Monday, 7 February 2011

Click rates on Facebook ads fell from 2009 to 2010, while the cost per click rose

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"Facebook advertising is predicted to hit US$4 billion this year, which is  twice the volume of 2010 spending according to eMarketer. While brands are rapidly investing in the space, they lack comparative experience to assess how well their campaigns are performing. Webtrends has analyzed  over eleven thousand campaigns to provide performance benchmarks brands can use to evaluate their own campaign performance.
The Webtrends database is a very large sample given the relatively young age of the Facebook ad network (see the stats at left). We focused on a few key metrics:
• Click-Through Rate (CTR)
• Cost per Click (CPC)
• Cost per Thousand (CPM)
• Cost per Fan (CPF)
LESS cLickS for MorE MonEy
From 2009 to 2010 the average CTR dropped while the costs increased. This is a typical pattern for display ad networks as the audience becomes more savvy and demand causes prices to rise. Brands investing now will save money building their Facebook ad programs now by taking advantage of currently low rates that will continue to increase over time. Facebook’s top advertisers have increased their ad spend 10 fold."
Source:  Facebook Advertising Performance Benchmarks & Insights Whitepaper from Webtrends, 21st January 1011
(Lots more data including demographics in the full document)
Note on the data:
"Webtrends has amassed a large database of Facebook advertising campaign results. Here are a few stats on the volume of data analyzed for this report.
4.5 billion impressions
2.2 million clicks
11.2 thousand ads
1.5 thousand campaigns"

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