An Internet Retailer story out today says the increasing the supply of ad spots on Facebook hasn’t lowered the price of those ads. The story cites a new report from Facebook advertising firm TBG Digital.
According to the report thecost per thousand impressions, or CPM, over the last four quarters increased 41% compared with the same period a year earlier.
In the first quarter of 2012 alone, CPMs rose 15%, with the average CPM rising 11% in the United States and 13% in the United Kingdom. Retailers’ ads accounted for 23% of all impressions in the first quarter, a 10 percentage point increase from the previous quarter.
Average CPC, jumped 23% over the fourth quarter in TBG’s top five territories—the United States, the United Kingdom, Canada, France and Germany.
Interestingly, Facebook offered marketers whose ads click through to another place on Facebook a 45% lower CPC. TBG says the discount was an effort to encourage marketers to keep consumers on the social network, rather than sending them to another site.