Twitter Ad Costs for 2017 [NEW REPORT]

Twitter Ad Costs for 2017 [NEW REPORT]

For Q4 2017, we’ve analyzed over 355 million Twitter ad impressions across 100+ unique accounts in USD currency to uncover the average CPM, CPC, and CTR of Twitter ad costs. Compared to Q3’17, we found the average CPM for Twitter ads increased 20%, the average CPC for Twitter ads increased 15%, and the average CTR for Twitter ads had no measurable change.

Twitter Ads Benchmarks – Q4 2017

  • The average Twitter CPM was $5.92
  • The average Twitter CPC was $0.36
  • The average Twitter CTR was 1.76%

Twitter Ads Cost Q4 2017

Be sure to view the Q4 Paid Search and Paid Social ads Benchmark Report for the latest trends.

Twitter Ads Cost – Q4 2017

Twitter’s CPM Increase 27%

Based on AdStage data, Twitter’s average CPM increased 20% in Q4 compared to Q3, continuing the upward trend throughout 2017. The 2017 trend shows that Twitter ad CPM increased only 14% from $5.19 to $5.92 comparing Q1 to Q4.


Twitter’s CPC Increase 8%

Although average CPCs increased by 15% in Q4 compared to Q3, the overall 2017 shows advertisers benefiting from decreasing CPCs. The 2017 trend shows that Twitter Ad CPC decreased 41% from $0.60 to $0.36 comparing Q1 to Q4.


Twitter’s CTR Remain Flat After January

Although there was no measurable change for average CTRs from Q3 to Q4, advertisers have benefited from a 90% gain in average CTRs for 2017. The 2017 trend shows that Twitter ad CPM increased 90% from 0.83% to 1.76% comparing Q1 to Q4.


Takeaways and Insights

Based on the data, here are our main Twitter insights and questions:

  • Advertisers are still spending on Twitter Ads
  • CPMs and CPCs increased while CTRs remained flat
  • Advertiser budgets are inconsistent month-to-month but definitely increased in Q4

Q4 was a big one for Twitter. They beat expectations and returned to revenue growth, achieved GAAP profitability, and drove continued double-digit DAU growth. Here are the highlights:

    • Owned-and-operated (O&O) advertising revenue increasing 7% year-over-year, reflecting better-than-expected growth across all major products and geographies.
    • We achieved GAAP profitability for the first time and delivered our highest ever GAAP net income of $91 million with adjusted EBITDA of $308 million.
    • Daily active usage (DAU) grew 12% year-over-year, marking our fifth consecutive quarter of double-digit year-over-year growth. We launched new features to help people discover and talk about what’s happening on Twitter, including making it easier to thread Tweets and expanding the character limit to 280 characters for more people around the world.

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Our mission at AdStage is to help paid marketers quickly and easily #closetheloop on their advertising data so they can understand holistic campaign performance and take action at scale. If you want to learn more about our Twitter Ads reporting solution, click the banner below to sign up for a 14-day free trial.

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Google AdWords CPC Decreased 42% in Q4 2017

Google AdWords CPC Decreased 42% in Q4 2017

For Q4 2017, we’ve analyzed over 240 million Google AdWords search ad impressions across 750+ unique accounts in USD currency to uncover the average CPM, CPC, and CTR. Compared to Q3’17, we found the average CPM on AdWords search ads decreased 30%, the average CPC on AdWords search ads decreased 42%, and the average CTR for AdWords search ads increased 21%.

Google AdWords Ads Benchmarks – Q4 2017

  • The average Google AdWords CPM was $78.47
  • The average Google AdWords CPC was $0.97
  • The average Google AdWords CTR was 8.33%

Google AdWords CPM, CPC, and CTR Benchmarks for Q4 2017

*Note: these benchmarks do not include ads run on Google Display Network or Youtube.
Be sure to view the Q4 Paid Search and Paid Social ads Benchmark Report for the latest trends.

Google AdWords Benchmarks for Q4 2017

Google AdWords’s CPM Decreased 30%

Based on AdStage data, Google AdWords CPM decreased by 30% from $111.42 in Q3 to $78.47 in Q4. The 2017 trend shows that Google AdWords CPMs decreased 25% from $104.05 to $78.47 comparing Q1 to Q4.


Google AdWords’s CPC Decreased 42%

Based on AdStage data, Google AdWords CPC decreased by 42% from $1.68 in Q3 to $0.97 in Q4. The 2017 trend shows that Google AdWords CPCs decreased 29% from $1.37 to $0.97 comparing Q1 to Q4.


Google AdWords’s CTR Increased 21%

Based on AdStage data, Google AdWords CTR decreased by 21% from 6.87% in Q3 to 8.33% in Q4. The 2017 trend shows that Google AdWords CPMs decreased 2% from 8.47% to 8.33% comparing Q1 to Q4.


