The value of
advertising on Facebook has been called into question over the last few months,
most notably by automobile manufacturer GM’s decision to pull out of the social
network’s paid advertising program. But it looks like Mark Zuckerberg may have
the last laugh.
According to new data from TBG Digital, the social network’s
“Sponsored Stories” ads, which appear on a user’s News Feed anytime one of
their friends says they Like a brand, receive far more clicks that the
traditional display ads at the right side of the page – and their effectiveness
is only continuing to increase.
This is a significant increase from when Sponsored Stories
were first launched on the site. Way back in April 2011, TBG Digital conducted
a similar study and found that these advertisements had a 46 percent higher
click-through rate than standard display ads, as well as a 20 percent lower
cost-per-click and an 18 percent lower cost-per-fan. Now, these ads have a CTR
that is 53 percent higher than regular display ads asking for Likes.
“These findings are very positive for Facebook and
advertisers alike as it shows the Sponsored Story ad format is even more
engaging than our previous study indicated,” says TBG Digital in the report