It was only in my last post that I was lamenting the lack of data on Facebook advertising effectiveness. I´ve only got time for a very short post today, but this news came across my virtual desk (or traveling desk, as I´m a long way from home) today.
Click-through rates on Facebook ads only averaged 0.05% in 2010, down from 0.06% in 2009 and well short of what’s considered to be the industry average of 0.10%. That’s according to a Webtrends report that examined 11,000 Facebook ads, first reported upon by ClickZ. Meanwhile, the price of those clicks is increasing, rising from $0.27 in 2009 to $0.49 last year. The lower click-throughs and cost increase occurred at a time when Facebook’s top advertisers have increased their spend tenfold, according to the Webtrends study.
Probably worth scanning in more detail of you have more time than I do right now. And don´t forget what I wrote in that last post - good copy, good segmentation and a time specific call to action will overcome bad macro stats like the ones above every time.