The volume of ad impressions bought by FMCG band owners (and others including cars and drinks) rose 117 per cent between the second and third quarters of 2011.
This led to a 33.6 per cent rise in cost per thousand ad impressions for the quarter ending in September compared to 2010 according to a new report by TBG Digital. The cost was up 7.1 per cent on the previous quarter in 2011.TBG’s report is based on report, based on an analysis of 255bn ad impressions from 216 clients.
Cost per click, where advertisers pay only when a Facebook user clicks on the ad, increased 7.3 per cent in the third quarter compared with 2010 rates, but decreased 10.8 per cent between the second and third quarters of 2011. This is the result of more people clicking on the ads.
“We see brand advertisers, like Coke and Heineken, spending a lot of money communicating with people on Facebook, because people are in a relaxed frame of mind and are more likely to be receptive to a brand message,” says TBG CEO Simon Mansell. TBG is one of Facebook’s advertising partners.
There seems little doubt that Facebook, like Google before it, has now become almost a sector of the media industry in its own right, like television or press.
Facebook advertisng is now run by Carolyn Everson (pictured) who departed Microsoft for Facebook in March. At the time this outraged formidable Microsoft CEO Steve Ballmer but Everson stuck to her guns. It now looks like one of the best-timed job switches in history.