Sites include Facebook.com . Published on May 5th, 2012. Written by Anthony West.
With Facebook’s IPO imminent, news that the cost for advertising on its platform is up will be good news for potential investors and Wall Street. This of course is not so good news for advertisers, but let’s look at the numbers.
According to the latest data on Facebook ads CPC and CPOM rates, there has been a marked increase in rates with CPC up 23% and CPM up 15%. And just so there are no naysayers, the data is backed by actual advertiser numbers, one of which is TBG digital. The ads tool developer spends heavily on Facebook ads and according to a report; it saw 15% jump in its CPM rates over Q4 2011. There was even a bigger increase in rates over Q1, and TBG saw rates shot up as far as 41%.
Analysts are very excited about the performance of Facebook ads, not least because Facebook’s main competitor, Google, has seen a slight decline in its rates to advertisers. Google reported a 6% drop in CPC rates for advertisers on its platform and many analysts believe that Google’s targeting and highly personalized platform is becoming very popular among advertisers. Some feel that it is actually the future of online marketing, and if it is, Google will be quaking in its boots.