Facebook ad prices have soared by 74% since last year, according to new reports. More and more major brands seem to be spending the money they previously spent on TV and print advertising on online ads, using them as an alternative to traditional advertising.
The cost of display advertising also increased, but “only” by 45% in Q2, according to marketing firm TBG Digital. Display ads are charged for each thousand ads seen. Countries where this rise is most noticeable include the U.S., France, Germany, and the UK.
Simon Mansell of TBG has said that so far he has not seen growth in digital advertising comparable to that of Facebook ads services, except of course in Google’s booming period. He added that the difference between Facebook ads and Google ads is that interest in the former is driven by brand spend rather than response. TBG has analyzed 200bn impressions of Facebook ads from 167 clients in between March and May.
Another report released by Efficient Frontier corroborates TBG’s findings. Moreover, it shows that CPC ads have become 22% more expensive in Q2 this year compared to Q1. Janathan Beeston of Efficient Frontier also said that advertising with Facebook has increased up to 80% since 2011.
Up until recently, major brands were focusing their advertising efforts almost exclusively on traditional media. But things are changing. An increasing number of brands actually cut their traditional media advertising budgets in order to better fund online advertising campaigns. Among them is Coca-Cola, which has the most popular page among all companies on Facebook with 32 million fans.
A Powerful Advertising Platform
In the light of Facebook’s impending public offering, the company’s efforts to increase its influence in the online advertising industry have been more than successful. In the last few months, the social network has created a series of new ad formats. At the same time, it has sought marketing advice from major clients. The social giant seems keen to perfect its ads service and create a powerful ads platform for its customers.
Facebook advertising services now reach as many as 750 million users from all over the world.