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Facebook Sponsored Stories CTR and CPC by Augustine Fou

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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.

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  • 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: http://mattmckeon.com/facebook-privacy/ … 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: http://www.clickz.com/author/1151/augustine-fouSlideshares: http://www.slideshare.net/augustinefouLinkedIn: http://www.linkedin.com/in/augustinefou @acfou Augustine Fou

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