Executive Summary of Key Advertising Trends for 2014:
1.) Marketers Have Embraced Facebook’s News Feed as a Vehicle for Native
Advertising : News Feed has become the primary area of focus and engagement
for users, creating bright opportunities for advertisers. Marin saw a 140% quarterover-
quarter increase in News Feed advertising in Q3 2013 with 67% lower costs
per conversion compared to right-hand side ad placements.
2.) Facebook Users Have Embraced Mobile as Medium of the Future: Mobile adoption
among Facebook users skyrocketed in 2013 with 74% of Facebook users now
accessing the platform through their mobile devices. This increase in mobile
adoption, combined with attractive click-through rates (CTR) via mobile advertising,
has changed the way advertisers manage their campaigns. In fact, Marin saw the
percentage of advertisers running mobile-only campaigns increase 45% between
Q2 2013 and Q3 2013.
3.) Facebook Users Are More Likely to Buy from Brands They’ve Previously Engaged
With: Of all the changes Facebook introduced to their advertising capabilities,
perhaps none was more important than Custom Audiences. Custom Audiences
makes it possible for most advertisers with a customer list to retarget. Retargeting
customers through Custom Audiences has already proven to be the most cost
effective targeting option, producing costs per conversion that are 64% lower
than targeting by Broad Categories or Precise Interests according to Marin
Software data.
4.) Facebook Users Are More Likely to Engage With “Fresh” Creatives: As Facebook
advertising has become increasingly competitive, the company has become strict
on showing ads with the highest CTR. To maintain “fresh” creatives and prevent
overexposing users to the same ads, Marin has seen a substantial increase in
advertisers using creative rotation strategies. On average, advertisers working
with Marin using creative rotation strategies have produced 35% higher CTR
than those not using creative rotation, demonstrating that users prefer
and are more likely to engage with fresh creatives.
-----------------------------------------
Strategic Recommendations for Facebook Advertisers:
• Allocate at least half of budget toward News Feed placements: In addition
to driving superior performance relative to the right-hand side, advertising in News
Feed presents several additional key benefits for advertisers including increased
visibility and mobile reach. As both mobile adoption and News Feed engagement
increase amongst users, advertisers will need to begin allocating budgets toward
the placements that are most likely to be seen by users.
• Leverage Unpublished and Existing Page Post Ads: Over the past year, Page
post ads have evolved into the top performing Facebook creative type for driving
conversion. There are two flavors of this creative type – unpublished Page posts
and existing Page posts. Ensure you are taking advantage of the distinct benefits
each. For example, advertisers should promote organic Page posts that have
garnered high levels of engagement and virality amongst Facebook users, which
will immediately add “social context” to the target audience. Unpublished Page
posts, which do not require a prerequisite post to your fan base, should be
targeted at your audiences with the highest ROI and contain deep links
to optimized landing pages.
Track ROI of News Feed placements: News Feed placements perform differently
and therefore must be managed separately from right-hand side ads. Advertisers should
ensure they are working with a Facebook ads management platform that can track
not only conversions and ROI but also the lifetime value (LTV) of desktop and mobile
News Feed placements separately from right-hand side placements. Elite Facebook
management platforms like Marin Software can help advertisers roll up aggregate
views of LTV by placement to help automate bid management and budgeting.
TREND #2:
FACEBOOK USERS EMBRACE MOBILE AS MEDIUM OF THE FUTURE
Smartphones have spread faster than any consumer technology in human history,
reaching market maturity faster than radio, TV, the commercial Internet and many
other devices and technologies. According to Nielsen, 61% of US mobile subscribers
now own a smartphone. In 2013, the surge in mobile adoption helped skyrocket
Facebook’s mobile base, creating new opportunities for marketers. In its Q3 2013
investor summary report, Facebook reported 74% of Facebook users utilize the platform’s
mobile app. Facebook also reports that the percentage of users who access Facebook
exclusively through their mobile device increased by 19% in Q3 versus Q2 2013,
highlighting that overall, users are gravitating toward using Facebook exclusively on
their mobile devices. In Q3 of 2013, Facebook reported 874 million mobile monthly
active users, a 45% year-over-year increase. Given the surge in mobile users, in 2014
it will be imperative that Facebook advertisers target users’ mobile devices.
