1. 1
SOCIAL
MEDIA
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SHARELIKE
Social Advertising
Quarterly Report
Socialbakers Quarterly Ads Benchmark Reveals
News Feed Ads Dominate CTRs and Share of Spend

2. 2
1. Introduction
Social advertising continues to grow at a rapid rate, with the majority of
that growth coming from Facebook. Now, 92% of social marketers report
that they are using Facebook for advertising.
Facebook is a powerful advertising platform, but there are some who still
debate its value for brands. Although a lot of writing focuses on claims
that Facebook’s organic reach is declining in favour of paid ads on the
platform, most brands find that Facebook advertising is highly efficient
and generates long term ROI.
This report will take a look at Facebook advertising in detail to showcase
what has changed from Q2 2013 through Q1 2014.
Which Facebook ad placements and types work the best
In this report you will learn
Average KPIs by industry
Average KPIs by region
Forecast on Facebook Q1 quarterly earnings for advertising

3. 3
Methodology
KPI Definitions
We’ve pulled together data from the Socialbakers Ad Analytics tool, industry data, and Facebook
quarterly reports to present our quarterly Facebook advertising report.
Data has been analysed from April 2013 - March 2014 for verticals, and April 2013 - February 2014
for all other sections. We have looked at more than 2,000 advertising accounts and aggregated their
performance (impressions, spend, clicks) into ad types, placements, regions, and verticals.
Click-Through Rate (CTR) Number of clicks divided by number of impressions per ad. Example: If the
CTR of an ad is 1%, that means that 1% of everyone who saw the ad clicked.
Cost per Click (CPC) Total cost divided by number of clicks per ad.
Cost per Impression (CPM) Total cost divided by number of impressions per ad, multiplied by 1000.
Example: A business may have bought 10,000 impressions at a CPM of $5, meaning they spent $50.
Determining the right ad placements is crucial for increasing the effectiveness of your ads. Why?
Certain types of ads perform better in general - such as ads in News Feed- while others work better
based on the content that is distributed.
Here is a quick list of the six different types of ad placements that advertisers can choose from when
setting up an Ad Set:
All Facebook - Will create variations
for every type of ad placement
Desktop - Will create 2 variations
(News Feed Desktop and Right-Hand Side)
News Feed (Desktop and Mobile) News Feed (Desktop)
News Feed (Mobile) Right- Hand Side
2. Ad Placements
1.2
1.1

4. 4
Here, we look at CTR and the breakdown of ad placement effectiveness:
As one would expect due to time spent in News Feed, CTRs on the News Feed are much higher
than the right-hand column, and mobile ads dominate desktop ads in terms of clickthrough rate.
News Feed ads are growing quarter-on-quarter, with mobile increasing it’s dominance from Q3 2013
through to Q1 2014.
Below, you can see how advertisers adjusted their ad placement preferences by taking a look at the
quarter-over-quarter spend. Note the decline in the “All Facebook” placement:
This shift in ad placement spend shows the changing attitudes of advertisers. Interestingly, mobile
News Feed lost share slightly to News Feed on desktop and mobile, although this may be due to
advertisers’ increasing their post boosting efforts, with the default targeting option being to target
both desktop and mobile.
2013_Q2 2013_Q3 2013_Q4 2014_Q1
0,005 %
0,01 %
0,015 %
0,02 %
0,025 %
0,03 %
0
All Facebook
Desktop
News Feed (Desktop and Mobile)
News Feed (Desktop)
News Feed (Mobile)
Right-hand Column
All Facebook
Desktop
News Feed (Desktop and Mobile)
News Feed (Desktop)
News Feed (Mobile)
Right-hand Column
2013_Q2 2013_Q3 2013_Q4 2014_Q1
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
0
2.2
2.1

5. 5
2013_Q2 2013_Q3 2013_Q4 2014_Q1
0,05 %
0,1 %
0,15 %
0,2 %
0,25 %
0
Next, we look at CPC and CPM of each ad placement
CPC
CPM
All Facebook
Desktop
News Feed (Desktop and Mobile)
News Feed (Desktop)
News Feed (Mobile)
Right-hand Column
2013_Q2 2013_Q3 2013_Q4 2014_Q1
0,5 %
1 %
1,5 %
2 %
2,5 %
3 %
3,5 %
0
All Facebook
Desktop
News Feed (Desktop and Mobile)
News Feed (Desktop)
News Feed (Mobile)
Right-hand Column
The graphs show that CPCs and CPMs are
much lower on ads that are targeted to “All
Facebook,” with the most expensive being
News Feed placements. The reason these are
often more expensive in terms of CPC and CPM
is due to higher competition - more posts are
promoted in fewer ad slots available compared
to the right-hand column placements.
News Feed mobile placements have seen an
upward trend in terms of CPM since Q2 2013,
however, they have declined slightly this quar-
ter. The right-hand column ads have seen a
marked decrease in terms of CPC over the past
year as their competitiveness begins to decline.
2.3

