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Spurred by a surge of competition and device adoption on mobile and larger, more engagement-driven ad placements, the cost (and effect) of doing business on the Facebook platform continued on trend and posted huge increases this past Q4.

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We crunched Facebook advertising numbers over 1B total impressions in Q4 and found the following in comparing performance to Q4 2013:

– A 364% YoY increase in CTR, attributed to a variety of factors including more advanced creative testing and, of course, the mainstream adoption of Custom Audiences.

– an overall 35% YoY increase in CPCs comparing December 2013 to December 2014.

– Within the retail vertical specifically, we’ve seen increases of 392% for CTR; additionally, CPMs have tripled YoY and more than doubled for mobile.

The numbers are staggering and tell a clear story: the market has reacted positively to the changes in regards to user experience; mobile adoption both domestic and internationally has aided growth in engagement; and costs, particularly on mobile and video, will no doubt play a role as we expect these trends to continue.