Facebook Sponsored Stories Ads Have 46% Higher CTR, 18% Lower Cost Per Fan Says TBG Digital Test

Facebook Ads API service provider TBG Digital has revealed that in a 10-day, 3-client, 2 billion impression test, Facebook’s new Sponsored Stories ad units received a 46% higher click through rate, a 20% lower cost per click, and an 18% lower cost per fan than Facebook’s standard ad units.

The new ad unit has looked especially promising because it so tightly fits in with how people use Facebook. It converts a user’s activity, such as Liking a Page or a using an application, into a sidebar ad shown to their friends. Those friends can then respond to the ad unit, through taking actions such as Liking the Page or playing a game.

With evidence like what TBG is providing, advertisers should strongly consider adding Sponsored Stories to their ad mix, and Ads API tools and services should move quickly to include the ad type in their offering.

TBG Digital carries out the purchase of up to 2 billion Facebook ad impressions a day via its Ads API service for big name clients including JetBlue, American Express, and Vodafone, making it one of the largest ad buyers on the platform. When Sponsored Stories launched in January, it moved quickly to be able to provide purchases of the ad unit at scale to its clients, and has integrated the three new Sponsored Stories types released last week into its offering. While Facebook reported that its own tests showed increased brand lift, engagement, and ad recall, there wasn’t conclusive evidence of how much better Sponsored Stories performed than standard ad units until now.

The three clients involved in the test were a retailer, a consumer packaged good brand, and a game developer, ensuring a breadth Sponsored Stories types and destinations were included. TBG Digital’s CEO Simon Mansell told us the company took care to keep the Sponsored Stories and standard ad groups as similar in targeting as possible preserve the integrity of the test.  These facts combine with the high impression volume of the test to make the conclusions reliable.

Ads API-based media buyers such as TBG Digital test thousands of ad creative and targeting variants per campaign to attain the highest click through rate possible. The creative and targeting of Sponsored Stories are generated automatically, meaning Sponsored Stories not only represent a massive increase in click through rate, but a reduction in labor on the media buyer’s side.

Now that many brands have established their Facebook presence, they are concentrating on gaining fans. It now appears that the several Sponsored Stories ad types designed to drive traffic to Pages (Page Like stories, Page Post stories, Page Post Like stories) can reduce the acquisition cost per fan by 18%. This is a significant cost reduction considering many brands are looking to secure millions of additional fans.

Since Sponsored Stories don’t depend on media buyers discovering lucrative niche demographics with high click through rates that Facebook charges more for, Sponsored Stories campaigns have a 20% lower CPC according to the test. This could translate into big savings for brands, performance advertisers, and especially game developers who look to bring in millions of new players with ad campaigns supporting the launches of new games.

The data from this test support the assumptions some in the advertising industry have made about the shift towards social ad design. Sponsored Stories ad units take advantage of Facebook’s inherent strength — the social graph — to offer ad design unavailable in traditional search and display. Mansell tells us that currently about 10% of the impressions it buys are through Sponsored Stories, but that he expects that to increase to 25% as more of TBG Digital’s clients are signing on to use Sponsored Stories every day.

Since standard ad units are necessary to seed the initial actions that trigger Sponsored Stories, advertisers will always need to buy ads that don’t depend on user behavior. But data indicating that Sponsored Stories can deliver more clicks and more fans for cheaper, expect usage of Facebook’s social ad units to drastically increase this year, and more ad spend to shift from display to the social network.

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41 Responses to “Facebook Sponsored Stories Ads Have 46% Higher CTR, 18% Lower Cost Per Fan Says TBG Digital Test”

  1. Wide Angle » Leading Indicators – Week of May 5 says:

    [...] Comment Email  Print This Post Tweet Facebook’s new ad unit, Sponsored Stories, seems to be pretty effective [Inside Facebook] [...]

  2. Marketers Win When Friends Recommend « The Outbrain Blog says:

    [...] Read more on the Sponsored Stories test here. [...]

  3. Facebook Sponsored Stories Are 46% More Effective Than Standard Facebook Ads says:

    [...] One Facebook advertising platform provider has found that Sponsored Story ad units have click-through rate that's 46% higher than standard Facebook ads, according to a post on Inside Facebook. [...]

  4. Advertising your updates « The general musings of Andre Santos says:

    [...] Facebook have been testing some new ad concepts (see image).  The premise is that when someone mentions a brand in their status update, that [...]

  5. Connected Countdown: 10 Things You Need To See This Week says:

    [...] 7. A Study Proves The Effectiveness Of Facebook’s Sponsored Story Ads [...]

  6. Exclusive: Target Facebook Fans for 44% Cheaper Registrations Says TBG Digital Test says:

    [...] or tools on top of the Facebook Ads API. Last month, it shared data indicating that Facebook’s Sponsored Stories ad unit delivers a 46% higher click through rate, and an 18% lower cost per fan than traditional Facebook [...]