Google AdWords Q4 Trends

Across AdStage’s customer base, Google AdWords search spending increased by 146% year over year in Q4 2017 and by 9% QoQ. In addition, AdWords captured 91% of paid search budgets while Bing Ads earned the remaining 9% in Q4. This expansion will push Google’s share of the US digital ad market to 42.2%, according to eMarketer.

That said, Google AdWords and Facebook ad budgets are truly a duopoly gobbling up more than 60% of US digital ad investment. Looking into 2018, these trends aren’t slowing down as Google owns the #1 browser, search engine, email platform, and video network. As more performance marketers shift their focus and budgets into full lifecycle marketing rather than bottom of the funnel marketing, AdWords will continue to receive a lion’s share of the digital ad budgets.

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Facebook Ads CPM, CPC, & CTR Benchmarks for Q4 2017

Facebook Ads CPM, CPC, & CTR Benchmarks for Q4 2017

For Q4 2017, we’ve analyzed over 1.7 billion Facebook ad impressions across 1700+ unique accounts in US currency to uncover the average CPM, CPC, and CTR. Compared to Q3’17, we found the average CPM for Facebook ads increased by 37%, the average CPC for Facebook ads increased by 14%, and the average CTR for Facebook ads increased by 25%.

Facebook Ads Benchmarks – Q4 2017

  • The average Facebook ads CPM was $12.45
  • The average Facebook ads CPC was $0.54
  • The average Facebook ads CTR was 2.34%

Facebook Q4 2017 CPM, CPC, and CTR Benchmarks

Be sure to view the Q4 Paid Search and Paid Social ads Benchmark Report for the latest trends.

Facebook News Feed & Right Hand Column Benchmarks for Q4 2017

Facebook CPM Increased 37% in Q4

Based on AdStage data, Facebook Ad CPM increased by 37% from $9.06 in Q3 to $12.45 in Q4. The 2017 trend shows that Facebook Ad CPM increased 110% from $5.93 to $12.45 comparing Q1 to Q4.


Facebook CPC Increased 14% in Q4

Facebook CPC increased 14% in Q4 to an overall average of $0.54. The 2017 trend shows that Facebook CPC increased 109% from Q1 to Q4.


Facebook CTR Increased 25% in Q4

Facebook advertisers saw a positive CTR increase of 24% from 1.92% in Q3 to 2.39% in Q4. The 2017 trend shows that Facebook CTR increased in Q4, recovering from mid-year lower average CTRs. Year over year CTRs are relatively flat at -2%.


Facebook Audience Network Benchmarks

In Q4, we analyzed over 268 million Facebook Audience Network ad impressions. Compared to Q3’17, the average CPM on Facebook Audience Network decreased 8%, the average CPC on Facebook Audience Network decreased 4%, and the average CTR for Facebook Audience Network decreased 5%.

Facebook Audience Network Benchmarks – Q4 2017

  • The average CPM for Facebook Audience Network was $3.77
  • The average CPC for Facebook Audience Network was $0.27
  • The average CTR for Facebook Audience Network was 1.42%

Facebook Audience Network Q4 2017 CPM, CPC, and CTR Benchmarks

Facebook Audience Network CPM Decreased 8% in Q4

Based on AdStage data, FAN CPMs decreased by 8% from $4.08 in Q3 to $3.77 in Q4. The 2017 trend shows that Facebook Audience Network CPM increased 14% from $3.32 to $3.77 comparing Q1 to Q4.


Facebook Audience Network CPC Decreased 4% in Q4

The CPCs of Facebook Audience Network ads decreased from $0.28 in Q3’17 to $0.27 Q4’17. The 2017 trend shows that FAN CPC increased 116% from $0.13 to $0.27 comparing Q1 to Q4.


Facebook Audience Network CTR Decreased 5% in Q4

Advertisers are getting a consistent CTR from Q3 to Q4 with only a minor decrease from 1.49% to 1.42%. The 2017 trend shows that CTR has dropped 47% from 2.68% to 1.42% comparing Q1 to Q4.


Facebook Ads Q4 Trends

There were three factors that are worth calling out as they relate to Facebook ad results. According to Facebook’s Q4 earning call, the network made algorithm tweaks resulting in a 5% drop in the total amount of time users spent on the social network.

Facebook also reported its first-ever decline in daily users in the U.S. and Canada. In Q3 the network had 185 million daily users in this region and in Q4 it dropped down to 184 million.

Lastly, the number of Facebook advertisers grew to over six million at the end September 2017. That’s over 1 million new advertisers from March 2017. Based on that growth plus the holiday season, we can surmise that Facebook added more advertisers in Q4.

