Facebook’s redesigned right-hand-side ads, which it began rolling out in June, are drawing more eyeballs for longer periods of time, according to an eye-tracking test conducted for the social network by global market-research agency Millward Brown.
Right-Hand Side Ads
The bad news for advertisers on Facebook: The cost of advertising on the social network rose dramatically in November 2014 compared with November 2013, with aggregate average cost per thousand impressions (CPMs) seven times higher. The good news: Return on investment saw substantial gains, as well, according to the latest data from Kenshoo, a Facebook Strategic Preferred Marketing Developer.
Social marketing platform Nanigans, a Facebook Strategic Preferred Marketing Developer, analyzed more than 300 billion ad impressions on the social network during the third quarter of 2014 from clients using its advertising automation software, and it found that 95 percent of total ad spend went to Facebook’s three main direct-response ad units: unpublished link ads, mobile application install ads and domain ads.
Facebook announced some eventful news for page administrators, as the social network introduced desktop and mobile News Feed ads and insights for events, as well as a new look for users’ events pages.
Developers with games that use virtual goods can now sell those virtual goods directly via ads in Facebook’s News Feed or right-hand-side ads following an update to the social network’s desktop application ads.
As announced last week, Facebook began rolling out the new format for right-hand-side ads Tuesday, and sister blog Inside Facebook received the timetable the social network sent to its marketers and advertisers.
Facebook and paid search are often viewed as competitors for advertising, but a study commissioned by the social network and conducted by Kenshoo, a Strategic Preferred Marketing Developer, analyzed two weeks’ worth of adding Facebook ads to paid search campaigns by Experian, finding better performance and lower costs per acquisition.
Facebook organic reach, or the recent lack thereof, has been a hot-button issue among brands on the social network, so who better to address the issue than Brian Boland, vice president of ads product marketing and Atlas Solutions?
Legend has it that when famous bank robber Willie Sutton was asked why he targeted banks, he replied, “Because that’s where the money is,” and the same logic applies to why Facebook’s quarterly earnings calls devote so much time to advertising. The social network’s first-quarter earnings call Wednesday was no exception.