RSS feed Get our RSS feed

News by Topic

BizReport : Advertising archives : August 17, 2011

Survey: More UK advertisers to experiment with Facebook ads

New survey findings from Marin Software reveal that it's only a matter of time before UK advertisers who are yet to develop robust ad campaigns on Facebook begin experimenting with the platform.

by Helen Leggatt

marin-software-webcast-logo.gifWhen Marin Software surveyed almost 400 advertisers in the UK they found that just 6% had what they considered "well developed" ad campaigns running on Facebook.

The rest? They are either "experimenting" (42%) or simply not using Facebook ads at all (52%).

However, Marin believes this is all about to change.

Although the UK is a leader in European Facebook adoption, advertising on Facebook in the UK is clearly still in the early stages," says Simon Whittick, marketing manager at Marin Software, on the company blog.

"However, when taking into consideration analysts' projection that Facebook ad revenue from outside the U.S. will be on par with U.S. ad revenue by 2012, the figures from our poll tell us it's only a matter of time before the 42% "experimenting" with Facebook ads will have "well developed" campaigns and the 52% percent still undecided will be "experimenting"."

Demand for ads on Facebook is soaring, outpacing supply. Because of that the cost of advertising on the social network is also rising. Cost-per-click rose by 22% in the second quarter of 2011, having jumped 40% in the first quarter.

Efficient Frontier expects advertising costs on the social network to continue to rise throughout the year. "Even if CPCs increase at 20% per quarter for the remainder of the year, this will still result in an 80% growth in a year. This could reasonably equate into a doubling of Facebook's revenue from marketplace ads."

Tags: advertising campaign, Facebook ads, online advertising, social ads, social network

Subscribe to BizReport



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.