Report: Facebook Ad Performance Is Abysmal

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Facebook’s advertising business is soaring. Yet the performance of the average Facebook ad is abysmal.

At least that’s according to a new report issued by the analytics firm Webtrends, which recently examined 11,000 different Facebook ad campaigns which totaled 4.5 billion impressions. Webtrends found that in 2009 the average clickthrough rate on Facebook was 0.063 percent. That figure slipped to 0.051 percent in 2010.

Because of that decline, CPMs on Facebook have crept upward, going from 17 cents in 2009 to 25 cents by last year.

The only ad categories that were able to crack 0.1

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