Efficient Frontier has seen a 22 percent rise in the average rate for Facebook advertisements priced on a click basis; the percentage compares the first and second quarters of this year.
This finding is based on the 15 advertisers using Efficient Frontier — and its recently acquired Context Optional — to manage the ad buying process on Facebook. The clientele has targeted ads at some 20 million fans.
Efficient Frontier explains in its latest quarterly ad report:
This means that the longer brands wait to engage with consumers on Facebook, the more expensive it will become to acquire fans. Although the previous quarter’s cost per click growth was 40 percent, we do not consider this a deceleration. The immaturity of the medium results in high volatility in the data.
We can see this volatility just by comparing what different Facebook ad managers are citing as average CPCs. Just four days ago, AdParlor reported a 14 percent drop in these rates during the second quarter for U.S. ads, while Blinq reported that these numbers have remained constant but performance has increased.
Meanwhile, Efficient Frontier says some of the increase in spending on Facebook cost-per-click ads takes money from search ad budgets; however Facebook ads have become a subset of search, representing five to 25 percent of search budgets.
Take a gander at the Facebook infographics from Efficient Frontier’s latest report — what insights do you have based on these numbers?