Facebook Advertising Statistics: Are Facebook Ads Still Effective Today?

 
Stats • December 13, 2023
 
One company has been under fire a lot in the last two years. Facebook is making headlines for the wrong reasons. Facebook’s advertising policies are under increasing pressure as privacy laws continue to evolve. Facebook’s ability to track iOS users accurately was also severely damaged by the iOS 14 update. Facebook’s advertising platform has been affected by all of these factors. What’s the worst thing about it? Since 2010, Facebook advertising has increased in cost every year. The BIG question is… “Are Facebook ads still effective today?” Here are the latest Facebook Advertising Statistics.
    • Facebook Ads: How Effective Are They?
    • What is likely to happen in the future

Key Facebook Advertising Statistics

Facebook’s latest statistics indicate that it is growing, especially in terms of advertising. Here are the most recent Facebook advertising statistics that you should know: 2.91 billion active monthly users use Facebook Facebook is operated by 1.6 billion users every day Advertisement is a good way to monetize 72.5% of monthly active Facebook users. Facebook’s advertising revenue in 2021 will be approximately $115 billion, which is 97% of its total revenue. Over the past ten years, their annual revenue has increased by 2,203% Facebook is the 8th most valuable brand in the entire world. Over 3 million businesses use Facebook’s advertising platform. Facebook advertising costs have increased about three times since 2018. Facebook is a profitable paid channel for 40% of businesses, while Instagram is a good paid channel for 30%. Facebook’s ad platform is the most effective paid advertising channel for 70% of all businesses. Facebook is used by approximately 200 million businesses to promote their products and services. Facebook is still a dominant force in online advertising. If you add Instagram (which is also managed by the same platform), the results become even more impressive.

Facebook Usage: How many people use Facebook?

Facebook’s users are the key to Facebook’s advertising success. Facebook is the third-most visited website on the planet, with 1.6 billion visitors every day. The third most popular app in the US is the Facebook app. What’s more? Facebook is used by 36.8% (or the total population) of the world at least once a month. Statistics on social media addiction reveal that 2.91 billion people per month use Facebook. The bottom line is that Facebook has a large number of users. This does not include the 1.3 billion Instagram users who are part of the Facebook advertising platform. They have made a lot of cash. Facebook’s revenue per year has grown by 2,203% in the past ten years. Meta continues to grow Facebook advertising revenue despite the privacy and iOS drama. Facebook will be the 8th-most valuable brand on the planet in 2022. The top three most valuable brands in the world are:
    • Apple
    • Google
    • Amazon
There’s a reason why Facebook is so helpful. Facebook is used by over 3 million businesses to advertise regularly or constantly. Facebook is operated by 93% of all social media marketers. In 2023, Facebook will be spending $65.21 Billion just in the US. Not every Facebook user can be monetized. Hootsuite’s study estimated that Facebook ads could reach 2,11 billion users of the 2.91 billion monthly users. Facebook ads reach approximately 72.5% of the total Facebook audience. What is the biggest Facebook audience? Men aged 25-34 will account for 19% (2021) of the total reach that Facebook ads can have. They are, therefore, the largest demographic that can be targeted on Facebook’s advertising platform.

Facebook Ads: What results can you expect?

Facebook ads are known to be the most effective advertising platform available. Facebook’s latest advertising statistics confirm this. HubSpot found that in its 2021 State of Marketing Report, they:
    • Facebook ads are the most effective for 40% of businesses.
    • Instagram ads are the most effective for 30% of companies.
What does this mean? Facebook ads were the platform that brought 70% of businesses their best ROI. One-third of business owners cite Facebook ads as the best-performing form of advertising in terms of ROI. It was the first to use Google Paid Search and LinkedIn Ads. Facebook is still the most profitable paid channel for the majority of companies despite all its challenges. Not all Facebook ads are effective. What are the best Facebook advertising strategies? AdEspresso conducted an experiment that found mobile ads outperformed desktop ads by up to 45%. Adding a button that encourages users to take action in your Facebook ads can increase the click-through rate by 2,85x. The performance of your ads is greatly affected by the placement and configuration of your ads. Facebook ads can be used to generate sales and leads, but not all of them. Facebook offers a wide range of options for advertisers. Brand awareness and engagement are also popular advertising objectives. In 70% of the tests, vertical ads resulted in an incremental lift in brand recognition and a 3-to-9-point boost in overall ad memory. The study by Buffer found that just $5 spent per day on Facebook ads generates an average of $.
    • The Facebook page of the business has 9 page likes
    • Click here to land
    • A total of 787 new people reached
Facebook ads have proven to be an effective way to raise awareness and interest in your brand. Wordstream data shows that the legal sector has the highest average Click-through Rate of all industries at 1.61%. In the same study, employment and job training had the lowest click-through rates of 0.47%.

Why is all this important?

