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Facebook earning 58% more per ad than last year

By: Aseem Gaurav on July 19, 2012

It's been quite the roller coaster few weeks for social network giant Facebook whether it is falling user numbers and share prices, or the slowdown concerns. But the company finally has some good news on the mobile ad revenues front. 

According to a study by social ad firm TBG Digital, the cost per thousand impressions (CPMs) on ads on the social network jumped by 58 per cent as against the last period, with overall engagement also up by 11 percent, a sort of reversal from last quarter.


Comparatively, ads appearing in people’s Facebook news feeds on their mobile devices get four times as many clicks as similar Twitter ads. The analysis is based on 406 billion impressions between the second quarters of 2011 and 2012, from 276 clients based in more than 190 countries. 


The study pointed out that Facebook's new mobile ads have outperformed desktop ads in click-through rates and CPMs by 14 times.



TBG said the study indicates that the Sponsored Story ad format is engaging and received click-through rates 53 percent higher than standard Facebook ads.

Moreover, the cost per fan for sponsored stories was 39 per cent lower.



During the period under review, CTR (Click Through Rates), a parameter which indicates how relevant and interesting ads are to users, rose by 11 per cent over the same period. TBG CEO Simon Mansell said the launch of Facebook’s mobile ad targeting feature in early June 2012 impacted CTR in a positive way. “It appears that Facebook is doing something right here. The CTR increase could also be partially due to a general improvement in targeting techniques and ad creative,” said Mansell.

Let’s take a look at what people clicked the most sector-wise. The health sector topped the list followed by Pets and Animals, Not For Profit, Entertainment and so on. 

TBG further said, Facebook’s clients are now willing to pay more for quality clicks and fans and the focus is shifting towards measurable engagement.

The data gives some indications how things are going for the social media giant which was facing questions like how it is going to translate advertising into mobile versions. It also puts away all the worries related to mobile ads which some said wouldn’t work at all, given that the new data shows that they are clicked on 13 times more often that its traditional desktop ads. 
 

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