July 20th, 2011 
Kevin Martinez TBG Digital, a company specializing in social media advertising campaigns, released a report on global advertising on Facebook revealing that companies are now putting more effort in increasing their fan base which translates into more efficient advertising campaigns. The report analyses pricing trends, success rates and sector variances related to Facebook advertising for Q2 2011.
The study shows that brand campaigns on Facebook grew by 104 percent quarter on quarter and by 1900 percent during the previous 12 months. Another important finding from the report is that advertising to existing fans on Facebook results in 435 percent improvement in campaign conversion rates. In terms of click-through-rates, retail sector shows the biggest growth and it accounts for 36 percent of total impressions in the second quarter of 2011.
Analyzing the pricing trends, the TBG’s report found that cost-per-thousand impressions (CPM) saw a 45 percent increase in the previous 12 months and cost-per-click (CPC) increased by 74 percent. Also noted is that the use of Sponsored stories ads in Facebook campaigns decreases cost-per-acquisition (CPA) by 32 percent.
According to the TBG Digital Global Facebook Advertising Report, advertisers can create cost efficiencies and improve ROI by implementing the following three steps:
- Acquire a quality fan base through sponsored stories ads
- Engage with fan base to ensure they interact with your fan page
- Target fans with ads to drive registrations or sales from Facebook.
The data from the report also indicates that Facebook is becoming a valid B2B marketing channel as one of the top five areas of growth was the business and industrial sector.
“TBG works with 100 of the top 500 advertisers on Facebook and this report contains data from a total of 167 clients,” TBG Digital CEO, Simon Mansell said in a statement. “I spend a lot of my time talking to these customers and hear more and more of them telling me they are reallocating budget from offline media to Facebook. I think the numbers in this report back up the anecdotal evidence of my conversations with TBG’s customers: Facebook is the transformational platform which is making advertisers move brand budgets from the traditional areas of TV and Press to Online.”
To provide this report, TBG Digital analyzed 200 billion impressions from 167 clients in 21 countries worldwide.
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