Facebook may still have its doubters as an effective advertising medium but that hasn’t stopped a tidal wave of big brand ad money flowing into the social network site.
New research by Facebook specialist TBG Digital says the ‘cost per click’ of an ad placed on Facebook has increased by 74 per cent over the last year in the US, UK, France and Germany.
The price of display advertising, charged per thousand ‘impressions’, rose 45 per cent year on year in these markets, Facebook’s biggest. Retail was the fastest-growing category.
Facebook’s ad revenue was reported to be headed for $4bn this year back in May, leading to estimates that the company was worth up to $100bn.
However these predictions were based chiefly in increasing volume. If rates really are rising as fast as TBG claims (TBG is an interested party as a Facebook specialist) then $4bn looks likely to be comfortably exceeded with the company’s valuation headed even further into the stratosphere.