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Facebook Advertising Holiday Trends – CPC, CTR & ROI

Top ecommerce companies on Facebook saw on average a 240% increase in traffic to their websites from Facebook on Cyber Monday as compared to prior Mondays. Multiple retailers like Dillards and Coldwater Creek saw over a 500% increase, and one retailer, Harry & David, saw more than an 11,000% increase. Our client Fab.com, the fast-growing design-focused online retailer, shared that 20% of their record-breaking Black Friday through Cyber Monday sales were attributed back to people who initially joined their site from Facebook.

In reviewing Facebook advertising campaigns during the Black Friday through Cyber Monday shopping weekend managed through our software, Ad Engine, our data certainly supports this trend. Across the board retailers saw on average 30% higher clickthrough rates (CTRs) on their Facebook ads as compared to earlier this month.

Did this increased engagement with ads convert into actual sales and an increase in return on retailer’s Facebook ad spend? We pulled a Facebook advertising case study that shows a 54% increase in same-day ROI (return on ad spend) on Cyber Monday, all despite an increase in the cost of advertising on Facebook — a result of increased demand for Facebook ads during holiday shopping season.

Facebook CPCs, 2010-2012

Increases in Facebook cost-per-clicks (CPCs) indicate an increase in demand for Facebook ads during holiday shopping season.

Facebook CPCs on average increased 25% during the 2012 Thanksgiving weekend as compared to CPCs in earlier in November.

2012 holiday CPCs are increasing at a similar trend as prior years, with 2012 CPCs on average 2X higher than 2010.

Facebook CTRs by Vertical, 2012

While costs are increasing, engagement with Facebook ads have increased in the ecommerce sector.

Ecommerce averaged a 30% increase in CTRs from Black Friday through Cyber Monday as compared to CTRs earlier in November, suggesting Facebook users were in holiday shopping mode.

Financial services saw slightly higher CTRs on their Facebook ads leading into this holiday shopping weekend, suggesting Facebook users were planning in advance for holiday spending.

Facebook ROI Case Study, Black Friday – Cyber Monday

Goal: Understand Thanksgiving weekend’s impact on retailer sales generated from Facebook by examining the overall ROI of their Facebook advertising campaigns.

Methodology: Nanigans examined the Facebook campaign of a large B2C ecommerce company, comparing the ROI* of their Facebook ad spend from Black Friday through Cyber Monday to performance during the same time the prior week. This ecommerce company advertises multiple products on Facebook, targeting their core audience of males and females between the ages of 18 – 36 across multiple European countries.

Result: The ROI of this Facebook advertising campaign increased 28% during Thanksgiving weekend as compared to the prior weekend (11/16 – 11/19). Cyber Monday generated the greatest increase, with a 54% increase in same-day ROI as compared to the prior Monday (11/19).

* ROI, or return on ad spend, is calculated by: (revenue – cost) / cost, where revenue refers to sales generated by users who click Facebook ads and cost refers to ad spend on Facebook during the same time period. 

Are you advertising on Facebook this holiday shopping season? Let us know in the comments!

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