Take these three factors together and it’s easy to see why the ads auction is so competitive and further illustrates Facebook’s ad load capacity is maxed out. That said, the results must be positive as budgets on the social network saw a 26% increase in Q4 compared to Q3 according to AdStage data.

Looking forward into 2018, Facebook will play a bigger role in paid marketer’s mobile strategy. I predict Facebook marketers will turn to Instagram ads to drive conversions, experiment with Messenger ads to start conversations, and turn to offline conversions to measure business impact. Check out expert Facebook predictions for 2018.

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Get the Q4 Paid Search and Paid Social ads Benchmark Report for the latest trends across all major ad networks.

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Instagram Advertising Costs in 2017 [Benchmark Report]

Instagram Advertising Costs in 2017 [Benchmark Report]

Instagram Ads have come along way since they first started to test ads in user feeds in late 2013. They now have over five different ad types for advertisers to choose from.

One reason for Instagram’s rapid adoption among advertisers is the pipeline of 6 million active advertisers on Facebook. As Facebook’s News Feed faces maximum ad capacity, they’re pushing marketers to experiment with Instagram Ads since there’s more available inventory. And marketers looking for more audience reach are turning to Instagram as they same targeting capabilities as Facebook.

But a question marketers are quick to ask is, how much does it cost to advertise on Instagram? Well, we have an answer.

Instagram Ad Types

How Much Do Instagram Ads Cost?

In a brand new report from AdStage, we take an in-depth look at the PPC benchmarks and trends that matter to you and your digital advertising strategy. In Q3, we analyzed over 200 million Instagram ad impressions.

Based on AdStage data, we found in Q3’17 for Instagram ads

  • the average CPM on Instagram was $13.92
  • the average CPCon Instagram was $1.94
  • the average CTRon Instagram was 0.99%

Instagram Ads Key Takeaways

  • The average CPM on Instagram ads increased 72% since Q1’17
  • The average CPC on Instagram ads decreased 35% since Q1’17
  • The average CTR for Instagram ads increased 44% since Q1’17

Be sure to view the Q4 Paid Search and Paid Social ads Benchmark Report for the latest trends.

Instagram’s Supply and Demand

Facebook’s ad impressions are flat while ad spend is moving up. This tells us advertisers are paying more to enter the auction while getting the same number of impressions.

Instagram Supply and Demand 2017

Instagram Ad CPCs Decrease 35%

Based on our data, we saw CPCs increase by 35% over the first nine months of 2017.

Instagram CPCs in 2017

The biggest correlation in our CPC data was when Instagram announced new objectives for Stories Ads on May 25th.

When first rolling out ads in Instagram Stories, we began by focusing on the Reach objective to help businesses better target and reach the people they wanted to connect with. But over the past three months these capabilities have greatly expanded, giving businesses the ability to purchase ads in Instagram Stories across additional objectives—Video Views, Traffic (formerly known as Website Clicks), Conversions and Mobile App Install. As a result, stories has become a full-funnel solution for a growing spectrum of business objectives.

With the rapid growth in users, advertisers, and the strong adoption of new ad features like Stories ads, Instagram is poised to make a splash in 2018.


The exclusive Q4 2017 PPC Benchmark Report gives unprecedented paid marketing benchmarks, insights, and trends into what’s happening on the major ad platforms. Just click on the button below to access the full 70+ page report.

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LinkedIn Advertising Costs for 2017 [Benchmark Report]

LinkedIn Advertising Costs for 2017 [Benchmark Report]

We analyzed over 4.3 billion LinkedIn ad impressions from January to June 2017 from AdStage customers. Based on our data, we saw CPMs increase from $7.29 to $8.39 during the first six months of 2017, while the average CPC increased from $6.03 to $6.50.

LinkedIn Advertising Costs

  • The average LinkedIn Ads CPM is $8.39
  • The average CPC on LinkedIn is $6.50
  • The average CTR on LinkedIn is 0.13%

Be sure to view the Q4 Paid Search and Paid Social ads Benchmark Report for the latest trends.

LinkedIn’s Supply and Demand

According to AdStage data, LinkedIn ad impressions dropped by 5%, while ad spend increased by 10% in Q2’17. This is causing advertisers to pay more to enter the auction at a decreased number of impressions.

AdStage - LinkedIn Spend vs Impressions

LinkedIn’s CPM Increase By 15%

From our AdStage data, we saw CPMs decrease by 20% in Q1’17, and then dramatically increase by 44% in Q2’17. The overall CPM increased 15% since January 2017. This shows the competitive nature of the LinkedIn auction and may indicate that LinkedIn is reaching max ad load.

