Cost Of Advertising On Facebook Increases 74% In One Year

Two recent reports have revealed that the cost of placing an advertisement on Facebook is rising rapidly.

According to CNN, big brands and companies are queueing up to place their adverts on the world’s most successful social networking website, which has led to an all time high in the price of advertising on the platform.

Marketing firm TBG Digital has reported that the cost per click on Facebook has increased by nearly 74 per cent from last year while display advertisement rose by 45 per cent year-on-year across the world’s four leading social media markets, the United Kingdom, the United States, France and Germany.

"The main difference is that this is being fuelled by brand spend rather than [direct] response spend. That is an inflection point for the whole digital marketplace," Simon Mansell, the chief executive of TBG, stated. Mansell also added that web advertising is the second biggest growth sector in the market ever since Google 'happened'.

TGB’s study which was conducted over three months for 200 billion impressions by 167 clients, is also supported by a similar study conducted by Efficient Frontier, a web-based marketing firm. Efficient Frontier also found that the cost per click for ads had increased by around 22 per cent from Q1 to Q2 2011.