Sunday, 21 August 2011

Facebook Advertising Performance Benchmarks & Insights

Summary

Facebook advertising is predicted to hit US$4 billion this year, which is  twice the volume of 2010 spending according to eMarketer. While brands  are rapidly investing in the space, they lack comparative experience to  assess how well their campaigns are performing. Webtrends has analyzed  over eleven thousand campaigns to provide performance benchmarks  brands can use to evaluate their own campaign performance.

The Webtrends database is a very large sample given the relatively young age of the Facebook ad network  (see the stats at left). We focused on a few key metrics:

• Click-Through Rate (CTR) 
• Cost per Click (CPC)
• Cost per Thousand (CPM)
• Cost per Fan (CPF)




About thiS Report
This report contains analysis of over 11 thousand ads and is intended to provide market reference for Facebook ad performance. It is worth noting that the majority of campaigns we analyzed were focused on fan acquisition, which may skew some of the results. Benchmarks may vary for campaigns aimed at websites or fan nurturing campaigns. We did not have a statistically significant data set for the 13-17 year old market, 
so we excluded them from our results. Industry results were based on categorizing campaigns in our dataset, which means some industries had only a single brand and may not be representative of an industry’s  performance overall. Special thanks to Dennis Yu, Nicholas Davies, Jonny Chan, Michael Girard, and Tim Mather for their contributions to this report. 

Citations 

Facebook Advertisers Boost Spending 10 Fold, COO Says; BusinessWeek;   http://www.businessweek.com/news/2010-08-04/facebook-advertisers-boost-spending-10-fold-coo-says.html; August 2010 

Facebook Drives US Social Network Ad Spending Past $3 Billion in 2011; eMarketer;  http://www.emarketer.com/Article.aspx?R=1008180; January 18, 2011 Facebook and Brands survey; DDB & Opinionway; https://ddbworldwide--ropboxaliciabrindak2.pbworks.com/f/DDBOpinionwayFacebookenglishshortversion.pdf; October 18, 2010

About Webtrends
Webtrends is a global leader in social and mobile marketing. Thousands of global organizations, including Microsoft, Reuters, General Mills and Ticketmaster have chosen Webtrends business solutions and client  services expertise to optimize their customers’ online experiences. Webtrends was the first web analytics company, founded over 15 years ago and continues to deliver world class analytics solutions. Webtrends is a registered trademark of Webtrends Inc. in the United  States and other countries. All other trademarks and registered  trademarks are the properties of their respective owners. 

© 2011 Webtrends Inc. All rights reserved.



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