The TBG study found that advertisers’ cost per click dropped 10.8 percent in those five cornerstone countries, while their cost per thousand impressions rose by 7.1 percent.
The agency added that brand advertising was up 6.7 percent for the quarter, reaching 53.7 percent of total advertising output on the social network.
The statistic on increased click-throughs contradicts what we’ve previously heard from some marketers about how ads on Facebook perform. TBG’s findings shows earning more and advertisers getting more return on investment.
The improved performance of ads will likely keep the momentum going for Facebook’s growing ad revenues.
TBG U.S. Managing Director Patrick Toland commented on these findings in an interview with us:
I’ve met with three Fortune 50 advertisers this week, and each one told me they were either freezing or slashing their digital display budgets, except on Facebook. A leading rich-media provider told us, “Everybody is going to Facebook. Facebook is making more money every quarter. Ad effectiveness is up. The network is making more money.
Advertisers are suddenly saying, “Oh, wait, this works. If we do this right, make the investment, spend the time, and do it right, it is worth the investment.” We will probably see a seismic shift in the next six months. Advertising on Facebook has gone from an afterthought to an annual investment.
On Facebook’s new timeline profile and its effect on brands and advertising, Toland said:
Is there enough scale in hyper-targeting to make it work? Broad targeting is sometimes better, even though you have some wasted media, because sometimes it can be cost-prohibitive. Ugly cars are better than cars that nobody notices. Anything that engages people is good for advertising. Advertisers are becoming app developers and app developers are becoming advertisers.
And on the tweaks Facebook introduced to the like button with its Open Graph, he added:
We have clients in the music space, the video or TV space, and media clients that have just started getting into that stuff. Will enough people do it to make it scale?
Readers, does any of this resonate with you? Do you find yourself clicking on Facebook ads more often?