Facebook Ads CPM, CPC, & CTR Benchmarks for Q1 2018

Facebook Ads CPM, CPC, & CTR Benchmarks for Q1 2018

For Q1 2018, we’ve analyzed over 3 billion Facebook ad impressions and more than 80 million clicks across 3,000+ unique accounts. Compared to Q4 ’17, we found the median CPM for Facebook placement ads decreased by 12.5%, the median CPC for Facebook ads decreased by 12.7%, and the median CTR for Facebook ads decreased by less than 1%.

Facebook News Feed & right-column ad benchmarks – Q1 2018

  • The Facebook placement ads median CPM was $11.20
  • The Facebook placement ads median CPC was $0.48
  • The Facebook placement ads median CTR was 2.36%

Facebook Q1 2018 Newsfeed Ad Metrics AdStage

Be sure to read the Q1 2018 PPC Benchmark Report for the latest ad performance trends.

Facebook CPMs increased 91% Y/Y in Q1

Based on AdStage data, Facebook ad CPMs increased significantly from Q1 2017, increasing sharply in Q2 2017, and again in Q4. Our data shows Q1 2018 CPMs declining 12.5% compared to Q4 2017.


Facebook CPCs increased 92% Y/Y in Q1

CPCs on News Feed and right-hand column ads continued to increase throughout 2017, only to slightly decline 12.7% in Q1 2018, ending the quarter at a median CPC of $0.48. Increased competition and better engagement both contribute to higher prices, but the placement remains one of the best for return on your ad spend.


Facebook CTRs remain consistent Y/Y in Q1

Our data shows that median CTRs on Facebook News Feed and right-hand column ads only changed by -0.8% Y/Y. Quarter-over-quarter changes to CTR are in the hundredths of percents, confirming CTRs have been both stable and predictable through the last two quarters.


Facebook Audience Network ad benchmarks – Q1 2018

  • Median CPM for the Audience Network ads was $2.41
  • Median CPC for the Audience Network ads was $0.19
  • Median CTR for the Audience Network ads was 1.32%

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Facebook Audience Network CPMs decreased 29% Y/Y in Q1

Our data shows that median CPMs have declined for the second quarter in a row, down 36.7% Q/Q, ending Q1 at $2.41 for marketers on the AdStage platform. At 29% down Y/Y, we are unsure if this new low is the beginning of a trend, or a temporary correction. Either way, marketers benefit from lower costs across the Audience Network.


Facebook Audience Network CPCs Up 46% Y/Y in Q1

Median CPCs decreased for the second quarter in a row, dropping 27% Q/Q from Q4 2017, ending the quarter at $0.19. The last five quarters of median CPCs draw a different curve, one that may show hidden seasonality. We’ll have to get our data team to dig deeper to uncover further insights for our next report.


Facebook Audience Network CTRs down 50% Y/Y in Q1

Our data show that median CTRs on the Facebook Audience network remain fairly even between Q4 2017 and Q1 2018, decreasing from 1.38% to 1.32%. Median spend on the Audience Network increased 22% between January and March 2018 among marketers on the AdStage platform. Yet, that additional spend was necessary to retain the level of clicks, and did not appear to increase engagement.


The data from marketers using the AdStage Platform only represent a fraction of the overall industry. While you may experience similar performance metrics as our data show, it’s important to understand the overall trends and changes that can affect your unique campaigns.

Facebook ad trends Q1 2018

Marketers are doubling down on Facebook advertising this year. With GDPR and other data privacy changes being implemented in Q2, marketers are keen on learning how to play (and pay) to win in this new landscape.

On the Q1 2018 earnings call, Facebook’s CFO David Wehner stated, “Q1 total ad revenue was $11.8 billion, up 50%.” Wehner continued, “In Q1, the average price per ad increased 39% and the number of ad impressions served increased 8%, driven primarily by feed ads on Facebook and Instagram.”

As ad prices increase, marketers are ready to tackle any changes that may come due to GDPR. Although Facebook admits they, “do not anticipate these changes will significantly impact advertising revenue.”

New ad products

Facebook continues to develop and release new ad products to compete with other networks, and more so with ad fatigue within their own properties.

Instagram Stories now supports Carousel Ads, allowing marketers to include up to three photos or videos, expanding the ability to tell engaging stories. As Stories becomes a full-fledged product within a product, we’ll continue to see advances in what Instagram can provide marketers.

Facebook has also introduced new dynamic ads for lead generation, allowing leads to provide contact information for specific products or services displayed in the dynamic ad.

Testing and analytics

Facebook made huge improvements to their split testing capabilities, allowing marketers to test ads against each other on many different objectives. In our experience, testing is key to increased engagement and should be an integral part of your marketing strategy.

