According to a White Paper released by Efficient Frontier and Context Optional, Facebook advertising prices have been growing at a fast pace. The paper claims that since June 2011, the prices of Facebook advertising has jumped over 25%, meaning that if the track stays, the prices will at least double by the end of the year from the previous year.
The paper claims that the increase in the CPC price is because of a greater competition in the marketplace.
According to the Financial Times, the price of advertising in the last year has actually risen over 74%, as more and more big brands take their product online.
TBG’s Simon Mansel said of the rise in prices, “In my experience of digital advertising this is the biggest growth that we have seen since Google. The main difference is that this is being fuelled by brand spend rather than [direct] response spend. That is an inflection point for the whole digital marketplace.”
The rise in price should concern marketers, as big brands decide to force a bidding war. This really shows that Brand Buyers are lazy – as they just throw money at advertising, without considering the ROI. In this case, more and more brand are “rushing” to Facebook without any plan.