still expanding at a rapid pace – amassing $17.9bn of ad money in the first three months of this year alone – but growth has eased over recent quarters and has halved from a year ago. Further, user growth has stalled in North America and consumer trust in social platforms is waning.

“Facebook is looking to diversify its revenue streams with the launch of Libra which, the company says, will not be used directly to enrich the consumer data it has harvested for ad selling purposes. However, the cost of advertising on Facebook’s social platforms could feasibly rise if the company proves a relationship between the ads it serves and an increase in Libra-facilitated sales.”

Global media analysis – The social slowdown

  • 26.2% rise in social and messaging adspend in Q1 2019, to $17.9bn worldwide
  • 42.1% proportion of consumers that trust influencers’ opinions on products and services
  • 50.0% share of consumers who believe social media and tech companies have too much power
  • 70.0% US consumers who do not trust information from social media sites
  • 71.1% respondents citing security as their greatest concern in regard to social shopping
  • 95.5% new daily users joining Facebook from outside of North America

Other key media intelligence new on WARC Data

  • Paywalled news is becoming more expensive in most markets
  • Ad fraud losses drop to new low, under $6bn
  • Alibaba earned nearly RMB80bn ($12bn) from commerce last quarter
  • Radio reaches more Americans than all other media
  • Consumers choose privacy as DuckDuckGo shows quickest growth
  • 16% of Facebook accounts are worthless to advertisers

Global Ad Trends, a monthly report which draws on WARC’s dataset of advertising and media intelligence to take a holistic view on current industry developments, is part of WARC Data, a dedicated online service featuring current advertising benchmarks, forecasts, data points and trends in media investment and usage.

 A sample report of WARC’s Global Ad Trends – The social slowdown is available here. WARC Data is available by subscription only. For more information visit https://www.warc.com/data

Tags: Warc
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