2011 Global Facebook Advertising Report - TBG Digital

tbgdigital.com

2011 Global Facebook Advertising Report - TBG Digital

Global Facebook

Advertising Report

Q3 2011

www.tbgdigital.com


Global Facebook Advertising Report Q3 2011

Contents

03 Introduction

Headlines

04 Facebook Ads increase in effectiveness

05 Facebook earns more per Impression whilst

Cost per Click Rates fall for Advertisers

06 Brand Advertising continues growth

07 Hot Sectors

08 Hot Sectors (continued)

09 Keyword Targeting can reduce the ‘cost per like’

by up to $0.45

10 Methodology

Report Authors

About TBG Digital

11 Report Glossary

1 of 1 28/09/2011 15:04

www.tbgdigital.com

2


Global Facebook Advertising Report Q3 2011

Introduction

TBG Digital examined 255 billion impressions across 216 clients advertising on Facebook

in 192 countries to produce its Q3 2011 Global Facebook Advertising Report.

TBG Digital is one of the largest global agencies specialising in Facebook marketing. Due to its

vast catalogue of historical data TBG is uniquely positioned to analyse the state of the Facebook

advertising market. This is the second of our quarterly reports examining the trends and changes in

Facebook advertising.

Headlines

Facebook Ads increase in effectiveness

18.5% increase in Click Through Rates (CTR) across 5 major markets from Q2 to Q3 2011

Facebook earns more per Impression whilst Cost per Click Rates fall for Advertisers

Cost Per Click (CPC) decreases by 10.8% across 5 major markets between Q2 and Q3 2011

Brand Advertising continues growth

Brand campaign market share increases from 47% in Q2 to 53.7% in Q3 2011

Hot Sectors

Top 5 Sectors’ volume of impressions grows by over 117% in Q3 2011

Keyword targeting can reduce the ‘cost per like’ by up to $0.45

Brands and Keywords are biggest influence on the Performance of Brand (Fanning) Campaigns

The Psychometrics Centre

The Cambridge University Psychometrics Centre

has verified the results, graphical illustrations and

methodology used in this report based on the

data provided by TBG Digital.

www.tbgdigital.com

Glass_plasma_globe.jpg (JPEG

3


Global Facebook Advertising Report Q3 2011

Facebook Ads increase in Effectiveness

18.5% increase in Click Through Rates (CTR) across

5 major markets from Q2 to Q3 2011

Looking at Figure 1 we see an 18.5% increase in Click Through Rates (CTR)

across 5 major markets from Q2 to Q3. Fan Acquisition and Application

Install campaigns have a higher weighting this quarter and thus, have

produced this outcome. These types of campaign combined with specific

growth sectors outlined in Hot Sectors, have higher CTR in comparison to

Offsite campaigns. It is also clear that Sponsored Story ad formats have

increased the effectiveness of ads, driving improved CTR versus standard

ASU campaigns, especially on brand (fanning) campaigns.

Figure 1 CTR changes across 5 major markets

Click Through Rate Index

0

2010 Q4 2011 Q1 2011 Q2 2011 Q3

US UK FR DE CA

Figure based on 176 billion impressions served worldwide in Q3 2011.

CTR values are confidential and have been removed.

1 of 1 28/09/2011 15:04

www.tbgdigital.com

4


Global Facebook Advertising Report Q3 2011

Facebook earns more per Impression whilst Cost per Click Rates fall for Advertisers

Cost per Click (CPC) decreases by 10.8% across 5 major markets between Q2 and Q3 2011

Figure 2 shows a significant drop in CPC rates in all markets except the UK in Q3 2011. The UK still drives

87% of activity offsite which can yield higher CPC prices. Facebook’s recent announcement to allow

social context ads to be used with offsite campaigns should improve Click Through Rates (CTR) and

therefore CPC rates further in Q4, especially in countries such as the UK where offsite campaigns have

remained dominant.

Figure 2 CPC changes across 5 major markets

Cost per Click Index

0

2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3

US UK FR DE CA

Figure based on 212 billion impressions

served worldwide in Q3 2011. CPC values

are confidential and have been removed.

Cost per Thousand (CPM) rates increase by 7.1% across 5 major markets between Q2 and Q3 2011

As indicated by Figure 3, the UK and US have seen continued growth in CPM rates (Cost Per Thousand

impressions) to Facebook’s benefit. The US has risen by 8.8% and UK by 10.9%. The improvement in ad

effectiveness has meant that, although CPM rates have increased, clients who are bidding on a CPC basis

have not been affected by these increases.

