Social media ad company TBG Digital’s Global Facebook Advertising Report has revealed that Click Through Rates (CTR) in the US increased 99 per cent between Q1 2011 and Q3 2012; in contrast to UK rates which decreased 4 per cent.
TBG Digital CEO Simon Mansell explained to The Drum this was because “Facebook [has] done a really good job of getting brands in the US to advertise with them but there is still some work to do in the UK and Europe.”
This is the first time the Global Facebook Advertising Report has provided analysis of Mobile and Desktop News Feed placements, based on 520 billion impressions in more than 190 countries for 282 clients. Mobile News Feed ads were found to be receiving CTR 23 times higher than Facebook’s Desktop News Feed and Right Hand Side panel placement option.
According to Mansell Mobile, ads get higher CTR “because the ads are in the feed rather than on the right hand side which makes the ads more likely for people to click on them.”
He added: “Mobile ads are also more social ads, they’re all sponsored story ads where your friend has done something, say liked Coca-Cola’s page. You’ll see your friend has liked Coca-Cola in your stream and because all of the ads are social you get a higher click through rate.
“Whereas some of the ads on desktop are for Capital One Credit Cards, or trying to get you to buy Sky television, which isn’t social: they’re not associated with something one of your friends has done.”
Cost per Click was also found to have dropped dramatically according to the findings; in Q3 2012 CPCs are only 5 per cent more than Q2 2010 CPCs. In the US CPC decreased by 40 per cent this quarter, likely due to the high CTR showing that despite initial reservations new ad formats on Facebook are driving more engagement by being prominently featured in the main stream of content.
As the UK has not adopted Mobile and News Feed ads at the same rate as its US counterpart this is reflected in the findings. Mansell concluded: “In the UK there’s not many brand type advertisers, they’re mainly direct response advertisers.
“Direct response advertisers and direct response advertisements have to advertise on desktop only still, because there’s a lot more brand advertisers in the US and they are using the mobile ad units and the news feed ad units those are getting the better CTR.”