Trends in Facebook clickthrough rates, costs per click and costs per impression indicate a “win-win-win” situation for Facebook, advertisers and users, Facebook ad company Spruce Media says.
One of Facebook’s Strategic Preferred Marketing Developers, Spruce released a report this week detailing CTR, CPC and CPM benchmarks and trends over the past year. Clickthrough rates are up 57.2 percent since Q3 2011, suggesting that users are finding ads to be more relevant and interesting. CPCs have decreased 18.2 percent, which allows advertisers to improve their margins while getting more volume from each ad viewed. And CPMs have increased 27.5 percent, meaning Facebook is making more money per impression.
Spruce explains that low CPCs attract more spend from advertisers, but because CTR has improved at a higher rate, impressions are worth more to advertisers and Facebook ultimately earns revenue more efficiently. Facebook reported $1.262 billion in revenue for Q3 2012 — a 32 percent increase from the $954 million reported in Q3 2011.
Spruce Media analyzed 86 billion impressions between Q3 2011 and Q3 2012. The impressions come from 459 clients over 113 countries. The report looks at performance by placement, ad type, region and vertical. We’ve extracted some highlights for readers to benchmark their own ad performance after the jump, but the full report and analysis is available here.