Do you know how much you should pay for a click on a Facebook ad? What do you consider to be a good conversion rate? How about social media marketing costs in general?
If you don’t have solid answers to these questions, you may not be maximizing your online marketing dollars.
Fortunately, you can learn a lot about growing your business by simply looking at data relating to paid search and paid social.
According to the 2018 Media Benchmark Report for Q2 published by AdStage that analyzed more than 3 billion ad impressions and 66 million clicks on both the mobile and desktop News Feed, CPC on Facebook ads decreased by 10.4 percent since Q1, CTR decreased by 5 percent, and CPM decreased by 12.3 percent.
Data also showed that 50 percent of advertisers had CPCs ranging between $0.38 and $0.51. Over the past two quarters, CPCs have decreased by approximately 23 percent.
In the News Feed, CPMs for Facebook had decreased by nearly 25 percent compared to Q4 of 2017.
However, CTRs for the News Feed have remained fairly consistent over the prior three quarters. In Q2 of 2018, the median CTR was 2.24 percent.
AdStage also published the results of Q2 in 2018 which analyzed more than 261 million ad impressions, in addition to 2 million clicks on the Audience Network on Facebook.
At this time, the median CPM was $4.13, CTR was 0.82 percent, and the CPC was $0.50. From Q2 of 2017, the CTRs have decreased by 64 percent, CPMs increased by 6 percent, and the CPCs have increased by 194 percent.
During Q1 of 2018, CPC on Facebook Audience Network ads increased by 163 percent, CTR decreased by 38 percent, and CPM increased by 72 percent.
In Q2 of 2018, CPCs on the Audience Network had skyrocketed to a record-breaking number.
Median benchmarks show that advertisers paid a whopping $0.50 per click which is a 163 percent increase from Q1 of 2018.
On the Facebook Audience Network, CPMs increased 72 percent compared to Q1 of 2018, and advertisers paid $4.13 per one thousand impressions.
In Q2, CTRs on the Audience Network saw a decline of 64 percent from the previous year.
Nearly 70 million ad impressions and more than 400 thousand clicks were also analyzed on Facebook Messenger in Q2 of 2018.
The median CPC was found to be $1.23, the CTR was 0.60 percent, and the CPM was $7.34.
On Facebook Messenger, CPC was found to have increased by 13 percent since Q1 of 2018, CTR ads increased by 11 percent, and CPM increased by 24 percent.
Data showed that CPCs on Facebook Messenger ads increased by 13 percent over each quarter and advertisers paid $1.23 per click.
On Facebook Messenger, CPMs increased by 24 percent from Q1 of 2018 and advertisers paid $7.34 per one thousand impressions.
CTRs on Facebook Messenger are up 11 percent with a median benchmark of 0.060 percent in Q2 of 2018.
During Q1 of 2018, AdStage analyzed more than 390 million ad impressions and approximately 5 million Instagram clicks.
Results showed the median CPC to be $1.37, the CPM to be $8.60, and the CTR to be 0.62 percent. Since 2017, the CPCs on Instagram have decreased by nearly 70 percent.
CPMs on Instagram were down 26 percent and CTRs had increased by 121 percent.
In short, CPC on Instagram ads decreased by 3 percent since Q1 of 2018, CPM increased by 9 percent, and CTR increased by 19 percent.
Data also showed that Instagram CPCs had dropped by nearly 70 percent in 2018 and advertisers paid $1.37 per click. In Q2 of 2018, CPMs on Instagram were up 9 percent.
CTRs are also rising and are up 19 percent from Q1.
In Q2 of 2018, more than 2.3 billion ad impressions and 3.6 million clicks were analyzed on LinkedIn.
Results found the median CPC to be $4.83, the CPM to be $7.13, and the CTR to be 0.15 percent.
It was also found that CTR Y/Y increased by 50 percent, while CPC decreased 22 percent Y/Y. During Q1 of 2018, CPC on LinkedIn ads decreased by 8 percent, CPM increased by 5 percent, and CTR increased by 15 percent.
Compared to Q1 of 2018, CPCs on LinkedIn ads were found to be down 8 percent.
Advertisers paid $4.83 per click based on median benchmarks. In Q2, the median CPM was $7.15. Compared to 2017, advertisers paid one dollar more per thousand impressions.
On LinkedIn, CTRs increased to 0.15 percent and compared to 2017, Q2 median CTRs were up to 50 percent.
More than 318 million ad impressions and over 3 million clicks were analyzed on Twitter in Q2 of 2018.
