Your SlideShare is downloading. ×

Facebook Sponsored Stories CTR and CPC by Augustine Fou


Published on

Some collected data on Facebook's ad types and benchmarks of the CTRs and CPCs.

Some collected data on Facebook's ad types and benchmarks of the CTRs and CPCs.

Published in: Business
1 Comment
1 Like
No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 1. Facebook Sponsored StoriesClick Through Rates (CTR) and Cost per Click (CPC) Dr. Augustine Fou, Founder Marketing Science Consulting Group, Inc.December 10, 2012 1
  • 2. Sponsored Stories Initial tests are performing well, but … Source: TBG Digital July 2012 “Relying on tricking users into clicking ads in friends feeds (Sponsored Stories) is not a sustainable revenue growth strategy.”December 10, 2012 2
  • 3. Facebook ad types Post Ad CTR is 0.07% CPC is $0.24 Sponsored Story CTR is 0.07% CPC is $46 Web Ad CTR is 0.03% CPC is $0.59 Social Ad CTR is 0.04% CPC is $0.78December 10, 2012 3
  • 4. Facebook mobile ads havehigher CTR … … but could be due to users closing ads.December 10, 2012 4
  • 5. Facebook Mobile Source: TechCrunch, June 19, 2012 Mobile ads are more effective from initial numbers; but lower pageviews per session and lower ads per page will mean less revenue per user on mobileDecember 10, 2012 5
  • 6. Targeting Premium? No. • More social parameters to use for targeting means higher premium for ads? • How will users react to FB using more of their personal data for targeting of ads? • So far, despite the greater use of demographic info for targeting, FB CPMs still lag the industry dramatically. = more revenue for FB?December 10, 2012 6
  • 7. FB Default Privacy History December 10, 2012Source: … has already maxed out revealing more user info to the public (i.e. advertisers)
  • 8. Benchmark - ARPU AMZN EBAY GOOG YHOO BIDU FB 183 15 18 18 31 91 P/E ratio Facebook revenue per user - $4 – is lowest compared GOOG - $24 /user with other tech YHOO - $8 /user companies like Amazon, eBay, Goog FB - $4 /user le But FB’s P/E is 91, which is among the highestDecember 10, 2012 8
  • 9. Revenue per Time Spent LNKD $1.30 per user/hour Source: Forbes, July 26, 2012 GOOG $0.35 per user/hour FB $0.06 per user/hour HBO $0.28 per user/hour Financial Times $3.66 per user/hour Facebook is LEAST efficient at monetizing users’ time spent, despite “theoretical” targeting advantage.December 10, 2012 9
  • 10. Dr. Augustine Fou – Chief Digital Strategist “I analyze trends and advise clients on getting out in front of them, rather than be a victim to them.” FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM) MCKINSEY CONSULTANT CLIENT SIDE / AGENCY SIDE EXPERIENCE PROFESSOR AND COLUMNIST ENTREPRENEUR / SMALL BUSINESS OWNER PHD MATERIALS SCIENCE (MIT 95) AT AGE 23ClickZ Articles: @acfou Augustine Fou