Facebook Ad CTR: Up 11% in Q2 2012

Jason Hahn | July 25, 2012 | DM Confidential

According to TBG Digital’s “Global Facebook Advertising Report: Q2 2012,” Facebook ad engagement increased by 11 percent in the second quarter. Meanwhile, Facebook ads in the U.S. saw average cost per thousand impressions (CPM) rise 25 percent.

The report measured 406 billion impressions in more than 190 countries, according to TBG Digital.

According to the report, Facebook ads displayed a 41 percent increase in CPM year-over-year. From the first quarter of 2012 to the second quarter, CPM surged 58 percent. Germany saw CPM rise 31 percent quarter-over-quarter, while the U.S. saw CPM rise 25 percent quarter-over-quarter.

The rise in CPMs is “great news for Facebook, as they signify that their inventory continues to work better for them,” according to TBG Digital.

Click-through rates (CTR) for Facebook ads rose 11 percent in the second quarter in the five major territories analyzed (U.S., U.K., Germany, France and Canada). In the first quarter of the year, CTR decline 6 percent. Germany saw CTR rise 44 percent, while the U.S. saw CTR rise 11 percent and the U.K. saw CTR rise 9 percent.

TBG Digital notes that the launch of Facebook’s mobile ad targeting feature in early June may have helped CTR for its ads. The increase could also be partly due to a general improvement in targeting techniques and ad creative.

Cost per click (CPC) for Facebook ads rose 23 percent quarter-over-quarter in the five territories monitored by TBG Digital. The U.S. and Canada saw CPCs of more than $1.00 for the first time.

According to the report, the top 10 sectors in terms of Facebook ad CTR in the second quarter were:

1. Health (0.064 percent)
2. Pets & Animals (0.060 percent)
3. Not for Profit (0.056 percent)
4. Entertainment (0.054 percent)
5. Food & Drink (0.048 percent)
6. News (0.044 percent)
7. Beauty & Fitness (0.044 percent)
8. Retail (0.039 percent)
9. Computers & Electronics (0.036 percent)
10. Home & Garden (0.036 percent)

In terms of CPC, the top 10 sectors were:

1. Jobs & Education ($1.42)
2. Finance ($1.34)
3. Retail ($1.02)
4. Computers & Electronics ($0.95)
5. Games ($0.91)
6. News ($0.91)
7. Beauty & Fitness ($0.87)
8. Home & Garden ($0.84)
9. Autos & Vehicles ($0.83)
10. Internet & Telecom ($0.80)

According to TBG Digital, the average CTR of the “page like story” ads were 53 percent higher than the CTR of the “page like” ads.

Also, the report found that Facebook mobile ads have a CTR that’s 14 times higher than CTR for desktop ads.

Source:

http://clearslide.com/view/mail?iID=A8GU559Z78B9DX9V4Q8A

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