Facebook’s mobile “Sponsored Stories” ads are much more effective than mobile ads displayed on Twitter, according to a study by TBG Digital, a large buyer and manager of Facebook campaign media.
TBG studied 24 million Twitter impressions across multiple clients and sectors in Q2 2012, and saw an average click-through rate of 0.266%. But Facebook’s mobile ad click-through rate in the same period —indicated on this chart as “Mobile Newsfeed” — is four times more than that of Twitter’s rate.
Facebook’s average Cost per Thousand impressions (CPM), an indicator of what Facebook earns per ad served, has increased by a significant 58% over the last 12 months, since Q2 in 2011.
The data, from the latest Global Facebook Advertising Report, was compiled by TBG Digital and verified by the University of Cambridge.
The study which was based on 406 billion impressions in more than 190 countries for 276 clients from Q2 2011 to Q2 2012 demonstrates that Facebook is not only earning more from advertising, but that ad engagement has reversed its downward trend.
The increase in CPM of 58% can be attributed to a greater use of Sponsored Stories as well as the introduction of the highly anticipated mobile ads which also provide Facebook with higher earnings.
Ad engagement, which is measured by Click Through Rate (CTR) increased by 11% and again seems to have been helped, in part, by the introduction of Facebook’s new mobile ads.
Cost per Click (CPC), the cost paid by advertisers to Facebook, has hit the dollar mark for the first time in the US and Canada, which saw a rise of 13% and 12% respectively. Although European countries, UK, France and Germany, saw a reduction in CPC, where the UK fell 2% to $0.91.
The success of Facebook’s new mobile ads is shown in a study by TBG Digital of 278 million sponsored story impressions found Mobile ads received Click Through Rates 14 times that of ‘Desktop’ ads, on average. Mobile ads also provide great earning potential for Facebook which received $9.86 for every thousand mobile ads served (CPM), 13 times more than it received for ‘Desktop’ ads.
Additional findings from the Q2 report include the following:
Sponsored Stories Continue to Perform Better Than Standard Facebook Ads
Updating a previous study by TBG Digital, analysis of 13.8 billion impressions in Q1 and Q2 2012 shows Sponsored Story ads receiving 53% higher Click Through Rates than standard ads. Cost per Fan also saw major improvements with 39% savings. The study compared ads that provided the same function for advertisers, Page Likes.
Increases in global ad costs slow to 9%
Q2 2012 saw a slowdown in Cost per Click growth at 9%, compared to a much higher increase in Q1 2012 of 23%. Only the United States and Canada have risen in the five major territories reported on in this section. Both countries have CPCs of over$1 for the first time with the United States increasing by 13% to $1.04 and Canada increasing by 12% to $1.02.
Click Through Rate By Sector Sees Shakeup in Rankings
Entertainment has dropped three places since Q1 2012 to make room for Health, Pets & Animals and Not for Profit. Health is a regular in the top five but Not for Profit has jumped four places and Pets & Animals is a new entry.
Jobs & Education Sector Now Generates Highest Cost per Click
Jobs & Education has jumped four places to hit the top spot with an average CPC of $1.42, pushing Finance and Retail both down one place. Games and Computers & Electronics have switched places taking position 4 and 5 respectively.
Simon Mansell, CEO of TBG Digital, commented: “All eyes are on Facebook at the moment and a key part of its progress is the performance of its sponsored stories and mobile ads, which in particular are showing great potential for all parties.”
View the full slideshow report here
http://www.tbgdigital.com.