As previous Q4 Facebook advertising reports have shown, the past four months have been very successful for advertisers in terms of key metrics such as revenue per visit (RPV) or revenue per click (RPC). New figures by Facebook Strategic Preferred Marketing Developer Nanigans show that RPC was much more sustained in Q4 2013 compared to 2012. Among its clients, Nanigans saw grand increases in RPC — 72 percent quarter-over-quarter and 83 percent year-over-year.
But will Facebook advertisers continue to receive record RPC in Q1, or will it scale back down?
As the following graph shows, RPC spiked in December and January 2012, then crashed down just as quickly as it rose. However, RPC started climbing high in the beginning of Q4 and pretty much stayed at a high level, climbing as high as $1.80.
Dan Slagen, Nanigans’ Senior Vice President of Marketing, discussed with Inside Facebook why Facebook advertisers finally had sustained success with RPC in Q4:
First on the consumer side, people are much more used to seeing ads this year across both desktop and mobile, on the right hand side and in the News Feed and finally static and video ads. The message consumers have sent to brands is clear in the sense that people will happily interact with offers (and drive revenue for advertisers) when executed with creativity, relevancy and value. Conversely, campaigns that are not well thought out and developed with a “consumer first” strategy and mindset will be ignored and in some cases complained about.
Second, on the brand side, advertisers are exponentially smarter now compared to twelve months ago. Mobile revenue tracking is up 3x, brands are understanding all of the different ad units from right hand to News Feed, mobile to desktop and static ad to video. Creative, targeting and optimization are at the forefront of campaigns and media dollars being invested into Facebook are being measured against true ROI.
However, as revenue went up in Q4, so did cost. Among its clients, Nanigans saw retail CPM increase by 19 percent quarter-over-quarter and 186 percent year-over-year. Retail cost per click rose 35 percent quarter-over-quarter and 35 percent year-over-year.
Facebook will release its Q4 and year-end financial report at 5 p.m. ET / 2 p.m. PT today.