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Facebook ads show improved conversions and revenue: analysis, with infographic

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Facebook ads are getting better at generating conversions and revenue, according to new analysis.

Social media marketing technology platform Kenshoo Social analysed 75bn Facebook ads in the first two quarters across a representative sample of advertisers and agencies, using its own platform.

It found that clicks increased by 16.4%, between the first quarter and the second quarter of the year. Conversions were up over the same period by 59.9% and advertiser revenue rose by 28.3%.

The improvement, says Todd Herrold, director, product marketing at Kenshoo Social, shows that Facebook is evolving beyond a brand awareness and engagement channel into a powerful direct response channel.

He said: “Advertisers are finding success using Facebook ads to drive toward their direct marketing goals, most importantly conversions and revenue. There are several factors influencing this evolution. Facebook has been steadily optimising its ad units and launching new ad targeting products designed specifically for direct response, including Custom and Lookalike Audiences, partner categories and the Facebook Exchange.

“At the same time, advertisers are getting better at narrowing down their target audiences and honing in more appropriately on users who may find the ad engaging. They’re becoming more sophisticated and are increasingly leveraging advertising platforms, like Kenshoo Social, to build and manage scale using automated bid optimization, audience targeting and expansion algorithms.”

Kenshoo Social also said that Facebook’s algorithms are improving, meaning the site can better pinpoint relevant users within an advertiser’s target audience.

Kenshoo Social has put together an infographic which illustrates the research in more detail. Click here to view it.

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