Facebook Ad Rates Make Huge Jump; Widen Gap over Twitter

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TBG Digital has released its new study of Facebook advertising numbers ahead of the quarterly earnings report being released at the end of July. Entitled “Global Facebook Advertising Report Q2 2012” the 12-slide report covers pretty much all the data we need to make the best possible decisions for our Toronto business marketing clients.

Over the 12 months from Q2 2011 to Q2 2012 the study, which was verified by Cambridge University, shows Facebook making some huge strides in advancing their advertising offerings and widening the gap over their closest competitor, Twitter. The biggest jump by far came in the average cost per thousand impressions which increased by a whopping 58% over the past year. This should translate into very happy news for Facebook and its stockholders when the earning reports are released as the more they are able to charge for the services they offer, the more money they make in the long run.

Last quarter showed a 6% drop in Click-Through-Rates (CTR) which indicate how well Facebook is doing at getting targeted messages in front of the users who would actually be interested in that specific content. That decrease ignited major concerns for many Toronto business marketing professionals as they began to wonder if all the money they were spending on targeted stories was going to waste. However, those fears can now be laid to rest as the CTR jumped 11% in the second quarter, easily erasing the previous loss and getting the growth back on target.

So what does all of this mean for the average Toronto business marketing client? Well, first and foremost it shows that Facebook is not only a crazy powerful marketing tool, but also that it’s still growing and becoming stronger each quarter as their staff continues to increase the efficiency and accuracy of their logarithms used to target which users to hit with each specific ad. Many small businesses have a very limited marketing budget, so they need to be sure they are getting the maximum return possible on every dollar they invest. Unless something drastically changes, it appears that Facebook is still going to be the best bet when it comes to pay-per-click advertising for some time to come.