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Facebook Ad Budgets Grow Faster than Paid Search

Posted on 2.07.2012

Digital marketing software provider Kenshoo has unveiled some interesting growth metrics based on analysis of more than 100 billion ads delivered on Facebook through its Kenshoo Social platform.

Kenshoo customers spent 109 percent more on Facebook in Q4 of 2011 than they did in the whole of Q3. While much of that can be attributed to the holiday, what is interesting about the increase is that it compared very favorably to search channels (Google, Bing, and Yahoo) that, in aggregate, saw a paid search ad budget growth of just 27 percent globally quarter-over-quarter.

“Brands using Kenshoo Social to manage Facebook ads saw impressive response rates leading to large increases in advertising spend that dwarfed paid search budget growth in the 4th quarter," says Aaron Goldman, chief marketing officer of Kenshoo. "We see these trends continuing in 2012 and beyond as the Facebook ad ecosystem expands and marketers get more savvy using tools like Kenshoo Social to drive tangible results.”

The Kenshoo analysis also revealed that ad impressions grew by 47 percent in Q4 vs. Q3 2011. Consumers are clicking more as Facebook ads are gaining acceptance too, with clicks growing by 105 percent in Q4 vs. Q3 2011.

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