Click-through rates for Facebook ads have gotten tremendously better over the past year if findings in a new report are any indication. This comes as advertisers adopt different types of ads and become less reliant on organic post reach, which has declined significantly for many of them.
Nanigans released its Global Facebook Advertising Benchmark Report for Q1, which it says represents ad impressions delivered by those using its software. It finds that global CTRs increased 17% quarter-over-quarter and about 260% year-over-year.
This, according to the ad tech company, indicates that advertisers continue to "effectively reach and engage relevant audiences" on the social network.
"Global CTRs for Facebook ads continued to rise in Q1 2015, signaling growing engagement rates across desktop and mobile," the report says. "Average CTRs in Q1 were 0.81%, up 17% from Q4 2014 and up 260% from Q1 2014. Nanigans customers in the ecommerce vertical saw CTRs increase 12% quarterover-quarter and 281% over the previous year."
"Companies advertising desktop and mobile games saw average CTRs dip 9% in Q1," it adds. "Mobile App Install Ad CTRs increased 3% quarter-over-quarter, but decay in other ad units brought the over all average down. A longer-term view shows increasing engagement among gaming advertisers, with CTRs increasing 150% year-over-year."
The report also finds that advertisers have increasingly adopted newer ad products from Facebook over the past quarter, with spend on video ads increasing 2.8x quarter-over-quarter and spend on multi-product ads increasing 5.2x.
CPCs declined by 17% quarter-over-quarter, and CPMs decreased 3%, but according to Nanigans this is due to seasonality and the quarter following a "competitive Q4 holiday shopping season."
Facebook has made a ton of improvements to its ad products over the past year, which have no doubt added considerably to the impressive rise in CTRs. In February, the company announced that it reached the milestone of two million active advertisers. At the time, we reflected on many of these improvements.
Images via Nanigans