Figure 3 CPM changes across 5 major markets

Cost per Thousand Impressions Index

0

2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3

US UK FR DE CA

Figure based on 212 billion impressions

served worldwide in Q3 2011. CPM values

are confidential and have been removed.

www.tbgdigital.com

5


Global Facebook Advertising Report Q3 2011

Brand Advertising Continues Growth

Brand campaign market share increases from 47% in Q2 to 53.7% in Q3 2011

In Q3 2011 TBG has seen a continued investment from Brands to build their fan bases

(brand campaigns) accounting for over half of all impressions served worldwide.

The share of Offsite campaigns remains substantial at 36.7%.

Furthermore, TBG has found that the number of Facebook Application (e.g. a social

game application) impressions delivered has grown by 150% between Q2 and Q3 2011,

with 7 out of 17 sectors driving Applications in comparison to only 2 out of 18 in Q2.

As brands reach a critical mass of fans on Facebook they are choosing to activate

these fans through Applications that encourage interactions which are then, in turn,

shared amongst their friends. Examples include a Poll, Social Game or Competition

Application. We will be monitoring Application based campaigns closely to see if they

will become the next big growth area for Facebook.

Figure 4 Total Impressions by Campaign Type

Number of Impressions

0

2010 Q3 2010 Q4 2011 Q1 2011 Q2

2011 Q3

Fanning O�site Facebook Application

1 of 1 28/09/2011 15:04

Figure based on 212 billion impressions,

216 clients in 192 countries served in

Q3. Impression counts are confidential

and were removed.

www.tbgdigital.com

6


Global Facebook Advertising Report Q3 2011

Hot Sectors

Top 5 Sectors’ volume of impressions grows by over 117% in Q3 2011

As shown in Figure 5, the top five sectors show rapid growth in their volume

of impressions between Q2 and Q3, with their increase totalling 117%.

Highlights include:

• Entertainment – This sector is the biggest mover, increasing its share of

total impressions to 8% from under 1% in Q2

• Food and Drink – This sector continued its growth from Q2 to Q3, increasing

its share of total impressions to 14% from 9% in Q2 (3% in Q1)

• Beauty and Fitness – This sector in Q3 grew its share of total impressions by

over 4 percentage points, up to 5% of total.

• Automotive – This sector has increased from 0.2% in Q2 to 2.4% in Q3

• Games – This sector has increased by 2.07% from 9.5% in Q2 to 11.6% in Q3

Figure 5 Top 5 Growing Sectors by volume of impressions

Number of Impressions

0

Figure based on 195 billion impressions,

164 clients in 192 countries

1 of 1 28/09/2011 15:04

2010 Q4 2011 Q1 2011 Q2 2011 Q3

Entertainment

Autos & Vehicles

Food & Drink Beauty & Fitness

Games

www.tbgdigital.com

7


Global Facebook Advertising Report Q3 2011

Hot Sectors (continued)

Figure 6 Sectors’ market

share of impressions

Jobs &

Education

Internet &

Telecom

Travel

Directories

Computers &

Electronics

Industry

Games

Figure 7 indicates that the three sectors showing biggest growth in this quarter also have the highest

Click Through Rates (CTR). This suggests that these sectors are successfully engaging with consumers

and therefore likely to continue to show growth.

Figure 7 Global CTR values across the sectors

Finance

Jobs & Education

Computers & Electronics

Internet & Telecom

Directories

Autos & Vehicles

Games

Travel

Retail

Entertainment

Food & Drink

Beauty & Fitness

Autos & Vehicles

0%

Retail

Beauty &

Fitness

Food & Drink

Finance

Entertainment

CTR

v As shown by Figure 6, Retail

still retains the highest market

share of impressions at 27%.

We expect this to grow in Q4 as

retailers increase seasonal holiday

marketing activity.

Figure based on 195 billion impressions,

164 clients in 192 countries

Figure based on 60 billion impressions,

110 clients in 192 countries

www.tbgdigital.com

8


Global Facebook Advertising Report Q3 2011

Keyword targeting can reduce the ‘cost per like’ by up to $0.45

Brands and Keywords are biggest influence on the performance of Brand (Fanning) campaigns

Facebook advertising is often used for fanning (persuading Facebook users to like brand pages). Advertisers

on Facebook can advertise via Sponsored Story Ad types, for which they can choose the Creative content

(body text) of the ad. Advertisers can also choose to target ads by gender, age and interests. Interests are

matched using keywords.

