Facebook Increases Ads—Causing Changes in Click-Through Rates

Social media giant Facebook has lost a fair share of its ad engagement in the U.S. over the last quarter of 2011 and the first quarter of 2012, having dropped 8%. As engagement has dropped however, the average price for a thousand impressions has gone up by a whopping 41% world wide over the last year as have the cost-per-click rates.

This is partly due to the fact that Facebook has expanded the number of ads per page from 4 to 7 on average, giving your ad a slight disadvantage based on the increased number of choices a visitor can click on. The more cluttered look to the ads column of Facebook’s pages is likely to lead most visitors to the site to ignore the ads column altogether.

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