Analytics has also benefited from a refresh with the addition of many new features. It’s not only important to constantly test new strategies; you need to understand the down-funnel effects and ROAS to make informed decisions. With continued competition for inventory and increasing prices, new Analytics features will help uncover winning creatives much faster.

Download our Q1 2018 PPC Benchmark Report for additional performance data on Instagram, Messenger, and other Social and Search ads.

Download our Q1 2018 PPC Benchmark Report for additional performance data on Instagram, Messenger, and other Social and Search ads.

How Much Do LinkedIn Ads Cost? [Q1 2018 AdStage Report]

How Much Do LinkedIn Ads Cost? [Q1 2018 AdStage Report]

In the first quarter of 2018, we analyzed over 2.5 billion LinkedIn ad impressions and over 3.4 million clicks from AdStage customers. Based on our data, we saw year-over-year CPMs increase 29%, while year-over-year CPCs decreased 12%.

Q1 2018 LinkedIn advertising performance

We observed the following median results among marketers using AdStage products:

  • LinkedIn CPM: $6.59
  • LinkedIn CPC: $5.26
  • LinkedIn CTR: 0.13%

Dive deeper into the Q1 2018 PPC Benchmark Report for the latest trends.

Supply & demand

First quarter 2018 Y/Y spend remained unchanged among same marketers, while Y/Y impressions dropped 41%. We saw very little Q/Q spend change (-1.2%) during the first quarter, while Q/Q impressions decreased 15%.

LinkedIn CPMs decrease by 18%

Our AdStage data shows Q1 median CPMs decreasing for the first time after four consecutive quarters of increasing costs. The 2017 year-end CPMs were up 57% going into 2018, but declined to $6.59 by the end of Q1 2018. We’re yet unsure if the dip indicates a new trend, or if the lower prices are reflective of seasonal swings.

Marketers that we studied reacted to increasing CPMs in 2017 by choosing to keep budgets flat, or pull back slightly. However, lower CPMs are a good signal that maintaining spend will continue to return increased reach of LinkedIn users.

LinkedIn CPCs increase by 4%

First quarter 2018 median CPCs continue to be well below last year averages, down 11.6% Y/Y. Marketers are benefiting from lower engagement costs while budgets continue to buy more impressions. This is a positive trend for new marketers looking to allocate budget for LinkedIn Ads.

We have early indications that CPCs should remain below the 2017 average through mid-year, and at least $1.00 less per click than the high median CPC of $6.31 we observed in Q3 2017.

 

LinkedIn CTRs increase by 58%

The data from marketers using AdStage showed increasing CTRs throughout 2017, with median CTRs increasing over 112% in 2017. Our data shows Q1 2018 median CTRs dropped slightly ending at 0.13%, a 58% Y/Y increase over Q1 2017. The overall upward trend is a result of better engagement on LinkedIn ads, a good indicator that new LinkedIn Marketing Solutions features are paying off.

As with CPM, it’s too early to say this first quarter CTR correction is the new normal or if we can chalk it up to season swings (the consensus around here is leaning towards seasonal). We’ll learn more as we dig into the mid-year data.

 

What to expect in 2018

While last year presented us with increased prices and a bump in engagement, marketers may experience a cooling period during the first half of the year. As increased competition continues to be a factor, marketers will need to be more strategic with their spend and focus on strategies that prove ROI.

Last year we saw the release of Audience Network, Lead Gen Forms, and Matched Audiences. All welcome advancements that made LinkedIn more attractive and productive for B2B marketers.

Video is key to clicks

Video is no longer a nice to have, it’s a necessity. LinkedIn Marketing Solutions is all in on video and is providing helpful tips to nail down the right strategy for your objective. Released at the end of Q1, video for Sponsored Content is now a powerful medium for the toolkit.

Combine LinkedIn video ads with Matched Audiences and Lead Gen Forms, and there’s no question video can work in your favor. In fact, LinkedIn is on record stating that “users are sharing video 20 times more than other content like images or posts.”

According to Buffer’s 2018 State of Social Report, 85% of businesses are planning on creating more video content in 2018.

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Additional Budget For A/B Testing

Testing is an ongoing process and new ad types are not always winners with every target audience. With lower CPCs and CPMs relative to last year, it’s safe to allocate more budget to testing which mix of content and placement work best for the target objective.

According to The CMO Survey, reported B2B marketing budgets up over 9% for 2018. That includes a portion for digital, which should factor into grow and testing strategies.

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Increased competition

As Linkedin releases more ad features, such as their new Bid Auto-Optimization for Lead Gen Forms, we can expect marketers will see better results from their spend.

In 2017 the overall spend on LinkedIn ads increased 23 percent among marketers on AdStage. We expect that spend will continue to increase as LinkedIn develops new and better ways to connect with leads.

