Buddy Media Releases Social Media Calculator and Report on Economics of Branded Applications

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Calculator and Report to Help Brands Evaluate the Cost Per Engaged User in Social Media Advertising

Social Math: The Economic Case for Branded Applications

Buddy Media, the leading media company for branded social media applications or "app-vertisements," today released a social media calculator and report to give a detailed comparison of the spend and number of engaged users generated from branded social media applications (app-vertisements) versus online banner or display ads. The report, titled, "Social Math: The Economic Case for Branded Applications," together with the calculator arms brands with the tools and data necessary to decide how to effectively invest their social media budget.

Key findings of the report include:

-App-vertising campaigns yield 398% more engaged users than social media display advertising campaigns.

-App-vertising clients pay 78% less for each engaged user than social media display advertisers

-App-vertising campaigns deliver six times the number of impressions than traditional banner display campaigns.

While the upfront cost of an app-vertisement campaign might be slightly higher than a display campaign, a brand would have to invest nearly $1 million more ad dollars with a banner-only campaign to reach the same amount of engaged users.

Brands can use the calculator tool to customize these findings to their social media budget and compare the cost of engaged users. The full report and the calculator are available at http://www.buddymedia.com/our-approach/social-math.

"Engagement will be the key metric used to measure the effectiveness of social media advertising. That's something that even Facebook seems to endorse through its introduction of engagement ads last year," said Michael Lazerow, CEO of Buddy Media. "Branded apps are not the only way to advertise in social networks, of course, but we believe they are the most powerful way for leading brands to get high levels of engagement."

In an effort to understand the economic difference between app-vertising and standard display campaigns, Buddy Media examined aggregate data from more than 80 programs it ran in 2008 for 60+ clients (which include NewBalance, InStyle, Priceline, and other national brands), and compared it to public data on digital display campaigns and data provided by clients, partners, and other publishers, using conservative industry standard metrics.

Branded apps in social networks deliver nearly four times as many engaged consumers to brands at a cost that is 78% less than digital display advertising. Advertisers only pay $1.00 per targeted user that engages with an app-vertisement, as opposed to an estimated $4.62 per user with display campaigns. And because display banners are used as part of the package to drive traffic to the app-vertisement, branded app campaigns deliver more than 600 percent more branded impressions than with banner ads alone.

About Buddy Media
In today's social media world, every brand needs a Buddy. Buddy Media develops and promotes social app-vertising campaigns that increase engagement and interaction between people and brands. Some of the world's largest brands, including FedEx, New Balance, Time Inc. & Microsoft work with Buddy Media to create social brand loyalty. Based in NYC, Buddy Media is a privately held company backed by Softbank, European Founders Fund and GreyCroft partners amongst other investors. http://www.buddymedia.com


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Joe Ciarallo
Buddy Media
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