Facebook Ad Performance Improved In 2011, Study Says

facebook-logo-smAdvertisers on Facebook saw improved click-thru rates in 2011, while Facebook itself earned more from higher ad rates. That’s according to a new study from TBG Digital, an ad agency that specializes in Facebook marketing.

The TBG study indicates that average cost-per-click (CPC) was up only one percent between Q3 and Q4 in five major markets — the U.S., U.K., Canada, France and Germany. At a country level, CPC was up 10 percent in the U.S. and down 11% in the U.K.

Average CPM (cost per thousand impressions) rates were up eight percent overall between Q3 and Q4, and up 23 percent since Q1 of 2011, as shown on the graph below.

facebook-cpm-study

Facebook ad click-thru rates (CTR) were up 18 percent during 2011 acros the five major markets included in the TBG report.

Food & Drink had the highest click-thru rate among 15 measured industries, followed by Beauty & Fitness, Retail, Home & Garden and Not-for-Profit.

facebook-ctr-study

TBG measured data from 214 billion impressions in the five markets included in its study. You can see the report on Clearslide.com.

Related Topics: Channel: Strategy | Facebook: Advertising | Social Media Marketing | Social Media Marketing: Advertising | Statistics: Online Advertising | Top News

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About The Author: is Editor-In-Chief of Marketing Land. His news career includes time spent in TV, radio, and print journalism. His web career continues to include a small number of SEO and social media consulting clients, as well as regular speaking engagements at marketing events around the U.S. He recently launched a site dedicated to Google Glass called Glass Almanac and also blogs at Small Business Search Marketing. Matt can be found on Twitter at @MattMcGee and/or on Google Plus. You can read Matt's disclosures on his personal blog.

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  • http://www.facebook.com/icyspearqueen Alyssa Copeland

    I’m surprised that food and drink had the highest click-thru rate. Is it strictly food and drink in that category, or do they include things like energy drinks, diet pills, and other popular trending items like that? Regardless, it’s nice to see that brands are starting to get their money’s worth for Facebook Ads.

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