Spending On Facebook Advertising Increases Ten Fold
Thursday, August 5, 2010 16:15In an interview with BusinessWeek, social media giant Facebook’s Chief Operating Officer, Sheryl Sandberg, stated that some of it’s biggest advertisers have boosted their spending by over ten times in the last year, with some even increasing by as much as twenty times.
“Two years ago big brands were experimenting with us,” she said. “They started buying with us a year ago. Now they’re going big.”
Facebook recently reported it had reached the 500 million member mark, and with every new member that signs up, comes fresh new pages on which to place ads. And half it’s users return to the site every single day, creating a great opportunity for advertisers to have their ads seen multiple times. Despite this, however, advertising prices have remained stable so far.
Display ads, which usually appear as boxes of pictures, text and video on webpages, are the main source of Facebook’s ad growth, and according to EMarketer Inc, spending on this type of advertising is expected to increase 13% to $8.56 billion in the US this year.
Finding ways to monetize social media and convincing firms to invest has been a difficult task, but it seems that advertisers are now really taking this avenue very seriously, and with a target audience of this size, it would be very difficult to ignore.
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Global marketplace analysts Nielsen and social networking giant Facebook have announced the launch of a new tool designed for measuring the effectiveness of 