Experts expect brands to shift more budgets to LinkedIn

AJ Wilcox of B2Linked, who manages some of the biggest LinkedIn ad accounts in the world, expects companies to shift more budgets from Facebook to LinkedIn. “The B2B environment on Facebook has gotten rough with job title and company targeting being taken away,” AJ said. “Couple that with the fact that Facebook CPMs are rising rapidly, and I think we’re about to see a lot more brands invest more heavily into LinkedIn due to the quality of traffic and the reach they can’t get on Facebook.”

Takeaways and insights

Based on the data from Q1 2018, here are our main LinkedIn insights:

  • Advertisers are getting better results with the same amount of spend
  • CPCs are down, which provides room to grow and experiment
  • Video for Sponsored Content is a game changer. Marketers should take advantage of new ad type opportunities while the competition is low.

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.

AdWords CTA - Q4 BENCHMARK REPORT

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 Q1 2018 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.

Check out other ad networks

AdWords CTA - Q4 PPC BENCHMARK REPORT

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 Q1 2018 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.

Check out other ad networks

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

FB CTA - Q4 BENCHMARK REPORT

Instagram Advertising Costs [CPC, CPM, & CTR Benchmarks]

Instagram Advertising Costs [CPC, CPM, & CTR Benchmarks]

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 Q1 2018 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 Q1 2018 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 report.

Q1 2018 Paid Media Benchmark Report

 

Twitter CPMs Increase 27% In 2017 [Report]

Twitter CPMs Increase 27% In 2017 [Report]

We analyzed over 3.5 billion Twitter ad impressions from January to June 2017. Based on our data, we saw CPMs increase from $5.30 to $6.72 during the first six months of 2017, while the average CPC increased from $0.52 to $0.80.

  • Twitter’s CPM increased by 27% since January 2017.
  • The average CPC on Twitter increased by 18% since January 2017.
  • The average CTR on Twitter remained consistent month-over-month between February and June.

Be sure to view the Q1 2018 Paid Search and Paid Social ads Benchmark Report for the latest trends.

Twitter’s Supply and Demand

Twitter ad impressions dropped by 8% in Q2’17 compared to Q1’17, while ad spend increased by 8%. This is causing advertisers to pay more to enter the auction at a decreased number of impressions.

AdStage - Twitter Supply and Demand

Twitter’s CPM Increase 27%

From our data, we saw CPMs spike the last month of Q1’17 and again in Q2’17. The overall CPM increased 27% since January 2017. This highlights the volatility of the Twitter auction with the monthly ups and downs in CPMs.

AdStage - Twitter CPM 2017

Twitter’s CPC Increase 8%

Twitter CPCs went from $0.52 to $0.80 in the first six months. While a $0.28 change may seem small, that’s a 54% increase in six months and may impact the ROI for advertisers moving forward.

AdStage - Twitter CPC 2017

Twitter’s CTR Remain Flat After January

Twitter advertisers are seeing consistent CTRs month-over-month with the exclusion of January. However, it’s costing advertisers more budget to get the same result due to higher CPMs and CPCs.

AdStage - Twitter CTR 2017

Why Are Twitter’s CPMs & CPCs Increasing

Our ad spend data includes all ad types ran across Twitter’s network. Below are a couple of possible explanations for the increase in CPMs and CPCs in 2017.

1) Twitter’s User Growth Is Flat

Twitter boasts 328 million users and only added a 15 million users in the last year, with most of the growth coming internationally. Recode reported that “Twitter’s declining revenue has been blamed on the fact that the company had paltry user growth for almost two whole years — revenue was simply catching up.”

Twitter User Growth

Image Source: Techcrunch

Techcrunch added, Twitter’s “U.S. users are a fraction of its total users, but they make up a majority of its advertising revenue.”

2) Twitter Budgets Increase For Some Advertisers

Hanapin Marketing conducted a paid social survey asking marketers where they plan to increase and decrease budgets in 2017. They found that 49% of marketers are NOT investing in Twitter Ads.

However, 21% advertisers plan on increasing their Twitter ad spend within the next year. It appears Twitter Ads are driving results for certain types of companies.

Hanapin Paid Social Survey - Twitter

Our data confirms that Twitter advertisers are indeed increasing their budgets, as overall spend increased 8% since January 2017. Although budgets seem to be inconsistent from month-to-month.

AdStage - Twitter Spend and Clicks

3) Are Twitter’s Latest Ad Types Enough

Twitter’s biggest announcements were centered around video ads with In-Stream Video Ads and promoting chatbots with Direct Messages. Are these new ad types and features enough to attract new advertisers to the platform? Or even get more budget from current advertisers?

One way Twitter could help advertisers would be to offer more granular targeting similar to Facebook and LinkedIn. Ultimately, they’ll need to work on keeping the ad types fresh and creative by offering more to smaller advertisers like their carousel ads.

twitter-carousel-ads

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 with a lot of variation

Further Questions

  • Are Twitter ads driving business results?
  • Are Twitter ads better for brand awareness?
  • Will advertisers run video ads like they do on Facebook and YouTube?

