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Facebook Ad Performance Continues to Improve in Q3; Retailers See Higher ROI on iOS

by MarketingCharts staff
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Impressions (+13%), clicks (+14.4%) and cost-per-click (CPC; -9%) all moved in favorable directions for advertisers, with revenues-per-click (RPC) also on the rise, almost twice as high as they were in Q2.

Separately, a study released by Nanigans examining retail advertisers on Facebook found that retailers are enjoying 3.75 times higher click-through rates than a year ago, and are averaging a 152% ROI.

Here are some other key data points from Nanigans’ report:

  • Click-through-rates for retailers advertising on Facebook have grown from 0.05% in Q3 2012 to 0.2% in Q3 2013;
  • CPCs dropped from $0.62 in Q3 2012 to $0.32 in Q1 2013, and have remained steady at $0.45 for the past 2 quarters;
  • ROI has been more variable, at 96% in Q4 2012, but soaring to 203% in Q1 2013. In Q2 2013, ROI stood at 152%, with Q3′s figure of 109% said underrepresented due to October revenue not being fully realized and attributed to September ad spend;
  • Facebook mobile CPCs increased 70% from Q1 to Q3, averaging out at $0.40 for iOS and $0.18 for Android;
  • RPC on iOS was a marked 6.1 times higher than Android during the first three quarters of the year ($0.94 vs. $0.15), with ROI an impressive 17.9 times higher (162% vs. -10%), although the same caveat applies to Q3 ROI figures;
  • CTRs are not proving to correlate well with ROI: Android averaged the higher CTR than iOS, but had far less return;
  • News feed now accounts for about 80% of retailers’ ad spend, up from roughly 35% in Q1;
  • CTRs for retailer ads in the news feed were about 26.4 times higher than right-hand side ads during the first three quarters of the year.

About the Data: The Nanigans report is based on nearly 200 billion impressions and 100+ retailers. More details on methodology can be found by following the link above.