Facebook Average CPM Rates Increase by 41% Since Q1 2011 New Study Shows
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Posted on April 16, 2012 at 7:07:01 AM
Facebook Average CPM Rates Increase by 41% Since Q1 2011 New Study Shows
TBG Digital's Q1 2012 Facebook Advertising Report Indicates Enhanced Earnings From Marketplace Ads
LONDON and SAN FRANCISCO, April 16, 2012/PRNewswire/ --
Facebook's average Cost per Thousand impressions (CPM) has increased by 41% since Q1
in 2011 according to the latest Global Facebook Advertising Report compiled by TBG Digital
(TBG) and verified by the University of Cambridge. This is the latest report examining the
trends and changes in the performance of Facebook campaigns managed by TBG Digital.
The study, which was based on 372 billion impressions in more than 190 countries for
235 clients from Q1 2011 to Q1 2012, demonstrates that Facebook is earning more from
Marketplace ads. Specifically, average CPM has increased by 15% in the last quarter with
the US seeing an increase of 11% and the UK seeing an increase of 13% during the same
period.
TBG also sees a massive increase in Click Through Rates (CTR) for News Clients. With
the huge success of Facebook social readers from the likes of Yahoo! News, The Washington
Post and The Guardian, the Company has identified a strong uplift in CTR for those in the
News sector since Q4 2011 with an increase of 196%. The category now joins entertainment,
beauty & fitness, house & garden, and health at the top of the league with finance
remaining at the bottom of the table. Further, this jump in position demonstrates that
Twitter no longer dominates as the sole social network for news.
Additional findings from the report include the following:
- Facebook Cost per Click (CPC) has increased by 23% in the top five
territories versus Q4 2011 indicating that while growth in new users may be slowing*,
the social network is becoming more attractive to advertisers
- The US experienced a reduction in average CTR of 8% in this quarter with the
top five territories seeing an average decrease of 6% which could be attributed to an
increase in the number of ads being placed on users' pages. CTR is generally a measure
of how engaging users find the ad, affected by the quality of the creative and how
appropriate the ad's targeting.
- Seasonal deviations can contribute to CTR increases and decreases in certain
vertical sectors. For example, Fitness is always a focus in a New Year where as Retail
drops after its heights in the holiday season.
- The Retail sector has taken the lead on number of impressions served
increasing its share by 10 percentage points to make up 23% of all impressions in Q1
- The Finance sector leads with the most expensive advertising costs, with 3.5
times higher CPCs than the Food & Drink sector which has the lowest ad costs
- Top 5 sectors continue to dominate comprising 78% of impressions served of the
18 sectors measured
Cost Per Fan Costs Increase by 43% Over All Territories
On average, Cost per Fan increased 43% in Q1 2012, compared to Q4 2011. The UK saw the
greatest jump with 77% followed by the US with 37%. Increased competition and advertising
costs means brands will need to work harder in their recruitment of fans with a focus on
'earned media'.
Fanning Continues to Drive CPC Savings Particularly in the Food & Drink Sector
In Q1 Facebook continued to incentivize advertisers to say within the Facebook
environment by offering reduced CPCs of up to 45%.Consequently the Finance Sector which
sends
91% of its traffic out of the Facebook environment to sign up for their services
(compared to the average of 38%.) saw the most expensive advertising costs. Alternatively
the Food & Drink sector, which uses Facebook as a branding tool, only sent 4% of its
traffic offsite in Q1 and thus saw the lowest advertising fees.
Simon Mansell, CEO of TBG Digital, commented: "The recent Facebook Advertising Report
unearthed some compelling trends as it relates to how brands are using the site to engage
customers. One amazing finding is that Facebook has seen an increase in pricing at the
same time when it has also grown the number of ads per page, sometimes up to seven, which
you would naturally expect to actually deflate prices. Additionally, the rapid increase in
CTR for news clients is promising for Facebook as it demonstrates that the platform works
well for sharing news as well as gaming and photos, an offering which other social
networks, such as Twitter have dominated to date."
To view TBG's Q1 Global Facebook Advertising Report please visit:
http://clearslide.com/view/mail?iID=2TGN93ZFELA7QZ74ZHU9
*source: eMarketer, March 2012
About TBG Digital
TBG Digital (@tbgdigital) is a Social Media specialist that helps global brands
advertise and engage through Facebook and Twitter. The business creates custom social
experiences that are amplified through targeted media. Activity is supported by
proprietary technology and benchmarked against a data store of over one trillion events.
Founded in 2001, TBG Digital has offices in San Francisco, London, New York, Paris,
Chicago, Hamburg, Atlanta, Amsterdam, Manila and Sydney. For more information, please
visit our website at http://www.tbgdigital.com.
