Paid Social Trends 2018 Q1

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Coming on the heels of a strong holiday season, Q1 2018 still managed to be a winning quarter for paid social. Overall, spend and efficiency are both up, and brands continue to see strong performance, including conversion on non-reach objectives.

Paid social is off to a strong start in 2018. Even coming of the traditionally inflated numbers of the Q4 holiday season, Q1 spend and performance figures bode well for this ever-evolving channel and the advertisers who know how to use it to their advantage. Learn more about the overall trends and platform-by-platform details in iProspect’s Quarterly Paid Social Trends Report for Q1 2018.

Selected key insights from the Q1 2018 report include:

  • Spend is up YoY. Spend was up  48% year over year (YoY) and—not surprisingly—down 46% quarter over quarter (QoQ). Snap, however, saw a QoQ increase of 38%.

  • Platforms continue to make newsworthy updates. Q1 featured 120 notable changes across most platforms. In addition, Facebook, Inc. made major security changes in the wake of the Cambridge Analytica incident.

  • Facebook continues to deliver value. The Facebook family of apps and services continues to be a strong driver of traffic and direct response performance metrics with Q1 investment up 99% YoY.

  • Facebook conversion remains strong. At 7.4% Facebook’s Q1 conversion rate was down QoQ, but it was still up compared to Q3 2017 (4.71%).

  • CPM is up 40% YoY, but efficiency is still high. Value was especially strong on the Mobile News Feed where CPM remained below $4.

  • CPC down QoQ, but up YoY. After the holidays, cost-per-click (CPC) fell to $.43 from $.69 in Q4. YoY, however, CPC increased 48%, which was offset by a continued increase in CTR.

  • Advertisers increase focus on non-reach objectives. More than half of total Q1 spend on Facebook, Inc. was on campaigns with direct response objectives.

  • Video has a strong showing. Video investment made up 53% of total spend across Facebook, Inc., and video spend was up 13% QoQ and 11% YoY.


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