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August 9, 2011

Facebook Ad Spends Increase by 281%

Spending on and impressions of Facebook ads both grew dramatically between Q2 2010 and Q2 2011,according to data from IgnitionOne. Results of the Q2 2011 US Online Advertising Report show that Facebook ad spend on all clients increased 281% year-over-year in Q2, while Facebook ad impressions of all clients grew 200%.

IgnitionOne analysis indicates Facebook advertising has experienced high rates of growth due to new marketer adoption in the past year.While growth was much less dramatic, spending on and impressions of Facebook ads also showed notable increase between Q2 2010 and Q2 2011. Same client ad spend increased 22%, while impressions increased 11%.

Facebook  Spending  Peaks  After 4 Month

The research study also  reveals " Interesting spending patterns throughout the typical Facebook campaign"  Most  marketers often ramp up spending within the first months of advertising on the Facebook On average, spending sharply rises in the second month of a Facebook campaign before dropping slightly in the third month and then significantly growing in both the fourth and fifth months, when spending typically peaks

Facebook spending substantially declines in the sixth and seventh months, and then more gradually decreases till reaching its nadir in the ninth month.

IgnitionOne says these volatile spending patterns showcase the relative immaturity of this new ad medium as marketers struggle to understand how best to manage and budget for it