Kenshoo Social Study: Quarterly Review of Facebook Ad Performance Shows Strong Performance Across All Key Metrics by

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Today, we released our Facebook Advertising Performance, Q1vs. Q2 2013 Study of Brands Powered by Kenshoo Social.  In this infographic, you will find a global analysis of Key Performance Indicators (KPIs) spanning over 75 billion ads across a representative sample of advertisers and agencies using Kenshoo Social during the first half of 2013.  The sample includes major brands from a variety of verticals, including retail, travel, financial services and gaming.

We were interested to see how Facebook ad performance may have changed from Q1 to Q2 and the results are impressive to say the least.  Facebook Ads improved across all key metrics in the study, including Click Through Rate (CTR), Cost Per Click (CPC), Conversion Rate (CVR) and Revenue generation.

Q2 versus Q1 2013 Facebook Ad Performance:

  • Click Through Rate (CTR):  Up 18.5%
  • Cost Per Click (CPC):  Down 15.9%
  • Click Volume:  Up 16.4%
  • Conversions:  Up 56.9%
  • Advertiser Revenue:  Up 28.3%

The results of the quarterly analysis demonstrate that Facebook is not just a brand awareness and engagement channel but is evolving into a powerful direct response channel, as well. Advertisers are finding significant 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 products to simplify the number and complexity of ads, increase visual appeal and engagement through larger images, and streamline the user experience across desktop and mobile placements.  These enhancements are having a positive impact on engagement metrics such CTR and CPC.

Similarly, Facebook has been launching powerful new ad targeting products designed specifically for direct response, including Custom and Lookalike Audiences, Partner Categories and the Facebook Exchange (FBX).   Advertisers are increasingly adopting these advanced features and are getting better at narrowing down their target audiences and honing in on users who find their ads engaging and ultimately make a purchase.

Alongside the evolution of Facebook’s offering, advertisers and agencies are increasingly leveraging social ad platforms, like Kenshoo Social, to build and manage their programs at scale using automated bid and budget optimization, audience targeting, and expansion algorithms.

These developments bode very well for Facebook’s growing advertising business and for brand and direct response advertisers alike, especially as we move into the rapidly approaching holiday shopping season.

How are Facebook Ads performing for you?

Category: Barometer
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