Facebook is becoming a “powerful” direct-response channel for marketers, says Kenshoo study

Facebook is fast becoming a “powerful” direct-response channel for advertisers as well as a brand awareness and engagement channel, according to data from Kenshoo Social.

The study, which spans 75 billion Facebook ads which ran across the Kenshoo platform in the first two quarters of this year, has revealed conversions spiked 56.9 per cent, while clicks rose 16.4 per cent and overall advertiser revenue grew 28.3 per cent globally.

Conversions were defined as various actions including offsite sales, likes, comments, shares, app installs, game plays.

Click-through rates (CTRs) increased by 18.5 per cent, while cost-per-clicks (CPCs) fell 15.9 per cent between Q1 and Q2, according to Kenshoo.

The data shows the social network is expanding outside the brand awareness and engagement arena to become a “powerful” direct-response channel, according to Kenshoo Social’s director, product marketing Todd Herrold Sr.

"Advertisers are finding success using Facebook ads to drive toward their direct marketing goals, most importantly conversions and revenue.

"There are several factors influencing this evolution. Facebook has been steadily optimising its ad units and launching new ad targeting products designed specifically for direct response, including Custom and Lookalike Audiences, Partner Categories and the Facebook Exchange (FBX)," he said.

"At the same time, advertisers are getting better at narrowing down their target audiences and honing in more appropriately on users who may find the ad engaging. They’re becoming more sophisticated and are increasingly leveraging advertising platforms to build and manage scale using automated bid optimisation, audience targeting and expansion algorithms.”

Facebook introduced Exchange-delivered ads to its News Feed on desktops in a series of Alpha tests in March. The social network launched FBX last June, letting advertisers buy inventory in real time with the ability to target and retarget specific audiences.

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