Stats You Need For Facebook Advertising
The issue that most people encounter when advertising on Facebook is not knowing where to start. This is occasioned by the fact that there isn’t enough meaningful data available that offers marketers a solid grasp of how to tackle marketing for their base demographic.
In this article, I will try and share some statistics that all in all will make you an all-around individual.
Facebook Growth and Revenue Statistics
Not one single person wants to invest in a platform that is losing its audience or is in decline. So before you settle on a platform of choice you should determine its longevity. One of the best ways is by taking a hard look at the growth and revenue statistics.
A few months ago, Facebook released its fourth-quarter earnings that are as follows:
Revenue in Q4
Revenue was roughly $13 billion with approximately 50% of that coming from the United States. Europe came in at a close second.
Numbers from Statista indicate that Facebook’s revenue has been growing year-on-year. In 2009, Facebook’s advertising revenue was $764 million which is a meager amount compared to the $39.942 billion that Facebook made in 2017.
A look at these numbers shows that this revenue growth has been witnessed in all of Facebook’s geographic market as shown here.
A quick calculation reveals that revenue generated on an average day by a user works out to $6.18 worldwide but computes to $26.76 for the U.S and Canadian markets.
Though much of this information might be considered unnecessary to an average Facebook advertiser and might be of more use to a shareholder, it helps draw a conclusion that Facebook will be around for the next couple of years.
One undisputable factor that we should all take notice of is the increase in Facebook’s ad revenue. This is in part to changes made by Facebook. As you probably might have heard by now Facebook is making changes to their news feed; placing more emphasis on more one-on-one interactions as opposed to content from Facebook pages.
Content from Facebook pages is important as it helps drive organic traffic. When replaced by more personal content it will compel marketers to spend more ad dollars in order to drive traffic and convert leads. Ad costs will definitely go up due to the increased competition among marketers.
Something you need to keep in mind is that the numbers quoted above are not granular. Even though we know that a majority of Facebook’s revenue comes from advertising we don’t have a proper breakdown of Facebook’s ad revenue sources. In addition, we do not know which verticals perform the best on Facebook ads.
In order to differentiate how well your ads are likely to perform on Facebook compared to say the Google Display Network, you need to determine your audience’s intent and whether it is matched by your core offer.
Given the fact that more people use their smartphones to access the internet and by extension Facebook, you’d be wise to invest in mobile ads on Facebook. Think about it, if you’re a local business, you can easily target people within physical range by zeroing in on their GPS.
Data on Facebook’s Market Share
Before you settle on Facebook as your primary platform for advertising campaigns, you’ll need to determine how it stacks up against other similarly placed advertising platforms.
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According to an article in emarketer, 2017 was the first year that Facebook gained more than 20% revenue share of all money spent on online advertising.
One thing that shouldn’t be ignored is the fact that the emarketer stats are based on U.S figures. They really wouldn’t be of great use if:
- You don’t know where your target audience is located
- Your target audience is based out of the U.S
You might be an American brand, however, a majority of your audience might be based out of the United States. It would make more sense to focus on statistics that are based on those demographics. Statista has offered valuable data on Facebook ad revenues that can help brands properly target their audience as the stats are based on ad spend instead of advertiser ROI.
Something else that new advertisers should pay attention to is how their ads are layered. More often than not new advertisers who have their target demographic based in the United States will use the same ad for the entire country.
This is not the best way to go about it. For a lower cost per conversion or lower cost per click, you should definitely consider getting granular with how you layer your targeting.
Facebook has a very effective ad platform that allows narrow location targeting that is aimed at increasing your leads in particular geographical locations. Sometimes, advertisers get better results by targeting their audience using zip codes instead of say States.
Another way to capture a larger market share of your audience is by targeting them using the devices they use.
We know that more people are accessing the internet using their devices. However, does this mean that Facebook is the best platform to create mobile ads? To determine this, we need to look at some hard data.
Statistics published by Marketing Charts indicates that digital platforms with a focus on audio had the lion’s share of Q4s 2017 ad spend. It could be that by advertising on an alternative platform your brand will gain more exposure and reach more of your target market.
There’s no doubt that Facebook got it right when they decided to purchase Instagram. Even though the audience on Instagram interacts differently, as a, marketer you should try and determine whether the overall Facebook statistics have a bearing on how you should advertise on Insta.
Here are a few things you should know:
- Instagram has more than 2 million monthly advertisers
- Instagram’s revenue growth has witnessed an annual growth of 90.7% which added up to $3.08 billion as of 2017. In 2018 alone, Instagram is expected to generate close to $7 billion.
- According to numbers published by Statista, Instagram will account for about 28% of Facebook’s mobile advertising revenue.
Before deciding on whether Insta is the best option for you, you should ask yourself the following questions:
- The number of teens that engage with ads compared to organic content?
- Types of ads teens are more likely to engage with?
- Are there any conversions from the ads?
I hope you have a better understanding of what to look for before deciding whether Facebook is the best for your ad dollars.