The price of advertising on Facebook could more than double once the Olympics starts in July, if history is any guide.
This chart (below), put together by TBG Digital, shows what happened to the cost-per-click to advertisers who bought space on Facebook before and after the start of the World Cup in 2010—a four-yearly sports event that draws a similar global audience.
The World Cup started on June 11. On the same day, Facebook’s CPC to advertisers jumped to just under $1. A couple of days earlier it languished at about 50 cents. The price plateaued at 60 cents (a 20 per cent price hike) for the remainder of the World Cup. The red line is the global CPC, the green line is the U.S.-only price. The data is based on 48 billion impressions served.
TBG Digital is an agency that specialises in placing and serving Facebook advertising.
Photo: TBG Digital
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