Advertisers on Facebook increased spending by 83% in the first quarter of 2014 compared to Q1 of 2013, according to data from online advertising software provider Nanigans.
Also in the report (which can be downloaded in full here):
- Spending in Q1 dropped slightly — by 5% — compared to the fourth quarter of 2013.
- Cost per click rates increased 10% from the fourth quarter, likely due to increased competition for targeted audiences and content in the News Feed, leading to a spike in demand.
- Impressions were down 17% QOQ and 48% YOY, showing there are fewer but higher value impressions.
- App discovery continues to be a priority for app developers. Mobile app install ads were the most popular mobile ad unit capturing 74% of mobile ad spending.
- Advertisers have shifted their focus to the News Feed with 81% of desktop ad spending allocated to News Feed ad units.
- 47% of desktop spending went to unpublished page post link ads (which don’t appear in pages’ organic feeds) and such ads had a 200% better ROI than ads in the right-hand sidebar.
- 76% of ad spending was allocated the age 25+ demographic.
Nanigans pulled its findings from an aggregate data set of advertisers and partners that have used the Nanigans Ad Engine platform from Q1 2013 to Q1 2014. Nanigans said its clients include 200 of the world’s leading performance marketers in retail, travel and gaming.
Because the data set is loaded with major brands — eBay, Rosetta Stone and Vista Print are listed as customers on the Nanigans website — that likely spend significant amounts on Facebook advertising, the report shouldn’t been seen as an indicator of overall ad spending on the social network.
But it is interesting to note that in the wake of reduced organic reach on Facebook, the bigger spenders are putting more money into the advertising game.