Glew’s analysis showed an average return on Facebook ad spend of negative 20.7%. Based on historical user growth and increasing levels of spend, Facebook is poised to generate strong revenue this holiday season from advertisements, but are advertisers generating a level of return that warrants their continued growth in spend? Three million businesses actively advertise on Facebook, and there are over 50 million business Pages using the channel. Facebook reported that mobile advertising revenue comprised 80% of total revenue for the fourth quarter of 2015. In total, and as a testament to the growing popularity of Facebook advertising, the social media giant raked in $5.63 billion in revenue from advertisements during October, November and December of 2015, representing impressive year-over-year growth of 56.8% versus Q4 2014’s $3.59 billion of advertising revenue. Budgets are being prepared, ad spend is increasing and this year more than ever, businesses will turn to Facebook Ads in an attempt to reel in sales.ĭuring the fourth quarter of 2015, Facebook’s revenue from advertising grew $1.34 billion, or 31.1%, versus Q3 2015, representing a seasonal lift in advertising demand as stores attempt to corral holiday shopping dollars.
The fourth quarter of 2016 is here which means ecommerce stores are preparing for the most wonderful time of the year – holiday shopping.
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