Seeking Alpha

Facebook ad partner reports strong Q2 click rates, ad prices

  • Facebook (FB) ad campaign software provider Nanigans reports (.pdf) its clients saw a 146% Y/Y increase in Facebook ad click rates in Q2 to 0.36%. Click rates were only at 0.24% in Q1, and 0.23% in Q4.
  • The average price of ads sold on a CPM basis rose 57% Q/Q and 218% Y/Y to $1.95, and the average price for cost-per-click (CPC) ads rose 7% Q/Q and 29% Y/Y to $0.55.
  • E-commerce ad clients (a major vertical) saw a 111% increase in click rates, a 175% increase in CPMs, and a 30% increase in CPCs. Gaming ad clients saw a 579% increase in click rates, a 367% increase in CPMs, and a 30% increase in CPCs. Mobile strength fueled the gaming click rate and CPM growth.
  • Sponsored (unpublished) news feed page posts made up ~50% of tracked ad spend, and app install ads ~30%.  56% of spending was on mobile.
  • Nanigans also issued positive numbers for Facebook ahead of its Q1 beat. Q2 results are due on July 23.
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Comments (15)
    , contributor
    Comments (3149) | Send Message
    FB just keeps humming along !
    8 Jul 2014, 07:19 PM Reply Like
  • teksavvy
    , contributor
    Comments (56) | Send Message
    Agreed. I think people will look back at this time as a time when facebook was still affordable.
    8 Jul 2014, 07:33 PM Reply Like
  • D. Appleton & Company
    , contributor
    Comments (382) | Send Message
    Facebook is going to blow out earnings. Again.


    The naysayers will then kick the can down the road. Again.
    8 Jul 2014, 08:10 PM Reply Like
  • jeepnsam
    , contributor
    Comments (54) | Send Message
    Let's not repeat last ER (Blow out and then sell off)
    8 Jul 2014, 08:51 PM Reply Like
  • teksavvy
    , contributor
    Comments (56) | Send Message
    It seems like there is a rally every other earnings release, FB is due for a pop this earnings release.
    8 Jul 2014, 09:32 PM Reply Like
  • King Rat
    , contributor
    Comments (967) | Send Message
    Trading earnings reports is a craps shoot. Companies can rise on poor results and fall on great results. If FB falls on great results now that may well be a buying opportunity.
    For FB to grow beyond a $200B company they are going to have to branch out into other services. Far from saying that FB will not be able to do so, I am saying I am curious to see what ideas FB will come up with.
    9 Jul 2014, 12:29 AM Reply Like
  • bioplayer2014
    , contributor
    Comments (11) | Send Message
    Last time I think FB earnings were completely over shadowed by AAPL 's good quarter and apples stock split news. hope it doesn't repeat it, Long FB
    9 Jul 2014, 01:04 AM Reply Like
  • monfrere
    , contributor
    Comments (635) | Send Message
    They didnt fall last quarter based on their numbers, they fell based on their forecast. The numbers are the easy thing to report so it gets the headlines, but the conversation about the future is much more important.


    On the call, they said the following would not offer material growth any time soon: acquisitions, video, and newsfeed ads (due to comps with newsfeed ads).


    That's why it fell. If and when that manifests, it will be very bad for the stock price. I've been saying since mid Q4 of last year that Q2 of this year is going to be the first place the real problems show up. I might be wrong. Only a few weeks to find out.
    9 Jul 2014, 10:23 AM Reply Like
  • cashawash
    , contributor
    Comments (1082) | Send Message
    As long as Facebook continues to blowout earnings, quarter after quarter, and the fundamentals continue to strengthen, stock price appreciation will eventually follow -- perhaps not on every investor's timeline, however; patience can be your best ally with great companies, like Facebook.
    Stay strong for long is the way the go, my esteemed investing brethren!
    9 Jul 2014, 01:33 PM Reply Like
  • beautidoc
    , contributor
    Comments (142) | Send Message
    Not to "jinx" anything Monph, but "might be wrong?" Facebook is the greatest mass media communication in history, we've only seen the tip of it's monetization iceberg. Good luck and be well.




    Doc P
    9 Jul 2014, 02:51 PM Reply Like
  • all on board
    , contributor
    Comments (215) | Send Message
    Facebook is revolutionizing and connecting the entire world.
    8 Jul 2014, 11:06 PM Reply Like
  • User 7530821
    , contributor
    Comments (228) | Send Message
    This is a good reminder to ignore the negative "noise" on FB and buy the dip.
    9 Jul 2014, 08:56 AM Reply Like
  • monfrere
    , contributor
    Comments (635) | Send Message
    Sometimes that's right, but sometimes it dips from 74 to 70 and buying on that dip will cost you money on the way to 55. If you get it at the bottom and then it goes to 65, that's great. If you keep buying on every dip though, you might get burned.
    9 Jul 2014, 10:25 AM Reply Like
  • User 7530821
    , contributor
    Comments (228) | Send Message
    Thanks. I was too brief with my comment, but I said it recognizing that FB keeps making higher lows. I would not buy a dip unless it held support, or there was confirmation that the trend was up. I actually manage my FB position by trading around the 20 day SMA and 8 day EMA crossovers. On a bearish crossover by the EMA (8) of the SMA (20), I go to 25% of my position and add it back on a bullish crossover. Check it out. For "investments", I would not consider going all cash unless the 200 day SMA was broken and there was no evidence of a bottom. Even though my approach is “swing trading”, FB is really an investment. I am not in the “buy and hold” camp nor believe in returning profits and my hard earned cash.
    10 Jul 2014, 12:15 AM Reply Like
  • monfrere
    , contributor
    Comments (635) | Send Message
    Sounds like you are a smart technical investor. Good luck to you.
    10 Jul 2014, 10:15 AM Reply Like
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