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Facebook Advertising Benchmarks 2018

Author's avatar By Somya Mehta 24 May, 2018
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Chart of the day: Benchmarks for Facebook news feed placement ads Q1 2018

Even though Facebook may have recently been on the receiving end of continuous flack and scrutiny, data shows that Facebook ads continue to do well in the world of paid media. Business are still witnessing the fruits of Facebook as a marketing and advertising channel.

So, it’s only obvious that understanding how you can leverage Facebook Advertising in the right way has become vital for brands and marketers. Facebook is making it harder and harder for posts to reach audiences organically. If you want to get your posts seen on Facebook, especially at a larger scale, chances are, you’ll need to pay for the reach with Facebook Ads.

Recent benchmarking report on paid search and paid social, by AdStage, provides valuable insight into paid media metrics, to enable marketers like you and me, to decipher returns on investment from paid advertising. As the industry faces immense scrutiny around data privacy, transparency of sponsored relationships and policy changes, marketers need to buckle up their seat belts and adapt to this ever-changing environment of digital marketing.

The research from AdStage is based on over 3 billion desktop and mobile News Feed placement ad impressions and 80 million clicks. In Q1 2018, CPCs have decreased slightly by 12.73% Q/Q, compared to Q4 2017, but are still on and overall upward trend that was seen in 2017, with a 92% Y/Y gain. These results reaffirm Facebook news feed’s place as one of the most affordable ad opportunities in the short term.

In line with Facebook shifting the focus of its news feed and making it more personal for the users, many people thought that there might be a drastic drop in engagement rates for Facebook Ads. But that hasn’t quite been the case. The data suggests that targeted advertising still provides results.

In fact, part of Facebook’s algorithm change was to show the user more targeted ads that cater to their individual needs and interests. While many thought there would be a drastic drop in engagement, the data proves that targeted advertising still provides results. The Q/Q CTR rates for Facebook Ads remained consistent over the last year, dropping 0.84% in Q1 2018.

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By Somya Mehta

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