1.) Marketers Have Embraced Facebook’s News Feed as a Vehicle for Native
Advertising : News Feed has become the primary area of focus and engagement
for users, creating bright opportunities for advertisers. Marin saw a 140% quarterover-
quarter increase in News Feed advertising in Q3 2013 with 67% lower costs
per conversion compared to right-hand side ad placements.
2.) Facebook Users Have Embraced Mobile as Medium of the Future: Mobile adoption
among Facebook users skyrocketed in 2013 with 74% of Facebook users now
accessing the platform through their mobile devices. This increase in mobile
adoption, combined with attractive click-through rates (CTR) via mobile advertising,
has changed the way advertisers manage their campaigns. In fact, Marin saw the
percentage of advertisers running mobile-only campaigns increase 45% between
Q2 2013 and Q3 2013.
3.) Facebook Users Are More Likely to Buy from Brands They’ve Previously Engaged
With: Of all the changes Facebook introduced to their advertising capabilities,
perhaps none was more important than Custom Audiences. Custom Audiences
makes it possible for most advertisers with a customer list to retarget. Retargeting
customers through Custom Audiences has already proven to be the most cost
effective targeting option, producing costs per conversion that are 64% lower
than targeting by Broad Categories or Precise Interests according to Marin
Software data.
4.) Facebook Users Are More Likely to Engage With “Fresh” Creatives: As Facebook
advertising has become increasingly competitive, the company has become strict
on showing ads with the highest CTR. To maintain “fresh” creatives and prevent
overexposing users to the same ads, Marin has seen a substantial increase in
advertisers using creative rotation strategies. On average, advertisers working
with Marin using creative rotation strategies have produced 35% higher CTR
than those not using creative rotation, demonstrating that users prefer
and are more likely to engage with fresh creatives.
-----------------------------------------
Strategic Recommendations for Facebook Advertisers:
• Allocate at least half of budget toward News Feed placements: In addition
to driving superior performance relative to the right-hand side, advertising in News
Feed presents several additional key benefits for advertisers including increased
visibility and mobile reach. As both mobile adoption and News Feed engagement
increase amongst users, advertisers will need to begin allocating budgets toward
the placements that are most likely to be seen by users.
• Leverage Unpublished and Existing Page Post Ads: Over the past year, Page
post ads have evolved into the top performing Facebook creative type for driving
conversion. There are two flavors of this creative type – unpublished Page posts
and existing Page posts. Ensure you are taking advantage of the distinct benefits
each. For example, advertisers should promote organic Page posts that have
garnered high levels of engagement and virality amongst Facebook users, which
will immediately add “social context” to the target audience. Unpublished Page
posts, which do not require a prerequisite post to your fan base, should be
targeted at your audiences with the highest ROI and contain deep links
to optimized landing pages.
Track ROI of News Feed placements: News Feed placements perform differently
and therefore must be managed separately from right-hand side ads. Advertisers should
ensure they are working with a Facebook ads management platform that can track
not only conversions and ROI but also the lifetime value (LTV) of desktop and mobile
News Feed placements separately from right-hand side placements. Elite Facebook
management platforms like Marin Software can help advertisers roll up aggregate
views of LTV by placement to help automate bid management and budgeting.
TREND #2:
FACEBOOK USERS EMBRACE MOBILE AS MEDIUM OF THE FUTURE
Smartphones have spread faster than any consumer technology in human history,
reaching market maturity faster than radio, TV, the commercial Internet and many
other devices and technologies. According to Nielsen, 61% of US mobile subscribers
now own a smartphone. In 2013, the surge in mobile adoption helped skyrocket
Facebook’s mobile base, creating new opportunities for marketers. In its Q3 2013
investor summary report, Facebook reported 74% of Facebook users utilize the platform’s
mobile app. Facebook also reports that the percentage of users who access Facebook
exclusively through their mobile device increased by 19% in Q3 versus Q2 2013,
highlighting that overall, users are gravitating toward using Facebook exclusively on
their mobile devices. In Q3 of 2013, Facebook reported 874 million mobile monthly
active users, a 45% year-over-year increase. Given the surge in mobile users, in 2014
it will be imperative that Facebook advertisers target users’ mobile devices.
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