The Economic Case for Social Apps

Social Math: The Economic Case for Branded Applications

Social Math: The Economic Case for Branded Applications

Social Math: The Economic Case for Branded Applications

Social Math: The Economic Case for Branded Applications

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Social Math: The Economic Case for Branded Applications

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Social Math: The Economic Case for Branded Applications

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Social Math: The Economic Case for Branded Applications

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Branded Social Applications

Online Banners/ Display Ads

Social Media Budget

$300,000

$300,000

Cost of Development or Creative Total Media Budget

$50,000

$10,000

$250,000

$290,000

CPM

$0.40

$3.00

Impressions

625,000,000

96,666,667

CTR

0.10%

0.10%

Clicks

625,000

96,666

Bounce Ratei

72%ii

35%iii

Total Engaged Users

250,000

62,833

Cost per Engaged User

$1.00

$4.62

Branded Social Applications Value

A $250k media plan of targeted branded display ads delivers 625MM impressions and drives 250,000 users to the clientâ&#x20AC;&#x2122;s social branded appsâ&#x20AC;&#x201D;greater than 6 times the number of impressions and 4 times the number of engaged users.

Using an average social media CTR of .1%, the branded application drives 528,333 more clicks for the clientâ&#x20AC;&#x201D;putting the clientâ&#x20AC;&#x2122;s brand message in front of 650% more people Even with a higher abandon rate, in order to reach the same number of engaged users with a banner campaign, a client would have to invest over $1 million.

This campaign yields 250,000 engaged users at a cost of $1 each, which is $3.62 less than the banner campaignâ&#x20AC;&#x201D;despite the slightly higher upfront cost, the client pays 78% less for 398% more users.

Social Math: The Economic Case for Branded Applications

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