-Prices of advertising on Facebook increase

Internet Business News
07-19-2011
-Prices of advertising on Facebook increase

INTERNET BUSINESS NEWS-(C)1995-2011 M2 COMMUNICATIONS

19 July 2011 -- Advertisers faced higher costs for placing their advertisement on Facebook, the web social network, in the second quarter, the Financial Times reports, citing findings of studies by marketing firms TBG Digital and Efficient Frontier.
According to TBG, the price of display advertising on Facebook increased by 45% in the second quarter of this year compared with the same period a year ago in the US, UK, France and Germany. The "cost per click" of an advertisement placed on the social network has jumped by 74% during the past year in the four countries.

The data from TBG's study are in tune with those from a worldwide study by Efficient Frontier, which found that cost per click of an advertisement placed on Facebook's page had risen by 22% in the second quarter compared with the preceding three-month period.

TBG's chief executive, Simon Mansell, stressed that many big brands, such as Coca-Cola (NYSE:KO), which had long been reluctant to advertise online, were diverting their marketing spending to the web.

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(Copyright M2 Communications, 2011)