Facebook benefits from higher ad rates ahead of IPO
Sharp rise in volumes and rates should boost the social networking giant's forecast revenues
Tuesday 17 April 2012
Facebook's advertising rates have shot up 41 per cent on a year ago, an authoritative new survey suggests, boosting hopes for the social networking website's planned $100bn (£63bn) stock-market flotation.
The figures, compiled by the ad agency TBG Digital, one of the biggest spenders on Facebook, show that the cost of advertising was rising even as the website increased the number of ads it carries on each page.
"It's good news for Facebook," said Simon Mansell, the chief executive of TBG Digital. "Facebook has seen an increase in pricing at the same time it has grown the number of ads per page to seven, which you would naturally expect to actually deflate prices."
TBG Digital, whose survey was audited by Cambridge University, is believed to be responsible for just under 10 per cent of all advertising spend on the world's biggest social media site, which was founded by Mark Zuckerberg in 2004 and has more than 850 million users.
Another key finding to emerge from TBG Digital's quarterly survey is that the number of Facebook users clicking on news stories has almost trebled compared with just three months earlier, thanks to so-called "social readers". This means that when a Facebook user is logged into the social networking site and also visits an external "partner" news website, the software will automatically post an update to that user's Facebook news feed, telling their friends they've read that story.
The Independent, The Guardian, The Washington Post and Yahoo are among the news websites that have signed up as partners with Facebook's social reader technology.
Click-through-rates – the number of Facebook users who subsequently click on a news story – have surged 196 per cent, says TBG Digital. At the moment the Facebook social reader service is free to news websites, but Mr Mansell said the jump in click-through rates suggested Facebook might be able to make money from it in future, in the same way that it has done from games.
He said it also showed Facebook was becoming important for sharing news in a way that "other social networks such as Twitter have dominated to date".
The continued strength of Facebook comes as Google's co-founder Sergey Brin warned that the social network and "walled garden" phone apps were making the web less free.
- 1 Avengers: Age of Ultron: Nearly 700 German cinemas refuse to show movie
- 2 Donald Trump decides that Baltimore riots are Barack Obama's fault
- 3 X Factor in crisis as numbers of people auditioning plummets
- 4 General Election 2015: Stephen Hawking says he will vote Labour
- 5 Baltimore riots: Furious mother marches her son home live on TV
Bali Nine executions live: Indonesian firing squad shoots dead eight drug offenders despite outcry around world, but a ninth is spared
Keith Harris dead: Orville the Duck ventriloquist dies aged 67 following battle with cancer
The four utterly contradictory polls that tell the story of this election and why it is pointless trying to predict the outcome
Donald Trump decides that Baltimore riots are Barack Obama's fault
General Election 2015: Prospect of Labour-SNP coalition makes one in four voters less likely to support Ed Miliband, says survey
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
EU exit would hit UK economy much harder than neighbouring countries, study finds
Andrew Lloyd Webber: Phantom of the Opera writer mocked after issuing a warning about Ed Miliband and Nicola Sturgeon
General election 2015: Labour will toughen hate crimes legislation surrounding Islamophobia
iJobs Money & Business
£30000 - £38000 per annum: Recruitment Genius: They are a financial services c...
£Basic (OTE) + Uncapped Commission: Guru Careers: A Stockbroker (qualified / p...
£20000 - £60000 per annum: Recruitment Genius: Are you recently QCA Level 4 qu...
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...