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BizReport : Advertising archives : July 14, 2015

Which European cities attract the highest suggested bid amount on Facebook?

While London, Paris and Monaco may be the most expensive places to buy property, all but London falls outside the top ten most expensive places to buy Facebook advertising, according to new data released by Kenshoo.

by Helen Leggatt

When purchasing advertising on the social network, Facebook uses an auction system where advertisers bid on how much they are prepared to pay for a user to click on their ad. Facebook suggests a bid price and this price depends on the city chosen to advertise in and varies considerably.

According to Facebook's Ads Manager, "The suggested bid amount is based on how many people are competing to show an ad to your target audience".

Kenshoo's analysis of suggested bid prices across Europe found that Oslo in Norway was the highest of 46 countries ($0.73 per user click) with an overall Facebook population of 630,000 of a city population of 647,676. The second most expensive was the smallest country in the list, Vatican City, with a total population of 842, and for which Facebook suggests a bid of $0.70 followed by Helsinki in Finland ($0.57) and Berlin in Germany ($0.54).

In London, with a total population of almost 8 million of which 7 million are Facebook users, the suggested bid is $0.48 while in Paris the bid is $0.41 and Monaco $0.28.

"Oslo tops the charts, presumably due to the high competition to reach its affluent, but mid-sized, population," says Zach Rubin, account manager at Kenshoo. "In contrast, the size and diversity of London's Facebook population might mean that it is easier for brands to hone in on specific audiences using additional targeting options, so costs might be lower per user when targeting the entire city."

Last month, Kenshoo looked at which ten U.S. cities were the most expensive in terms of Facebook suggested bids, with San Francisco in first place ($1.02) and Garland (Texas) and Jersey City (New Jersey) both at number 10 at $0.97.

Image via Shutterstock

Tags: advertising, Facebook, social media, social network

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