Facebook sees CPC increase by 22%
Cost per click advertising is expected to nearly double in 2011, compared to last year for Facebook, showing the strength of brand presence on the social network.
Facebook CPC growth underlines brand fan acquisition
Tuesday, July 12 2011 by Kate Billinghurst
Facebook’s cost per click (CPC) advertising is on course for 80 per cent growth over the year, according to research by Efficient Frontier.
The social networking site has seen its CPC increase by 22 per cent in the three months to the end of June, and this trend is set to continue, according to the performance marketing company’s report.
In part, this forecast for growth is based on the aggressive acquisition of fans by brands with a presence on Facebook.
Brands with a higher number of fans receive a greater number of interactions, with internet consultant data revealing that, on average, every 17,000 fans generate one additional comment per post for a brand.
This interaction looks even more impressive in the face of predictions by Frontier that brands active on Facebook are expected to double their fanbase over the next four months.
In terms of product development, Facebook have certainly been doing alot to maintain their competitive edge, despite the growing strength of Twitter and the unveiling of Google+.
Just last week, the social networking site revealed its much-anticipated partnership with Skype, enabling users to video conference with contacts easily and for free.
Facebook chief executive Mark Zuckerberg also hinted that there were plenty more innovations lined up for the coming months. No wonder brands are contributing to CPC growth.
Efficient Frontier global marketing director Jonathan Beeston explained: “The biggest increase in spend this year is on Facebook advertising. Over the year, we expect it to have grown by 80 per cent from last year. Budget for Facebook advertising is mostly coming from offline media such as TV and print rather than search.”
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