Facebook ad prices are rising rapidly. The cost per click of Facebook display ads has increased by 74% during the past year in the 4 largest media markets (US, UK, France, Germany). 2 studies by TBG Digital and Efficient Frontier have produced very similar results on display ad prices on Facebook.
Drivers are big brands like Coca Cola, retailers, entertainment groups and automotive brands, which have started to divert significant budget means away from TV to digital media. This budget reallocation comes as a welcomed earnings boost for Facebook, which geares up for an IPO before spring 2012. The social network reports 750m users.
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