Facebook advertisers are seeing a significant return on their spend on the social networking site, according to new research.
New data from social media marketing technology platform Kenshoo Social highlights the improved performance of Facebook ads in the first two quarters of 2013 and show it is getting better at generating conversions and revenue.
Key findings of the analysis show:
• Clicks increased 16.4
• Conversions increased 56.9%
• Advertiser revenue increased 28.3%
The findings are based on a global analysis of 75 billion Facebook ads across a representative sample of advertisers and agencies using Kenshoo Social.
The data is represented in a new infographic:
The results of the quarterly analysis demonstrate that Facebook is not just a brand awareness and engagement channel but is evolving into a powerful direct response channel, as well, according to Todd Herrold Sr. Director, Product Marketing at Kenshoo Social:
“Advertisers are finding success using Facebook ads to drive toward their direct marketing goals, most importantly conversions and revenue. There are several factors influencing this evolution. Facebook has been steadily optimising its ad units and launching new ad targeting products designed specifically for direct response, including Custom and Lookalike Audiences, Partner Categories and the Facebook Exchange (FBX).
“At the same time, advertisers are getting better at narrowing down their target audiences and honing in more appropriately on users who may find the ad engaging. They’re becoming more sophisticated and are increasingly leveraging advertising platforms, like Kenshoo Social, to build and manage scale using automated bid optimization, audience targeting and expansion algorithms."
Kenshoo Social also pointed out that Facebook's algorithms are improving, meaning the site can better pinpoint relevant users within an advertiser's target audience.