Home  › Media › Mobile
tbg-facebook

Facebook Mobile Ad CPM Rates Near $10

  |  July 18, 2012   |  Comments

Facebook mobile ads drove 4 times as many CTRs as Twitter ads, said TBG Digital.

Facebook is under pressure to prove it can monetize its mobile platform, and that appears to be happening. Following the success of sponsored stories, Facebook's recently introduced mobile ad product is driving greater click-through rates and CPMs for brands. Cost-per click for all Facebook ads surpassed $1 for the first time in the United States, where CPMs jumped 25 percent in the last quarter, according to a new report from social media consulting firm TBG Digital, which compiled results from 406 billion impressions in more than 190 countries.

The social media marketing vendor tracked campaigns for 276 clients in the last quarter and reported Facebook's new mobile ads are already outperforming desktop ads in click-through rates and CPMs by 14 times. Mobile newsfeed ads garnered a 1.14 percent CTR on average. Facebook is banking on the success of mobile ads as well, earning $9.86 for every thousand mobile ads served. That's 13 times more than it receives for desktop ads.

The Facebook mobile ads also performed much better than Twitter ads, said TBG, which recently measured 24 million Twitter ad impressions. The result: Facebook mobile ads drove 4 times as many CTRs as Twitter ads.

Across all formats studied, click-through rates reversed a downward trend, increasing 11 percent, according to the report. CPMs jumped 58 percent from the year-ago period.

tbg-facebook

"Mobile ads were introduced during this period, which has led to the first increase of click-through rates since the introduction of sponsored stories," said Simon Mansell, CEO of TBG Digital. "Mobile is a big driver of performance in this quarter."

The display ad veteran said he was particularly surprised by sponsored stories, which are performing better than Facebook Ads. TBG found that brands focusing on generating page likes saw fan acquisition costs drop 39 percent over the past 12 months while increased competition and better targeting parameters on the platform are driving up the average cost of Facebook Ads, said Mansell.

"CPM will also be driven by better click-through rates on mobile ads," he continued. And because the U.S. market is "more brand focused," Mansell said "the United States will continue to be the workhorse for their revenue."

Tags:

ClickZ Live Chicago Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, Oct 3 to take advantage of Early Bird Rates!

ABOUT THE AUTHOR

Matt Kapko

Matt Kapko has been writing about mobile since 2006, before it became cool. Based in Long Beach, CA, he has covered mobile entertainment, digital media, marketing, and advertising for several business media outlets. A former editor and reporter for RCR Wireless News, paidContent, and iMedia Connection, Matt is a regular freelance reporter for ClickZ. You can follow Matt on Twitter at @MattKapko or drop him a line at matt@kapko.co.

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Media newsletters delivered right to your inbox. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

IBM: Social Analytics - The Science Behind Social Media Marketing

IBM Social Analytics: The Science Behind Social Media Marketing
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.

An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising

An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising
If you're considering implementing a marketing attribution model to measure and optimize your programs, this paper is a great introduction. It also includes real-life tips from marketers who have successfully implemented attribution in their organizations.

Jobs

    • Tier 1 Support Specialist
      Tier 1 Support Specialist (Agora Inc.) - BaltimoreThis position requires a highly motivated and multifaceted individual to contribute to and be...
    • Recent Grads: Customer Service Representative
      Recent Grads: Customer Service Representative (Agora Financial) - BaltimoreAgora Financial, one of the nation's largest independent publishers...
    • Managing Editor
      Managing Editor (Common Sense Publishing) - BaltimoreWE’RE HIRING: WE NEED AN AMAZING EDITOR TO POLISH WORLD-CLASS CONTENT   The Palm...