Facebook Advertising Performance 'Ad Click-Throughs Declining, Get Half the Clicks of Network Banners', Webtrends Reports

Click-through rates on Facebook ads only averaged 0.05% in 2010, down from 0.06% in 2009 and well short of what's considered to be the industry average of 0.10%. That's according to a Webtrends report that examined 11,000 Facebook ads.A friend being a "fan" of the ad was one factor that increased ad performance. "Friend-of-fan" targeting […]

Click-through rates on Facebook ads only averaged 0.05% in 2010, down from 0.06% in 2009 and well short of what's considered to be the industry average of 0.10%. That's according to a Webtrends report that examined 11,000 Facebook ads.

A friend being a "fan" of the ad was one factor that increased ad performance. "Friend-of-fan" targeting increased click-throughs across the board, but the impact was especially significant among those who attended college. Friend-of-fan targeting could also combat rapidly-staling ad creative, Webtrends found. In most cases, ad burnout came quickly -- after three to five days -- because, unlike search ads, they are being targeted to individual people.

Another factor that impacted performance was the category of the advertiser. Since many Facebook users are visiting the site to entertain themselves, brands in categories likely to provoke discussion -- media & entertainment, along with tabloids & blogs -- had the highest click-through rates.

Webtrends also found age and gender affecting performance. People that were older -- up until age 65 -- were more likely to click on ads. When they're between 18 and 24 years old, women and men are equally likely to click, but women's propensity to click was greater if they were 25 and older.

Here's the complete report:

[tags]web trends,social media,social network,social networking[/tags]

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