Facebook Inc, Google Inc Liked By Ad Agencies, But What’s The Real ROI?

A recent ad agency survey, which was released this morning, found a strong demand for Facebook Inc (NASDAQ:FB), Google Inc (NASDAQ:GOOG) and Twitter Inc (NYSE:TWTR) and online video mixed with questions of ROI.  87% of agencies polled were interested in using social media in client campaigns, while 98% said they were either more interested or equally as interested in streaming/online video than they were a year ago.

Facebook Inc, Google Inc Liked By Ad Agencies, But What's The Real ROI?

The survey was conducted by STRATA,  a media buying and selling software company, works with hundreds of ad agencies and media outlets and sees $50 billion in ad dollars flow through its systems annually.

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Facebook dominant in advertising

Facebook Inc (NASDAQ:FB) is still the dominant social media channel for advertisers with 81% of respondents indicating they would use Facebook in their clients’ campaigns. On Facebook, respondents were most likely to buy Standard External Website Ads (33%), Promoted Posts (31%) and Page Post Ads (31%). Other popular social channels for agencies include YouTube (57%) and Twitter Inc (NYSE:TWTR) (48%). Agencies also indicated a big shift in sentiment towards Pinterest, as 35% said they would use the channel, up from just 22% one year ago.  LinkedIn Corp (NYSE:LNKD) is also gaining popularity with agencies, as 33% of agencies indicated they would consider using it in clients’ campaigns.

54% of respondents said they would buy more social media ad spots if the value was more obvious, and 41% would be more open with a set of changes including an easier process, more obvious effectiveness, lower minimum volumes and less complex targeting.

“In the advertising industry, the buzz often comes before the pay off,” said Joy Baer, Executive Vice President of STRATA. “Everyone wants to buy social media and online video because it’s the way the industry is heading, but the real ROI is more complex to define.  It’s a science that is still being developed.”