Facebook sees upsurge in advertiser spending

Social network's advertising side is becoming more profitable, with engagement from brand fans increasing
Kerry Butters

October 12, 2011
facebook

According to research carried out by Efficient Frontier, a performance marketing company, Facebook ad spend has increased by 25% during the third quarter of this year.

Search spend has also gone up, with “cost-per-clicks” (CPCs) up by 54% and 16% year-on-year in the UK.

The report, which was published today, found that these figures are predicted to continue to rise, indicating that “advertiser competition in Facebook marketplaces” is also on the up.

This is because an increase in the amount the social networking site charges for CPCs reflects a higher volume of advertisers.

This would go some way to proving that businesses are becoming increasingly aware of the power of social media in marketing terms.

Typically, brands increase their fan base by around 9% a month, meaning that businesses who use Facebook for their advertising are doubling their fans year on year.

Engagement from fans increased in this quarter with likes, comments and shares rising by 31% and posting impressions by 24%.

The UK travel industry showed the biggest increase in spending with a 15% increase, this is thought to be a result of late booking adverts which have increased clicks by around 130%.

Google’s recent improvements to search has also generated an improved click-through rate, decreasing costs to advertisers by 11%.

Whilst the search engine giants continue to dominate the search spend market in the UK, Yahoo and Bing have a “higher click share than spend share.”

This could mean that clicks on these search engines are being driven more by brands than results and CPCs.

“Facebook is the real success story. Ad spend is growing and as a result, costs are increasing, but despite that, Facebook still offers great value to brands,” said Jonathan Beeston, global marketing director for Efficient Frontier.

“Used well, Facebook advertising integrates to search and social engagement to give a combined result that is better than the sum of its parts.”






 

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