Facebook’s ad revenue continues to grow with click through rates (CTRs) and impressions both increasing by double digits quarter-over-quarter (QoQ), according to Adobe’s latest Social Media Intelligence Report. Although new user growth remains an area of uncertainty for the reigning social media champ, that isn’t of concern for advertisers who are seeing CTRs rise by 20% and impressions by 41% between 2013 Q4 and 2014 Q1, and an increase in revenue-per-visit (RPV) by two-percent QoQ. Furthermore, Facebook has seen a giant 160% year-over-year (YoY) CTR increase and RPV up by 11% YoY. However, cost-per-click (CPC) dropped two-percent YoY and 11% QoQ after what Facebook recalls as a strong holiday season.
In comparison, Twitter experienced a quarter-over-quarter RPV decline of 23% and Tumblr by 36% (Tumblr reported however that although their quarter-over-quarter RPV percentage decreased, their year-over-year total increased by 55% – Twitter’s year-over-year RPV is up by just 5%). So what is Facebook doing that other social media platforms are not?
“Companies like Facebook are making changes to their algorithms and adding functionalities like auto-play of videos, which impact brands and users and how they engage with content,” explained Principal Analyst Tamara Gaffney at Adobe Digital Index in the report.
Speaking of auto-play videos, Facebook’s video plays increased by a massive 785% year-over-year and 134% quarter-over-quarter since the introduction of auto-play videos in 2013 Q4. Video engagement also rose, with a 58% QoQ increase and 25% YoY. In addition, findings also showed that a quarter of videos uploaded to Facebook are played on Fridays as well as almost 16% of post impressions.
The Adobe Social Media Intelligence Report is based on 260 billion Facebook ad impressions, 226 billion post impressions, 17 billion referred visits from social networking sites, and seven billion brand post interactions including comments, likes and shares. Paid social data is derived from aggregated Adobe Marketing Cloud data.