According to TGB Digital, Facebook advertising is getting siginificantly more expensive. In a report just issued, the firm claims that during the fourth quarter of 2011, Facebook CPC ad prices increases 10% compared to the previous three months.
During the Holidays, they claim that the price actually increased a whopping 55.7%, leaving marketers having to pay a premium during that time.
However, their report shows that one type of advertisement on Facebook is actually decreasing: ads that go to Facebook fanpage are becoming cheaper. If you bought ads that went to your Fanpage, youd pay an average 29% less than if you sent to a site off Facebook This is because Facebook wants to see advertisers use Facebook as their main promotion means.
“More and more brands in a huge range of business sectors are building a presence within Facebook to harness these lower costs,” the report says. For instance, retailers are attempting to generate sales directly on the social network via Facebook storefronts.
Obviously this is bad news for marketers who push direct sales on Facebook, as it means they will always pay a premium for such pricing. Facebook pages as a sales technique have already been proven as producing fairly low ROI and consumers aren’t that satisfied by Facebook advertising, according to another report.
Question: Is Facebook going to remain a way for performance marketers to promote their product, or is the internal method of promoting Facebook fan pages and other things going to die out? Think about this, will consumers still respond to page after page on Facebook that looks the same, being asked to like something over and over again, year after year?
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