Advertising on Facebook gets cheaper and more efficient, according to study

Days before Facebook revealed its third quarter result, social network customers found that ads on the site had improved in almost all metrics.

Adobe and Kenshoo Social survey reveals that Facebook impressions and return on investment (ROI) were higher in 2013. According to the study, ads were clicked 29% more this year, and ROI was 58% higher compared to 2012.

Another metric evaluated was the CPC (cost per click), which decreases 40%. According to the report, this means that advertising on Facebook is cheaper and more efficient. This trend also reveals that both Mark Zuckerberg’s social network and other sites, such as Twitter and Pinterest, are being downgraded by customers using the ‘last click’.

This model works as follows: users see an ad on Facebook, but buy the item online days later, without going through the social network. That is, the purchase driven by advertising on the site, but the company does not always receive the credit for the purchase.

“One of the reasons why Facebook has grown every quarter is adoption. The more companies advertise, the more they discover how to improve ad delivery,” explains Aaron Goldman, director of marketing for Kenshoo.

The report also shows that Twitter and Pinterest have also directed traffic to retail sites. Facebook still holds the top spot, but the microblogging referral traffic share grew more than 250% last year.

With information from Mashable.

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