How Did Spruce Media’s Facebook Advertisers Perform In The Third Quarter?

By David Cohen 

SpruceMedia3QCPCTrendsChartA Facebook Strategic Preferred Marketing Developer became the latest company to weigh in on Facebook’s advertising performance prior to its third-quarter earnings call Wednesday, as Spruce Media released its latest State of Facebook Advertising report.

Spruce Media compared its clients’ third-quarter results with their second-quarter results and found that:

  • Cost per click fell for all ad placements except desktop, where CPC rose 2 percent.
  • Cost per thousand impressions (CPMs) showed mixed results across all ad placements.
  • Click-through rates rose by an average of 22 percent in three out of four ad placements.
  • Cost per mobile application install dropped to $0.93 from $1.67.
  • Cost per page like rose to $0.66 from $0.58
  • Cost per engagement fell to $0.31 from $0.36.
  • Advertiser spend allocated to mobile rose to 51 percent from 38 percent.

Spruce Media also offered its outlook for the fourth quarter and beyond:

The social network’s renewed focused on simplifying its ad offering is paying off. We expect CPCs to normalize in the fourth quarter, and, over time, we expect Facebook users to grow accustomed to the new ad formats.

The two mobile ad releases launched this month will result in advertisers increasing their spend on mobile ads, thus increasing Facebook’s share of the overall mobile advertising market.

New video-based mobile app install ads should help grow mobile app install revenue. Recent changes to auto-play user-generated videos may indicate that new video ad formats may be on the way soon.

Facebook announced in October that it will finally begin rolling out ads to select brands on Instagram. Don’t expect any immediate impact in fourth-quarter financials, though. Facebook has a history of rolling out new advertising slowly to ensure a good user experience. 2014 could see hundreds of millions of dollars in revenue from Instagram alone.

Readers: Did any of Spruce Media’s findings surprise you?