Earnings could be double - look at the report from Spruce Media
Earnings could be double - look at the report from Spruce Media:
Q3 2013 represented the second consecutive quarter that Facebook has mainly been focused on simplifying its ad product line-up. To this end, Spruce Media compared its clients Q2 data with its clients Q3 data and found:
Innovation around Facebook's new simplified ad formats have reduced Spruce Media's advertiser costs while maintaining same yield
CPC prices have decreased in all ad placements except for Desktop placement (+ 2%)
On average CPMs are showing mixed results (across all ad placements)
Spruce Media's Ad Resonance with users have increased
Click Through Rates (CTR) have increased by an average of 22% in 3 out of 4 ad placements
The two mobile ad releases recently launched this month will result in advertisers increasing their spend on mobile ads, thus increasing Facebook's share of the overall mobile advertising market
New video based Mobile App Install ads should help grow mobile app install revenue. Recent changes to auto-pay user generated videos may indicate that new video ad formats may be on the way soon.
Facebook announced in October that it will finally begin rolling out ads to select brands on Instagram. Don't expect any immediate impact in Q4 financials though. Facebook has a history of rolling out new advertising slowly to ensure a good user experience. 2014 could see hundreds of millions of revenue from Instagram alone.
Spruce Media's Advertising Cost By Goal had mixed results
Cost Per Mobile App Install decreased from $1.67 in Q2 to $.93 in Q3
Cost Per Page Like increased from $.58 to Q2 to $.66 in Q3
Cost Per Engagement decreased from $.36 in Q2 to $.31 in Q3
Spruce Media's Percentage of Advertiser Spend in Mobile continues to rise
In Q3, 51% of advertiser spend was allocated to Facebook Mobile (up from 38% in Q2).