FACEBOOK ADVERTISING TRENDS REPORT

Apr 1, 2014 - 76% of ad spend was allocated to ages 25+. Nanigans Q1 2014 Facebook Advertising Trends Report. Nanigans | Predictive Lifetime Value™.
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April 2014

NANIGANS Q1 2014

FACEBOOK ADVERTISING TRENDS REPORT

Predictive Lifetime Value™ for Performance Marketing at Scale

Nanigans Q1 2014 Facebook Advertising Trends Report

To analyze quarterly data in its historical context, an aggregate data set was built from the advertisers and partners who have been active on the Nanigans Ad Engine platform from Q1 2013 to Q1 2014. Nanigans clients include 200 of the world’s leading performance marketers in ecommerce, gaming and other internet businesses such as online travel and mobile app developers.

KEY FINDINGS FOR Q1 2014  CPCs increased 10% from Q4 2013.  CTRs increased 4% QOQ and 167% YOY, indicating that marketers are continuing to see high engagement on Facebook.  App discovery continues to be a priority for app developers. Mobile app install ads were the most popular mobile ad unit, capturing 74% of Facebook mobile ad spend.  Advertisers have shifted their focus to the News Feed, with 81% of desktop ad spend allocated to News Feed ad units.  76% of ad spend was allocated to ages 25+.

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Nanigans Q1 2014 Facebook Advertising Trends Report

FACEBOOK ADVERTISING BENCHMARKS FOR Q1 2014

Click-through rates (CTR) increased 4% QOQ and 167% YOY The increase in YOY CTRs across all mobile and desktop ad formats shows that marketers are continuing to see high engagement on Facebook.

0.23%

0.24%

0.19% 0.14% 0.09%

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Nanigans Q1 2014 Facebook Advertising Trends Report

Cost-per-impression (CPM) rates were up 15% QOQ and 247% YOY The quarterly increase in CPMs across all desktop and mobile ad formats shows that costs have risen in Q1 2014. This is the result of increased competition for content in the News Feed. This increase in CPMs can be explained in part by advertisers continuing to spend heavily in News Feed

Nanigans | Predictive Lifetime Value™

$1.25 $1.09 $0.77 $0.59 $0.36

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

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Nanigans Q1 2014 Facebook Advertising Trends Report

Cost-per-click (CPC) rates were up 10% QOQ and 39% YOY CPCs across all mobile and desktop ad units increased 10% from Q4 2013 to Q1 2014, due to an increase in demand for targeted audiences.

$0.60

$0.50

$0.40

$0.30

$0.20

$0.53 $0.38

$0.43

$0.41

Q2 2013

Q3 2013

$0.48

$0.10

$0.00 Q1 2013

Nanigans | Predictive Lifetime Value™

Q4 2013

Q1 2014

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Nanigans Q1 2014 Facebook Advertising Trends Report

FACEBOOK AD SPEND BY AD TYPE

MOBILE The surge in Facebook’s mobile user base (1 billion monthly users) has created new opportunities for advertisers. 74% of mobile ad spend went to Facebook’s mobile app install ads. With mobile app marketers increasingly looking to keep installed users engaged, we expect mobile app engagement ads to attract a greater share of ad spend in the latter half of the year.

DESKTOP Advertisers continue to spend heavily in News Feed, with 81% of ad budgets allocated to desktop News Feed ad units. Unpublished Page post link ads are the most popular desktop News Feed ad unit commanding 47% of total ad spend.

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Nanigans Q1 2014 Facebook Advertising Trends Report

FACEBOOK ADVERTISING TRENDS BY DEMOGRAPHICS

When examining KPIs at the audience level, we found that on average females cost $0.12 more than males but delivered a $0.39 higher revenue-per-click. FACEBOOK RPC AND CPC, Q1 2013 - Q1 2014 BY GENDER $0.94 RPC

CPC

$0.55

$0.50

$0.38

Female

Male

FACEBOOK AD BUDGET ALLOCATION Q1 2013 – Q1 2014 BY GENDER Advertisers recognized the value of the Facebook female audience and on average, allocated 63% of their budget to females and 37% to males.

Male

Female

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Nanigans Q1 2014 Facebook Advertising Trends Report

FACEBOOK RPC AND CPC, Q1 2013 - Q1 2014 BY AGE When examining KPIs by age group, our revenue-per-click data suggests that the teen demographic, 18-24, is the worst monetizing demographic and 45-54 is the best performing age group. RPC

CPC $1.53 $1.38

$1.28

$0.79 $0.61 $0.44

$0.35

18-24

25-34

$0.58

$0.51

35-44

45-54

$0.52

55-64

FACEBOOK AD BUDGET ALLOCATION Q1 2013 – Q4 2013 BY AGE We extrapolated ad spend for traditional age ranges (18-24, 25-34, 35-44, 45-54 and 55-64) and found that 76% of ad spend is allocated to ages 25+.

18-24

Nanigans | Predictive Lifetime Value™

25-34

35-44

45-54

55-64

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nanigans.com 60 State Street, 12th Floor Boston, MA 02109 [email protected] 888-507-4456

Nanigans offers the only SaaS platform that optimizes to Predictive Lifetime Value™. Our technology empowers over 250 performance marketers to find, acquire and retarget their most profitable customers at scale across social and mobile. With over $350 million running through our platform annualized, Nanigans provides in-house marketers a significant cost savings due a publisher-direct relationship model. Backed by Avalon Ventures with over 140 employees, Nanigans has offices in Boston, New York, San Francisco, London, Sydney, and Singapore.