Advertising Rates on Facebook are Soaring

By up to 74 percent of the advertising rates on Facebook are increased compared to last year, according to a new study. Especially the retail trade is increasingly investing in Facebook advertising – but in Germany it is more restrained.

More and more companies are hoping to win fans on Facebook – for fans in brand campaigns work best. The growing number of advertisers also pushes the prices for ads on Facebook in the air: The price per click has increased year on year by 74 percent. The show on Wednesday published the “Global Facebook Advertising Report.”

The report does this have on social media marketing company specializing in digital TBG taken the advertising market by Facebook under the microscope and examined by its own account 200 000 000 000 page views of 167 advertisers in the second quarter of 2011.
During the display price per click (cost per click, CPC) in four markets: Germany, France, USA and the UK has risen by 74 percent over the year, put the per thousand (CPM, in English: cost per impression) by only 45 percent. The massive growth took place mainly in the U.S. and occasionally in Britain, in Germany, however, prices remained relatively stable.

There are two different pricing models for Facebook Ads: The price per thousand (CPM) is that the advertiser pays per 1,000 ad impressions, regardless of how many users actually click on the ad. The price per click (cost per click, CPC) paid by the advertiser, however only for each click on their ad.

Despite the rising prices are Facebook ads are still relatively low, citing the “Financial Times” one analyst. Facebook is the platform for transformation, thanks to deduct more of their advertising clients advertising budgets from traditional channels like TV and print, and invest in online advertising, also says Simon Mansell, TBG head of digital. Most, the study found the number of ads grew out of the retail sector.

The results of this study are similar to those of another study, the agency Efficient Frontier, which was recently published. This one came to the conclusion that the advertising rates are on Facebook alone from first to second quarter 2011 increased by 22 percent.

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This entry was posted on Tuesday, July 19th, 2011 at 9:07 pm and is filed under Business, Technology. Tags: Advertising, Facebook You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.