ADOTAS — With one year as a public company fully under its belt, Facebook was once again the talk of the town. We’ll leave the stock price analysis to financial pundits; digital marketers want to know how the ads are performing.
According to a data analysis by Marin Software comparing Q1 2012 performance levels to Q1 2013, found click volume increased 40%, click-through rate (CTR) skyrocketed 100% and cost-per-click (CPC) dropped 38%. Performance increased while the price dropped. An online marketer’s dream come true.
The increase in click volume and rise in CTR likely indicates an increase in ad relevancy for users. After its IPO, Facebook upped the ante, improving Sponsored Stories and News feed ads while releasing new mobile targeting capabilities. More than half of Facebook users access the social site via mobile devices. With mobile targeting open, marketers were suddenly able to target the other half of Facebook users.
Facebook Exchange chipped in as well on the performance front. Now, when a user returns to Facebook after being out and about on the Internet, the user is retargeted with ads relevant to their Internet excursion. Between mobile ads, Exchange, and the newly redesigned News Feed, Facebook ad relevancy just got a shot in the arm.
About that low CPC…
Marketers have one more year under their belt advertising on Facebook. A year’s worth of testing and learning likely resulted in improved efficiency. The next 12 months look bright for driving revenue from Facebook ads.