Facebook’s Ad Innovation Points to Future Success

With one year as a public company under their belt, Facebook continues to be the talk of the town. However, we’ll leave the stock price analysis to financial pundits; digital marketers want to know how ads are performing across the social network.

In comparing Q1 2012 performance levels to Q1 2013, Marin’s data shows click volume increased 40%, click-through rate (CTR) skyrocketed 100% and cost-per-click (CPC) dropped 38% year-over-year. In other words, performance increased while costs decreased—an online marketer’s dream come true. The increase in click volume and rise in CTR likely indicates an increase in ad relevancy for users. After their IPO, Facebook improved Sponsored Stories and News Feed ads while releasing new mobile targeting capabilities. In fact, more than half of Facebook users now access the social media giant via a mobile device. And with the support for mobile device targeting enabled, marketers are suddenly able to reach this growing segment of Facebook users.

On the performance front, Facebook Exchange chipped-in as well. Now when users return to Facebook after being out and about across the web, marketers can retarget them with highly relevant and socially rich ads based on sites they've visited. Between mobile ads, Exchange, and the newly redesigned News Feed, Facebook’s ad relevancy got a shot in the arm over the past year.

Facebook advertising is still in its infancy, especially compared to other online advertising channels like paid search and display. But like any maturing online channel, another year’s worth of testing ad creative, refining audience segments, and establishing best practices has led to improved efficiency and increased effectiveness in social marketers’ Facebook campaigns. Combine this with the time savings and optimization tools available as a result of revenue acquisition management platforms like Marin Software; it’s no surprise that advertisers are becoming more sophisticated and capitalizing on new, emerging revenue opportunities.

The next twelve months look bright for driving revenue with Facebook ads. For advance tips on building awareness and driving improved ROI from Facebook advertising, download the Marketer’s Guide to Facebook Advertising today.