  7. When is an ad not an ad? The problem of disclosure online says:

    [...] of this can be seen in the click through rate for sponsored stories on Facebook, compared to standard ads [...]

  8. 100 Facebook Marketing Tips (4/4) | MrLukeAbbott.com says:

    [...] Stories achieve a higher click through rate, and cost less than normal ads. This could be due to their placing above the normal ad format, [...]

  9. Social Advertising für Brands immer wichtiger | aquarius Digital Potential Blog says:

    [...] nicht umsonst im Mittelpunkt dieses Charts: Im Januar von Facebook eingeführt, sollen sie laut Inside Facebook mit einer um 46% höheren CTR wesentlich effizienter als Standard Ads sein. Auch wenn Facebook mit [...]

  10. Facebook PPC – Where to send my traffic? | Vertical Leap Blog says:

    [...] content, especially if you can identify a close friend as someone who is ‘liking’ them. Studies have shown that sponsored stories have higher CTR and lower costings associated with them. Again, makes sense. [...]

  11. Facebook Ad Click Through Rate Up 18%, Cost Per Click Down 10% Says TBG Digital says:

    [...] recently signed. In the past, the popular Ads API tool provider has released reports showing the high efficiency of Facebook’s Sponsored Stories ad units and ads that target existing [...]

  12. SEO НОВОСТИ » В «тикер» Facebook встроят рекламу says:

    [...] их виртуальных друзей на странице рекламодателя. Как сообщал неофициальный сайт Inside Facebook, такой тип рекламы в [...]

  13. The Hidden Gem of Facebook Advertising | PPC Hero says:

    [...] 45% higher CTR rates [...]

  14. В «тикер» Facebook встроят рекламу - ReklaMonstr.com – обзор рынка интернет-рекламы says:

    [...] их виртуальных друзей на странице рекламодателя. Как сообщал неофициальный сайт Inside Facebook, такой тип рекламы в [...]

  15. 9 Tips to Improve Your Facebook Advertising » Search and Perch says:

    [...] by the way, a study showed that sponsored stories have a 46% higher click-through-rate. In online advertising, higher [...]

  16. Evidence Supports Facebook’s Plan To Monetize Mobile With Sponsored Story News Feed Ads | Media Valcea says:

    [...] sounds like Sponsored Stories, considering a study conducted in May showed the social ads have a 46% higher click through rate and 20% lower CPC. This shows they’re attractive to both viewers and [...]

  17. Facebook Sponsored Story Ads To Appear In The Web News Feed In 2012 says:

    [...] request placement in the news feed. Studies have shown sidebar Sponsored Stories have a 46% higher click through rate than traditional ads, and you can expect the CTR of news feed Sponsored Stories to be even [...]

  18. Facebook introduit les « actualités commanditées » | 7auBenin.com says:

    [...] rapporter gros à Facebook, dont 90 % des revenus proviennent des annonceurs. En effet, selon une étude réalisée en mai dernier, les publicités sous forme « d’actualités commanditées » avaient [...]

  19. Facebook Finally Started Showing Ads In Your News Feed | Paints The Future says:

    [...] up with the sponsored stories published on the right side of news feed. Those sponsored stories did a great job for advertisers by increasing the CTR (Click Through Rate) by 46%. The studies also says that the [...]

  20. Facebook ADs are getting expensive « Try to take over the world says:

    [...] Sponsored stories are getting a 46% higher CTR, which is a win-win situation both for investors and Facebook [...]

  21. Belangrijke wijzigingen in Facebook Adverteren – Onetomarket says:

    [...] trekt. De CTR resultaten van Sponsored Stories versus reguliere Facebook Ads zijn positief. Een stijging in CTR van 46% is al een behoorlijke verbetering en de verwachting is dat de CTR verder stijgt met de introductie [...]

  22. 9 Hot Tips for Small Business Marketing on Facebook says:

    [...] the best ways to invest in Facebook advertising is by leveraging Sponsored Stories. According to a study by TBG Digital, Facebook’s new Sponsored Stories ad units nabbed a 46% higher click-through rate, a 20% lower [...]

  23. 9 Hot Tips for Small Business Marketing on Facebook says:

    [...] [...]

  24. 9 Hot Tips for Small Business Marketing on Facebook | Articled In says:

    [...] of a best ways to deposit in Facebook promotion is by leveraging Sponsored Stories. According to a study by TBG Digital, Facebook’s new Sponsored Stories ad units nabbed a 46% aloft click-through rate, a 20% reduce [...]

  25. 9 Hot Facebook-Marketing Tips for Small Business | Leon Kadoch says:

    [...] is by leveraging Sponsored Stories. Facebook’s new Sponsored Stories ad units nabbed a 46 percent higher click-through rate, according to a study by TBG Digital, a 20 percent lower cost per click and an 18 percent lower [...]

