Facebook lowers ad prices with performance-based Flyers Pro

This week, Facebook launched a very interesting new advertising product called Flyers Pro. Flyers Pro sports two major differences from the previous Flyers (now Flyers Basic) ad product:

1) Targeting options are now more rich.

Advertisers can now not only filter by A/S/L, but also:

  • Profile Keywords – such as “PS3,” “Gucci,” or more niche interests
  • Workplace – such as “Google”, or anywhere else recruiters might want to hire away top talent
  • Relationship Status – those in a relationship, single, engaged, or married
  • Political Views – people who call themselves liberal, moderate, or conservative
  • Current Education Status – those in high school, college or alumni

2) Pricing is now CPC as opposed to CPM.

This is a big deal, because click-through rates are so low in social networks – some as low as 0.1% or even 0.01%. Facebook recently quadrupled its Flyers CPM pricing from $0.50 CPM to $2.00 CPM – at a 0.1% CTR that’s $2.00 per click, which is not affordable for most advertisers.

Thus, Flyers Pro looks like it could offer significantly lower prices to Facebook advertisers than ever before. It will be interesting to see how much traffic early advertisers can get at cheap prices as the Flyers Pro marketplace develops!

(Of course, it should be noted that several Facebook Platform ad networks have offered CPC and CPA/CPI pricing for quite a while now. Purchasing traffic from specific applications will still probably be a better bargain than profile-targeted Flyers Pro traffic for some advertisers.)

[tags]facebook,advertising,cpc,flyers[/tags]