Businesses that lean heavily on Facebook for advertising will be excited by news out of third quarter social media marketing reports this year. These reports show that spending on Facebook ads not only continues to grow but is also providing higher value for brands that use the network as a social media marketing channel.
Examining Facebook Ad Trends for Q3 2016
Reports on Facebook’s third-quarter figures showed a consensus on trends across the network’s advertising platform. Across available reports, spending, click-through rates, and costs-per-impression have climbed over quarter three of 2015, while costs-per-click have decreased in that time span.
Here are some of the numbers highlighted by this quarter’s social media marketing reports:
- Spending on Facebook ads increased by 45% between Q3 of 2015 and Q3 of 2016.
- Over the same period, the average CTR has climbed by 14%.
- CPMs have climbed by as much as 38% over this period.
- Meanwhile, CPCs have actually fallen by as much as 25%.
Retargeted Ads, Audience Network Driving Growth
Two specific drivers have been singled out by social media marketing experts as key to the success of Facebook’s ad program: retargeted ads and Facebook’s Audience Network.
Dynamic product ads, Facebook’s name for its retargeted ad program, accounted for 42% of all Facebook ad clicks in 2016’s third quarter. Spending on retargeted ads rose from 8% of all spending in third quarter of 2015 to 21% in this past quarter.
Meanwhile, Facebook’s Audience Network has allowed the social network to significantly boost traffic numbers. Since 2014, Facebook has been growing its Audience Network, a network of partner sites that host Facebook ads off of the site. By expanding the Audience Network, Facebook has been able to generate a significantly higher number of non-native impressions and clicks, all without seriously compromising its native user experience.
Increased Performance Good News for SMBs
One group sure to be smiling about the third quarter numbers will be small and medium business owners. Recent surveys have found that social media marketing has become the number one marketing channel for owners of SMBs — and second place isn’t even close.
According to one September poll, social media marketing is the first choice of SMBs for both increasing brand awareness and generating revenue. More than 40% of respondents selected social media as their primary marketing channel for both of these goals. Print advertising was second, with less than 15% of respondents naming it their primary channel.
Looking to build your brand’s social media marketing presence on Facebook? If so, Qiigo can help. Call us today at (888) 673-1212 to get started.