Snapchat and Instagram increased ad sales 73% and 55%, respectively in Q3 of 2017 as much on their investments in offline features and video content paid off with significant revenue, data marketing firm 4C revealed in their new study. Other social media platforms including Facebook, Instagram, Twitter, LinkedIn, Pinterest and Snapchat showed a 31% increase on average in paid media spending that quarter.
According to the study, various localisation services offered by Social media platforms such as Snapchat’s Snap Map and Facebook’s beta test of tracking store visits have all contributed into fuelling the growth of these platforms.Video content also increased media spending on Facebook Watch, Snapchat Shows and Twitter’s 24/7 live-streaming programming.
Ad spend on picture sharing platform Pinterest increased by 26% in the quarter and 33% from a year earlier as advertisers gear up for the upcoming holiday shopping season. In the study, 4C analyzed $250 million in media spending from more than 1,000 companies.
The study on social media ad spend reveals the increasing importance of video and localisation to attract clients across different platforms. Facebook’s ad spend grew 27%, primarily driven by its Store Visits beta that aims to track changes in consumers’ offline behaviour in response to the brand messages they come across on their feed. Snapchat on the other hand also added measurement capabilities for store visits using Placed’s tracking capability, which in turn has helped brands understand how their snap ads are driving directions sales from their stores.
The major push toward video content is also driving ad growth for social media platforms in general. This year August, Facebook introduced Facebook Watch for video content and plans on spending $1 billion towards creating original videos for the service. Twitter also added 24 hours live streaming to its service.