Global Facebook Advertising Report

Q4 2011

© 2011 TBG Digital

326 BILLION impressions measured 205 involved countries
clients analyzed

266

The Cambridge University Psychometrics Centre has verified the results, graphical illustrations and methodology used in this report based on the data provided by TBG Digital.
© 2011 TBG Digital

Major territory analysis
Stabilizing Facebook growth in US sees increase in advertising costs
Figure 1 Average Cost per Click across five major markets 

Avg CPCs increased by 10% in US  Demand increases as more brands advertise on Facebook  Supply plateaus as US user growth slows  CPCs reduced by 11% in UK
Q4

Average Cost per Click (CPC)

Q1

Q2 2011

Q3

Canada

France

Germany

UK

US

Figures based on 214 billion impressions served in the United States, United Kingdom, Canada, France and Germany throughout 2011. CPC values are confidential and have been removed.

© 2011 TBG Digital

Major territory analysis
Facebook earns 23% more in ad rates since Q1 2011
Figure 2 Average Cost per Thousand rates across five major markets 

Avg CPM rates increased by 8% in Q4  CPM increased by 23% in 2011  Facebook has seen an increase in their earnings per impression every quarter in 2011

Cost per Thousand (CPM)

Q1

Q2 2011

Q3

Q4

Canada

France

Germany

UK

US

Figures based on 214 billion impressions served in the United States, United Kingdom, Canada, France and Germany throughout 2011. CPM values are confidential and have been removed.

© 2011 TBG Digital

Major territory analysis
Ad performance improves by 18% in 2011
Figure 3 Average Click Through Rates across five major markets

Average Click Through Rate (CTR) 

CTR increased by 18% in 2011  Advertisers are making their ads more relevant  Facebook s ads are connecting to their user base

Q1

Q2 2011

Q3

Q4

Canada

France

Germany

UK

US

Figures based on 214 billion impressions served in the United States, United Kingdom, Canada, France and Germany throughout 2011. CTR values are confidential and have been removed.

© 2011 TBG Digital

Sector analysis
Top 5 Sectors comprise almost 70% of total impressions
Figure 4 Volume of impressions by sector

Others 32%

Finance 18%

Food & Drink 15%

Games 13% Entertainment 9%

Retail 13% 

18 sectors measured  Top 5 amount to 70% of total impressions in Q4  Facebook should broaden the sectors they appeal to  Finance sees growth in share from 12% to 18%  Internet & Telecom is just out of the top 5 but showed an increase of 21%

Sector Analysis figures based on 78.5 billion impressions served in Q4 2011.

© 2011 TBG Digital

Sector analysis
Sector Click Through Rate League
Food & Drink Beauty & Fitness Retail Home & Garden Not for Profit Travel Computers & Electronics Internet & Telecom Games Entertainment Autos & Vehicles Directories Jobs & Education News Finance 

Food & Drink takes top spot  Beauty & Fitness drop down one place  Not For Profit and Home & Garden enter the top 5 for the first time  These sectors will be enjoying low CPCs

Sector Analysis figures based on 78.5 billion impressions served in Q4 2011.

© 2011 TBG Digital

Sector analysis
Finance accounts for over 60% of impressions in Offsite campaigns
Figure 6 Share of impressions by sector 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Q1 Q2 2011 Entertainment Finance Food & Drink Games Retail Q3 Q4 

Finance brands have become even more dominant in Offsite campaigns  Finance has seen an increase of 50% this quarter and has a share of 61% of Q4 s Offsite impressions  Similar to PPC, Finance is seeing high CPC costs (200% more than average CPC in Q4) and low CTR (48% lower than average CTR in Q4)

Sector Analysis figures based on 78.5 billion impressions served in Q4 2011.

© 2011 TBG Digital

Campaign type analysis
Facebook incentivizing advertisers to stay within Facebook 
Previous study in Q2 analyzed CPCs by Campaign Type  Fanning / Facebook App CPCs were 29% cheaper than Offsite CPCs  Q4 CPCs for ads that kept traffic within Facebook were even cheaper at 45% less than Offsite CPCs

Figures based on 74.5 billion impressions served in Q4 2011.

© 2011 TBG Digital

Seasonal analysis
CPCs increase from Thanksgiving to Saturday 17th December
Figure 7 CPCs from 21st Nov 2011 to 3rd Jan 2012 

Activity measured between 21st November 2011 and 3rd January 2012  CPCs continued to rise until 18th December  CPCs increased by 55.7% between 21st November and 17th December

Figures based on a sample size of 5.2 billion impressions served between 21st November 2011 and 3rd January 2012 in the US only.

11/21/2011 11/23/2011 11/25/2011 11/27/2011 11/29/2011 12/1/2011 12/3/2011 12/5/2011 12/7/2011 12/9/2011 12/11/2011 12/13/2011 12/15/2011 12/17/2011 12/19/2011 12/21/2011 12/23/2011 12/25/2011 12/27/2011 12/29/2011 12/31/2011 1/2/2012

© 2011 TBG Digital

Thank you

© 2011 TBG Digital

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