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Friday, 13 January 2012

Facebook May Account For 5% Of Online Ad Spending This Year

Facebook accounted for 2.7 percent of total online advertising spending during the fourth quarter of 2011, and that figure will jump to 5 percent by the end of 2012, according to the latest report from ad-buying and optimization firm Efficient Frontier.

The company said the increased budgets for Facebook and other social spending are in addition to funds allocated for search and display, and not carving into those categories, adding that as marketers’ ability to tap the Facebook user base keeps improving, the social network’s percentage of the pie will do so, as well.

Efficient Frontier also examined like growth by brands on Facebook, and the company found that the average monthly like growth rate is 9 percent, meaning most brands will double their total number of likes by the end of 2012.

The company described its methodology as follows:

Our analysis of Facebook performance was based on data from both the Efficient Frontier and Context Optional platforms. A client index representing over 15 advertisers and 20 million fans from a multitude of verticals including retail, entertainment, CPG (consumer packaged goods), and finance was built from a subset of advertisers, brands, and fans managed through the platforms. Advertiser and user behavior was then analyzed for three quarters beginning with the first quarter of 2011.

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