The internet is full of social networks that allow users to utilize the service for free and generate revenue from businesses wanting to target the audience of that particular social brand. Due to the fact there are so many different social mediums to choose from an advertiser has to be wary of which social network is going to provide the greatest opportunity to reach a large audience. Facebook continues to remain supreme in terms of numbers with approximately 850 million active users as of this writing.
That is an extremely large number of people that a business owner can target. A well-created ad could possibly do wonders for the advancement of the service or product, but that type of opportunity comes with a price. Facebook is well aware of its user base and knows how to use that total to maximize its ability to grant advertisers promotional space at a cost designed to generate tremendous profit.
There are three different figures to consider when evaluating Facebook’s advertising revenue: Cost per Thousand Impressions; Cost per Click; Cost per Fan. We have recently completed quarter 1 for 2012 and Facebook experienced increases on three major types of revenue generated from advertising.
Cost per Thousand Impressions (CPM) rose a staggering 41% compared to Q1 from 2011. Moreover CPM has increased by 15% just since the fourth quarter of 2011.
Cost per Click for the five parts of the world that were analyzed (Canada, France, Germany, United Kingdom and United States) rose by 23%. The biggest increase occurred in France with a jump of 35% compared to Q1 of 2011.
Cost per Fan experienced an even larger increase than CPM with a rate of 43%. This percentage may have increased from 2011 to now partly as a result of a decrease in click-through-rate, more competition in the industry and obviously higher advertisement costs.
These figures were recently released by TBG Digital in its Q1 2012 Global Facebook Advertising Report. Take some time to peruse the report for even more information about Facebook’s successful first quarter in 2012.