Social Tools

Social Math: The Economic Case for Branded Apps

Buddy Media Whitepage

Buddy Media’s recent report on the Social Math revealed that

  • Branded social media applications, or app-vertising campaigns, deliver 6 times the number of impressions than traditional banner display campaigns
  • App-vertising clients pay 78% less for each engaged user than social media display advertisers
  • App-vertising campaigns yield 398% more engaged users than social media display advertising campaigns

Download the report

Social math, where do all your advertising dollars go?

Plug in your online social media budget with your average CPM and see how much more effective and efficiently your budget can be spent. Social Branded applications yield more bang for your ad buck.


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Budget
Creative Cost
Total Media Budget
CPM
Impressions
CTR1
Clicks
Bounce Rate2
Total Engaged Users5
Cost per Engaged User6

Check out the difference…How much are you spending for an engaged social networkers?

1. CTR
Click through rate. This analysis used an industry standard CTR from online display banners of .1%
2. Bounce Rate
A term used in web site traffic analysis. It essentially represents the average percentage of initial visitors to a site or branded application who “bounce” away to a different site, rather than continue on to other pages within the same site.
3. Branded social application’s Bounce Rate
The bounce rate for Buddy Media’s applications is 72.2 percent. It is high because we ask users to visit an application, install it i(n most cases on their social network profile of choice) and actually use it. We calculate the bounce rate from taking the total number of people who clicked on an ad but did not engage with the application and dividing that number by the total number of clicks. The application bounce rate represents the percentage of people who clicked on the ad driving them to the application but never actually used the application.
For traditional display campaigns, we have used a bounce rate of 35%, which is 50% less than the application bounce rate. This makes sense given the user just needs to view another page to be considered an “engaged” user. We have used the more conservative number to ensure that the bounce rate number does not adversely effect the veracity of our research. While the actual bounce rate for any campaign depends on many factors, including the quality of the traffic and the landing page or microsite, Avinash writes on his blog that achieving a bounce rate of less than 20% is very difficult. The thirty-five percent is a more realistic number.
5. Engaged user:
For the sake of this report, an “engaged user” is someone who clicks on an ad and visits at least one page post click
6. Cost per Engaged User:
The cost per engaged user value shown here is meant to represent a potential rate for a campaign, and is not indicative of actual pricing