Facebook Ads Booming With CPC Up 23% & CPM Up 15%

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.


3 Digital Trends To Watch In 2012

When you read about the CES happenings this week, two technologies dominated the show. Television and tablet technologies. How will these technologies affect how we interact each day? I believe there are 3 changes and or advancements these two technologies will have a major impact on.

1. Social TV. Contrary to some early reports about the effect of social media on eroding the television viewing audience, people are now watching more TV than ever. Just not necessarily sitting on a couch and connected my a cord to a cable connection. And because of social media, they’re more engaged in what they watch, we go to Twitter and Facebook with reactions in real-time. To the tune of millions of tweets and posts per second, in some cases. To the tune of 9420 tweets about Tebow per second when he throw the game winning touchdown last week.

The TV ad business is a $90+ billion and tech companies, social media firms, TV hardware companies, mobile carriers, and everyone else wants a piece. All this social TV engagement will help grow that revenue. It will drive participation in social shopping. And it will makes or break new shows, stars, and even commercials.

2. Gamification. Consumer engagement with gamified activities has exploded. What’s gamification? Really no different than the loyalty programs we are use too, but today we will see the integration of social sharing and the opportunity to make real dollars from these interactions. Consider that in the fantasy sports arena alone there are now more than 30 million Americans spending an estimated $800 million a year on their make-believe franchises. Gamification finds new ways to make money.

Gamification encourages people to perform chores that they ordinarily consider boring, such as completing surveys, shopping, or reading your web site.

3. Location-based entertainment. NFC (Near Field Communications) will integrate and change the way we interact with our mobile devices. They will begin to be proactive knowing what we want and they will deliver what we want when we are a near a place we can get what we want.

The real benefit to a brand is the unprecedented amounts of data about these consumers that is generated via social and location based engagement. That geo-targeted or even geo-fencing data is used to research and identify segments of the fan base to launch geo-targeted ad campaigns and custom messaging according to each micro-demographic.

2012 will be an exciting year and the age of shareable, personalized content will explode. We will begin to see the changes in how we communicate, finally in an impactful manner.

Steve Rockman

What are the few new digital media trends to look for in the next 2 years?

Occasionally we will try to see if we can get a discussion going on this blog. So as I was writing a positioning paper for a client It got me to thinking of the following. What do you think will be new emerging media in the next few years.

My thinking is that there two very important technologies.

NFC – Near Field Communications. I think NFC is gonna go beyond cashless payment, but also into an interesting social arena, that will make it easier to check into locations, easier to like things in the real world, and easier to share information, and a new element to games. Data analysis and analytics will advance in huge strides as well. I wouldn’t be surprised to see a Google+ wall of recommended stories and posts from people not within my circles. Google knows what I like, who I talk to, and what I talk about, combine that against the internet and Google should be able to customize a wall of content tailored exactly for me.

Social Television or The Connected TV – I have also been giving a lot of thought to Social Television. By 2015 there will be over 500 million. As we all get “Connected” televisions the true social media experts will infiltrate your 10 Foot viewing experience. Social Television is a general term for technology that supports communication and social interaction in either the context of watching television, or related to TV content.

It also includes the study of television-related social behavior, devices and networks. Social television systems can integrate voice communication, text chat, presence and context awareness, TV recommendations, ratings, or video-conferencing with the TV content either directly on the screen or by using ancillary devices. I see; TV apps, Connected Content, Content recognition, product placement hotspotting, TV rfi and Second screen integration being at the top of the development list.

What are your thoughts?