STUDY: News Feed Page Post Ads Deliver 26X More ROI, 20X Greater CTR Than Facebook Right-Hand-Side Ads

By David Cohen 

Page post ads in Facebook’s News Feed are becoming the ad unit of choice for marketers on the social network, mainly due to their return on investment performance, according to a study released Monday by Facebook advertising platform Nanigans.

Nanigans said advertisers in its study used its ROI-based bidding and optimization algorithms to include News Feed page post link and page post photo ads, as well as right-hand-side domain ads, in their campaigns. The company added that its results were based on some 150 million impressions across multiple verticals and included purchases made up to seven days after the ads ran.

The study found that:

  • Page post link ads delivered a 53 percent ROI.
  • Page post photo ads delivered a 24 percent ROI.
  • Page post ad units delivered an ROI 26 times higher than right-hand-side ad units.
  • Page post photo ads delivered a 37 percent higher click-through rate than page post link ads and 20 times the CTR of right-hand-side ads.
  • The cost per click for page post photo ads was 17 percent lower than the CPC for page post link ads and right-hand-side ads.
  • Page post link ads delivered a 30 percent higher action rate than page post photo ads, as well as a 55 percent higher rate of purchasing users (the rate of purchasing users were 61 percent higher than for right-hand-side ads).

Nanigans concluded:

We’re seeing that marketers are increasingly shifting their advertising spend to page post ads in News Feed, because they can deliver a higher ROI than standard domain ads on the right-hand side. The largest (by image size) ad unit in News Feed, page post link ads are designed for direct response, with two clickable areas leading users to an external domain. While this ad unit had a higher CPC and lower CTR as compared to page post photo ads, page post link ad units delivered a high action rate and purchasing user rate, resulting in a higher ROI relative to page post photo ads and domain ads.

Page post link ads typically perform well for lead-generation campaigns and are effective in converting users off site. Page post photo ads are designed to capture attention with larger, more engaging photos, creating a seamless experience between paid, owned and earned media. Our study shows that this ad format demonstrated a higher CTR at a lower CPC resulting in a higher ROI than ads on the right-hand side. We concluded that page post photo ads are highly effective for promoting specific products for ecommerce companies such as fashion and home furnishing retailers, as well as mobile apps.

Brands on Facebook: Have you found similar results with News Feed page post ads?