Spruce Media Issues State of Facebook Advertising Report for Q3

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ADOTAS — In advance of Facebook’s Q3 2013 earnings call tomorrow, Spruce Media, a leading provider of enterprise-class marketing solutions for Facebook Ads and one of Facebook’s 14 strategic PMD, has just announced its new State of Facebook Advertising Q3 2013 report.

In the report, Spruce Media provides statistical and trend analysis of client data across key performance metrics, including cost per thousand impressions (CPM), click-through rates (CTR), and cost per clicks (CPC) across Facebook’s mobile and desktop inventory.  In addition, Spruce offers a look at how much its advertisers are paying for mobile app installs, Page likes, and engagements.  The report also takes a look ahead at 2014, and offers perspective on the social network’s ad products, mobile, and video advertising opportunities and potential areas for growth in the coming year.

Q3 2013 represented the second consecutive quarter that Facebook has mainly been focused on simplifying its ad product line-up. To this end, Spruce Media compared its clients Q2 data with its clients Q3 data and found:

Innovation around Facebook’s new simplified ad formats has reduced Spruce Media’s advertiser costs while maintaining same yield.

  • CPC prices have decreased in all ad placements except for Desktop placement (+ 2%).
  • On average CPMs are showing mixed results (across all ad placements).

Ad Resonance with users has increased.

  • Click Through Rates (CTR) have increased by an average of 22% in 3 out of 4 ad placements.

Advertising Cost By Goal had mixed results.

  • Cost Per Mobile App Install decreased from $1.67 in Q2 to $.93 in Q3.
  • Cost Per Page Like increased from $.58 to Q2 to $.66 in Q3.
  • Cost Per Engagement decreased from $.36 in Q2 to $.31 in Q3.

Percentage of Advertiser Spend in Mobile continues to rise.

  • In Q3, 51% of advertiser spend was allocated to Facebook Mobile (up from 38% in Q2).

Here’s Spruce Media’s outlook for Q4 2013 and beyond:

  • Simplification of ad products. Social network’s renewed focused on simplifying its ad offering is paying off. Spruce Media expects CPCs to normalize in Q4, and over time we expect Facebook users to grow accustomed to the new ad formats.
  • Mobile: The two mobile ad releases recently launched this month will result in advertisers increasing their spend on mobile ads, thus increasing Facebook’s share of the overall mobile advertising market
  • Video Ads: New video based Mobile App Install ads should help grow mobile app install revenue. Recent changes to auto-pay user generated videos may indicate that new video ad formats may be on the way soon.
  • Instagram: Facebook announced in October that it will finally begin rolling out ads to select brands on Instagram. Don’t expect any immediate impact in Q4 financials, though. Facebook has a history of rolling out new advertising slowly to ensure a good user experience. 2014 could see hundreds of millions of revenue from Instagram alone.

To access the full report, click here.

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