Facebook Per-Click Ad Prices Rose 54% During Quarter

By David Cohen Comment

Marketers spent 25 percent more on Facebook advertising during the third quarter of 2011 compared with the second quarter, resulting in a 54 percent quarterly jump in the average cost per click.

That’s the highlight of a white paper, from Efficient Frontier and Context Optional, which concluded that the CPC increase is a result of greater competition in the Facebook advertising marketplace, both in terms of volume of advertisers and ad pricing.

Efficient Frontier and Context Optional see CPC continuing to increase through 2012, at a rate of 30 percent to 40 percent per quarter, predicting that advertisers will continue to increase their investment in the social network.

The report also found that fan engagement per post rose by an average of 31 percent quarter-over-quarter, while impressions per post rose 24 percent over the same period.

Engagement consisted mostly of likes, at 84 percent, while comments accounted for 15 percent, and shares for one percent.

Looking forward, Efficient Frontier and Context Optional see a steady uptick in engagement; the development of new Facebook analytics will allow advertisers to more effectively monetize and track return of investment on Facebook users.

Brands that are on the Context Optional platform have been seeing average monthly fan growth of nine percent, according to the study.

Readers, do you find yourself engaging with more ads and brand pages on Facebook?