While user growth remains a real concern, Facebook appears to be perfecting the art of monetization. Indeed, the social giant saw click through rates (CTRs) increase 20% between the fourth quarter
of 2013 and the first quarter of 2014, while ad impressions were up a whopping 41%.
That’s according to Adobe’s latest Social Media Intelligence Report, which also found
that revenue per visit (RPV) coming from Facebook grew by 2% quarter-over-quarter.
By contrast, RPV rates from Twitter and Tumblr declined by 23% and 36%, respectively,
What is Facebook doing right? Despite its Top Dog status, the company that Mark Zuckerberg built continues to innovate at a rate comparable to many start-ups,
according to Tamara Gaffney, principal analyst at Adobe Digital Index.
“Companies like Facebook are making changes to their algorithms and adding functionalities like auto-play
of videos, which impact brands and users and how they engage with content,” Gaffney explained in Adobe’s new report.
More broadly, Facebook ad clicks and impressions are
on the rise with clicks continuing to outpace impressions. Facebook’s ad clicks increased 70% year-over-year, and 48 percent quarter-over-quarter, with ad impressions up 40% and 41%,
Facebook’s ad CTR jumped 160% year-over-year, and 20% quarter-over-quarter.
However, Facebook’s cost per click (CPC) dipped 2%
year-over-year, and 11% quarter-over-quarter, following what Adobe described as a strong holiday season.
Also of note, brand posts with embedded video gained traction in the first
quarter, with 58% more engagement quarter-over-quarter and 25% growth year-over-year. Facebook video plays increased 785% year-over-year, and 134% quarter-over-quarter following the introduction of
auto-plays for videos in the fourth quarter of 2013.
However, text-only Facebook brand posts are losing share and engagement, but posts with links rose 167% quarter-over-quarter, and
Year-over-year, Twitter and Facebook referred RPV increased 5% and 11%, respectively, but Twitter driven RPVs dipped 23% quarter-over-quarter.
Tumblr referred RPV rates are up 55% year-over-year, but slumped 36% quarter-over-quarter.
In its report, Adobe analyzes paid, earned and owned social media trends, based on 260
billion Facebook ad impressions, 226 billion Facebook post impressions, 17 billion referred visits from social networking sites, and seven billion brand post interactions including comments, likes and
shares. Paid social data is derived from aggregated Adobe Marketing Cloud data.