Pricing for Facebook’s premium “social” advertisements continues to rise, two recent studies have found – a positive indicator that could offset concerns about a dip in advertising growth and help sentiment towards the internet company’s initial public offering.
A report to be released today by Marin Software, a digital marketing platform which processes more than $100m of spending on Facebook, found a 26 per cent increase over the past year in the cost per click for “premium” ad formats such as Sponsored Stories, which highlight friends’ “Likes”, comments and other endorsements of brands’ activity on the site.
But Marin’s report also found that the cost per click for Facebook’s standard ads, which still make up an estimated three-quarters of the social network’s advertising revenues, fell 26 per cent over the past year.