CPM

Facebook Had A Massive Q1 2012 In Ad Sales, But Performance Softens In The US

Source: http://www.businessinsider.com/facebook-q1-2012-earnings-ad-revenue-2012-4

facebook thumbs up

Facebook had a great Q1 2012, with a 41 percent increase in ad rates (the cost-per thousand impressions that advertisers pay), according to TBG Digital, a major seller and manager of Facebook advertising campaigns.

This bodes well for Facebook’s Q1 earnings, which the soon-to-go-public social network has yet to report.

The only bad news: performance softened somewhat in the U.S., where Facebook’s growth overall is slowing.

TBG’s conclusion was based on a sample of 327 billion ad impressions from 235 Facebook advertising clients. What follows are TBG’s estimates of Facebook’s Q1 ad performance, accompanied by commentary from TBG CEO Simon Mansell and his team.

(If you want the Q4 2011 Facebook numbers for comparison, click here.)

CPM rates are up 41%

“Facebook is earning more from Marketplace ads which could have a positive impact on their imminent IPO. We have seen an increase of 41% in Cost per Thousand impressions (CPM) since Q1 2011, which indicates how much Facebook earns per ad served. Average CPM has increased by 15% from Q4 2011 to Q1 2012 with the US seeing an increase of 11% and the UK seeing an increase of 13% during the same period.”

Cost of advertising up by almost 23%

“Cost per Click (CPC) prices have increased by almost 25% since last quarter with the biggest increase in France (35%) followed by the US (20%). There has been a 34% increase in US CPC costs in the past year. Unbalanced supply and demand could be the reason behind these rises. Growth in new users may be slowing but the social network is becoming more attractive to advertisers.”

Ad engagement decreases in the US

“The US experienced a reduction in average Click Through Rate (CTR) of 8% in this quarter with the top five territories seeing an average decrease of 6%. France saw a drop of 13%. CTR is generally a measure of how engaging users find the ad, affected by the quality of the creative and how appropriate the ad’s targeting. However, this drop comes after Facebook has increased the number of ads on a page, sometimes showing up to seven at a time, which could also be a contributing factor to this change.”

Tags: , , , , , , , , , , , , , , , , , , ,

Monday, April 16th, 2012 charts No Comments

Marketing Costs Normalized to CPM Basis for Comparison

Comparing costs of various media channels, on a CPM basis – cost per thousand impressions basis.

 

 

SOURCE: http://www.slideshare.net/augustinefou/why-digital-tactics-kick-traditional-tactics-in-cost-effectiveness

 

SOURCE: http://www.clickz.com/clickz/column/2126376/newspapers-money-online

 

SOURCE: http://www.handmadeology.com/etsy-ad-pricing-comparing-them-to-the-competition/

 

UPDATED: January 30, 2013.  See also Comparative Media Costs Offline and Online

 

 

Tags: , , , , , , , , , , , , , , , , , , , , , , , , ,

CPM (cost per thousand) compression YOY

SOURCE:  Demand Media (DMD) 2011 Annual 10K  ( http://bit.ly/zBiIVF  )

 
 
 
 
 
 
2009 to
2010
 
2010 to
2011
 
Year ended December 31,
 
%
Change
 
%
Change
 
2009
 
2010
 
2011
 
Content & Media Metrics (1)
 
 
 
 
 
 
 
 
 
Owned & operated
 
 
 
 
 
 
 
 
 
Page views (in millions)
6,849

 
8,234

 
10,378

 
20
 %
 
26
 %
RPM
$
10.69

 
$
13.45

 
$
15.14

 
26
 %
 
13
 %
Network of customer websites
 
 
 
 
 
 
 
 
 
Page views (in millions)
10,009

 
13,155

 
17,436

 
31
 %
 
33
 %
RPM
$
3.45

 
$
3.20

 
$
2.77

 
(7
)%
 
(13
)%
RPM ex-TAC
$
2.39

 
$
2.28

 
$
2.06

 
(5
)%
 
(10
)%

 

Tags: , , , , , , , , , , , , , , , , , ,

Friday, March 9th, 2012 digital No Comments

Not 1, Not 2, Not 3, But 4 Display Ads Per Pageview – Shame on You Facebook

Updated May 12, 2012. Freddy Nager, Prof of Integrated Marketing at UCLA sent me a screen shot showing 9 display ads per page. The unscupulosity of Facebook is at an all time high – right up to their IPO.