6. 6
Ad Placement Takeaway
Suggestion
In terms of ad placement, the key takeaway for advertisers is that News Feed Ads are starting to domi-
nate in terms of ad spend and CTRs, and as a result CPCs and CPMs are higher for these prized slots.
We recommend that advertisers focus their attention on News Feed. This is a more competitive environ-
ment for a reason - the potential here is bigger. News Feed Ads attract higher levels of user interaction
due to their prominence.
We’ve also studied ad types, including
App ads
Event ads
Mobile app install ads
Sponsored Stories
Page Like ads
Page Like sponsored stories
Page post sponsored stories
3. Advertising Type
2.4
2.5

7. 7
The first data point shows the CTR of each of these ad types
2013_Q1 2013_Q2 2013_Q3 2013_Q4 2014_Q1*
0,005 %
0,01 %
0,015 %
0,02 %
0,025 %
0
App Ad
Event Ad
Page like Ad
Page Like Sponsored Story
The CTR on mobile app install ads has dropped greatly over the last year, but they are still higher than
most. At present, Page post sponsored stories are seeing the highest CTRs. App and event ads have
a very small CTR compared to the other formats.
Mobile App Install Ad
Open Graph Sponsored Story
Page Post Sponsored Story
Share of spend has increased on Page post sponsored stories with the increase of these types of ads
as more mobile inventory has opened up over time.
2013_Q1 2013_Q2 2013_Q3 2013_Q4 2014_Q1
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
0
App Ad
Event Ad
Mobile App Install Ad
Open Graph Sponsored Story
Page Like Ad
Page Like Sponsored Story
Page Post Sponsored Story
3.1
3.2

8. 8
In terms of CPC and CPM for various ad types, Page post sponsored stories (which are predomi-
nantly News Feed Ads) have the lowest CPC of any of the ad types, but higher CPMs than all but the
mobile app install ads.
Mobile app install ads had the highest CPM and CPC across the board, although this decreased
in the latest results. CPC and CPMs stayed at relatively similar levels between Q1 2013 and Q1 2014.
2013_Q1 2013_Q2 2013_Q3 2013_Q4 2014_Q1
0,05 %
0,1 %
0,15 %
0,2 %
0,25 %
0,3 %
0
CPC
CPM
2013_Q1 2013_Q2 2013_Q3 2013_Q4 2014_Q1
0,5 %
1 %
1,5 %
2 %
2,5 %
3 %
3,5 %
0
3.3
App Ad
Event Ad
Page like Ad
Page Like Sponsored Story
Mobile App Install Ad
Open Graph Sponsored Story
Page Post Sponsored Story

9. 9
Sponsored stories are being removed from the
advertising system as Facebook is streamlining its
advertising offerings (Page post and Page Like ads
already automatically have the best social context
added), and we feel this is a positive thing. Page
As with the placement section, this leads to the recommendation that advertisers should focus their
attentions on News Feed as these placements are more cost effective and achieve higher response rates.
post sponsored stories at present have the highest
CTR, the highest share of spend, and the lowest
CPM and CPCs. Despite the removal of the format
of sponsored stories, ads with social context will
still exist across all ad variants as noted above.
Takeaway Ad Types
Suggestion
First, we looked at CTR by region
We’ve looked at the world of Facebook advertising on a regional basis, covering 5 defined regions
We’ve studied the differences in CTRs, CPCs, CPMs, and the share of spend between these regions
to show differences between them.
Our data shows that all regions, particularly JAPAC, are increasing in terms of CTR, with the excep-
tion of North America which is on a steady decline. North America is Facebook’s most mature market
in terms of advertising and is seeing increased competition and higher spend levels.
4. Region
Europe
JAPAC
LATAM
North America
Rest of the World
2013_Q2 2013_Q3 2013_Q4 2014_Q1
0,001 %
0,002 %
0,003 %
0,004 %
0,005 %
0,006 %
0
Europe
JAPAC
LATAM
North America
Rest of the World
3.4
3.5
4.1

