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.