Kenshoo Social Study: Quarterly Analysis of Facebook Advertising Performance Shows Strong Improvements Across Key Performance Indicators
by Todd Herrold
Today, Kenshoo Social released our quarterly review of Facebook advertising performance: Facebook Advertising Ecosystem, Q3 vs. Q2 Performance for Brands Powered by Kenshoo Social. In this study, you’ll find a global analysis of Key Performance Indicators (KPIs) spanning over 85 billion ad impressions across a representative sample of advertisers and agencies using Kenshoo Social to manage their Facebook campaigns during the second and third quarters of 2013. The sample includes major brands across a variety of verticals, including retail, travel, financial services and gaming.
You may recall our previous study that looked at Q2 vs. Q1 Facebook Advertising Performance and showed significant improvements quarter over quarter across all key metrics. Well, our most recent analysis demonstrates that the positive trend continues, with advertisers achieving even better performance on Facebook in Q3 2013.
Specifically, brands powered by Kenshoo Social experienced the following improvements in Facebook campaign performance during Q3 versus Q2 2013:
- Ad impressions: Up 13%
- Click Volume: Up 14.4%
- Cost Per Click (CPC): Down 9%
- Conversion Rate (CVR): Up 2.36x
- Conversion Volume: Up 2.85x
- Revenue: Up 2.16x
- Revenue Per Click (RPC): Up 1.76x
- Return on Investment (ROI): Up 3.04x
There are several dynamics at play that influenced the positive performance trends for Facebook ad campaigns in Q3. First, Facebook has continued to simplify and improve its advertising products, delivering more high performing news feed inventory, as well as deeper audience targeting capabilities and larger, more engaging image formats. All of these improvements are enabling marketers to more effectively reach new prospects and existing customers with more impactful and relevant messages at all stages of the customer journey.
Second, Facebook users continue to demonstrate their willingness to engage with brand and product advertising across all devices and to interact with brands both on and off of Facebook. Moreover, consumers are increasingly taking action and making purchases as a result of the more engaging and relevant ads they experience on the social network.
Next, advertisers are becoming increasingly experienced with Facebook advertising and are implementing sophisticated and highly effective strategies to drive their direct response goals. Brands are promoting their most relevant products, customizing ads and tracking each touch point in the customer journey across paid, owned and earned social media as well as across media channels, including search and social.
I’ve said it before, and I’m sure I’ll say it again – Facebook is a powerful direct response channel that drives significant sales, revenue and ROI.
Lastly, I can’t help but plug some of Kenshoo Social’s contributions to these positive performance trends. Our solutions are enabling advertisers to activate highly targeted audiences using sophisticated segmentation tools and to drive bottom-line performance using tailored algorithms that bid to actual customer value.
We’re also enabling advertisers for the first time ever to create, manage and optimize real-time, dynamic product ad campaigns on Facebook. Our Demand-Driven Campaigns (DDC), which won the most recent Facebook Innovation Competition, enable brands to integrate inventory and Google Merchant Center feeds to automatically generate product ads on Facebook using dynamic images and attributes from the feeds.
Our native Facebook Exchange (FBX) solution enables advertisers to retarget prospects who visited the brand’s website but didn’t complete a purchase and also uses dynamic, product-specific ads. Both of these solutions leverage performance data and demand signals from SEM and Product Listing Ad (PLA) campaigns to identify top performing products and to bid to the true value of the ad placement and/or the consumer.
Moreover, Kenshoo Social is continuing to integrate with leading social relationship and listening platforms like Shoutlet, Spredfast and Tigerlily to ensure advertisers can identify and target key influencers, easily track performance, and attribute sales and revenue across their paid, owned and earned social media programs.
All of this boils down to a simple take-away. . . Facebook continues to outperform with major brands driving more sales, more revenue and higher ROI from Facebook Ads.
If you’re not experiencing similar results, please contact your friendly neighborhood Kenshoo Social representative for more information.
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