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.
filmFilm producers sue Warner Bros for $75m over Hobbit films
sportNapoli 2 Arsenal 0: Gunners must now face either Real Madrid, PSG, Bayern Munich, Atletico Madrid or Barcelona in knock-out stages
Swedish stars ask fans for £195 pledges on crowd-funding website
voicesJust when you thought you could find a man, get married, and have a baby by the age of 35... it turns out you’re too late, says Grace Dent
musicAs Mariah Carey and Noddy Holder rake in the royalties from their classics, why there hasn't been a decent festive hit for 20 years?
theatreAuthor Daniel Rosenthal recalls the mishaps that almost brought the curtain down on the likes of John Gielgud and Diana Rigg
lifeAs the Royal Mail plans to phase out deliveries on two wheels, it's no wonder posties are in a spin
musicThe 21-year-old beat Ella Eyre and Chlöe Howl to win the honour
lifeFull of the joys and want to help your fellow man? December isn't the time to do it
techLuke Blackall reports on precision engineered prams and babygros that monitor your child 24-7
Nelson Mandela memorial: ‘Bogus’ interpreter made mockery of Barack Obama’s tribute in Soweto
David Cameron explains selfie with Obama and Helle Thorning-Schmidt at Mandela Memorial
French café starts charging extra to rude customers
Krokodil in Mexico? Teenager hospitalised after 'injecting drug into her genitals'
Australia incest case: Filthy and severely deformed children found in remote farming community after generations of inbreeding
- 1 Nelson Mandela memorial: ‘Bogus’ interpreter made mockery of Barack Obama’s tribute in Soweto
- 2 John McAfee's $100 'anti-NSA' device: 'this is coming and cannot be stopped'
- 3 French café starts charging extra to rude customers
- 4 Is Facebook making us forget? Study shows that taking pictures ruin memories
- 5 Australia incest case: Filthy and severely deformed children found in remote farming community after generations of inbreeding
iJobs Money & Business
£77099.84 - £96375.26 per annum + Bonus + Benefits : Harrington Starr: My clie...
£45000 - £60000 per annum + Bonus and Package: Harrington Starr: Trading appli...
£50000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: A leading prov...
£70000 - £90000 per annum + BONUS + BENEFITS: Harrington Starr: A leading mark...