The Wall St. Journal posted a story about entitle "Valuing Facebook's Ads" and lightly explores the the growth of the ad network. In comparing Facebook's ads to other online ads the cost difference is noted. Similarly, noted are the desire of some to have more interactive ads, and the happiness some marketers find with the word of mouth sharing aspect of Facebook.
Amplify’d from www.wallstreetjournal.com
Valuing Facebook's Ads
Facebook Inc. is attracting more advertising, but marketers are still trying to figure out the value of those ads.
Facebook served up almost a quarter of the 1.3 trillion online display ads in the third quarter, according to ComScore data. But marketers are trying to figure out how to value the ads on Facebook.
Several agencies put the average price of an ad on Facebook in the U.S. in the $2 to $8 range for a thousand views, depending on targeting options and where it appears on the site. The price is lower than the average $15 that other premium media sites can charge.
"Where our ads show additional impact is that they can let people engage with them and share them with their friends," Ms. Sandberg said. "This is word-of-mouth-marketing at scale pretty much for the first time."
Although the prices are relatively low, the number of people visiting Facebook is so large that low prices can add up to big dollars fast, advertisers said.
The site is proving to be a hot spot for advertisers who want to drive direct response, like for deal-of-the-day sites.Read more at www.wallstreetjournal.com
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