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The Cost of Facebook Ads

Feb 1, 2011   //   by freshtraffic   //   adwords, ecommerce, facebook, internet advertising, internet marketing, marketing, online advertising, online marketing  //  Comments Off

Facebook has become the most visited site above Google and all others online. It’s not uncommon to find a story about Facebook versus Google/Bing/Yahoo or about how they’ve reached 500 million plus members. Millions upon millions of people communicate, play and flit away hours on the site, and the site is reportedly worth billions.

But at the end of the day, is it really a financially savvy move to advertise on Facebook? In 2009 it was, as the cost for a click was only 27 cents, but for a click through rate of only just over half of 0.1%. And as time goes on you’d expect things to get better, but in 2010 the cost per click actually nearly doubled in cost to 49 cents, and the click through rate dropped. With so many member accounts, it’s hard to believe that the advertising model has such a bleak factual bottom line.

With the benefits of advertising on Facebook being parlayed as being targetted via friends within the site, the numbers display the honest truth. While ads may last longer, and be presented more relevant on your Facebook pages, you’re less likely to use them than if you were to find them else where online. Even banner ads on websites performed better on the bottom line. Oh well, at least there’s Mafia Wars and Farmville right?

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