The cost of advertising on Facebook has risen by 15% in the first three months of the year when compared with the same period last year according to a new study carried out by TBG Digital.Â This is despite a decrease in the number of overall click-throughs.
Company Formation Online Ltd also understands the cost businesses in the UK spent on acquiring a Facebook fan or follower also increased by 77% which is significantly higher than the global year-on-year average of 43% as did the Cost per clickÂ (CPC) businesses paid the social network.Â CPC in the UK, Germany, France, UK and Canada rose by 23% year-on-year in Q1 2012.
The increases are surprising as click-through rate of users in Facebookâ€™s leading markets fell by an average of 6% year-on-year in the first quarter.Â According to the TBG research the UK has overtaken Canada to become the social networkâ€™s second largest advertising market.
The streaming of the Facebook Social Reader app by leading publishers such as The Washington Post and the UKâ€™s Guardian newspaper has increased user news click-through-rates by a whopping 196% quarter-on-quarter.
The highest CPC rates are being paid by financial sector firms, some 3.5 times higher than companies in the food and drink sector according to the research.
Facebook, hopes to raise approximately ÂŁ3.16bn when it floats on the stock market in May 2012. The business plans to introduce a suite of high end marketing tools to boost fan engagement over the next few months. No figures were given for offshore companies trading from tax haven jurisdictions.
Facebookâ€™s publically available 2011 financial account show 85% of the companyâ€™s revenues are derived from advertising.
The study verified by Cambridge University, looked at 235 brands in 190 countries. Facebook declined to comment on the findings.
This post was brought to you by Mike James at Company Formation Online
Keep abreast of the latest industry news. Subscribe to our RSS feed