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BizReport : Advertising archives : October 14, 2011

Facebook ad CTRs and CPCs rise

Improvements in Facebook's ad offering coupled with increased brand interest demonstrate the rising importance of the social network to marketers, but it comes at a cost.

by Helen Leggatt

Over the past quarter ad click-through rates on the social network have increased 18.5%, according to analysis by TBG Digital. Brand advertising accounts for 53.7% of all Facebook ads, growing 6.7% quarter over quarter.

Meanwhile Efficient Frontier has recently reported a 25% increase in ad spend on Facebook. Furthermore, their research found that brands, even those that already have large numbers of followers, have been able to double their Fan base by 9% every month.

The knock-on effect is obvious, and significant. A 54% rise in cost-per-click in the last three months.

"This quarter, we continued to see Facebook make gains as a 'must have' for marketers as they try to maximize their fan base reach," said David Karnstedt, president and chief executive officer of Efficient Frontier.

"As an industry, we're still discovering the power of social media and mobile as marketing channels but the time for brands to integrate these into their overall digital marketing strategies has clearly come."

Tags: ad metrics, ad spend, advertising, consumer engagement, social marketing, social media, social network

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