  26. 9 Hot Tips for Small Business Marketing on Facebook « JoinOG says:

    [...] the best ways to invest in Facebook advertising is by leveraging Sponsored Stories. According to a study by TBG Digital, Facebook’s new Sponsored Stories ad units nabbed a 46% higher click-through rate, a 20% lower [...]

  27. 9 Hot Tips for Small Business Marketing on Facebook | Asociación de Empresarios Cristianos says:

    [...] best ways to invest in Facebook advertising is by leveraging Sponsored Stories. According to a study by TBG Digital, Facebook’s new Sponsored Stories ad units nabbed a 46% higher click-through rate, a 20% lower [...]

  28. Once the dust of Social TV hype settles, content recommendation will be changed forever (1/2) « Ethan Suh says:

    [...] best ways to invest in Facebook advertising is by leveraging Sponsored Stories. According to a study by TBG Digital, Facebook’s new Sponsored Stories ad units nabbed a 46% higher click-through rate, a 20% lower [...]

  29. Buddy Media Acquires Social Ad-Buying Tool Brighter Option To Sync Paid and … | Leomoo.com says:

    [...] But social ads are on the rise. Right now they’re primarily on Facebook and Twitter, but the high click through rates of Sponsored Stories and Promoted Tweets could inspire Tumblr, Instagram, and maybe even Pinterest to build out [...]

  30. Facebook w małej firmie says:

    [...] Jedną z najbardziej efektywnych form reklamowych na Facebooku są zdarzenia sponsorowane. Zgodnie z badaniami przeprowadzonymi przez TBG Digital [...]

  31. Sui social banner, si clicca di più? | Infinite Backlinks Blog says:

    [...] secondo un altro studio di TBG Digital di un annetto fa, gli annunci pubblicitari all’interno delle Sponsored Stories di Facebook [...]

  32. RSR Research » The Candid Voice in Retail Technology Research » Facebook Sponsored Stories: How Not To Be Relevant says:

    [...] it too. According to the website Techcrunch, “studies have shown sidebar Sponsored Stories have a 46% higher click through rate than traditional ads.” This is just the kind of thing that can get a marketing executive really excited! Suddenly, you [...]

  33. The new direction of online advertising. | Vasant Kumar says:

    [...] to a user will also be more effective – and the numbers prove it. Sponsored Stories have a 46% higher click-through-rate than Facebook’s standards ads and a Nielsen study showed a 68% increase in ad recall (how likely [...]

  34. Can Local Save Mobile Ads? | Street Fight says:

    [...] Stories, which carry social relevance and organic generation. That’s already bearing out in performance metrics compared with traditional banner ads (especially on mobile).The other example of premium inventory [...]

  35. Facebook paid $10M to settle “oops, we used your face” ads | VentureBeat says:

    [...] successful compared to other Facebook ad types — they can have between 20 percent and  46 percent higher click-through rates than other [...]

  36. BestNews - Facebook paid $10M to settle “oops, we used your face” ads says:

    [...] extremely successful compared to other Facebook ad types — they can have between 20 percent and  46 percent higher click-through rates than other ad [...]

  37. » Facebook to pay $10 million to settle Sponsored Stories suit says:

    [...] The lawsuit saw Mark Zuckerberg saying that a trusted referral was the ‘Holy Grail’ of advertising. chief operating officer Sheryl Sandberg is of the belief that the “value of a ‘sponsored story’ advertisement was at least twice and up to three times the value of a standard Facebook.com ad without a friend endorsement.” Sponsored ads are more successful than other Facebook ad units and notch 46% higher CTR, as reported here. [...]

  38. Small Business Facebook Marketing | Six Hat Media says:

    [...] the best ways to invest in Facebook advertising is by leveraging Sponsored Stories. According to a study by TBG Digital, Facebook’s new Sponsored Stories ad units nabbed a 46% higher click-through rate, a 20% lower [...]

  39. All Things WOMM » Blog Archive » Facebook Ads Beat Twitter Ads Hands Down says:

    [...] Pros: Facebook’s products allow you to interact with a huge social ecosystem – one that spends a ton of time interacting in the site. Brands align with trusted sources (your friends) to promote their products by leveraging real brand interactions (“Likes” and “Shares”). If consumers trust their friends for recommendations, then this an incredibly effective way to build brand lift. The stories product has proven to be the most effective even in comparison to standard Facebook ads. [...]

  40. Facebook owes 125 million people 2 cents each in proposed sponsored stories settlement | VentureBeat says:

    [...] Facebook sponsored stories can be highly successful, with much higher click-through rates than other Facebook ads. [...]

  41. 9 Facebook Advertising Tips and Strategies says:

    [...] by the way, a study showed that sponsored stories have a 46% higher click-through-rate. In online advertising, higher [...]

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