Social game companies effectively pay the lowest rates on Facebook advertisements that price on a per-click basis, according to an analysis of AdParlor data.
The subsidiary of AdKnowledge studied 100 million clicks over a six-month period, between June 23, 2011 and February 27, 2012, taken from more than 500 AdParlor clients across all industries.
The Facebook advertising vendor found that overall the average cost per click is below 80 cents, although that fluctuates daily, and again, social gaming outfits obtain the lowest prices out of any industry.
AdParlor Chief Executive Officer Hussein Fazal explained to our sibling site Inside Facebook that this says this is because:
Social game advertisers can define narrow targets that result in higher clickthrough rates and lower costs per click than most brands can achieve.
However, there is variation within the social game category. Hardcore games — those designed for longer session times that include more strategy or combat — have higher CPCs than virtual world games, including simulation games, pets and city games.
Both of these categories have higher CPCs than casual social games, like puzzles and trivia. This could be related to there being more competition in the hardcore social gaming space, but Fazal also believes that hardcore games are getting better at monetizing and so they are able to pay more to acquire each new user.
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