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Home » industry research, News, social media advertising, Social Media News, Social Tools

Facebook ads performance on the rise

Submitted by on August 21, 2013 – 8:22 amOne Comment

Facebook adverts are getting better at generating conversions and revenue, according to new analysis by Kenshoo Social.

The lift, seen in the first two quarters of 2013, was revealed in a global analysis of 75 billion Facebook ads across a representative sample of advertisers and agencies.

 

Key findings:

  • Clicks increased 16.4%
  • Click through rate (CTR) increased 18.5%
  • Conversions increased 56.9%
  • Advertiser revenue increased 28.3%

These positive findings are further bolstered by the fact that cost per click (CPC) is down 15.9%, suggesting advertisers are seeing better value for money in their Facebook ads.

Todd Herrold, senior director or product marketing at Kenshoo Social, attributes this rise to Facebook’s steady roll out of ad targeting products. “Advertisers are finding success using Facebook ads to drive toward their direct marketing goals, most importantly conversions and revenue. There are several factors influencing this evolution. Facebook has been steadily optimizing its ad units and launching new ad targeting products designed specifically for direct response, including Custom and Lookalike Audiences, Partner Categories and the Facebook Exchange,” he says.

“At the same time, advertisers are getting better at narrowing down their target audiences and honing in more appropriately on users who may find the ad engaging.  They’re becoming more sophisticated and are increasingly leveraging advertising platforms to build and manage scale using automated bid optimization, audience targeting and expansion algorithms.”

Herrold also pointed out that Facebook’s algorithms are improving, meaning the site can better pinpoint relevant users within an advertiser’s target audience.

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