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After algorithm tweaks led to huge changes to a brand’s ability to gain organic growth, and a simplifying of the process of how to market your brand on Facebook using paid ads, it seems Facebook’s ad revenue is increasing in line with these changes.

Facebook’s ad business has continued to grow with click through rate (CTR) and ad impressions increasing by double-digits quarter-over-quarter. CTR has increased by 20% and ad impressions by 41%.

Revenue per visit (RPV) coming from Facebook grew by 2% QoQ whereas RPV from Twitter declined by 23% and Tumblr 36%.

These figure come from Adobe’s Social Media Intelligence Report, which is based on 260bn Facebook ad impressions, 226bn Facebook post impressions, 17bn referred visits from social networking sites, and 7bn brand post interactions including comments, likes and shares.

Paid Social

Facebook ad clicks and impressions are on the rise. Facebook’s ad clicks increased 70% year-over-year (YoY) and 48% quarter-over-quarter (QoQ). Ad impressions were up 40% YoY and 41% QoQ.

Facebook’s ad CTR increased by a massive 160% YoY and 20% QoQ. However Facebook’s cost per click (CPC) dipped 2% YoY and 11% QoQ following a strong holiday season.

Organic Social 

Brand posts with embedded video gained traction in Q1, with 58% more engagement QoQ and 25% growth YoY. 

Facebook video plays increased 785% YoY and 134% QoQ. This is almost exclusively in thanks to Facebook’s implementation of auto-play in users’ news feeds.

Posts with images provide the highest engagement rate. Posts that include links also rose 167% QoQ and 77% YoY.

In contrast, text-only Facebook brand posts are losing share and engagement. Facebook is prioritising visual content in news feeds and its up to brands to make sure their posts fall in line with this trend.

If you’re interested in timing your output by day, one quarter of videos uploaded to Facebook are played on a Friday and nearly 16% of post impressions also happen on a Friday.

Owned Social

Revenue referred from most social channels to retail sites dropped quarter-over-quarter on every social channel except for Facebook.

Facebook referred revenue per visit is up 11% YoY and 2% QoQ. Facebook had a very successful Q4 2013 according to Kenshoo’s recent report which found that Facebook ads drove 60% increase in sales revenue. This clearly had a lead-in effect in Q1 2014.

Twitter referred revenue per visit is up 5% YoY and down 23% QoQ. Tumblr referred revenue per visit is up 55% YoY, but slumped 36% QoQ. 

Despite Pinterest overtaking Facebook for UK referral revenue in Q4 2013, according to Adobe’s previous social intelligence report, it seems the balance has tipped back in Facebook’s favour. Facebook Is able to provide value all year around, outside of the holiday season.

Read the full report here: Adobe Social Intelligence Report.

Christopher Ratcliff

Published 22 April, 2014 by Christopher Ratcliff

Christopher Ratcliff is the editor of Methods Unsound. He was the Deputy Editor of Econsultancy. You can follow him on Twitter or connect via Google+ and LinkedIn

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Comments (4)

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Bradley Robb

What are the Facebook CTRs? I know the relative increase, but I can't seem to see the actual data, the before and after.

over 2 years ago

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over 2 years ago

Pete Austin

Pete Austin, CTO at Fresh Relevance

I think Facebook's CTR gains are mainly because their ad inventory is improving, not because of their technology. So kudos to their b2b sales team and marketing materials.

My behavior hasn't changed and my newsfeed is sufficiently empty that don't think algorithm changes have made any difference.

This time last year, I was seeing mostly sleazy adverts for e.g. accident lawyers, Russian Brides or one weird trick. Not the sort of thing that I would click, intending to buy.

Now, most of the adverts are the same sort of remarketing content that I get alongside Google search or on banner ads - much more enticing.

over 2 years ago

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Raphael Diai - Collider

As an owner of a few Facebook pages and if I was being sarcastic, I'd say Facebook CTR figures going up are exactly the type of good looking stat they want to show their ad spenders.
The fact that Facebook ads drove 60% increase in sales revenue in 2013 is proving the success of Facebook's strategy.

The decrease of organic reach is a catalyst for Facebook's gold rush. If users are seeing more relevant and clickable ads than 2 years ago, it's mostly because Facebook pushed serious advertisers to spend more and more money on social ads with the sole purpose of being seen. The problem is, brands spent years building large communities just to learn now that they will reach only 5% (new estimated reach) of them organically, without paying any ads.

Today, there seem to be an industry aversion regarding Facebook and how it went from an amazing free platform to engage with your audience to another advertising platform where only the big spenders can stand out.

over 2 years ago

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