Facebook, yet again, posted arguably its best quarter ever, reaping $3.2 billion in revenue in Q3, with 66 percent of their ad revenue coming from mobile. Facebook now has 1.35 billion users (1.12 billion on mobile).
But is the best for Facebook still to come? Here’s what we learned from Facebook’s quarterly earnings call on Tuesday.
1. Facebook thinks it can fix digital advertising
Chief Operating Officer Sheryl Sandberg knows that there’s still a gap between how people interact with advertising (on mobile) and how advertisers still prefer to deliver messages (display and desktop).
How important is mobile for Facebook? Mobile advertising now accounts for 66 percent of Facebook’s advertising revenue, according to Q3 figures announced by the company today.
Facebook posted its most successful quarter to date, in terms of revenue. The social network reaped $3.2 billion in revenue this past quarter, beating Q2 totals ($2.91 billion).
Other key figures:
- Daily active users (DAUs) were 864 million on average for September 2014, an increase of 19 percent year-over-year.
- Mobile DAUs were 703 million on average for September 2014, an increase of 39 percent year-over-year.
- Monthly active users (MAUs) were 1.35 billion as of September 30, 2014, an increase of 14 percent year-over-year.
- Mobile MAUs were 1.12 billion as of September 30, 2014, an increase of 29 percent year-over-year.
More key stats and facts from Facebook’s Q3 can be found below.
3Q Digital, a digital media agency, recently analyzed its clients’ performance with Facebook ads, finding a huge drop in impressions, but a pretty big jump in clickthrough rate. This illustrates that while reach may be tumbling on Facebook, those who are seeing messages are the most willing to take an action.
Year-over-year, there has been a 54 percent decrease in impressions (taking into account both mobile and desktop campaigns), a 56 percent increase in cost per click, a 342 percent rise in clickthrough rate and a 224 percent increase in ad spend. Since Q2 2014, 3Q Digital’s clients have seen a 136 percent decrease in impressions, a 53 percent increase in clicks, a 262 percent increase in clickthrough rate and a 54 percent increase in spending.
However, much of the cost increase and impressions decrease appears to be on desktop, as mobile numbers are more positive.
Retailers are coming around to the power of Facebook’s targeted advertising. Facebook Marketing Partner Offerpop feels that with innovations such as the Buy button and more ways to drive direct commerce, Facebook will be a major factor in Q4, when many companies ramp up advertising for the holidays.
Offerpop is also bullish about Instagram, where brands will tap into user-generated content.
Mairead Ridge, Offerpop’s Senior Marketing Manager, talk with Inside Facebook about how the sentiments about Facebook’s ability to deliver ROI are changing in time for the holiday shopping season:
Recently, there’s been a sense from marketers that Facebook is on the decline. It’s tougher than ever to get organic reach. We’ve heard a lot of brands and marketers react to that. But what we’re seeing is that there’s still ROI out there for brands that are using Facebook’s ad platform and organic tactics out there to drive reach and site traffic and sales. I think everybody that experimented with the platform for a long time is starting to see better and better results from their efforts.
According to a recent Offerpop survey, 92 percent of marketers polled planned to spend most of their social budget on Facebook.
The auto industry has seen amazing growth on Facebook in terms of clickthrough rate, but also with CPM.
SHIFT, a Facebook Strategic Preferred Marketing Developer, recently published its Q3 global Facebook advertising insights report, outlining the Facebook ad performance for the automotive, consumer packaged goods, entertainment, financial services and telecommunications verticals.
Learn more by reading the infographic below.
Nanigans, a Strategic Preferred Marketing Developer, released its latest Global Facebook Advertising Benchmark Report recently, which features insight on marketplace trends seen by Nanigans customers in Q3 2014.
The report found that CTRs for Facebook ads continued to climb in Q3, a sign that Facebook users are engaging with advertisers’ messages at increasing rates.
Dan Levy, Facebook’s Director of Small Business, knows that you want more direct help and response from Facebook. The small business department has been reaching out to frustrated page owners, guiding them through advertising features such as Custom Audiences, and helping out small business owners attending events.
Levy spoke to a capacity crowd Wednesday at Intuit’s QuickBooks Connect in San Jose, Calif., a conference aimed at helping small business owners reach their goals. Levy talked about how intelligent targeting, the conversion pixel and a mobile approach can help busy small business owners find success through the site. But what if you actually want to talk with someone from Facebook about your business? That’s one of the things Facebook has been investing in, Levy recently told Inside Facebook in an interview.
Inside Facebook: Can we talk about the way that video is being utilized by small businesses on Facebook?
Dan Levy: We’ve seen small businesses using video on Facebook for a long time. There’s been a lot of organic activity already. What we’re really excited about and what we’re seeing use from is our new video views objective. If you’re a small business owner, you can click for views, which is great because it helps us get it to more people who are going to see your video. So we’ve got examples from all over the world — Grant’s Whisky from Scotland takes stuff that they were running on small TV budgets, running it on Facebook and they were really excited about the results.
Facebook’s Preferred Marketing Developer program may be getting a new look.
Earlier today, Facebook announced on the Facebook for Business page that the PMD program will be renamed Facebook Marketing Partners.
According to sister site AllFacebook, the PMD program will switch over to Facebook Marketing Partners early 2015. Facebook Marketing Partners will be split into several different categories, which could be a welcome change from the Strategic PMD/regular PMD system.
(This is an excerpt from Todd Denis’ detailed post about Facebook fan value on Augmo.)
What should you pay for a Facebook fan heading into 2015? Common sense and the average marketing budget says it’s about $1 per fan – but the potential value of that fan to your brand is likely much higher.
This in-depth article addresses the pros and the cons of widely known Fan Acquisition Costs (FAC), focused heavily around Facebook. It also provides three models for calculating your brand fans’ potential value (aside from costs): Halo Value, Leads Value and Revenue Value. Under these three models, I’ve calculated some unscientific but (hopefully) entertaining Facebook brand fan value examples:
- Oreo’s Facebook fan = $5.90
- Hubspot’s Facebook fan = $3.71
- Audible’s Facebook fan = $10.04
Adobe, a Facebook Strategic Preferred Marketing Developer, studied the Facebook performance of its clients in Q3, finding that the News Feed is increasingly becoming pay-to-play.
Adobe found that organic impressions are down 50 percent from last year, but paid impressions only rose 5 percent year-over-year.
Joe Martin, a Senior Analyst at Adobe Digital index, noted that these figures would likely change in Q4, as brands up their budget for the holiday shopping season:
We expect brands to invest more in social during the holiday season as well. As social becomes a bigger part of the holiday commerce experience, brands and retailers are going to want to make sure their messaging is being seen.
Adobe predicts that paid impressions for retail will grow 10 percent to 20 percent during Q4.