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CPM Rises, CPC Drops for Facebook Advertisers

Advertisers are becoming more sophisticated in their Facebook advertising strategy. That's one of the key takeaways in the latest data about global Facebook advertising from social marketing software provider SHIFT.

Of course, Facebook is a big target, with seven percent of the total digital ad spending in the world. The data in the report is based on activity from SHIFT's advertising platform, its Open Marketing Cloud for social ad campaigns that was introduced in spring of last year.

"Advertisers are beginning to learn how to leverage the user data available to them," SHIFT co-founder and CEO James Borow told CMSWire. They are also "applying that data to set the strategies around ad creative, content, ad type and device type," he said.

By the Numbers

The report showed that the top five verticals are auto, consumer packaged goods (CPG), entertainment, financial services and telecommunications. Every category is indicating enormous boosts in CPM year over year – 232 percent for entertainment, 218 percent for CPG and 132 percent for telco, for instance. Meanwhile, cost per click is falling – as much as 53 percent for auto.

The entertainment category achieved the highest click-through rate (CTR) in the second quarter at 1.8 percent, with CPG taking second place at 0.9 percent.

The most efficient cost per click (CPC) is in autos and entertainment. Autos also had the highest click-through rate increase from the first to second quarter, with a jump of 48 percent.

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From the SHIFT report on Facebook global advertising

 

 
 
 
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