Facebook Advertising Trends: A Look at Q1 2014

by Sandra Rand 5 years ago

Last week, Nanigans released their Q1 2014 Facebook Advertising Trends report, giving us a look into the trends pulled from their wealth of data from clients in ecommerce, gaming, mobile app developers, travel and more.

What has the landscape of Facebook advertising looked like over the last few months? If you’re spending more targeting women, and paying particular attention to the newsfeed, you’re in good company.

Raise your hand if any of the following sound familiar:

Ad Performance Findings:
CTRs increased 167% since Q1 of last year, indicating that marketers are continuing to see high engagement on Facebook. Of course, this comes at a cost, since CPCs also increased 10% and CPMs were up 15% since last quarter.

With more and more advertisers getting into Facebook advertising, there’s increased competition, particularly for exposure in the news feed. Facebook’s targeting capabilities also likely also the cause behind increased prices, as advertisers seek a direct connection with highly targeted audiences.

Ad Type Findings:
74% of Facebook’s mobile ad units were allocated to mobile app install ads. Nanigans predicts that an even greater share of ad spend will be dedicated toward mobile app engagement in the second half of 2014.

Advertisers have also prioritized ad spend for the news feed, with 81% of desktop ad spend allocated there versus the sometimes cheaper, but also sometimes lower performing right rail. We’ll see how those numbers change when Facebook enlarges those ads on the right hand side.

Demographic Findings:

Women are more expensive at the click level, costing advertisers $0.12 more than males, but deliver a much higher revenue-per-click, making the investment worthwhile – seems advertisers weren’t shy to embrace these numbers, since women were allocated 63% of total budgets in Q1.

On the age front, less than 25% of ad spent went to targeting millenials. We expect this trend to continue growing, as the young adult demographic 18-24 is the worst monetizing demographic, returning just $0.61 in Revenue per Click. From Nanigans own millennial-aged intern, “we are not buying much from ads [on social media].” Want to reach them? Start taking Instagram seriously.

Get the full report on Facebook Advertising Trends from Nanigans.