With the rapid adoption of smartphones by consumers, both Facebook and Google had to move fast to transition their desktop-based revenue model over to smartphone. This involved developing new ad placements for mobile which encouraged clickthrough to maintain their CPCs.
This benchmarking report from Nanigans shows how Facebook has been successful in encouraging relatively high average clickthrough rates of > 2% in retail ecommerce which are much higher than the sub 0.2% average CTRs for banner ads. They're consistent with the > 2% average CTRs which we see from Google (if budget is sufficient to target the top positions.
Recent changes in CTRs from this report show response moving upward for ecommerce marketers even after increasing in Q4. The average Q1 2018 CTR of 2.98% in Q1 is 25% higher quarter-over-quarter and 61% higher year- over-year. This is at a similar cost of $10.24 CPM, a quarterly decrease of 2%. Average CPCs are $0.34.
Further breakdowns aren't given for ad type. So, if you're still making the case for investing in Facebook advertising then this shows what's possible in terms of response at least.
By Dave Chaffey
Digital strategist Dr Dave Chaffey is co-founder and Content Director of online marketing training platform and publisher Smart Insights. 'Dr Dave' is known for his strategic, but practical, data-driven advice. He has trained and consulted with many business of all sizes in most sectors. These include large international B2B and B2C brands including 3M, BP, Barclaycard, Dell, Confused.com, HSBC, Mercedes-Benz, Microsoft, M&G Investment, Rentokil Initial, O2, Royal Canin (Mars Group) plus many smaller businesses. Dave is editor of the templates, guides and courses in our digital marketing resource library used by our Business members to plan, manage and optimize their marketing. Free members can access our free sample templates here. Dave is also keynote speaker, trainer and consultant who is author of 5 bestselling books on digital marketing including Digital Marketing Excellence and Digital Marketing: Strategy, Implementation and Practice. In 2004 he was recognised by the Chartered Institute of Marketing as one of 50 marketing ‘gurus’ worldwide who have helped shape the future of marketing. My personal site, DaveChaffey.com, lists my latest Digital marketing and E-commerce books and support materials including a digital marketing glossary. Please connect on LinkedIn to receive updates or ask me a question.
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