Facebook newsfeed ads deliver

12 February 2013
NEW YORK: Ads that appear in Facebook newsfeeds are significantly more effective than those appearing in the sidebar, new research has found.

Nanigans, a Facebook advertising-software company, studied more than 975m Facebook ad impressions delivered to 'profitable' US consumers, defined as those who generate more revenues in the long term than the cost to acquire them.

The findings clearly demonstrated the greater value of newsfeed page post ads, which have a higher click-through rate (CTR) and a lower cost.

CTR, at 1.87%, was 46 times higher than Facebook domain ads, which showed a return of only 0.04%.

Cost per click, at $0.26, was less than a third of that for comparable domain ads, which came in at $0.82.

Overall, Nanigans suggested that ROI was 14% higher for newsfeed ads.

When the analysis was broken down to examine the differences between ads received via desktop and mobile, further distinctions emerged.

Mobile newsfeed page post ads recorded a CTR of 3.38%, almost twice as high as the 1.75% registered by desktop ads.

In terms of cost per click, mobile newsfeed ads cost roughly half as much, at $0.14 versus $0.28 for desktops.

Data sourced from eMarketer; additional content by Warc staff
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