Study: Lower CPCs for ads that keep consumers within Facebook

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Marketers running Facebook ads that don't drive a consumer outside of the social network have seen cost-per-click rates (CPC) drop by up to 45%, according to a study released by Facebook marketing firm TBG Digital on Jan. 16.

The company found that the average cost-per-click rate (CPC) for U.S. ads served on Facebook increased by 10% from the third quarter to the fourth. The average cost-per-thousand impressions (CPM) rate for advertisers in five markets — U.S., Canada, France, Germany and U.K. — rose by 8% quarter to quarter and 23% since Q1.

Clickthrough rates (CTR) increased by 18% from Q1 to Q4 and 7% from Q3 to Q4, although CTR for U.S. advertisers dropped by 2% between Q3 and Q4.

Advertisers in the retail, food and drink, finance, games and entertainment industries accounted for 68% of the total ad impressions served by TBG Digital during the fourth quarter.

TBG Digital also found that CPCs for ads served to U.S. consumers rose by 56% between Nov. 21 and Dec. 17.

The findings are based on 326 million impressions measured for 266 clients.

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