Study: Brands Are Embracing Facebook as a ‘Must-Buy’

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In advance of Facebook’s earnings call today (Tuesday), Spruce Media took a detailed look at FB’s advertising stats from Q3 2011 to Q3 2012.

“Since their IPO, Facebook has faced significant scrutiny around their ad offering,” the report notes. “Investors and analysts have questioned their ability to grow revenue. And, brands have been asking for more proof that Facebook ads are effective. As one of the largest Facebook Ad API developers, we are uniquely positioned to offer data that can help answer some of these pressing questions.

“Today, most advertisers are still allocating the majority of their Facebook ad budgets to fan acquisition and direct response objectives. We are starting to see large advertisers spend $1M+ on engagement campaigns, but it’s still in the early stages of adoption.”

Among the key findings:

  • CPMs increased 27.5%. News feed and mobile drove the increase.
  • CTRs also increased.
  • CPCs have gone down 18.2%.

“The data suggests a win win win trend in the last year, and the last 6 months in particular,” the report reads. “Facebook is making more money per ad served while advertisers are seeing improved performance. And, from a user’s perspective, increasing performance suggests increased relevance, which makes for a better user experience because it means users are seeing fewer ads that are not relevant to them.”

Click here to access the full report.

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