According to TBG Digital, a marketing agency, Facebook gave advertisers up to 45% off their typical cost per click rates during the fourth quarter of 2011, only if their ad/s directed users to other Facebook destinations such as a page or application.
This is quite the discount and goes to show the social network is very focused on further building up the site, as well as advertising which brings in the real money, and make them a premier choice to advertise on the web.
Being that hundreds of Millions of people log on every single day, it’s quite the popular place for both normal users and businesses and brands.
“Though one could suggest that Facebook is rewarding advertisers for keeping people in the Facebook environment, it also indicates that keeping ads within Facebook is more effective,” Patrick Toland, director of TBG’s North American operations, said in an interview.”
“Because only ads users click on make Facebook money in the cost-per-click market, it serves the network’s interest to facilitate advertisements with a higher success rate. And ads that integrate more smoothly with the Facebook experience have a set of built-in advantages, said Toland.”
The social network’s IPO is supposedly on the horizon and they need as much extra push as they can to make sure it’s a very good one. Having more people advertise and increasing that activity is crucial to moving forward.
Number of users and active users is great, but number of users and active users who click on the ads are even greater, at least in the realm of making money and running a financially successful social network.