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Contents 02 03 04 05 06 07 08 Introduction CPM rates increase by 58% in twelve months Ad engagement increases by 11% Increases in global ad costs slow to 9% Sector Click Through Rate Top 10 Sector Cost per Click Top 10 Sponsored Story ads are 53% more engaging than standard ads Facebook mobile ads are over 4x more engaging than Twitter ads 09 © 2012 TBG Digital Page 1 .
TBG Digital is a Social Media specialist helping global brands to advertise and engage through Facebook and Twitter. We have a wide range of clients running Offsite. Amsterdam.Introduction Welcome to TBG Digital’s Global Facebook Advertising Report for Q2 2012. Focus is shifting toward measurable engagement and the difference Social Media connections are making to their bottom line. Fanning and Facebook Application campaigns so we believe our data provides a strong insight into the market. This report examines trends and changes in the performance of Facebook advertising campaigns managed by TBG Digital. Chicago. San Francisco. Atlanta. upon our advice. Paris. Our team of experts has delivered more than 610 billion impressions and over 60 million social connections with a focus on ROI. it is important to understand the data in context. Hamburg. for the first time. graphical illustrations and methodology used in this report based on the data provided by TBG Digital. Manila and Sydney. We have offices in London. We create custom social experiences that are amplified through targeted media. are now willing to pay more for quality clicks and fans. You will read that ad costs have risen again this quarter. All our activity is supported by proprietary technology and benchmarked against a data store of more than one trillion events. Whilst this report is a good indication of the Facebook ad market as a whole. In this report we measured: 406 BILLION impressions in more than 190 countries for 276 clients from Q2 2011 to Q2 2012 The Cambridge University Psychometrics Centre has verified the results. Our clients. as have Facebook’s earnings per ad served. includes actual values for costs and performance metrics. These metrics are important but not as important as the real value that Facebook traffic and connections bring to our clients. This report. New York. © 2012 TBG Digital Page 2 .
Canada. Point of View CPM rates are a good indication of Facebook’s earnings per Marketplace ad served. together with the introduction of mobile ads which are also providing Facebook with higher CPM rates (see page 9).Major territory analysis CPM rates increase by 58% in twelve months The US sees a 25% increase in one quarter alone Insights In TBG Digital’s previous Global Facebook Advertising Report we showed a 41% increase in Cost per Thousand Impressions (CPM) rates year on year. In the five major territories analyzed. The increases are definitely great news for Facebook as they signify that their inventory continues to work better for them. © 2012 TBG Digital Page 3 . That gap has increased to a 58% difference in CPM between Q2 2011 and Q2 2012. as these receive higher CPMs (see page 8). The United States saw the next highest increase with 25 %. Canada’s CPM rates increased by 21% and the United Kingdom’s CPM rates increased by 7%. France and Germany from April 2011 to June 2012 inclusive. this should be of no great concern to advertisers. Increases in CPM could be attributed to more clients utilizing Sponsored Stories. Where Click to Conversion rates are proportionately higher for both Facebook Page / App based campaigns or ‘Offsite’ (off Facebook) campaigns. Germany saw the largest increase of 31% from quarter to quarter. Figures based on 292 billion impressions served in the United States. CPM values were calculated by dividing the total ad spend by the total number of impressions / 1000. United Kingdom.
which indicate how relevant and interesting ads are to users. have increased by 11% this quarter in the five major territories analyzed. Canada. Also worthy of note is that this data set saw a 7% increase in Social Impressions (where the ad shown included social context e. The United States and United Kingdom follow with a 11% increase and 9% increase respectively. CTR values were calculated by dividing the total number of clicks by the total number of impressions. it would appear that Facebook is doing something right here. Canada saw an increase of 8% and France an increase of 2%. Point of View The launch of Facebook’s mobile ad targeting feature in early June 2012 may have had a positive effec t on Click Through Rates (see page 9). This compares to a 6% decrease last quarter. Please note that Germany’s increase in average CTR can be attributed to a large increase in the number of Fanning impressions in that territory. United Kingdom. In fact. © 2012 TBG Digital Page 4 . Click Through Rates in the United States jumped 31% between May 2012 and June 2012. Germany saw the greatest leap of 44%. Figures based on 292 billion impressions served in the United States. social context continues to make a difference to ad engagement and mobile targeting is positively affecting Click Through Rates. So. John Smith likes this) from quarter to quarter.g.Major territory analysis Ad engagement increases by 11% All territories see increase for the first time since Q3 2011 Insights Click Through Rates (CTR). The increase of 11% in engagement could also be partially due to a general improvement in targeting techniques and ad creative. France and Germany between April 2011 to June 2012 inclusive.
