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With Facebook's new advertising program quickly gaining favor with businesses both great and small, it's no surprise that the network's marketing initiatives are proving immensely profitable. It's a level of success of which every social media and PPC company has taken note. While everyone can agree that Facebook's ad system is worth keeping an eye on, what's interesting to see is the current breakdown of the statistics behind the program.
TBG Digital recently published a report which details the performance of the network's advertisements over the last twelve months. Overall, CPC usage was up by over twenty percent from the previous year for the United States, the UK, France, Germany and Canada. Across the board, other Facebook marketing initiatives saw similar increases from the first fiscal quarter of 2011. While this performance is impressive, the more interesting fact is that these gains actually occur in spite of a declining user engagement trend as well as rising costs for advertisers.
The Power of Perception
Although other regions of the world fared better, the TBG Digital report states that US user engagement on Facebook has been on a steady decline since the third quarter of 2011. Click-through rates also dropped by around 5% for most advertisers surveyed in the study. At the same time, the average cost of running a Facebook ad campaign actually grew over the last period, due in part to the roll-out of the Timeline page layout and the new mobile advertising options.
There's something to be said for Facebook's ability to improve its CPC performance despite an overall decline in results for its advertisers. As the social network remains a prominent figure in both SEO news and the mainstream media, its level of exposure continues to be exceptional. Although there's certainly no doubt that Facebook's click-through rates will climb back up at some point, the simple fact that the world's biggest site retains its clients despite the current steady drop is a testament to its clout.
TBG Digital recently published a report which details the performance of the network's advertisements over the last twelve months. Overall, CPC usage was up by over twenty percent from the previous year for the United States, the UK, France, Germany and Canada. Across the board, other Facebook marketing initiatives saw similar increases from the first fiscal quarter of 2011. While this performance is impressive, the more interesting fact is that these gains actually occur in spite of a declining user engagement trend as well as rising costs for advertisers.
The Power of Perception
Although other regions of the world fared better, the TBG Digital report states that US user engagement on Facebook has been on a steady decline since the third quarter of 2011. Click-through rates also dropped by around 5% for most advertisers surveyed in the study. At the same time, the average cost of running a Facebook ad campaign actually grew over the last period, due in part to the roll-out of the Timeline page layout and the new mobile advertising options.
There's something to be said for Facebook's ability to improve its CPC performance despite an overall decline in results for its advertisers. As the social network remains a prominent figure in both SEO news and the mainstream media, its level of exposure continues to be exceptional. Although there's certainly no doubt that Facebook's click-through rates will climb back up at some point, the simple fact that the world's biggest site retains its clients despite the current steady drop is a testament to its clout.
