Facebook Ad Trends Show CPCs & CTRs Increasing

To analyze quarterly data in its historical context, an aggregate data set was built from the advertisers and partners who have been active on the Nanigans Ad Engine platform from Q1 2013 to Q1 2014. Nanigans clients include 200 of the world’s leading performance marketers in ecommerce, gaming and other internet businesses such as online travel and mobile app developers.

Key findings for Q1 2014

  • CPCs increased 10% from Q4 2013.
  • CTRs increased 4% QOQ and 167% YOY, indicating that marketers are continuing to see high engagement on Facebook.
  • App discovery continues to be a priority for app developers. Mobile app install ads were the most popular mobile ad unit, capturing 74% of Facebook mobile ad spend.
  • Advertisers have shifted their focus to the News Feed, with 81% of desktop ad spend allocated to News Feed ad units. 76% of ad spend was allocated to ages 25+.

Click-through rates (CTR) increased 4% QOQ and 167% YOY. The increase in YOY CTRs across all mobile and desktop ad formats shows that marketers are continuing to see high engagement on Facebook, says the report.

Facebook Click Through Rates

Quarter

Click-through Rate

2013

   Q1

0.09%

   Q2

0.14%

   Q3

0.19%

   Q4

0.23%

2014

   Q1

0.24%

Source: Nanigans, April 2014

Cost-per-impression (CPM) rates were up 15% QOQ and 247% YOY. The quarterly increase in CPMs across all desktop and mobile ad formats shows that costs have risen in Q1 2014. This is the result of increased competition for content in the News Feed. This increase in CPMs can be explained in part by advertisers continuing to spend heavily in News Feed, concludes the report.

Facebook Cost Per Impression Rates

Quarter

CPM

2013

   Q1

$0.36

   Q2

$0.59

   Q3

$0.77

   Q4

$1.09

2014

   Q1

$1.25

Source: Nanigans, April 2014

Cost-per-click (CPC) rates were up 10% Q-O-Q and 39% Y-O-Y. CPCs across all mobile and desktop ad units increased 10% from Q4 2013 to Q1 2014, due to an increase in demand for targeted audiences.

Facebook Cost Per Click Rates

Quarter

CPC

2013

   Q1

$0.38

   Q2

$0.43

   Q3

$0.41

   Q4

$0.48

2014

   Q1

$0.53

Source: Nanigans, April 2014

The surge in Facebook’s mobile user base (1 billion monthly users) has created new opportunities for advertisers. 74% of mobile ad spend went to Facebook’s mobile app install ads. With mobile app marketers increasingly looking to keep installed users engaged, the report expects mobile app engagement ads to attract a greater share of ad spend in the latter half of the year.

Advertisers continue to spend heavily in News Feed, with 81% of ad budgets allocated to desktop News Feed ad units. Unpublished Page post link ads are the most popular desktop News Feed ad unit commanding 47% of total ad spend.

When examining KPIs at the audience level, the study found that, on average, females cost $0.12 more than males but delivered a $0.39 higher revenue-per-click. Advertisers recognized the value of the Facebook female audience and on average, allocated 63% of their budget to females and 37% to males.

Facebook RPC And CPC, Q1 2013 - Q1 2014 (By Gender)

Click Type

Female

Male

RPC

$0.94

$0.55

CPC

$0.50

$0.38

Source: Nanigans, April 2014

When examining KPIs by age group, the revenue-per-click data suggests that the teen demographic, 18-24, is the worst monetizing demographic and 45-54 is the best performing age group. 

Facebook RPC And CPC, Q1 2013 - Q1 2014 (By Age)

Age

RPC

CPC

18-24

$0.61

$0.35

25-34

$0.79

$0.44

35-44

$1.28

$0.51

45-54

$1.53

$0.58

55-64

$1.38

$0.52

Source: Nanigans, April 2014

To learn more about the study and report, please visit here.

 

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