The Future of Facebook Advertising

Facebook Like Dollars

I have a confession. I work in social media and I have never clicked on a Facebook advertisement in my life. If I want to “like” a page I go and find the page myself and click “like”. I don’t know who out there clicks on Facebook advertisements, but they exist and they are a major part of Facebook’s revenue stream.

The Facebook advertising rates have gone up 41% since last year. That is an amazing rise in price when you consider that in the same time period Facebook has started showing more ads per page. With the increased quantity of ads the prices should have actually decreased, but in a great turn of events for Facebook the prices managed to increase.

The average cost per click has also increased in price by 20% in the United States. The click through rate has also decreased by 8% in the U.S. Fans are not becoming cheaper for advertisers and the growth in Facebook users is slowing. Does this mean that Facebook is becoming less of a viable advertising platform? The answer to that is almost definitely no. The Facebook ad platform still allows such detailed targeting that you wouldn’t want to keep it out of your digital campaign.

As Facebook becomes increasingly inundated with advertisements it will be interesting to see what advertisers do to stand out. When a user is being bombarded by seven advertisements all targeted at them what can be done to make sure you’re the advertisement being clicked? This is a question advertisers will need to answer very soon if they want to survive in the increasingly competitive Facebook advertising environment.

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