CHART: Facebook's 'Sponsored Stories' Ads Keep Getting More Effective

Facebook’s “Sponsored Stories” ads — the ads that appear in your News feed whenever a friend indicates he or she likes a advertiser — are more effective than display ads at the side of the page, and their effectiveness is increasing, according to data from TBG Digital, a major buyer and manager of Facebook campaigns and ads.

Back in April 2011, TBG looked at how effective Sponsored Stories were shortly after their launch, and found that they got a 46% higher click-through rate, a 20% lower cost-per-click and an 18% lower cost-per-fan than standard display ads.

Fast forward to today: In Q2 2012, the average click-through-rate of a Sponsored Story ad was 53% greater than that of a display ad 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,” TBG says, “Even though ad costs and Facebook’s earnings per ad delivered have increased, fan acquisition costs are even cheaper than before.”

Facebook advertising

Photo: TBG Digital

Disclosure: The author owns 30 shares of Facebook stock.


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