There are some naysayers when it comes to social advertising on Facebook, but advertisers investment in the channel seems to be paying off, at least according to research from ad management platform Marin Software.
According to Marin, Facebook social ad budgets in the U.S. increase from 5 percent to 23 percent in the last 12 months (Editors note: Facebook introduced social ad units such as Sponsored Stories in February 2011). Marin's research suggests that by the end of 2012, social ads will account for nearly 50 percent of Facebook ad budgets.
"With Facebook's introduction of Sponsored Stories last year, two questions arose -- will advertisers adopt the new ads and will the new ads produce revenue results?" said Matt Lawson, vice president of marketing and partnerships at Marin Software. "Marin Software's research confirms that answer is an emphatic 'Yes,' as budgets continue to increase and will soon represent 50 percent of Facebook ad investments."
What is appealing about Facebook's social ads is that they work - and I say that from experience. Consumer engagement with Facebook ads, as measured by click through rates, has increased 50 percent over thee last 12 months.
"In the last year advertisers have directed more budgets to social ads and Facebook users have responded by clicking more often," said Lawson. "This trend is not only positive for Facebook from a revenue standpoint, but also provides important validation of the opportunity advertisers have to drive revenues from word of mouth marketing efforts."