Wednesday, June 13, 2012

Facebook Advertisers Find Better Payoff with Sponsored Stories

Facebook’s social ads projected to account for half of the social network's ad budgets by end of year

Social ads just might be working out the way Facebook hoped. According to early results from online advertising management company Marin Software, the addition of Facebook’s new ad units, Sponsored Stories, appears to have boosted Facebook’s ad performance as a whole—perhaps proving that ads with a social context do, in fact, resonate more with Facebook users.

Marin Software compared Facebook’s worldwide advertising performance metrics from April 2011 to March 2012 and called out increases in clickthrough rates (CTRs), costs per click (CPCs) as well as costs per thousand (CPMs). The upticks suggest that Sponsored Stories may have had a positive impact on Facebook’s ad revenue. According to Marin’s data, clickthrough rates have improved 20%. Moreover, CPM has risen 51% and CPC has increased 26%.

Performance Metrics for Facebook Ads Worldwide, March 2012 (% change vs. April 2011) 

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