Analyzing More Than 400 Billion Client Impressions, Spruce Media Releases Latest State of Facebook Advertising Report for Q2 2013

July 24, 2013

SAN FRANCISCO, CA--(Marketwired - July 24, 2013) -  Spruce Media (www.sprucemedia.com), a provider of enterprise-class marketing solutions for advertisers on Facebook, today announced the release of Spruce Media's State of Facebook Advertising Report for Q2 2013.

In this latest report, Spruce Media provides statistics and trends analysis on its clients data for key performance metrics, including cost per thousand impressions (CPM), click-through rates (CTR), and cost per click (CPC) across Facebook's mobile and desktop inventory, as well as the News Feed and right-hand-side placements. In addition, Spruce offers a look at how much its advertisers are paying for mobile app installs, Page likes, and engagements. The report also offers a prediction on the social network's move towards video advertising.

In the last 12 months, Facebook has launched 10+ major ad product releases:

  • The Good: Every type of online advertiser can now succeed with Facebook advertising (Direct Marketing, Mobile Apps, eCommerce, Branding, etc)
  • The Bad: It was viewed as complex to navigate around Facebook's array of ad Types, Placements, Targeting, Measurement, and Bidding options in order to ensure a successful advertising program on Facebook.
  • The Update: In Q2 Facebook launched fewer ad products and enhancements and instead has announced they will begin simplifying existing ad products

Spruce Media compared its clients Q1 data with Q2 data and found:

  • Facebook is doing an increasingly good job of monetizing their inventory
    • On average CPM's increased by 10% (across all ad placements)
    • CPC prices have increased in all ad placements - in the most popular News Feed placement CPC's are up ~75%
  • On average CPM's increased by 10% (across all ad placements)
  • CPC prices have increased in all ad placements - in the most popular News Feed placement CPC's are up ~75%
  • Spruce Media' Ad resonance with users have declined
    • Click Through Rates (CTR) have declined by an average of 30% in 3 out of 4 ad placements
    • Engagement Rates across Facebook "Likes", "Comments", and "Shares" have declined by an average of 47% 
  • Click Through Rates (CTR) have declined by an average of 30% in 3 out of 4 ad placements
  • Engagement Rates across Facebook "Likes", "Comments", and "Shares" have declined by an average of 47% 
  • Spruce Media' Advertiser's cost has increased
    • Cost Per Click increased from $.46 in Q1 to $.59 in Q2
    • Page Likes increased from $.43 to Q1 to $.58 in Q2
    • Mobile App Installs increased from $1.57 in Q1 to $1.67 in Q2
    • Cost Per Engagement increased from $.31 in Q1 to $.36 in Q2
  • Cost Per Click increased from $.46 in Q1 to $.59 in Q2
  • Page Likes increased from $.43 to Q1 to $.58 in Q2
  • Mobile App Installs increased from $1.57 in Q1 to $1.67 in Q2
  • Cost Per Engagement increased from $.31 in Q1 to $.36 in Q2
  • % of Advertiser Spend in Mobile continues to increase
    • In Q2, 38% of advertiser spend was allocated to Facebook Mobile (up from 30% in Q1).
  • In Q2, 38% of advertiser spend was allocated to Facebook Mobile (up from 30% in Q1).
  • Facebook is positioning itself for a big video advertising launch
    • In Q2 Facebook has been pitching ad agencies about a completely new updated video ad product centered on TV-like reach with costs approaching $1,000,000 per spot.
    • Facebook is growing their video audience. In June, Facebook announced Instagram's 15-seconds video capabilities. As this proliferates, Facebook and its users increasingly watch videos they should not be surprised to see some brand sponsored videos.
  • In Q2 Facebook has been pitching ad agencies about a completely new updated video ad product centered on TV-like reach with costs approaching $1,000,000 per spot.
  • Facebook is growing their video audience. In June, Facebook announced Instagram's 15-seconds video capabilities. As this proliferates, Facebook and its users increasingly watch videos they should not be surprised to see some brand sponsored videos.

You can access the full report here: http://clearslide.com/v/g3dhhb

About Spruce Media:

Spruce Media is the leading provider of enterprise-class social marketing technology for the most successful advertisers, agencies, and trading desks on Facebook. One of 14 Facebook Strategic Preferred Marketing Developers, Spruce Media has the highest distinction of excellence offered by Facebook. With over 400 billion impressions managed through its software, Spruce is the technology and service of choice for many of the largest advertisers on Facebook. For more information visit: www.sprucemedia.com.

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