In this case study, TBG investigated how advertisers can influence Cost Per Fan (CPF). We looked at over

1.5 billion impressions in the US market and examined the statistical effect of these factors and the influence

of the Brand itself. To understand the effect of the factors, we considered the variance of the CPFs. Variance

is a statistical measure of the spread of the data. The results for Sponsored Stories are given below.

TBG has found that much of the CPF is determined by the brand, not the ad. However, the results show that

the targeting of the ad can substantially improve Cost per Fan, therefore Advertisers should consider this

factor as they build their campaign strategies.

Figure 8 Factors influencing

Cost per Fan in Sponsored Story

campaigns in the US market

that were not controlled in this

study such as weekly and daily

cycles in Facebook use, weather,

advertising campaigns of the

competition and other factors

that may influence CPF.

Figure 9 Range in average Cost per

Fan in Sponsored Story campaigns

1.40

1.20

1.00

.80

.60

.40

CPF range in US Dollars “Other” includes all of the factors

.20

0

Other 50%

Brand 31%

Keywords 16%

Age targeting 3%

Brand Keywords Age targeting

v The Clients’ brand and

offer accounts for 31% of

variance in the CPF. Next

was Keyword targeting,

responsible for 16% of the

variance in CPF, followed

by use of Age targeting.

On average:

• The best performing

brand cost $1.20 per

fan less than the worst

performing

• The best performing

Keyword targeting cost

$0.45 per fan less than

the worst performing

Methodology: Analysis was based on 6698 campaigns and 3 clients in the US market. Very similar results were observed on the other markets.

Analyses were carried out independently for Sponsored Stories using Analysis Of Variance (ANOVA). Variance is established using eta-squared

coefficient. In order to account for skewed distribution of the CPF parameter it was transformed using log-transformation prior to analysis and

outliers (above or below 2 standard deviations, less than 5% of the sample) were removed. CPF ranged from $0.08 to $4.08 for Sponsored Stories.

www.tbgdigital.com

9


Global Facebook Advertising Report Q3 2011

Methodology

TBG Digital used a subset of total data across 216 clients, running in

192 countries worldwide generating a total of 255 billion impressions to

provide this analysis. Methodology has been provided in each section.

Report Authors

This report was written by TBG Digital with additional commentary

and validation from the Cambridge University Psychometrics Centre

provided by Michal Kosinski and Stephen Haggard.

About TBG Digital

The Psychometrics Centre

TBG Digital is a global marketing and technology company,

specializing in Facebook advertising and social media marketing.

Combining technology with unparalleled experience, the company

collaborates with clients to meet their marketing objectives. Founded

in 2001, TBG Digital has offices in London, San Francisco, New York,

Chicago, Paris and Hamburg and manages campaigns for more than

200 advertisers targeting in 190+ countries. For more information,

please visit our website at www.tbgdigital.com.

The Cambridge University Psychometrics Centre

has verified the results, graphical illustrations and

methodology used in this report based on the

data provided by TBG Digital.

www.tbgdigital.com

lass_plasma_globe.jpg (JPEG

10


Global Facebook Advertising Report Q3 2011

Report Glossary

CTR Click Through Rate

CPM Cost per Thousand Impressions

CPC Cost per Click

ASU Ad Space Unit

Sponsored Story (page like)

Example of a ‘Page Like’ Sponsored Story

What happens: Someone liked your Page directly

from Facebook or from the Like box on your

website at any point.

What you can do: You can use the Page Like Story

to make sure his friends know about this section.

Mike Fretto and Mary-Jane

Faul like Southwest Airlines

Southwest Airlines

Facebook App Campaign Campaign Advertising for an Application that

is built within Facebook. For example a social

gaming application

Brand Campaign Fan Acquisition or Fan engagement activity

on Facebook

Offsite Campaign Any Facebook Advertising that leads the

consumer off Facebook

Variance In probability theory and statistics, the

variance is a measure of how far a set of

numbers are spread out from each other. It

is one of several descriptors of a probability

distribution, describing how far the numbers

lie from the mean (expected value). The

variance of a random variable or distribution

is the expectation, or mean, of the squared

deviation of that variable from its expected

value or mean. Thus the variance is a measure

of the amount of variation of the values of

that variable, taking account of all possible

values and their probabilities or weightings

(not just the extremes which give the range).

1 of 1 28/09/2011 15:04

www.tbgdigital.com

11

More magazines by this user
Similar magazines