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Facebook's Q4 performance shows major direct-response improvement

Published: January 27, 2014

Author: Molly McCarty

Anyone who advertises on Facebook is eager to see those Q4 numbers come out on Wednesday. It was apparent to most that Facebook thrived during the holiday season, adding more evidence to the theory that Facebook is a top channel for direct response advertising.
We ran numbers for two of our accounts – one online retailer and one lead-generation company – and compared Q4 numbers to Q3. Each account showed spikes in CPC and conversion rate, as was expected; CPC increased 47% and 50% in the two accounts from Q3 to Q4, and CVR increased 61% and 41%. Volume was higher as well; the two accounts (which totaled over 120M  impressions in Q4), increased 100% and 43% as the clients devoted more budget in light of the campaigns’ performance.
Looking ahead, I think we can expect budgets to be strong across the board. With the recent changes to Facebook’s advertising platform – including a much-needed improvement to the ads interface and the introduction of powerful new ad types late in Q3 – and the continual improvement of the algorithm, I fully expect performance to continue to be strong.  I think it is safe to say that 2014 will be a year of positive changes for Facebook that will continue to reinforce Facebook as a leading platform for online advertising.

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