Facebook Advertising Continues to Thrive as CPM Increases by 58% Year on Year

Facebook Advertising Continues to Thrive as CPM Increases by 58% Year on Year PR Newswire LONDON and SAN FRANCISCO, July 18, 2012 LONDON and SAN FRANCISCO, July 18, 2012 /PRNewswire/ -- TBG Digital's Q2 2012 Facebook Advertising Report Indicates Improved Revenue from Facebook Ads Facebook's average Cost per Thousand impressions (CPM), an indicator of what Facebook earns per ad served, has increased by a significant 58% over the last 12 months, since Q2 in 2011, according to the latest Global Facebook Advertising Report compiled by TBG Digital and verified by the University of Cambridge. This is the latest report examining the trends and changes in the performance of Facebook campaigns managed by TBG Digital, which for the first time, now includes actual values for costs and performance metrics. The study which was based on 406 billion impressions in more than 190 countries for 276 clients from Q2 2011 to Q2 2012 demonstrates that Facebook is not only earning more from advertising, but that ad engagement has reversed its downward trend. The increase in CPM of 58% can be attributed to a greater use of Sponsored Stories as well as the introduction of the highly anticipated mobile ads which also provide Facebook with higher earnings. Ad engagement, which is measured by Click Through Rate (CTR) increased by 11% and again seems to have been helped, in part, by the introduction of Facebook's new mobile ads.