THANKS Freddy Nager @AtomicTango, Prof of Integrated Marketing, UCLA for the screen grab of 9 and 10 ads per page.

http://atomictango.com/2012/04/20/myspace-facebook-continued/

Updated February 3, 2012.  This is how Facebook is growing ad revenues – SEVEN DISPLAY ADS PER PAGE – EVIL!

facebook ads

 

 

But despite this kind of “cheating” their revenues are decelerating. And there is the “danger” of advertisers getting smart and changing from paying on a CPM basis to paying only on a CPC basis — paying only when they get the click. That would mean Facebook’s revenue could drop off a cliff.

Source: http://www.businessinsider.com/chart-of-the-day-facebook-revenues-are-decelerating-2012-2

Facebook revenues decelerating

 

Updated:  FIVE (count ’em) 5 ads per page – SHAME on you Facebook – the highway robbery gets worse.  Advertisers, quick, go to CPC (don’t pay CPMs any more).

Multiple ads on the same page run up the impression numbers, but artificially depress click-throughs because even if they wanted to, users can only click on one ad at a time. Shame on your Facebook for overtly and systematically robbing advertisers who pay on a CPM basis.

But then again shame on you advertisers who still pay CPMs when you can easily click a radio button to select CPC — Facebook even suggests a range for you automatically (see inset below).

What is the advantage of paying by CPC (cost per click) instead of CPM (cost per thousand impressions)?  Well, remember the old ad industry joke “I know I am wasting half my ad dollars, I just don’t know which half” — well, now you know.  In fact, you now know you are wasting 99% of your ad dollars to wasted impressions that get no action/clicks from users AND you know which 99%.  See infographic below. So stop paying CPMs and start paying CPCs TODAY. Your ad budget will thank you!

Just how DISMAL are  Facebook advertising metrics and benchmarks (click to see )?

According to data from comScore, in Q3 2010, Facebook served 297 billion display ad impressions giving it 23% of the U.S. market for display ads. In digital channels, since there is no longer the physical limitation of time (airtime on TV) or space (area to put ads on dead-tree pulp) companies can create “inventory”  out of thin air and magically increase revenue on the backs of advertisers still willing to pay for impressions. I guess it really is caveat emptor.

chart of the day, share of online ad impressions, nov 2010

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Thursday, November 11th, 2010 analytics, digital, display advertising, marketing 1 Comment

Facebook is going down – pageviews, average stay, pages per visit – why?

From the Compete charts below, it is clear that Facebook is seeing a decline in pageviews, average stay, and pages per visit.  But why?

I know that I have reduced the time I spend on Facebook and I have also reduced the number of messages and other social actions as well.  And I have deleted virtually all of my personal and family photos and will not upload any more. These may be the first signs of a waning of Facebook due to a number of factors.

I can’t get my stuff back out

For example, Facebook has stated that it will not participate in OpenSocial because they do not want people to be able to export their content, conversations, photos, etc, out of Facebook and use on another social network. I am concerned that I will not be able to retrieve or back up content which I believe is mine. I like to have control over my family photos, conversations with friends, etc. I am willing to accept as a “cost” of using the Facebook system the fact that they know who my friends are.  But I am less willing or unwilling to continue putting my content where I cannot get it back, in its entirety.  (Google Docs, for example, just launched a feature where you can back up everything back out of Google Docs into Microsoft Office formats).

Ads in the stream, erosion of trust

A second issue mentioned in a previous post is the increase in advertising on Facebook and also the more unscrupulous practice of injecting ads “into the stream” — ads masquerading as status updates. These are harmful to the overall trust built up in the community and I have un-friended quite a few people whose accounts were clearly used to promote events, products, etc.

Ad-effectiveness sucks

From a prior post – http://bit.ly/EhiW9 – Facebook advertising metric are absolutely abysmal. They keep trying to sell advertisers on the hundreds of billions of pageviews they throw off. But advertisers are getting smarter and more and more of them will buy ads on a cost-per-click basis (instead of CPM, cost per thousand impressions basis).  This means that the ad revenues that Facebook enjoyed from gross INefficiencies will be decimated.


facebook-pageviews

facebook-average-stay

facebook-pages-per-visit

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Friday, October 30th, 2009 digital No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

Augustine Fou portrait
http://twitter.com/acfou
Send Tips: tips@go-digital.net
Digital Strategy Consulting
Dr. Augustine Fou LinkedIn Bio
Digital Marketing Slideshares
The Grand Unified Theory of Marketing