Social media drives record revenue per visit in 2013

Social media creates more qualified traffic for websites

By Rhian Harris

Adobe’s Q4 2013 Social Intelligence Report shows that Facebook, Twitter, Pinterest and Tumblr drove unprecedented volumes of qualified traffic to retail sites in Q4. It also found increased  revenue per visit (RPV) when social channels were the referrer.

The study looked at owned, bought and earned media, assessing how social media continues to shape the digital marketplace with how brands can engage consumers.

Owned
A channel that your brand creates and controls e.g. a company blog, YouTube channel, your website, or even your Facebook or Twitter page. Generally, owned media is defined where basic use or membership is not paid for.

The report found that Facebook still refers the most traffic, but Twitter and Pinterest are growing faster. In fact, in the UK, Pinterest overtook Facebook in referring revenue in Q4 , and Twitter RPV is up 63% Q3-Q4.

Social revenue per visit in UK

Source: http://www.cmo.com/content/dam/CMO_Other/ADI/ADI_SocialIntelReport_Q413.pdf

Earned
The effects of what is created from your content or brand e.g. communities sharing content or word-of-mouth. In earning the publicity, users ‘volunteer’ to talk about your brand, rather than are paid.

According to the study,consumers continue to engage with brands through social media and are commenting and sharing more actively, with most using images as a method of interaction.

Again, Facebook is leading the way in terms of volume, but Pinterest and Twitter are growing at faster rate.

Engagement by type of social media post

Source: http://www.cmo.com/content/dam/CMO_Other/ADI/ADI_SocialIntelReport_Q413.pdf

Paid 
Anything that involves a promotional third-party that your brand will pay for e.g. sponsorships or online advertising.

Facebook clicks and impressions Q4 2013

Source: http://www.cmo.com/content/dam/CMO_Other/ADI/ADI_SocialIntelReport_Q413.pdf

From the research, it is thought that consumers have a larger appetite for paid adverts on Facebook than brands think with clickthough rate, cost per click, and cost per impression metrics all up YOY.

So what?

The study highlights a few key takeouts for brands to action going into 2014.

  • Marketers advertising on Facebook need to carefully manage increasing CPCs to achieve positive ROI, but in doing so should look to capitalise on high clickthrough rates.
  • Greater attention should be paid to creating a more varied mix of posts – including video, to not not over-rely on images but also create high-quality assets.
  • Pinterest should be a an key element on the social media strategy of every retail marketer.

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