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There are some naysayers when it comes to social advertising on Facebook, but advertisers investment in the channel seems to be paying off, at least according to research from ad management platform Marin Software.
According to Marin, Facebook social ad budgets in the U.S. increase from 5 percent to 23 percent in the last 12 months (Editors note: Facebook introduced social ad units such as Sponsored Stories in February 2011). Marin's research suggests that by the end of 2012, social ads will account for nearly 50 percent of Facebook ad budgets.
"With Facebook's introduction of Sponsored Stories last year, two questions arose -- will advertisers adopt the new ads and will the new ads produce revenue results?" said Matt Lawson, vice president of marketing and partnerships at Marin Software. "Marin Software's research confirms that answer is an emphatic 'Yes,' as budgets continue to increase and will soon represent 50 percent of Facebook ad investments."
What is appealing about Facebook's social ads is that they work - and I say that from experience. Consumer engagement with Facebook ads, as measured by click through rates, has increased 50 percent over thee last 12 months.
"In the last year advertisers have directed more budgets to social ads and Facebook users have responded by clicking more often," said Lawson. "This trend is not only positive for Facebook from a revenue standpoint, but also provides important validation of the opportunity advertisers have to drive revenues from word of mouth marketing efforts."
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Ad management platform Marin Software released findings from its Quarterly UK Online Advertising Report. If you’re looking to get the most value out of your ad spend, it is towards mobile and tablet devices you should look.
Mobile and tablet users accounted for 12 percent of all UK paid search clicks in December 2011 according to Marin, Which represents a 49 percent increase in click share as a percentage of the total since October 2011. Over the same period, search share on these devices increased 29 percent to 7.5 percent of total search advertising spend. When volume of searches outpaces spent, clicks on campaigns are typically less expensive – and that’s a good sign.
"In December 2011, we saw search marketers allocate a larger portion of budgets to mobile devices than ever before," said Matt Lawson, Vice President of Marketing and Partnerships at Marin Software. "However, the budgets for mobile search advertising still lag user adoption of devices. Given this gap, we expect mobile search to see continued investment as advertising dollars chase consumer behaviour in 2012. Marin Software enables clients to be more efficient in their mobile marketing initiatives, offering advertisers a powerful, intuitive platform for managing desktop and mobile campaigns within a single interface."
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