Facebook ads are performing strongly across all key performance indicators according to the latest quarterly analysis by Kenshoo Social which compares Facebook campaign performance during Q3 versus Q2 2013.
Key findings include:
- The volume of clicks on Facebook ads rose 14.4 percent
- The Conversion rate increased 2.36 times (ie more than doubled)
- Revenue increased 2.16 times
- Cost Per Click (CPC) went down 9%
- Return on Investment (ROI) increased 3.04 times
The data is based on over 85 billion ad impressions across a representative sample of advertisers and agencies using Kenshoo Social to manage their Facebook campaigns during the second and third quarters of 2013. The sample includes major brands across a variety of verticals, including retail, travel, financial services and gaming.
The company told iTWire one of the key reasons for the improvement is the fact that Facebook has continued to simplify and improve its advertising products, delivering more high performing news feed inventory, as well as deeper audience targeting capabilities and larger, more engaging image formats.
All of these are enabling marketers to more effectively reach new prospects and existing customers with more impactful and relevant messages at all stages of the customer journey.
Another factor that is driving the improved performance is Facebook users continuing to demonstrate their willingness to engage with brand and product advertising across all devices and to interact with brands both on and off of Facebook according to Todd Herrold, Kenshoo Social’s Senior Director, Product Marketing:
“Consumers are increasingly taking action and making purchases as a result of the more engaging and relevant ads they experience on the social network. And advertisers are becoming increasingly experienced with Facebook advertising and are implementing sophisticated and highly effective strategies to drive direct response goals. Brands are promoting their most relevant products, customising ads and tracking each touch point in the customer journey across paid, owned and earned social media as well as across media channels, including search and social.
“I’ve said it before, and I’m sure I’ll say it again – Facebook is a powerful direct response channel that drives significant sales, revenue and ROI.”
Facebook is continuing to update its policies and features in the face of increasing pressure from social networks like Tumblr, and yesterday allowed teenagers to post publicly for the first time.
Kenshoo Social also published a blog post about their findings, available here.