Facebook advertisers reached more customers per ad and paid less for each click in the first quarter of 2015, according to advertising automation software provider Nanigans’ Global Facebook Advertising Benchmark Report released today.
Nanigans’ customers had a 0.81% click-through rate in the first quarter, up 17% over Q4 of 2014 and 260% over this time last year. In the ecommerce vertical, CTR increased 12% QoQ and 281% YoY.
On a cost-per click basis, ads were 17% cheaper than they were in the fourth quarter — the 53 cent CPC average falling to pre-holiday levels because of, according to Nanigans, reduced demand after the Q4 shopping season. The CPC drop was especially pronounced for ecommerce advertisers, who experienced a 32% decrease in the quarter and a 14% reduction YoY. Gaming advertisers saw a 11% quarterly CPC increase and 69% for the year. Overall, CPC averages increased 4% YoY.
Overall global CPMs (cost per 1,000 impressions) dropped 3% in the quarter to $4.26, but soared 273% since the first quarter of 2014 when they were $1.14. Ecommerce CPMs — $3.74 — fell 24% in the quarter and gained 227% YoY.
Nanigans, a Facebook Marketing Partner, said most advertisers using its software have direct response goals and dedicate the overwhelming majority of budgets to Unpublished Page Post Ads, Mobile App Install Ads and Domain Ads, categories that represented 97% of spending through Nanigans in Q1.
The company notes that many of its customers use ROI-based bidding algorithms targeting high-value and high-ROI audiences that typically cost more to reach. “As such, the data in this report should not be used as a proxy for the overall Facebook marketplace,” the report stated.
The company also noted that advertisers using its software are adopting new Facebook ad products, spending 2.8 times more on video ads and 5.2 times more on multi-product ads this quarter than they did in the final quarter of 2014.
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