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April 11, 2011

Facebook Increases Their Cost Per Click Ads By 40%

Facebook Cost per Click Across Selected Industry Verticals
Facebook Average  Cost Per Click and Cost per Impressions for Countries(source: SocialBakers.com )


With Facebook ads increasing in popularity,  Facebook Advertising has just becomes expensive .AllFacebook reports that  prices have increased 40 percent per click during the past quarter. This is surely going to impact Facebook Revenue .. as well. If assuming that facebook increases their Revenue by double this year, Facebook would post growth numbers that are comparable with Google during its early years. 

Though its too early to  comment on Revenue for  this year, the price of ads are most definitely a great indicator and  the general trend has been that Social Advertising have a higher CTR as compared to Banners and  Display.

 Research shows that "Facebook users are far more likely to click on ads for entertainment, media sites, and blogs than for other kinds of ads.


This chart from a recent Webtrends survey of more than 11,000 Facebook advertiseements measures clickthrough rates (red) and cost per click (blue) for different categories of ads. There's a huge jump in clickthrough rates for the last two categories -- Media & Entertainment and Tabloids & Blogs. In other words, stuff that's fun to discuss with friends.

Health care ads are the least successful, followed -- somewhat surprisingly -- by ads for Internet and software products.