435% Improvement in Facebook Ad Campaign Conversion Rates When Targeting Existing Fans

According to TBG Digital’s “Global Facebook Advertising Report: Q2 2011,” marketers would do very, very well to run Facebook ad campaigns targeted at existing fans versus targeted at non-fans.

The report found that in the second quarter of 2011, Facebook ad campaigns aimed at building brands’ fan bases accounted for nearly half of the 60 billion worldwide impressions served by TBG. This reflected a quarterly increase of 104 percent.

TBG also observed a 435 percent improvement in campaign conversion rates when targeting existing fans versus targeting non-fans. When it came to conversions, events saw a boost of approximately 350 percent, registrations saw a boost of nearly 600 percent and sales saw an increase of nearly 400 percent.

When it came to click-through rates (CTR), events saw a boost of about 110 percent, registrations saw an increase of nearly 140 percent and sales saw a boost of about 20 percent.

According to the report, retail was the hottest sector “by far” in the past 12 months. This sector was nearly non-existent in the third quarter of 2010, but accounted for 36 percent of all impressions served by TBG in the second quarter of 2011.

Finance was the second fastest growing sector, driven by credit card campaigns. Jobs and education grew quickly as well.

Retail also boasted the highest CTR, followed by arts and entertainment, food and drink, people and society, business and industrial, auto and vehicles, games, Internet and telecom, travel, and directories.

According to TBG, CPM increased 45 percent across four markets: U.S., U.K., France and Germany. CPM was highest in the U.S., followed by the U.K., Germany and France, in that order.

Overall, CPM rates increased 60 percent between the second quarter of 2010 to the second quarter of 2011 in the U.K.; the increase during this time was 40 percent in the U.S.

CPC rates increased 74 percent in these four markets year-over-year. The U.K. had the highest CPC, followed by the U.S., Germany and France, in that order.

The report also found that Sponsored Stories ads on Facebook decreased cost per acquisition (CPA) by 32 percent.

Source:

http://www.tbgdigital.com/TBG_Digital_Q2_2011_Global_Facebook_Marketing_Report.pdf