After falling by 40% between Q2 and Q3, the cost of advertising on Facebook in the US dropped by another 37% in Q4, details TBG Digital in its latest quarterly report. Attributing the drop to higher adoption of “Desktop + Mobile Newsfeed” ads – which tend to be cheaper than other ad types – TBG notes that average cost per click (CPC) is now lower in the US than in the 4 other major markets analyzed, each of which also saw a drop in CPCs.
As advertisers became more focused on newsfeed ads (both on desktops and mobiles), click-through rates (CTRs) increased, as these ads generally perform better than those that appear on the right hand side panel. To that end, ad engagement grew by 25% quarter-over-quarter in the US, while France saw the most rapid rise (103%). Canada (+3%) and the UK (+1%) were more or less flat.
For the first time, TBG Digital also analyzed promoted tweets, revealing that in Europe and the US, CTR for promoted tweets in search was 88% higher than promoted tweets in timeline. The analysis also found that cost per engagement was 29% lower for tweets in timeline than tweets in search.
About the Data: The Facebook advertising trend data is based on 397 billion impressions served in the US, UK, Canada, France, and Germany from January 2011 to December 1012 inclusive. CPC values were calculated by dividing total ad spend by the total number of clicks.
The Twitter figures are based on 25 million impressions served in the US and Europe between February and December 2012 inclusive.