Wednesday, December 15, 2010

Facebook’s Performance Ad Rates In Key Markets: A Couple Surprises

Facebook’s Performance Ad Rates In Key Markets: A Couple Surprises: "

Performance advertising rates in the largest countries on Facebook are showing some mostly unsurprising trends. Ads in North America and Western Europe cost the most per click, up to around $1.00, with uneven but significantly lower numbers in most other markets. Perhaps most strikingly, advertisers have driven up rates in some key emerging markets.

The five largest Facebook markets by monthly active users illustrate this trend. Based on data sampled from Facebook’s advertising tool in mid-November, available in our Inside Facebook Gold report, the US is clearly Facebook’s single most valuable market. It not only has the largest audience — today above 145 million monthly actives — but its ad rates come in nearly on top as well. Ads targeting women costed an average of $0.94 per click, with men slightly lower at $0.89.

The second-largest country by size, Indonesia and its 31.4 million users, is unsurprisingly far less expensive to advertise in. CPC rates were $0.14 for men and $0.19 for women.

While, rates tended to go up and down over the course of the fall in Facebook’s largest markets around the world, based on our data, large European countries typically ranged from $0.25 to above a dollar, while developing countries went as low as $0.10 or so. India and Brazil were notably strong. Men and women in the former country costed $0.35 and $0.29 CPC to reach, respectively. The latter country was the most expensive to advertise in out of all of Facebook’s largest markets. CPC rates for men were around $1.20 and for women $1.40.

Both of these countries have wide income disparities, with wealthier citizens far more likely to have internet access. The high rates suggest that a significant number of advertisers have picked up on this fact.

For full access to our ad rates data on major Facebook markets, including country breakdowns by relationship status, age and sex, be sure to check out our Inside Facebook Gold subscription service.


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