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April 17, 2012 12:19 am GMT
While Google's advertising cost per click fell 6% since Q4 2011, Facebook keeps commanding higher prices from advertisers with CPC up 23% in key markets during same period according to a study of the last full quarter before the social network is expected to go public. It seems the shift to mobile where users are harder to monetize hasn't phased Facebook's ad rates yet, which could make its stock very appealing come IPO day. Ads tool developerTBG Digital saw the average cost per thousand impressions (CPM) of the ads it runs on Facebook increase 15% over Q4 2011 and a whopping 41% over Q1 2011 in key markets.The contrast between the performance of Facebook and Google's rates could lead analysts to see Mark Zuckerberg's company and its highly targeted, friend-infused ads as critical to the future of online marketing. And while Facebook only began showing ads on mobile at the start of March, its Sponsored Stories format could fit better on small screens than the traditional display and search ads Google relies on.
Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/RftI3HDSLaA/
Study: Facebooks Ad Business Booms Before IPO With CPC Up 23%, CPM Up 15%
While Google's advertising cost per click fell 6% since Q4 2011, Facebook keeps commanding higher prices from advertisers with CPC up 23% in key markets during same period according to a study of the last full quarter before the social network is expected to go public. It seems the shift to mobile where users are harder to monetize hasn't phased Facebook's ad rates yet, which could make its stock very appealing come IPO day. Ads tool developerTBG Digital saw the average cost per thousand impressions (CPM) of the ads it runs on Facebook increase 15% over Q4 2011 and a whopping 41% over Q1 2011 in key markets.The contrast between the performance of Facebook and Google's rates could lead analysts to see Mark Zuckerberg's company and its highly targeted, friend-infused ads as critical to the future of online marketing. And while Facebook only began showing ads on mobile at the start of March, its Sponsored Stories format could fit better on small screens than the traditional display and search ads Google relies on.Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/RftI3HDSLaA/
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