Media Contacts:
Sebastian Mathews for TBG Digital
Telephone: +44(0)20-7269-7158
Email: sebastian.mathews@fticonsulting.com
Jessy Adams for TBG Digital
Telephone: +1-212-850-5684
Email: jessy.adams@fticonsulting.com
Source: TBG Digital
TBG Digital's Q1 2012 Facebook Advertising Report Indicates Enhanced Earnings From Marketplace Ads
LONDON and SAN FRANCISCO, April 16, 2012/PRNewswire/ --
Facebook's average Cost per Thousand impressions (CPM) has increased by 41% since Q1
in 2011 according to the latest Global Facebook Advertising Report compiled by TBG Digital
(TBG) and verified by the University of Cambridge. This is the latest report examining the
trends and changes in the performance of Facebook campaigns managed by TBG Digital.
The study, which was based on 372 billion impressions in more than 190 countries for
235 clients from Q1 2011 to Q1 2012, demonstrates that Facebook is earning more from
Marketplace ads. Specifically, average CPM has increased by 15% in the last quarter with
the US seeing an increase of 11% and the UK seeing an increase of 13% during the same
period.
TBG also sees a massive increase in Click Through Rates (CTR) for News Clients. With
the huge success of Facebook social readers from the likes of Yahoo! News, The Washington
Post and The Guardian, the Company has identified a strong uplift in CTR for those in the
News sector since Q4 2011 with an increase of 196%. The category now joins entertainment,
beauty & fitness, house & garden, and health at the top of the league with finance
remaining at the bottom of the table. Further, this jump in position demonstrates that
Twitter no longer dominates as the sole social network for news.
Additional findings from the report include the following:
- Facebook Cost per Click (CPC) has increased by 23% in the top five
territories versus Q4 2011 indicating that while growth in new users may be slowing*,
the social network is becoming more attractive to advertisers
- The US experienced a reduction in average CTR of 8% in this quarter with the
top five territories seeing an average decrease of 6% which could be attributed to an
increase in the number of ads being placed on users' pages. CTR is generally a measure
of how engaging users find the ad, affected by the quality of the creative and how
appropriate the ad's targeting.
- Seasonal deviations can contribute to CTR increases and decreases in certain
vertical sectors. For example, Fitness is always a focus in a New Year where as Retail
drops after its heights in the holiday season.
- The Retail sector has taken the lead on number of impressions served
increasing its share by 10 percentage points to make up 23% of all impressions in Q1
- The Finance sector leads with the most expensive advertising costs, with 3.5
times higher CPCs than the Food & Drink sector which has the lowest ad costs
- Top 5 sectors continue to dominate comprising 78% of impressions served of the
18 sectors measured
Cost Per Fan Costs Increase by 43% Over All Territories
On average, Cost per Fan increased 43% in Q1 2012, compared to Q4 2011. The UK saw the
greatest jump with 77% followed by the US with 37%. Increased competition and advertising
costs means brands will need to work harder in their recruitment of fans with a focus on
'earned media'.
Fanning Continues to Drive CPC Savings Particularly in the Food & Drink Sector
In Q1 Facebook continued to incentivize advertisers to say within the Facebook
environment by offering reduced CPCs of up to 45%.Consequently the Finance Sector which
sends
91% of its traffic out of the Facebook environment to sign up for their services
(compared to the average of 38%.) saw the most expensive advertising costs. Alternatively
the Food & Drink sector, which uses Facebook as a branding tool, only sent 4% of its
traffic offsite in Q1 and thus saw the lowest advertising fees.
Simon Mansell, CEO of TBG Digital, commented: "The recent Facebook Advertising Report
unearthed some compelling trends as it relates to how brands are using the site to engage
customers. One amazing finding is that Facebook has seen an increase in pricing at the
same time when it has also grown the number of ads per page, sometimes up to seven, which
you would naturally expect to actually deflate prices. Additionally, the rapid increase in
CTR for news clients is promising for Facebook as it demonstrates that the platform works
well for sharing news as well as gaming and photos, an offering which other social
networks, such as Twitter have dominated to date."
To view TBG's Q1 Global Facebook Advertising Report please visit:
http://clearslide.com/view/mail?iID=2TGN93ZFELA7QZ74ZHU9
*source: eMarketer, March 2012
About TBG Digital
TBG Digital (@tbgdigital) is a Social Media specialist that helps global brands
advertise and engage through Facebook and Twitter. The business creates custom social
experiences that are amplified through targeted media. Activity is supported by
proprietary technology and benchmarked against a data store of over one trillion events.
Founded in 2001, TBG Digital has offices in San Francisco, London, New York, Paris,
Chicago, Hamburg, Atlanta, Amsterdam, Manila and Sydney. For more information, please
visit our website at http://www.tbgdigital.com.
Media Contacts:
Sebastian Mathews for TBG Digital
Telephone: +44(0)20-7269-7158
Email: sebastian.mathews@fticonsulting.com
Jessy Adams for TBG Digital
Telephone: +1-212-850-5684
Email: jessy.adams@fticonsulting.com
Source: TBG Digital