Facebook Ads: Women, Older Age Groups Best-Monetizing Demos in Q1

April 21, 2014

This article is included in these additional categories:

Boomers & Older | Digital | Europe & Middle East | Global & Regional | Men | Social Media | Women | Youth & Gen X

Nanigans-Facebook-Ad-KPIs-by-Demo-in-Q1-Apr2014Roughly one-quarter of ad spending aimed at Facebook users aged 18-64 was directed to the 18-24 bracket in Q1, according to a report [download page] from Nanigans. That figure should perhaps have been lower, as the 18-24 demographic proved the worst-monetizing group, with revenue-per-click (RPC) at $0.61, less than half comparable figures for the 35+ brackets. Indeed, the 45-54 ($1.53) and 55-64 ($1.38) age groups monetized best, though they only commanded about 30% share of spending, combined. While costs per click (CPCs) were also higher for those older age groups, they were not disproportionately high relative to the RPC figures.

On a gender basis, the report notes that advertisers allocated 63% of their budgets to females. That proved a wise decision, with women delivering an RPC 71% higher than males ($0.94 vs. $0.55) despite having a CPC only 32% higher.

Meanwhile, other results from the study indicate that, relative to the year-earlier period, there were fewer, but higher-value, impressions. Specifically, impressions were down by 48% year-over-year, but CPCs were up 39% (to $0.53) and CPMs were up 247% (to $1.25) on the basis of heightened competition for users’ News Feeds.

CPMs more than tripled in each country and region analyzed, including a 210% increase in the US (to $1.49), the lowest of the 5 regions (Australia, Canada, Great Britain, Top EU, and US) measured.

Click-through rates (CTRs) also displayed strong growth, almost tripling year-over-year from 0.09% in Q1 2013 to 0.24% in Q1 2014. CTR growth was slowest again in the US (+117%, to 0.24%), while the US experienced the fastest growth – of 50% – in CPCs (to $0.63).

Overall advertiser spend on Facebook increased by 83% year-over-year.

Kenshoo previously reported social ad spending among a subset of clients to have grown by 37% year-over-year, with concurrent increases in CPCs (+35%), advertiser revenues (+191%), and impressions (+39%). Clicks were mostly flat (+1%), while CTRs fell by 27%.

About the Data: To analyze quarterly data in its historical context, an aggregate data set was built from the advertisers and partners who have been active on the Nanigans Ad Engine platform from Q1 2013 to Q1 2014. Nanigans clients include 200 of the world’s leading performance marketers in retail, travel and gaming.

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