Here is a reminder of the reality side of social media marketing aka the financial side that you wish your Internet marketing service provider had less of to share with you. According to an Internet Retailer report, Facebook ad prices soared to 41% despite the steady stream of ad spots on the world’s most popular social networking site. The report is outsourced from TBG Digital which is Facebook’s advertising firm.
The average cost per click or CPC moved up to 23% over the fourth quarter of 2011. Due to the growing demand for ad spots on Facebook, the cost per thousand impressions (CPM) is 41% higher versus the same period last year. More hard facts that will give you and your Internet marketing services provider more
Facebook facts to mull over: CPMs rose 15% in Quarter 1 alone and 23% of these impressions are from retailer ads.
The report noted that Facebook, at the end of the day, really just wants to keep all Internet marketers under one roof—their roof that is. That is why for marketers who ads click through to another place on Facebook, the social media giant charges a 45% lower CPC.
Interestingly, the report also noted that Facebook is earning more money per impression or click even though the number of ads visible per page has increased from six to seven earlier this year.
What does this mean for you and your Internet marketing service provider?
For starters, it makes Facebook ads more expensive and the “Likes” more valuable. Depending on the nature of your company or product, it is always a good idea to look at your other social media options.
Besides, the average click through rate has declined 8% in the US despite the rising cost of a Facebook ad.
This could be attributed to the increased number of ads which gives more options to customer, thus reducing the chances of an ad getting a click.
Of course not. Despite the steep price tag of a Facebook ad, it’s still an investment worth taking.