Countless marketers are spending millions of dollars on direct response advertising, achieving exceedingly positive ROI’s. To this point, we’re seeing that Facebook advertisers with direct response goals are increasingly leveraging Page post ads in News Feed––where people spend the bulk of their time on Facebook.
In the past month, Nanigans conducted a study across multiple verticals to uncover how two popular Facebook News Feed ad units, Page post link ads and Page post photo ads, drive direct response and ROI.
Advertisers included in the study leveraged Facebook Page post link and Page post photo ads in News Feed, as well as domain ads on the right-hand side (RHS). All campaigns leveraged Nanigans’ ROI-based bidding and optimization algorithms. Attributed revenue for the ROI calculation includes purchases made in the seven days following ad delivery. Results are based on 150 million impressions delivered across multiple industry verticals.
- Page post link ads delivered a 53% ROI
- Page post photo ads delivered a 24% ROI
- Page post ad units delivered a 26X higher ROI than RHS
Engagement & Costs
- Page post photo ads had a 37% higher CTR than Page post link ads and a 20X higher CTR than RHS
- Page post photo ads had on average a 17% lower CPC than Page post link ads and RHS
Actions & Purchases
- Page post link ads had a 30% higher action rate than Page post photo ads
- Page post link ads had a 55% higher purchasing user rate than Page post photo ads and a 61% higher purchasing user rate than RHS
We’re seeing that marketers are increasingly shifting their advertising spend to Page post ads in News Feed, because it can deliver a higher ROI than standard domain ads on the right-hand side.
The largest (by surface area) ad unit in News Feed, Page post link ads are designed for direct response with two clickable areas leading users to an external domain. While this ad unit had a higher CPC and lower CTR as compared to Page post photo ads, Page post link ad units delivered a high action rate and purchasing user rate resulting in a higher ROI relative to Page post photo ads and domain ads. Page post link ads typically perform well for lead generation campaigns and are effective in converting users off site.
Page post photo ads are designed to capture attention with larger, more engaging photos, creating a seamless experience between paid, owned and earned media. Our study shows that this ad format demonstrated a higher CTR at a lower CPC resulting in a higher ROI than ads on the RHS. We concluded that Page post photo ads are highly effective for promoting specific products for ecommerce companies such as fashion and home furnishing retailers, as well as mobile apps.
Nanigans has delivered effective campaigns leveraging News Feed ads in a variety of sectors such as ecommerce, gaming, travel and financial services. Interested in learning how advertising in the Facebook News Feed can meet your business goals? Contact us today!