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BizReport : Advertising : July 19, 2012
Mobile and sponsored stories push up Facebook ad rates
Mobile advertising on Facebook has significantly affected the cost per million impressions for ads on the network, according to a Q2 2012 Global Facebook Advertising Report released this week by TBG Digital.
In the year since Q2 2011, the cost per million (CPM) of Facebook ads increased 58%, says TBG Digital, which means demand remains healthy. Between Q1 and Q2 of this year CPM rose by 25%.
Mobile ads and sponsored stories have both seen an increase in use on the social network. In fact, according to the CEO of TBG Digital, Simon Mansell, sponsored stories are performing better now than when they were first launched. Furthermore, Facebook now receives $9.86 for every 1,000 mobile ad clicks, 13x more than is received for desktop ads.
According to TBG Digital's report, "CPM rates are a good indication of Facebook's earnings per marketplace ad served. The increases are definitely great news for Facebook, as they signify that its inventory continues to work better for it."
"All eyes are on Facebook at the moment and a key part of its progress is the performance of its sponsored stories and mobile ads, which in particular are showing great potential for all parties," said Mansell.
Tags: ad network, ad rates, cost per million, CPM, digital ads, Facebook, mobile ads, social ads, social marketing, social network
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