Home Data Nugget As Facebook Evolves Ad Offerings, CPCs And CPMs Drop

As Facebook Evolves Ad Offerings, CPCs And CPMs Drop


FB Ads ReportAs Facebook continues to expand and adapt its advertising offerings, metrics including CPMs, CTRs and CPCs showed inconsistencies in Q1 2013 which are expected to level out as advertising normalizes on the social networking site.

Facebook strategic PMD Spruce Media highlighted these changes in its “State of Facebook Advertising Q1 2013,” released this week, leading up to Facebook’s Q1 earnings call set for May 1.

CPMs for all Facebook advertisements rose slightly by 3%, from $0.38 in Q4 2012 to $0.39 in Q1 2013. CPMs for desktop ads, or those ads on the right-hand side of the Facebook page, decreased by 24%; CPMs of desktop-only News Feed ads dropped by 18%, and those for mobile-only News Feed ads dropped by 31%.

Spruce CPM

While part of the decline may be due to the holiday season boosting ad prices in the latter part of 2012, Spruce also mentioned that in Q1, Facebook pushed more ads into the news feed, increasing inventory and causing the drop in prices for those ads. The increase in demand for the Facebook Exchange from advertisers kept up interest in the ads on the right-hand side of the page.

Spruce showed that CTRs for Facebook in Q1 2013 were inconsistent as advertisers started to optimize their ad buys and shift spending to the more effective News Feed ads, especially on mobile. Mobile-only News Feed ads saw a CTR of 1.86% in Q1, up 7 percentage points from 1.74% in Q4 2012, and all Facebook ads saw an average CTR of 0.1%, up from 0.07% in Q4. Desktop-only News Feed ads saw a lower CTR of 1.08%, down 14 percentage points from 1.25% in Q4, while desktop ads saw CTRs drop from 0.04% to 0.03%.

Spruce CTR

CPCs for Facebook ads declined mostly, with the Q4 2012 CPC for all Facebook ads at $0.55, dropping 31% to $0.38 in the first quarter 2013. Desktop-only News Feed ads dropped from $0.43 to $0.41, while mobile dropped to $0.19, down from $0.30 in Q4 2012. CPCs for general desktop ads rose to $0.87 from $0.75. 

Spruce CPC

Facebook continues to evolve its advertising offerings, most recently introducing cost-per-action (CPA) bidding, in April 2013.

Must Read

Advertible Makes Its Case To SSPs For Running Native Channel Extensions

Companies like TripleLift that created the programmatic native category are now in their awkward tween years. Cue Advertible, a “native-as-a-service” programmatic vendor, as put by co-founder and CEO Tom Anderson.

Mozilla acquires Anonym

Mozilla Acquires Anonym, A Privacy Tech Startup Founded By Two Top Former Meta Execs

Two years after leaving Meta to launch their own privacy-focused ad measurement startup in 2022, Graham Mudd and Brad Smallwood have sold their company to Mozilla.

Nope, We Haven’t Hit Peak Retail Media Yet

The move from in-store to digital shopper marketing continues, as United Airlines, Costco, PayPal, Chase and Expedia make new retail media plays. Plus: what the DSP Madhive saw in advertising sales software company Frequence.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Comic: Ad-ception

The New York Times And Instacart Integrate For Shoppable Recipes

The New York Times and Instacart are partnering for shoppable recipe videos.

Experian Enters The Third-Party Data Onboarding Business

Experian entered the third-party data onboarder market on Tuesday with a new product based on its Tapad acquisition.

Albertsons Takes Its First Steps Into Non-Endemic Advertising, Retail Media’s Next Frontier

Albertsons is taking that first step into non-endemic advertising next week via a partnership with Rokt to serve ads to people who have already purchased groceries.