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Cost of Facebook ads soars

19 Jul 2011 12:46 BST Back
Cost of Facebook ads soars

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Facebook has increased the cost of advertising by up to 74%, according to a study by TBG Digital. 

In the first of what is set to be a series of quarterly studies on Facebook advertising, TBG Digital reveals that cost per click increased by 74% while cost per thousand impressions went up by 45% across the UK, US, Germany and France. 

These price increases reflect the upward trend of social media advertising – brand campaigns on Facebook have rocketed in the last year. 

The study reveals that brand campaigns on Facebook grew by 104% between the first two quarters of 2011 and by 1900% year on year. 

It covers online activity during the second quarter of 2011 and is based on data from 167 companies operating in 21 markets. 

According to the study, brands saw a 435% improvement in conversion rates when they targeted Facebook fans. Sponsored stories on Facebook are also effective, helping to decrease cost per acquisition by 32%.  

The strongest sector on Facebook is retail, with the best click-through rates and 36% of total ad impressions in Q2, 2011. 

However, the popularity of social media isn’t confined to business to consumer brands. One of the top five areas of growth is the business and industrial sector, suggesting that Facebook is also fast becoming a valid B2B marketing channel. 

CEO of TBG Digital said: “I think the numbers in this report back up the anecdotal evidence of my conversations with TBG’s customers: Facebook is the transformational platform which is making advertisers move brand budgets from the traditional areas of TV and press to online.”

Read the DMA Social Media Council's Value of Social Media report

Posted by 

Neil Turner

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