Industry Benchmark Report
Facebook Ads Benchmark Report for Optimised Property Advertising
Dec 21, 2018
6 min read

Thomas Amundsen
Facebook and Google are the fastest growing ad networks in the world. In fact, combined they accounted for more than 50% of US digital ad revenue in 2018. If you're one of the millions of advertisers who used these giants to advertise this year, you probably wonder if your ad campaigns are delivering satisfactory results. Performance can differ considerably across verticals and comparing your property campaigns with benchmarks for other industries won't give you any actionable insight.
At Marketer Technologies, we decided it was time to dig into our data and share our findings with the real estate industry. Having spent more than $570,000 on Facebook ads this year, analysed over 5,000 property campaigns, and on track to advertise more than 25% of all properties sold in Norway, we've assembled a considerable amount of data to provide an average benchmark for optimised property advertising in 2018.

In our report, we've analysed key performance indicators for measuring success on Facebook, including:

Average cost per thousand impressions (CPM) on Facebook in 2018 and 2017
Average cost per link click (CPC) on Facebook in 2018 and 2017
Average click-through rate (CTR) on Facebook in 2018 and 2017
We've based our average on more than 50 million impressions and over 2.5 million link clicks this year. Please note, we are referring to actual links clicks on our ads and not general clicks. This means all clicks counted in this report have sent traffic to an external landing page. We are not including clicks on the comment field, likes etc as this is not an actionable metric for our clients.

We've also made a comparison to our performance in 2017 to identify trends and examine whether the increased competition has led to an overall lower ROI.
*Stats have been converted from NOK to USD using exchange rates from Dec 21st 2018
Against expectations, CPM decreased by 2.72% to 98.77 NOK ($11.35). It's well known that other industries have suffered higher CPMs and costs on Facebook this year. According to Adstage 2018 benchmark report for Q1 2018, the average CPM across all industries was up 91% from Q1 2017 to $11.20. This is due to a more competitive advertising landscape. All self-serve advertising platforms operate as an auction where the highest bidder/best advertiser wins, and Facebook has seen a steady increase in new advertisers without much user growth. As a result, Facebook is running out of ad space and demand exceeds supply, causing impressions to become more expensive.

Luckily, the high competition has had a minimal impact on our ads performance. However, Facebook is becoming expensive and you'll see more and more businesses complaining about the high costs, but the truth of the matter is, Facebook and Google are still extremely powerful and profitable channels if you know how to operate them and beat your competition. Both channels rank your ad performance and provide an indicator called "relevance score". If your messaging and creatives resonates well with your target audience, their algorithm will acknowledge the positive engagement and reward you by lowering the CPM. Essentially, you can still win the auction with a lower bid than your competitor. In a nutshell, good creatives and targeting are now more important than ever to maintain a healthy return on your ad spend.
The average CTR across all clients closed the year at 4.88%, a staggering 7.75% increase from last year. Over the past year, Facebook has done a remarkable job at rolling out new ad features and creative formats, giving advertisers more and better options to communicate with their audiences. At Marketer, we've paid close attention to all new features available to ensure that we always maximise our results, and we're happy to see that our efforts have paid off. Other contributing factors to the higher CTR include improvements to our optimization algorithm and the continuous accumulation of data for our customers.

According to Adstage 2018, median CTR across all industries only changed by -0.8% to 2.36% (Q1 2017 to Q1 2018).
We're thrilled to see that our average CPC is down 9.71% to NOK 2.02 ($0.23) - thanks to a minimal CPM decrease while CTR has grown steadily month by month. This is a huge win in today's competitive landscape if you compare with other industries. Adstage 2018 implies that CPC increased by 92% to $0.48 (Q1 2017 to Q1 2018). We've seen multiple reports and analysis of CPCs surging in other industries and to be quite frank, we did expect CPC to increase at least slightly from last year. To see the opposite is quite breathtaking and indicates a bright and profitable future for digital advertising in the real estate industry.

This year has seen a remarkable journey for Marketer Technologies and we're more ambitious than ever to build the best marketing technology and expanding our product to uncharted territories. Marketer Technologies now advertises more than 25% of all sold properties in Norway and while our international expansion has only just begun, we've successfully onboarded our first Sotheby's office in the US and signed with new major real estate agencies in Denmark, Sweden and the UK. We look forward to a prosperous 2019 and welcome new real estate agencies to try our product. If you're interested in learning more about our automated property marketing for real estate, you can book your demo here: Button to demo page

What is Marketer and how does it help you sell more properties?
Automated marketing for real estate professionals:

At Marketer we are dedicated to perfect the world's greatest platform for AI-based marketing. And we are confident that our world-leading technology and approach to highly detailed marketing can be utilized in many fields. But for now, our focus is the real estate industry.

"Selling real estate faster and better than humans"

The beauty of an AI-based technology is that the more you use it, the smarter it gets. Every fine-tuning based on your local knowledge is building your competitive advantage. Campaign by campaign, lead by lead. Without intermediaries like advertising and media agencies taking a single cut.

The benefit for you is twofold. Firstly, we increase marketing efficiency by automating both the creation, distribution and continuous optimization of your campaigns, and give you hands on access to all results and incoming leads right on your desktop or mobile device. Secondly, we free you from repetitive tasks, giving you more opportunity to contribute critical knowledge to each individual campaign message, and add the human touch that are at the heart of every sale.

Every property is unique. And so is every sale. What we deliver is a fully automated and improved marketing process, providing you with highly targeted and personalized marketing messages in channels like Facebook, Instagram, Google, LinkedIn, Snapchat as well as local digital channels.

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