STUDY: Retargeting on Facebook Leads To Higher CTR, Lower Mobile CPM

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More advertisers are discovering Facebook’s complex ad models, such as retargeting via Facebook Exchange and Website Custom Audiences. How effective can these techniques be? A new study by AdRoll, a Facebook Exchange partner, showed that by using both FBX and Website Custom Audiences, the CPM of News Feed ad impressions on mobile was 57 percent lower than desktop, generating a 10 percent higher click-through rate. It led to a 61 percent lower cost-per-click for News Feed ads on mobile compared to desktop.

The study took into account more than 800 million impressions from 215 AdRoll clients running retargeting campaigns on mobile and desktop.

Other key findings:

  • When layering desktop News Feed campaigns onto web campaigns, the advertisers in the study delivered an average of 5.7 percent more impressions, but generated 53 percent more clicks.
  • When the advertisers studied added mobile to an existing web and desktop News Feed ad campaign, clicks rose by 29 percent.
  • As a complementary channel, mobile News Feed ads added an average of 3.8 percent incremental conversions to an existing retargeting mix of web and desktop News Feed.
  • The verticals of apparel, beauty and technology had the quickest adoption of mobile ad sizes, while media and entertainment served the highest-performing mobile ad campaigns in the study.

AdRoll found that layering Facebook on top of general web advertising led to a conversion lift of 73 percent.

Facebook_By-The_Numbers_Graphcs_2014-11AdRoll blogged about the study:

Retargeting on Facebook has been a huge hit, and has become a must-have component of any business’s performance marketing strategy. When Facebook first launched News Feed ads on Facebook Exchange (FBX) last summer, it gave advertisers a new way to execute high-performance retargeting campaigns on a highly visible, social ad unit reaching over a billion users around the world. In December, Facebook doubled down on its offering by releasing a second way to execute retargeting campaigns through Custom Audiences from your Website (WCA), which expands reach to mobile and tablet audiences, and also allows advertisers to overlay website intent data with Facebook data like demographics or pages liked.

To read the full report, click here.

Readers: How often do you incorporate retargeting into your ad campaigns?

Screen Shot 2014-07-29 at 8.26.40 AMImages courtesy of AdRoll.

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