A Facebook Strategic Preferred Marketing Developer became the latest company to weigh in on Facebook’s advertising performance prior to its third-quarter earnings call Wednesday, as Spruce Media released its latest State of Facebook Advertising report.
Facebook’s cost per click dropped 40 percent over the past 12 months, while the click-through rate for advertising on the social network soared by 275 percent, and return on investment was up 58 percent, according to a study of some 131 billion Facebook ad impressions, 400 million unique visitors, more than 1 billion posts, and 4.3 billion engagements over the past 12 months by Adobe.
Facebook is more than a social networking site; it’s a business with many complex features working together. Once a small website (for only Harvard University students), Facebook has long since shed its small-town ways for bigger, flashier effects in the horizon. Facebook now combines the best of social networking tools and online marketing tactics to create a single platform that is attractive to both users and businesses, and it is only getting started.
Facebook received some lukewarm news on Wall Street courtesy of analyst Jason Helfstein of Oppenheimer & Co., who reiterated an “outperform” rating on the social network’s stock and lowered his target price to $32 per share from $33.
In an effort to help marketers better track sales, Facebook launched a new conversion measurement Tuesday, allowing advertisers to measure the return on investment of their Facebook ads by tracking user actions such as registrations and shopping cart checkouts motivated by people seeing the ads. It allows marketers to track when someone sees an ad on one platform and switches to another to make the purchase.
Facebook’s fourth-quarter earnings call is set for Jan. 30, but Facebook advertising solutions provider Spruce Media offered its early look at the state of advertising on the social network during the last three months of 2012, and the company was optimistic that the sector will continue to grow.
Have you played with the news feed position report on Facebook? In addition to the standard ad-level metrics of impressions, clicks, and spend, you can see news feed click-through rates and news feed position.
As Facebook advertisers try to find ways to get users to click on ads, new statistics show that the impression is probably more valuable than the click. TechCrunch learned more about Facebook’s view tag feature, which allows advertisers to track users who view ads, but who do not click on them. The site reports that, in one example, 87 percent of conversions came from impressions, rather than clicks.
Facebook is taking steps to provide more clarity to direct-response marketers on the effectiveness of their ad campaigns on the social network, announcing the extended beta test of a self-service conversion-measurement feature that it plans to roll out at the end of November.
In the past six to 10 weeks, we’ve found choosing optimized CPM (cost per thousand impressions) to be magical in our Facebook ads. It improves click-through rate, decreases cost per click, increases fan conversion rates, generates a lower cost per action, and removes stubborn ring around the collar (just kidding on that last one). It shows that Facebook is trying to make success in Facebook advertising possible for the common person, as opposed to a freak result of random ad combinations submitted on a full moon.