The median CPC was found to be $0.78, the CPM was $7.09, and the CTR was 0.90 percent.
CPC during Q2 increased 66 percent year-over-year, CPM is up 49 percent, and CTR decreased 10 percent.
The report showed that CPC on Twitter ads had increased by 3.6 percent since Q1 of 2018, CPM decreased 17.6 percent, and CTR decreased 26 percent.
CPCs rose to a record-breaking high of $0.78 and CPMs increased nearly 10 percent in Q2 for an average of $7.08.
The data also showed a decline in CTRs on Twitter over the previous two-quarters of 40 percent.
The median Q2 CTR benchmark was 0.86 percent.
On Google Search, more than 175 million ad impressions and 7 million clicks were analyzed in Q2 of 2018.
The median CPC was found to be $2.84, the CPM was $114, and the CTR was 4.08 percent.
Data showed that CPC on Google Search ads increased by 3 percent since Q1, CPM decreased by 2.4 percent, and CTR decreased by 3.7 percent.
The median CPC for Google Ads were found to have remained mostly flat with just a 3 percent increase from Q1.
CPMs had dropped 2.4 percent from Q1 and the median benchmark was found to be $114 per thousand impressions.
CTRs were down by 3.7 percent which was a 30 percent decline from 2017.
Google Display Network
Another 1.3 billion ad impressions and more than 4.5 million clicks were analyzed in Q2 of 2018 on Google Display Network.
The median CPC was found to be $0.64, CPM was $2.25, and CTR was 0.35 percent.
Data found that CPC on Google Display Network ads to have decreased by 16 percent since Q1 of 2018, CPM decreased by 20 percent, and CTR remained flat.
Results also found that the median CPMs had dropped by 16 percent and the median CPC benchmark was $0.64 per click.
CPMs had dropped 20 percent and advertisers paid out $2.24 per thousand impressions.
On the Google Display Network, CTRs remained flat at 0.35 percent quarter-over-quarter. Median CTRs increased 25 percent year-over-year.
In Q2 of 2018, more than 450 million ad impressions and 1.3 million clicks were analyzed on YouTube.
The median CPC was found to be $3.58, the CPM was $11.43, and the CTR was 0.34 percent.
Data found CPC on YouTube ads to have increased by 11.5 percent since Q1, CPM increased by 18 percent, and CTR increased by 3 percent.
On YouTube ads, CPCs increased 11.5 percent and the median CPC benchmark was $3.58 per click.
CPMs were also up 18 percent in Q2 and advertisers paid out $11.43 per one thousand impressions.
On YouTube, CTRs remained flat quarter-over-quarter and the median CTR benchmark was set at 0.34 percent.
More than 23 million ad impressions and 665 thousand clicks were analyzed in Q2 of 2018 on Bing.
Data found that CPC on ads decreased by 12.4 percent since Q1 of 2018, CPM decreased by 4.7 percent, and CTR increased by 11.4 percent.
There was a drop of 12.4 percent in median CPCs for ads quarter-over-quarter and advertisers paid $3.09 per click.
In Q2 of 2018, Bing CPMs dropped from $94.35 to $89.94.
Q/Q CTR rates improved with an 11.4 percent increase in Q2.
Over time, Facebook had made it easier for advertisers to analyze, report, and improve the performance of their campaigns.
From the addition of “Creative Reporting” to the launch of the first Facebook Analytics add for mobile users, the platform had made great strides.
Advertisers can expect to see more cost-effective ways to obtain and engage with users.
Trends are moving towards simplifying marketing solutions.
New responsive ad types allow marketers to set up a single ad with numerous headlines and descriptions.
Retail marketers also have the opportunity to bid smarter with data relating to comparative pricing.
Instagram has been found to be an effective platform for building brand awareness among companies who are aiming to target younger audiences.
The platform has been found especially useful for driving sales and boosting profits.
LinkedIn has also made updates in marketing.
In June, the platform launched its Matched Audience with Salesforce Advertising Studio.
This update focuses on the account-based marketing (ABM) approach.
Twitter is seeing a big surge in video advertising.
Video ads accounted for over half of the platform’s advertising revenue in Q1 of 2018. Video ads have been found very useful in boosting brand familiarity and awareness.
YouTube has also made it easy for advertisers to target users using search history. A skippable video option was also newly released.
Known as TrueView for Reach, advertisers can now purchase ads after viewers watch a video for 30 seconds or when the video ends.
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