Facebook's Bet on Social Ads Paying Off
FOR: MARIN SOFTWARE
MAY 8, 2012 - 05:00 ET
New Report From Marin Software Shows Social Ads Will Account for 50% of Advertisers' Facebook Ad Budgets by End of 2012
LONDON--(Marketwire - May 8, 2012) - A new report launched today by Marin Software has shown that the amount of Facebook ad budgets allocated to social ads has risen from 3% to 26% globally over the past year, with Marin predicting that social ads will account for nearly 50% of all Facebook ad budgets by the end of 2012. According to the report, consumer engagement across all Facebook ads has also grown in the past year, with global click through rates (CTR) increasing by 50% during the same time period.
The report follows a move from Facebook® early last year to boost ad relevancy by focusing on social ads -- those that incorporate user endorsements into the content -- and shows that the social network's decision is paying off. In the past 12 months, Marin has also found that the cost per click (CPC) of social ads increased by 26%, while the CPC of Marketplace Ads overall decreased by 26% -- signifying a shift in advertisers' preference towards social ads.
"Facebook's introduction of Sponsored Stories to the social ads offering last year brought about two questions -- whether or not advertisers would adopt the new ads and whether or not Facebook users would respond to them," said Ed Stevenson, Managing Director, Global Agencies and International at Marin Software. "Based on our data, the answer to these questions is strongly 'yes.' In the past year advertisers have directed more or their budget towards social ads and Facebook users have responded by clicking on them more often. This trend is not only positive for Facebook from a revenue standpoint, but also provides important validation of the opportunity advertisers have to drive revenues from word of mouth marketing efforts."
Marketers interested in strategies and tactics for advertising on Facebook can download "The Search Marketers Guide to Successful Facebook Ads" on Marin Software's site at: marinsoftware.com/resources/best-practices/search-marketers-guide-to-successful-facebook-ads.
About Marin Software:
Marin Software is a leading provider of online advertising management solutions, offering an integrated platform for managing search, display, and social marketing. The company provides solutions for advertisers and agencies of all sizes, enabling them to improve financial performance, save time, and make better decisions. Marin Enterprise, the company's flagship product, addresses the needs of online marketers spending at least £50,000 per month on biddable media. Marin Professional delivers the same power and ease-of-use as Marin Enterprise, through an application designed for marketers spending less than £50,000 per month on paid search. Headquartered in San Francisco, with offices worldwide, Marin's technology powers marketing campaigns for over 1500 customers managing more than $3.5 billion of annualised ad spend in more than 160 countries. Leading advertisers and agencies using the Marin Software platform include iProspect, Bigmouthmedia, Neo@Ogilvy, Razorfish, Easyjet, Hotels.com, Betfair and Spartoo.com. For more information, please visit: http://www.marinsoftware.co.uk
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