Facebook ad CTR rises, as does cost

Warc, 14 July 2014

SAN FRANCISCO: The average click-through rate (CTR) for Facebook ads increased 47% in Q2 2014 compared to the previous quarter and also rose 146% year-on-year, the latest industry data has recorded.

As reported by AdExchanger, the most recent Q2 figures from Facebook ad partner Nanigans also showed the average cost per impression (CPM) of $1.95 represented growth of 218% from the same period last year.

The average cost per click (CPC) for Facebook ads is also on the rise, having recorded 7% growth from Q1 2014 to $0.55, or 29% year-on-year growth.

Coming ahead of Facebook's official announcement of its Q2 figures, which is due on July 23, Nanigans also said its gaming ad clients witnessed a huge CTR increase of 579% on the back of users shifting from desktop to mobile.

Mobile adspend for clients of Nanigans has grown over the year and the company reported that mobile now accounts for 56% of all adspend on Facebook.

Cheryl Morris, director of market development at Nanigans, said Facebook's explosive growth in mobile is "turning the industry on its head".

"Facebook has become a more mature platform, catalysing all sides of their ad ecosystem, from offering ad products that perform at scale in meeting a variety of advertiser goals to create an ad experience that end consumers actually engage with," she said.

"Just look at mobile alone: Facebook went from no presence to a $1bn business in a year's time – turning the industry on its head in terms of expectations around creative and relevancy," she added.

However, even though adspend via desktop now accounts for just 44% of the total, she advised advertisers not to desert the platform.

"In general, ad dollars follow consumer time spent, and right now for our consumers, that's increasingly on mobile – but that doesn't mean spend to desktop will be completely eclipsed," she said.

Data sourced from AdExchanger; additional content by Warc staff