United Kingdom. © 2012 TBG Digital Page 5 . Finally.Major territory analysis Increases in global ad costs slow to 9% CPCs hit dollar mark for first time in US and Canada Insights TBG Digital’s Global Facebook Advertising Report in Q1 2012 documented a quarterly increase of 23% in Cost Per Click for the five major territories tested. in fact. France and Germany between April 2011 and June 2012 inclusive. how much an advertiser is willing to pay for an impression or click. Advertisers therefore have to increase their bid prices to ensure ads are delivered.02. etc. More advanced markets such as the US and Canada are focusing on delivering highly targeted traffic at huge scale. the CPC and CTR of an ad are not high enough. which is probably why we have seen an increase in CPCs for those markets.000 per day so CPCs increase as we compete in the auction to maximize traffic levels. A general increase in competition has also pushed max bid prices up in these territories. Point of View Facebook’s Marketplace advertising is based on an auction bidding model i. Both countries have CPCs of over $1 for the first time with the United States increasing by 13% to $1.04 and Canada increasing by 12% to $1. Facebook uses CPC and CTR metrics to calculate CPM (what they earn per ad served).e. Facebook will not publish it because the ad’s corresponding CPM will not be enough to secure its place on the page when compared to other ads. The European countries analyzed saw a reduction in CPCs with the United Kingdom reducing by 2%. so does the CPM that Facebook charges. measuring it against basket value. Canada. If. Germany reducing by 9% change and France reducing by 10%. CPC values were calculated by dividing total ad spend by the total number of clicks. it should be noted that advertisers who have low daily spend levels are unlikely to experience such high CPCs. Figures based on 292 billion impressions served in the United States. only the United States and Canada have risen. The comparative increase in Q2 2012 is now 9% and. As targeting increases. however. type of Facebook fan recruited. Some of TBG Digital’s clients can spend more than $100.
Pets & Animals and Not for Profit. we designed an app and its supporting media / engagement campaign around music for an international PC manufacturer as its target market were passionate about festivals and live events. one of our clients is a leading US retailer and has seen engagement rates shoot up for Page Post Ads that have pet images. For example. The campaign saw phenomenal engagement rates. Figures based on 71 billion impressions served between April 2012 and June 2012 inclusive. Likewise. Our learnings in these sectors have led us to integrate ‘passion centers’ into our Facebook strategies for clients. Point of View There aren’t many things that people feel more passionately about than charities and pets. CTR values were calculated by dividing the total number of clicks by the total number of impressions. This just goes to show in our Pets & Animals category which has shot into the Top 10 at number 2 and likewise with Not for Profit as Charities make up the majority of this sector. © 2012 TBG Digital Page 6 .Sector analysis Sector Click Through Rate Top 10 * Insights Entertainment has dropped three places since Q1 2012 to make room for Health. Health is a regular in the top five but Not for Profit has jumped four places and Pets & Animals is a new entry.
