Facebook Ad Spend Grows 281% YOY

June 30, 2011

ignitionone-facebook-advertising-growth-yoy-jun11.gifSpending on and impressions of Facebook ads both grew dramatically between Q2 2010 and Q2 2011, according to [pdf] data from IgnitionOne. Results of the Q2 2011 US Online Advertising Report show that Facebook ad spend on all clients increased 281% year-over-year in Q2, while Facebook ad impressions of all clients grew 200%.

IgnitionOne analysis indicates Facebook advertising has experienced high rates of growth due to new marketer adoption in the past year.

Facebook Same Client Ad Spend, Impressions Also Up YOY

While growth was much less dramatic, spending on and impressions of Facebook ads also showed notable increase between Q2 2010 and Q2 2011. Same client ad spend increased 22%, while impressions increased 11%.

Facebook Ad Spend Peaks in 5th Campaign Month

ignition-facebook-ad-spend-lifecycle-june-2011.JPGTaking a closer look at advertiser spending patterns throughout the typical Facebook campaign lifecycle reveals that marketers often ramp up spending within the first months of advertising on the social network, only to cut back significantly after the first few months. On average, spending sharply rises in the second month of a Facebook campaign before dropping slightly in the third month and then significantly growing in both the fourth and fifth months, when spending typically peaks.

Following the fifth month of an average Facebook campaign, spending substantially declines in the sixth and seventh months, and then more gradually decreases till reaching its nadir in the ninth month. Interestingly, at the one-year mark there is a dramatic spike in spending which brings it almost back to second-month levels, before dropping again in the 13th month and then rising slightly in month 14.

IgnitionOne says these volatile spending patterns showcase the relative immaturity of this new ad medium as marketers struggle to understand how best to manage and budget for it.

Nielsen: Social Ads Have Low Influence on Women

Only 6% women in developed countries and 16% of women in emerging countries say they are highly influenced by web ads with social context shown on social media sites, according to Nielsen Company data. Women in emerging countries are more highly influenced than women in developed countries. There is a fairly even distribution among the type of web ads that are most persuasive. Standard web ads that have a social context showing which friends liked or followed an advertised brand has the slight edge over web ads that appear as a newsfeed update or standard web ads.

About the Data: This report reflects same client spend within channel aggregated values through June 15, 2011. For Q1 to Q2 2011 comparisons, a seasonal adjustment was applied to reflect the anticipated performance during the final 15 days of the quarter.

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