Facebook Ads CTR Increases By 260% In Just One Year [REPORT]

Must Read

Microsoft Warns Millions of Windows 10 Users, And It’s Scary!

Microsoft’s Windows 10 update worries seem to haven’t stopped even after they started to secretly offer Windows...

Microsoft Study Reveals Indians Have Become Less Digitally Civilised Than The Previous Years!

With the coming age of digital boom in India, more and more people have been gaining access...

SEO Secret: Meta Description Drives More Clicks Than Title, Reveals Study!

If you are a digital marketer in 2020 or someone who takes a keen interest in consumer...
Sarvesh Srivastava
Sarvesh Shrivastava is a young lad from India having a great passion for Technology. Loves to call himself a Microsoft Fan Boy. Active on the net since 9, Sarvesh has written for some of the best blogs on the planet. Writing these days at Niche Desire.

From being a source of entertainment to developing into a serious business, social networks have seen it all. They have developed to become a huge platform for the advertisers to meet their consumers. Advertisers are already investing in billions to ensure their services and products reach their targeted consumers and Facebook Inc. (NASDAQ:FB) being one of the biggest players in the industry is cashing this with both hands.

According to Global Facebook Advertising Benchmark Report released recently by advertising automation software provider Nanigans, the CTRs of Facebook ads has increased by 260% within a year.

The global CTRs for Facebook ads reached 0.81% in Q1 2015, which is a 17% increase from Q4 2014 and a whopping 260% increase from Q1 2014, signalling a better user engagement than ever before.In the e-commerce sector, Nanigans customers saw a 12% increase in the CTRs quarter-over-quarter(QoQ) and a huge 281% increase year-over-year(YoY).

Advertisements

The CTRs for mobile app install ads have gone up by 3% in this quarter, but the companies advertising desktop and mobile games had to face a dip of around 9% CTR, thus bringing the overall average down. However, if we concentrate on the bigger picture, the CTRs have increased around 150% every year.

Capture

Talking about the CPCs, advertiser paid 17% less per click than the fourth quarter of 2014. The average cost per click dropped down to $0.53 in the first quarter of 2015. The CPC drop was more prominently observed for e-commerce advertisers, who experienced 32% decrease in the quarter and 14% decrease YoY.

The global CPM (cost per thousand impressions) dropped by 3% in this quarter and reached $4.26 primarily because of a drop in CPC. However, it saw an outstanding increase of 273% year-over-year i.e. it rose from $1.14 to $4.26 in just a year. The E-commerce CPMs also saw a 227% gain YoY but had to face a decline of 24% this quarter.

nanigans-cpc-q1-585x600

Highlights of the Report:

  • Global CTRs for Facebook ads reached 0.81% in the first quarter of  2015
  • CTRs for Facebook ads increased by 281% YoY
  • CTRs for mobile app install ads have gone up by 3% this quarter.
  • Mobile games advertisers faced dip of around 9% CTR QoQ
  • CPC dropped by 17% this quarter.
  • Average cost per click turned out to be $0.53
  • CPM also dropeed by 3% QoQ to reach $4.26
  • Ecommerce CPM observed a 227% increase YoY

The basic cause behind an increased CTR of Facebook ads is a better engagement of the users. According to another report, Facebook accounted For 230 Billion minutes Of engagement in 2014, and thus resulted in a much-improved engagement rate than earlier. Another interesting factor that contributed to this was the fact that Facebook accounted for a staggering 81% reach of the total digital population in the US. Out of the 890 million daily active Facebook users 82.4 percent are from outside the US and Canada, thus providing a global market for advertisers.

Because of such a large user base and that too from almost all demography, advertisers have started to allocate decent budgets for advertising on Facebook. Advertisers worldwide will be spending a whopping $23 billion on social media in 2015 to reach their consumers, out of which Facebook alone captures 65.5% of all social network ad spending worldwide.

Advertisements

The contribution of advertisers in Facebook’s revenue is huge. In the first calendar quarter of 2015, Facebook generated a revenue of $3.54 billion, though for the first time in 10 consecutive quarters it failed to achieve the estimated revenue figure of $3.56 billion. The continuous increase in the investment from advertisers has played a major role in the 42% year over year increase in revenue for Facebook.

Facebook is undoubtedly one of the leading social networks and with a constant increase in not only the number of users but also the engagement of users, it has managed to attract advertisers from all over the world. With over 1.41 billion monthly active users, Facebook has left behind every other social network by a huge margin and thus attracts the advertisers to shell out more money to reach their consumers.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

LinkedIn Finally Rolls Out The Most Requested Feature By Users

Microsoft owned LinkedIn has recently been reported to have revamped its profile section with an amazing feature...

Google is Giving Microsoft a Taste of its Own Medicine

The latest version of the Microsoft Edge browser was launched about a month ago for Windows 10, Windows 8, Windows 8.1, and...

PhonePe Is Betting Big On The New Facility To Woo Smartphone Users And Merchants

The popular digital payments app PhonePe has recently been reported to launch a feature which is bound to solve their user’s cash...

Microsoft, Xbox, and One Small Mistake: Loss of $1 Billion

Microsoft Corporation (NASDAQ:MSFT) needs no introduction as it is one of the oldest players in tech space and dominated the industry undisputedly...

Facebook Without Mark Zuckerberg And Sheryl Sandberg?

Imagine Facebook without Mark Zuckerberg and Sheryl Sandberg, the current CEO and COO of the world's largest online social media network having...

Essential Email Marketing Features for eStore Owners That Generate Guaranteed ROI

Email marketing is essential and is a significant part of current digital strategies. Email marketing reigns supreme when you need to enhance...

In-Depth: Dprime

YouTube Should Have Bid Adieu To Dislike Button Much Earlier?

Online video sharing platform YouTube can be a ruthless place for content creators targeted by 'dislike mobs'. And the site owners totally understand that...

Facebook Has Pulled Off A Masterstroke By Integrating Its ‘Family Of Apps’?

It’s indeed hard to believe that ONE man sitting at Menlo Park, oversees how nearly a third of the world’s population interacts with each...

Facebook’s Crunch Conquest: By Relying Largely On The US Market, Is Facebook Running a Risk?

Two billion! That's Facebook, Inc. (NASDAQ: FB) for you - Right when you thought that this social-media giant has already connected the entire world, it's...

More Articles Like This