Figures based on 71 billion impressions served between April 2012 and June 2012 inclusive. while Games trails in 5th position. As we’ve mentioned before. pushing Finance and Retail both down one place. Point of View It should be noted that the top five sectors include clients that direct users off Facebook to their own web properties and require highly targeted ad campaigns at scale. For example. © 2012 TBG Digital Page 7 . Computers & Electronics has overtaken Games and ranks 4th. All activity should deliver an appropriate return on investment. this has the effect of increasing CPCs. the Jobs & Education sector’s targeting is extremely niche. Please note that the cost of delivering traffic is not as important as the quality of traffic that is delivered since better targeting should increase conversion rates proportionately. matching user demographics and locations to specific job types or courses.42.Sector analysis Sector Cost per Click Top 10 Insights Jobs & Education has jumped four places to hit the top spot with an average CPC of $1. CPC values were calculated by dividing total ad spend by the total number of clicks.
8 billion impressions delivered in Q1 and Q2 2012 using Page Like ads and Page Like Story ads. The analysis of 2 billion impressions over a period of 10 days for 3 clients found that Sponsored Stories received a 46% higher Click Through Rate. a 20% lower Cost per Click and 18% lower Cost per Fan than Facebook standard ASU ads. This analysis is therefore comparing the same function (Page Likes) against a Sponsored Story and standard ad format. © 2012 TBG Digital Page 8 . we analyzed 13. Both ad formats are used to increase the number of fans of a Facebook Page. Figures based on 13.Sponsored Stories analysis Sponsored Story ads are 53% more engaging than standard ads Page Like ad Page Like Story ad Insights A previous study by TBG Digital in April 2011 investigated the differences between standard ads and the then new Sponsored Stories. Multiple Sponsored Story types were tested. For this report. compared to standard ads. even though ad costs and Facebook’s earnings per ad delivered have increased. fan acquisition costs are even cheaper than before. Cost per Fan also improved with this data showing 39% cheaper acquisition costs for Page Like Story ads. However. this analysis saw a 6% higher CPC and 62% higher CPM for Sponsored Stories. They both serve the same purpose but the Page Like Story ads do not include tailored ad copy and are only shown when the user’s friend has liked the Page being advertised. Point of View These findings are very positive for Facebook and advertisers alike as it shows the Sponsored Story ad format is even more engaging than our previous study indicated and. The increases in ad costs are probably due to more competition on the platform and more sophisticated targeting on Sponsored Stories as we demand better quality for our clients.8 billion impressions served between January 2012 and June 2012 inclusive. The average Click Through Rates of the Page Like Story ads were 53% more than that of the Page Like ads (an increase of 15% since the previous study).
588%. By far the most impressive was Mobile Newsfeed which received an average CTR of 1. The high CPM does not 3 disadvantage advertisers. Figures based on 278 million impressions served in June 2012. A win-win situation. Facebook is earning money and brands are making savings. on average. We believe that Facebook’s mobile ads are more engaging than Twitter’s ads because they can be targeted demographically and are Sponsored Stories so include a social endorsement. © 2012 TBG Digital Page 9 . Point of View New ad types. the CTR was more than seven times higher at 0. 13 times more than it received for ‘Desktop’ ads. we also know from our Twitter studies that mobile ad placements are highly engaging and the fact that Facebook have opened up this precise targeting can only be a good thing. which includes Newsfeed ads and the ads on Facebook’s right hand side panel.140%. Mobile Newsfeed ad placements saw savings of 29% for Cost per Fan when compared to ‘Desktop’ ads.266% which would indicate that Facebook Mobile ad CTR is four times more than that of Twitter. ‘Desktop’. In a recent TBG study of 24 million Twitter impressions across multiple clients and sectors we saw an average CTR of 0.86 for every thousand mobile ads served (CPM). tend to generate a high CTR initially that can decline over time. For Desktop Newsfeed ads only. whether on Facebook or anywhere on the web.083%. saw the lowest CTR at 0. However. Mobile Newsfeed targeting also suggests great earning potential for Facebook which received $9.Sponsored Stories analysis Facebook mobile ads are over 4x more engaging than Twitter ads and have a 14x higher CTR than Facebook desktop ads Insights Facebook’s recently released Newsfeed targeting options are delivering significantly better Click Through Rates. with mobile ads receiving CTRs 14 times that of ‘Desktop’ ads.
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