Facebook ads are more effective in certain industries than others. Facebook is a popular marketing channel for 20% of marketers. They consider that advertising is the most effective way to reach their goals. It is in comparison to other Facebook marketing strategies, like running a Facebook group or posting organically. All marketers are aware that adding a CTA (call-to-action) to your advertisement is crucial. This is particularly true for Facebook ads. AdEspresso discovered that in one of its tests, changing the CTA to “Sign Up” and ” Learn more” increased the click-through rates on the ads by an impressive 22.5%. The same study shows that the “Sign up” button led to a 14.5% increase in conversion rates. The call to action that you select for your ads can have a variety of effects on the outcome. What kind of results can I expect from my ads? A typical ad that directs someone to buy something has a conversion rate between 0.1% and 0.2%. In the same study by OkDork, it was found that ads used to collect email addresses convert around 20%. Facebook ads that are successful now include videos. According to a survey of Australian Facebook users, 48% made a purchase following a video. Tests of creatives and types have been shown to improve performance significantly.

What will you spend on Facebook ads?

Facebook’s advertising costs have risen; there is no doubt about that. The cost of advertising has increased significantly as more advertisers join and find success. Here are the most recent Facebook advertising costs statistics. The average cost per click (CPC) on Facebook is $1.86. The average cost-per-click (CPC) in 2018 was $0.63. This is about a three-fold increase in cost over the last five years. Facebook’s average cost per thousand views (CPM), or the price paid for each 1,000 views, is currently around $11.20. This metric shows how much your ad costs to be delivered 1000 times on Facebook. A second Wordstream Study found that the average CTR for Facebook Ads is 0.90% in all industries. You have a better-than-average advertisement if you can get your CTR to be higher than this. The average cost per action (CPA), according to the study, is $18.68. It means that the average business spends about $18.68 per person to encourage them to perform a valuable task (e.g., Lead or sale). When is the best period to advertise? Facebook allows you to schedule your ads or have them run continuously. Data show that:
    • On Fridays, the cost per click is the highest.
    • On Sunday, the cost per click will be lower.
Remember that Facebook ads run by businesses are real. Facebook ads often mirror trends in the industry. Are you looking for the best time to advertise your business? Cost-per-like campaigns are the cheapest during Q1. Businesses tend to spend less money on marketing during the first quarter of every year because customers are less likely to purchase at that time. There is a huge difference in costs for Facebook ads depending on the industry you work in. Finance and insurance were the industries that had the highest CPC, according to a recent study. The average cost per click is $3.36. The apparel industry has a cost per click of, on average, $0.40. Facebook costs are usually:
    • Your ad’s quality
    • You are targeting a certain audience
You will pay more if you target a more competitive and niche audience.

Facebook Advertising: Best Practices for Marketers

You can now see the latest Facebook statistics on performance, cost, and usage. What is the most important thing? Ability to improve results. We have compiled a list of the latest trends and statistics that will help you determine the best ways to run Facebook ads. Meta is slowly rolling out instant experiences to Facebook and Instagram. Facebook Instant Experience ads load 15x faster on average than mobile websites (which is good). Increasing website speed improves the following:
    • User experience
    • Conversion rates
Instant experience ads can be a great ad for your business. Every Facebook ad is based on creatives. The size of the image is also important. It can affect your ad’s performance. Facebook recommends:
    • Ads with single photos should have a resolution of 1200 x 628 pixel
    • Ads in a carousel should have a resolution of 1080 x1080 pixels
Facebook ads are not just about creatives. Your copywriting is also crucial to the performance of your ads. AdEspresso discovered that the average headline length for Facebook ads was only five words. In the same study, it was found that an average advertisement contains 14 words. The best results will be achieved by using shorter, punchier copy and a concise message. The words you choose can also affect the effectiveness of your ads. These five power words have been proven to increase response.
    • It is important to understand that you can use your language.
    • Enjoy Free Shipping
    • Because
    • Instantly
    • New Zealand
Use these words to promote your product/advertisement. There are many different objectives that you can choose for your advertising. Facebook offers 11 advertising objectives.
    • Posts can be boosted.
    • Promote your Facebook page.
    • Send traffic to your website.
    • Conversions increase on your website.
    • Get app installs
    • App engagement: Increase your app’s engagement
    • Find people near your business
    • Attendance at your event can be increased
    • Claim an Offer
    • Video views
    • Leads to collect
Traffic, generating leads, and sales are the most common objectives. Smart advertisers will use all of the objections in order to achieve different goals. As an example: You could run a campaign in order to encourage people to view your video. Then, you could run a retargeting campaign in order to convert these people into sales. Truth is- You can employ a variety of strategies to maximize the value and effectiveness of your advertising campaigns. The three most common call-to-action (CTA) buttons used on Facebook ads include:
  1. Find out more
  2. Shop Now
  3. Sign up
The performance of your Facebook ads will be affected by the way they are designed. Test each of the trends above to improve your campaign and create solid drives.

Wrapping it Up

Are Facebook ads still effective today? Facebook’s advertising statistics show that many businesses are still able to get excellent returns on their Facebook ads. 70% of businesses say Facebook and Instagram are also the most profitable paid advertising channels available today. Digital Marketing Statistics show that Facebook remains the largest social media platform, with billions of active users each month. The platform itself isn’t magical. To generate a good ROI, you must create engaging ads.