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

Written on
Oct 22, 2012 
Mike Daly  |

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.

Mike Daly is an award-winning writer and editor with 30 years of experience in publishing. He began his career in 1983 at The News of Paterson, N.J., a long-since defunct daily paper, where at age 22 he was promoted to the position of Editorial Page Editor. Since then he has served in managerial capacities with several news organizations, including Arts Weekly Inc. and North Jersey Media Group in New Jersey and Examiner Media in New York. His work has been honored on numerous occasions by the New Jersey Press Association and the Society for Professional Journalists.

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