Facebook Ad Performance Improved In 2011, Study Says

Advertisers on Facebook saw improved click-thru rates in 2011, while Facebook itself earned more from higher ad rates. That’s according to a new study from TBG Digital, an ad agency that specializes in Facebook marketing.

The TBG study indicates that average cost-per-click (CPC) was up only one percent between Q3 and Q4 in five major markets — the U.S., U.K., Canada, France and Germany. At a country level, CPC was up 10 percent in the U.S. and down 11% in the U.K.

Average CPM (cost per thousand impressions) rates were up eight percent overall between Q3 and Q4, and up 23 percent since Q1 of 2011, as shown on the graph below.

Facebook ad click-thru rates (CTR) were up 18 percent during 2011 acros the five major markets included in the TBG report.

Food & Drink had the highest click-thru rate among 15 measured industries, followed by Beauty & Fitness, Retail, Home & Garden and Not-for-Profit.

TBG measured data from 214 billion impressions in the five markets included in its study. You can see the report on Clearslide.com.