report global facebook advertising

© 2011 TBG Digital

Global Facebook Advertising ReportQ4 2011

© 2011 TBG Digital© 2011 TBG Digital

326 BILLIONimpressions measured

205countries involved

266clients analyzed

The Cambridge University Psychometrics Centre has verified the results, graphical illustrations and methodology used in this report based on the data provided by TBG Digital.


Stabilizing Facebook growth in US sees increase in advertising costs

Major territory analysis

Q1 Q2 Q3 Q42011

Figure 1 Average Cost per Click across five major markets

Canada France Germany UK US

Ave

rage

Cos

t per

Clic

k (C

PC)

Figures based on 214 billion impressions served in the United States, United Kingdom, Canada, France and Germany throughout 2011. CPC values are confidential and have been removed.

Avg CPCs increased by 10% in US

Demand increases as more brands advertise on Facebook

Supply plateaus as US user growth slows

CPCs reduced by 11% in UK


Facebook earns 23% more in ad rates since Q1 2011


Figures based on 214 billion impressions served in the United States, United Kingdom, Canada, France and Germany throughout 2011. CPM values are confidential and have been removed.

Avg CPM rates increased by 8% in Q4

CPM increased by 23% in 2011

Facebook has seen an increase in their earnings per impression every quarter in 2011

Q1 Q2 Q3 Q42011

Figure 2 Average Cost per Thousand rates across five major markets


Cost

per

Tho

usan

d (C

PM)


Ad performance improves by 18% in 2011


Figures based on 214 billion impressions served in the United States, United Kingdom, Canada, France and Germany throughout 2011. CTR values are confidential and have been removed.

CTR increased by 18% in 2011

Advertisers are making their ads more relevant

Facebook’s ads are connecting to their user base

Q1 Q2 Q3 Q42011

Figure 3 Average Click Through Rates across five major markets


Ave

rage

Clic

k Th

roug

h Ra

te (C

TR)


Top 5 Sectors comprise almost 70% of total impressions

Sector analysis

Sector Analysis figures based on 78.5 billion impressions served in Q4 2011.

18 sectors measured Top 5 amount to 70%

of total impressions in Q4

Facebook should broaden the sectors they appeal to

Finance sees growth in share from 12% to 18%

Internet & Telecom is just out of the top 5 but showed an increase of 21%

Finance18%

Food & Drink15%

Retail13%Games

13%

Others32%

Figure 4 Volume of impressions by sector

Entertainment 9%


Sector Click Through Rate League

Sector analysis


Food & Drink takes top spot

Beauty & Fitness drop down one place

Not For Profit and Home & Garden enter the top 5 for the first time

These sectors will be enjoying low CPCs

Finance

News

Jobs & Education

Directories

Autos & Vehicles

Entertainment

Games

Internet & Telecom

Computers & Electronics

Travel

Not for Profit

Home & Garden

Retail

Beauty & Fitness

Food & Drink


Finance accounts for over 60% of impressions in Offsite campaigns

Sector analysis


Finance brands have become even more dominant in Offsite campaigns

Finance has seen an increase of 50% this quarter and has a share of 61% of Q4’s Offsite impressions

Similar to PPC, Finance is seeing high CPC costs (200% more than average CPC in Q4) and low CTR (48% lower than average CTR in Q4)

Q1 Q2 Q3 Q42011

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Figure 6 Share of impressions by sector

Entertainment Finance Food & DrinkGames Retail


Facebook incentivizing advertisers to stay within Facebook

Campaign type analysis

Figures based on 74.5 billion impressions served in Q4 2011.

Previous study in Q2 analyzed CPCs by Campaign Type

Fanning / Facebook App CPCs were 29% cheaper than Offsite CPCs

Q4 CPCs for ads that kept traffic within Facebook were even cheaper at 45% less than Offsite CPCs

45%cost

reduction


CPCs increase from Thanksgiving to Saturday 17th December

Seasonal analysis

Figures based on a sample size of 5.2 billion impressions served between 21st November 2011 and 3rd January 2012 in the US only.

Activity measured between 21st November 2011 and 3rd January 2012

CPCs continued to rise until 18th December

CPCs increased by 55.7% between 21st November and 17th December

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011

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011

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011

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011

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Figure 7 CPCs from 21st Nov 2011 to 3rd Jan 2012

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