Facebook Ad CTRs Up in Q2

Nanigans-Facebook-Ad-Benchmarks-in-Q22014-July2014The average click-through rate for Facebook ads on desktop and mobile platforms in Q2 was 0.36%, details Nanigans in its latest quarterly benchmarks report [download page] covering activity among its customers, which are predominantly direct response advertisers at e-commerce, gaming and other pure play internet companies. The 0.36% CTR represents a 47% quarter-over-quarter increase and a 146% year-over-year increase, from 0.14% in Q2 2013. The upward trend comes as advertisers allocate a greater share of their budgets to mobile.

According to the report, mobile captured 56% of Facebook ad budgets in Q2, a substantial increase from less than 40% share a year earlier.

Facebook reported in Q1 that mobile represented 59% share of its ad revenues. Recent data from comScore suggested that in May, almost 1 in every 10 minutes spent online was with the Facebook app. Indeed, 94% of mobile time spent with Facebook was in-app rather than via browser, per comScore figures examining April 2014 data.

Meanwhile, singling out a couple of major verticals, the Nanigans study reports that CTRs more than doubled year-over-year among its e-commerce customers (to 0.3%), while increasing more than six-fold among its gaming customers (to 0.58%).

Accompanying the increases in click-through rates were higher CPMs and CPCs. Cost per 1,000 impressions (CPMs) more than tripled year-over-year to reach $1.95, with the increase slightly more muted for e-commerce clients (+175%, to $1.72), but more pronounced among gaming companies (+367% to $2.76).

Globally, costs-per-click grew by 29% year-over-year from $0.42 to $0.55. Both e-commerce and gaming companies saw CPCs rise by 30%, to $0.58 and $0.47, respectively.

The study notes that Facebook ad budgets are primarily spent on three ad units: Unpublished Page Post Link Ads; Mobile App Install Ads; and Domain Ads. Together, these units comprised 87% share of Facebook ad spending.

About the Data: The report is representative of more than 300 billion Facebook ad impressions delivered by customers leveraging Nanigans advertising automation software. It includes
ad spend on both Facebook desktop and Facebook mobile, and excludes Facebook Exchange. The data in this report should not be compared to any prior or future Nanigans benchmark reports due to variations in the dynamic nature of the data set each new quarter.

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