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 Twitter Ads reporting solution, click the banner below to sign up for a 14-day free trial.

 

Q1 2018 Paid Media Benchmark Report

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 Q1 2018 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.

Further Ad Networks


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.

Q1 2018 Paid Media Benchmark Report

 

Facebook CPMs Increase 171% In 2017 [New Report]

Facebook CPMs Increase 171% In 2017 [New Report]

Over the last year, we’ve analyzed over 8.8 billion Facebook ad impressions. We found that during the first six months, the average CPM increased from $4.12 to $11.17, and the average CPC increased from $0.42 to $0.99.

Key Takeaways

  • The average CPM on Facebook ads is $11.17
  • The average CPC on Facebook ads is $0.99
  • The average CTR for Facebook ads is 1.10% (remaining consistent over the last six months)

Be sure to view the Q1 2018 Facebook Ads Report for the latest trends.

Facebook’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.

AdStage Facebook Benchmark Report Spend vs Impressions

Facebook’s CPM Increase 171%

Based on our data, we saw CPMs increase by 171% during the first half of 2017. This shows how competitive the auction is and illustrates why Facebook is having ad load issues.

AdStage Facebook Benchmark Report CPM Increase

Facebook’s CPC Increase 136%

The CPCs of Facebook Ads went from $0.42 to $0.99 during the first six months of 2017. That’s a huge jump, especially when thinking about the role of Facebook in the customer journey.
AdStage Facebook Benchmark Report CPC Increase

Facebook’s CTR Remain Flat

Advertisers are getting consistent CTRs month-over-month, but it’s costing more to get the same result due to higher CPMs and CTRs.

AdStage Facebook Benchmark Report CTR Remains Consistent

Why Are Facebook CPMs Increasing

Our ad spend data includes all ads run on Facebook, Instagram, and Audience Network. There are a number of possible explanations for the increase in CPMs and CPCs.

1) Advertisers Are Flocking to Facebook

Facebook reported a total of five million advertisers as of April 2017. That’s up from four million monthly advertisers in September 2016, and three million in March 2016. Put another way — Facebook gained two million advertisers in one year.

Keep in mind that Facebook’s five million advertisers are only 8% of the 65 million businesses active on the network. Therefore, we don’t foresee a slowdown in advertisers’ growth over the next 12 months.

2) Advertiser’s Facebook Budgets Are Growing

Hanapin Marketing conducted a paid social survey asking marketers where they plan to increase and decrease budgets in 2017. They reported that 73% of marketers are investing the majority of their social spend on Facebook and 71% plan on increasing their Facebook ad spend within the next year.

Hanapin Paid Social Facebook

Our Facebook data confirms that advertisers are indeed increasing their Facebook budgets as overall ad spend more than doubled since January 2017 (122% increase).

AdStage Facebook Benchmark Report Spend

3) Facebook Is Reaching Max Ad Load

Facebook CFO, David Wehner, said on the Q2 2016 earnings call:

“We anticipate ad load on Facebook will continue to grow modestly over the next 12 months and then will be a less significant factor driving revenue growth after mid-2017.”

The company’s Q2 2017 results showed its reaching max ad load with only a 19% paid ad impression growth compared to Q1’17’s 32% and Q4’16’s 49% growth. However, Facebook’s revenue will continue to increase as surging ad prices, user growth, and Instagram are enough to pick up the slack.

4) Facebook’s Ad Load Slowdown Is Real

Facebook’s Q2 2017 paid ad impression growth slowed to 19% compared to Q1’17’s 32% and Q4’16’s 49%.

Eric Jhonsa of The Street reported:

Slower ad supply growth is naturally boosting prices. But given that supply is still growing (albeit at a slower rate), it’s also clear that strong ad ROIs — made possible by Facebook’s powerful and steadily improving targeting abilities — are motivating marketers to pay more for ad impressions and clicks. A growing mix of video ad sales might also be helping, given that video ads tend to carry relatively high prices.”

Takeaways and Insights

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

  1. Small and mid-size brands are flocking to advertise on Facebook
  2. As a result, Facebook’s CPMs & CPCs are rising fast
  3. Advertiser aren’t afraid to increase budgets even as the auction gets more expensive

Further Questions

  1. Are results driving the increase in budgets or is it the competitive auction?
  2. How will advertisers react to increased competition and ad prices?
  3. Q4 is historically more expensive on Facebook, will they find more inventory or will CPMs skyrocket?

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. Learn more about our Facebook Ads reporting solution, and get our latest Q4 2017 benchmark report!

FB CTA - Q4 BENCHMARK REPORT