Facebook Inc (FB) Wins Positive Response In Advertising Survey By RBC


Facebook Inc (NASDAQ:FB) emerged as a robust player with a strong presence among marketers and advertisers who are looking forward to taking up their ad expenditure on Facebook in the coming months, according to a survey conducted by RBC Capital Markets along with AdAge.

Facebook Inc (FB) Wins Positive Response In Advertising Survey By RBC

Analysts Mark S. Mahaney and Andre Sequin from RBC noted some important takeaways from the survey.

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Facebook’s marketing tactics lauded

In the survey, 83 percent of the respondents answered positively when they were asked about Facebook’s marketing tactics, while only 17 percent of them were negative. Facebook Inc (NASDAQ:FB) has a strong user base of 1.2 billion monthly average users, and it has gained popularity with marketers, as well.

Analysts, however, note that it is possible that marketers only maintain a page on Facebook rather than purchasing advertisement on the site. Additionally, the number was less than 86 percent in July 2012, so the trend is negative.

All those marketers who use Facebook Inc (NASDAQ:FB) as a market tool do not necessarily maintain only a page; rather, an increasing number of people are expending to purchase ads. This statistic is significant as Facebook earns revenue when advertisers buy ads. Having a mere Facebook page can create more engagements in the site and attract more users, but it does not contribute very much in the P&L.

Majority marketers plan to raise Facebook’s ad budget

Those who were looking forward to raising Facebook Inc (NASDAQ:FB)’s advertising budget next year were around 56 percent, as compared to the meager 6 percent of those who expected a decrease. This is a good sign for Facebook ad revenue growth. The analysts noted that an answer to this question is similar to two prior ad surveys. Further, they see this trend as support from industry to Facebook, but not much of a modulation.

Facebook is next only to Google in terms of ROI

Return on Investment (ROI) is one of the metrics seeing some surge due to increased interest of advertisers on Facebook. Around 43 percent of the respondents hold that ROI on their Facebook spending had “Dramatically Improved” or “Somewhat Improved” over the past 6 months compared to those 9 percent who thought that the ROI had declined. Analysts see this as positive, though this could not be compared with the historical results. Advertisers seem to go beyond the initial phase by increasing their ad spends on Facebook due to enhanced ROI.

Facebook got a descent position amongst the other online advertising sites in a question where marketers were asked to rank order of leading online advertising sites in terms of ROI importance, which included sites such as Google Inc (NASDAQ:GOOG), Yahoo! Inc. (NASDAQ:YHOO), AOL, Inc. (NYSE:AOL), Twitter, and LinkedIn. Facebook Inc (NASDAQ:FB) came in at second place behind Google. Both LinkedIn and Twitter were ahead of Yahoo and AOL, which is an interesting finding.

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