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%.
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