LinkedIn Ads Cost CPMs

LinkedIn’s CPC Increase 8%

Our internal findings also showed that LinkedIn CPCs went from $6.03 to $6.50 in the first six months. Q1’17 actually saw a 4% CPC decline while Q2’17 increased by 15%. While it’s a small increase, it may be enough to scare away smaller advertisers when thinking about the type of companies finding success on the network.

Average LinkedIn Ads Cost CPCs

LinkedIn’s CTR Remain Flat

LinkedIn advertisers are getting very consistent CTRs month-over-month. However, it’s costing more to get the same result due to higher CPMs and CPCs.

Average LinkedIn Ads Cost CTR

Why Are LinkedIn’s CPMs & CPCs Increasing

Our AdStage ad spend data includes all Sponsored Content and text ads ran across LinkedIn’s network. Below are a couple of possible explanations for the increase in CPMs and CPCs in 2017.

We asked AJ Wilcox, CEO of B2Linked, to share his opinion on the data. “It’s natural for LinkedIn’s auction to become more competitive over time, as with any other successful biddable media platform,” says AJ. “We especially see CPCs in Q1 each year as being quite low, so the 15% rise from Q1 to Q2 isn’t surprising.”

1) Is LinkedIn’s Inventory Maxed Out

LinkedIn boasts more than 500 million users, which is impressive but still limited compared to Facebook. With a limited supply of ads coupled with growing demand, the auction is getting more competitive, which means advertisers will pay more to enter.

The following three issues are impacting LinkedIn’s ad inventory:

  • LinkedIn’s user growth remains steady, but only 23% of members use the platform on a monthly basis.
  • Ad placements cater to desktop users. Linkedin will need to find new ways to place more ads on their mobile app.
  • More advertisers are using the ad platform.

AJ says that engaging ad creative and offers are key to winning the auction.

As more and more advertisers enter the competitive auction, the onus moves to advertisers to create ads that generate higher engagement rates. Advertisers who insist on pushing friction-prone offers like demos, trials, and sales conversations will not generate high enough Relevancy Scores to show, and when they do show, the cost per click will be so astronomical as to price these advertisers out of the auction.

It’s worth noting that LinkedIn recently announced their native Audience Network. This will allow advertisers to reach more people with Sponsored Content through third-party publishers placements. However, don’t expect a huge lift as beta advertisers only saw a 3-13% increase in unique impressions.

2) LinkedIn Budgets Are Increasing

Hanapin Marketing conducted a paid social survey asking marketers where they plan to increase and decrease budgets in 2017. They found that 43% of marketers were NOT investing in LinkedIn Ads. However, 39% advertisers planned on increasing their ad spend within the following year. It looks like LinkedIn Ads are delivering results for certain companies, which is leading to budget increases.

Hanapin Paid Social Survey - LinkedIn

Our AdStage data confirms that LinkedIn advertisers are indeed increasing their budgets, as overall spend increased 23% since January 2017.

AdStage - LinkedIn Spend 2017

3) New LinkedIn Ad Types and Features

LinkedIn released two big features that definitely got advertisers excited. It’s possible that advertisers increased their test budgets, leading to more competition in the auction.

Here’s what AJ Wilcox thinks:

“We’re currently also seeing much more interest building over time of new advertisers flocking to test out the platform, due to the continued addition of features as LinkedIn is quickly catching up to the pack.”

Two new features LinkedIn announced in Q2:

  • Lead Gen Forms — This ad format helps marketers drive leads from Sponsored Content campaigns, particularly on mobile devices where conversion rates tend to be lower, as users don’t want to fill out a long form on-the-go. For B2B advertisers, the quality of the leads on LinkedIn is already far superior to other ad networks that offer lead gen ads. And, just like any other LinkedIn campaign, these campaigns come with the same reporting capabilities that LinkedIn already offers, so you can easily measure return on ad spend, cost per lead, and conversion rate.
  • Matched Audiences — LinkedIn announced a powerful new feature called Matched Audiences, which includes three new targeting tools that let you combine LinkedIn’s professional data with your own first-party data. Now you can target website visitors, contacts, and specific accounts on LinkedIn.

Takeaways and Insights

Based on the data, here are our main LinkedIn insights and questions:

  • Advertisers are putting more budget into LinkedIn Ads
  • Yet, CPMs & CPCs are rising as inventory remains flat
  • By using natively uploaded videos as new ad inventory, LinkedIn could increase its overall ad load without cluttering user feeds or profile pages.

AJ offers advise to advertisers looking to win future auctions:

Advertisers who win in the future with low costs per lead will do so by exercising a keen understanding of their customers’ pains and needs, and providing useful content that solves them, without being overly salesy or pushy.

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Our mission at AdStage is to connect paid marketers quickly and easily to the data they need to understand holistic campaign performance and take action at scale. If you want to learn more about our LinkedIn Ads management solution, and click the banner below to download the latest Q4 paid marketing benchmark report.

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