Facebook Sponsored Stories CTR and CPC by Augustine Fou
Facebook Sponsored Stories
Click Through Rates (CTR) and Cost per Click (CPC)
Dr. Augustine Fou, Founder
Marketing Science Consulting Group, Inc.
December 10, 2012 1
Initial tests are performing well, but …
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
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 $0.78
December 10, 2012 3
Facebook mobile ads have
higher CTR …
… but could be due to users closing ads.
December 10, 2012 4
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 mobile
December 10, 2012 5
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
FB Default Privacy History
December 10, 2012
… has already maxed out revealing more
user info to the public (i.e. advertisers)
Benchmark - ARPU
AMZN EBAY GOOG YHOO BIDU FB
183 15 18 18 31 91 P/E ratio
per user - $4 – is
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
December 10, 2012 8
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
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)
CLIENT SIDE / AGENCY SIDE EXPERIENCE
PROFESSOR AND COLUMNIST
ENTREPRENEUR / SMALL BUSINESS OWNER
PHD MATERIALS SCIENCE (MIT '95) AT AGE 23
ClickZ Articles: http://www.clickz.com/author/1151/augustine-fou
@acfou Augustine Fou
Mar. 27, 2013
Some collected data on Facebook's ad types and benchmarks of the CTRs and CPCs.