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BizReport : Advertising archives : August 20, 2013

Kenshoo: Facebook ads show significant performance improvement

The results of Kenshoo Social's quarterly analysis of 75 billion Facebook ads reveal significant performance improvement over the first two quarters of 2013.

by Helen Leggatt

According to Kenshoo Social, Facebook is no longer just a brand awareness and consumer engagement channel. It has evolved into a "powerful direct response channel", says Todd Herrold, senior director of product marketing.

In an infographic released yesterday, Kenshoo Social showed that click volume has increased 16.4%, conversions are up 56.9% and ad revenue increased 28.3%. Furthermore, click-through-rate (CTR) is up 18.5% while cost-per-click (CPC) is down 15.9%.

The success of Facebook ads has been influenced, in part, by the launch of new ad targeting products, such as Customer and Lookalike Audiences, Partner Categories and the Facebook Exchange, says Kenshoo Social, along with continuing optimization of ad units.

"At the same time, advertisers are getting better at narrowing down their target audiences and honing in more appropriately on users who may find the ad engaging," says Herrold. "They're becoming more sophisticated and are increasingly leveraging advertising platforms, like Kenshoo Social, to build and manage scale using automated bid optimization, audience targeting and expansion algorithms."

Tags: advertising, advertising effectiveness, direct response, Facebook, social advertising, social media, social network

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