10. 10
In terms of share of spend, Europe has increased over the last three quarters, with JAPAC and North
America decreasing. The graph shows aggregated spend versus the number of accounts advertising
in each area, meaning that the spend per account is lower in North America.
*Please note that above graph depicts the average spend per account, not the total spend per region.
Data is also representative of Facebook Ad accounts that are connected with Socialbakers Ad Analytics,
and therefore, the amount of spend per region is not fully representative of the entire Facebook population.
Europe
JAPAC
LATAM
North America
Rest of the World
Europe
JAPAC
LATAM
North America
Rest of the World
2013_Q2 2013_Q3 2013_Q4 2014_Q1*
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
0
Next, we look at the pricing of each placement by CPC and CPM
2013_Q2 2013_Q3 2013_Q4 2014_Q1*
0,05
0,1
0,15
0,2
0,25
0,3
0,35
0,4
0
CPC
4.3

11. 11
Europe
JAPAC
LATAM
North America
Rest of the World
2013_Q2 2013_Q3 2013_Q4 2014_Q1*
0,2
0,4
0,6
0,8
1
1,2
1,4
0
CPM
This data shows that CPCs and CPMs are much higher in North America, with both metrics more than
double the next nearest region. LATAM is the lowest-cost region in terms of CPC and CPM.
If you’re in North America, consider running multi-variant A/B testing to increase the performance of
your Facebook campaigns to ensure you stay ahead of your competition.
Facebook advertising performance by vertical is a particularly interesting area, as it provides bench-
marks for brands to their industry in general and shows how different industries perform in the social
advertising environment.
We’ve studied a number of verticals with a particular focus on
5. Industry
Telecom
Electronics
Retail (food)
Ecommerce
Auto
Alcohol
Airlines
FMCG Food
Finance
Fashion
4.4

12. 12
CTR by industry
2013_Q2 2013_Q3 2013_Q4 2014_Q1
0,2000%
0,4000%
0,6000%
0,8000%
1,0000%
1,2000%
0
Telecom
Retail Food
Fashion
Electronics
Ecommerce
Alcohol
FMCG Food
Finance
CTR
CTR is increasing in most of these verticals, presumably as they get smarter with their targeting and
optimisation efforts. Ecommerce brands get the highest CTR (and it continues to increase), with retail
food, electronics, and fashion brands all having similar CTRs. Auto and finance brands had the lowest
CTR in this category.
Share of spend
2013_Q2 2013_Q3 2013_Q4 2014_Q1
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
0
Telecom
Retail Food
FMCG Food
Finance
Fashion
Electronics
Ecommerce
Alcohol
5.1
5.2

13. 13
In terms of CPC and CPM, the following results have been found.
2013_Q2 2013_Q3 2013_Q4 2014_Q1
0,02
0,04
0,06
0,08
0
0,1
0,12
0,14
0,16
0,18
0,2
Telecom
Retail Food
Fashion
Electronics
Ecommerce
Alcohol
FMCG Food
Finance
Telecom
Retail Food
Fashion
Electronics
Ecommerce
Alcohol
FMCG Food
Finance
CPC
CPM
2013_Q2 2013_Q3 2013_Q4 2014_Q1
0,1
0,2
0,3
0,4
0
0,5
0,6
0,7
0,8
0,9
1
CPCs generally declined over time, particularly in the Electronics and Auto verticals. CPMs on the other
hand increased in Q1 2014 compared to Q4 2013. This again may be due to increased competition.
Electronics saw the biggest CPM increase this quarter, with Finance and Auto seeing a small decline.
5.3

14. 14
The key takeaway from this section is that some verticals are more competitive, and therefore more
expensive to target than others. Some of the softer brands (Retail Food, for instance) achieve higher CTRs
and lower CPCs, while Electronics brands are paying much more due to the higher-value items being
offered, increased competition, and a more sales-led approach.
If you’re in one of the more competitive verticals, consider how you can target in a different way than the
competition to gain a competitive advantage. Also, be more creative with your content and boost it in News
Feeds to achieve a larger share of voice in a slightly softer way.
Takeaway Industry
Suggestion
6. Key findings
5.4
5.5
News Feed Ads dominate CTRs and share of spend
Page post sponsored stories are a dominant ad type, largely due to their presence in News Feed
North America dominates in terms of regions, although CTRs are higher in the other areas
Verticals such as Electronics, Retail, and E-Commerce are particularly competitive

15. 15
Facebook advertising is going from strength to strength, and we expect this trend
to continue through 2014. Facebook advertising is clearly something that is going to
continue to grow in importance for marketers, and with increased competition it will
be paramount for marketers to use all the necessary tools to help optimize performance.
Socialbakers has developed an advanced social measurement, management, and
optimization solution to increase the effectiveness of social advertising campaigns.
For more, check out
ads.socialbakers.com