Global Facebook Advertising Report Q4 2011 1) The report analyzed over 326 billion impressions across 205 countries and 266 clients on Facebook in Q4 2011. 2) Advertising costs increased in the US as user growth slowed, but decreased in the UK. Overall, average cost per click increased 10% in the US and Facebook earned 23% more in ad rates since Q1 2011. 3) Top performing sectors comprised 70% of total impressions, led by Finance at 18%. Advertisers keeping users within Facebook saw 45% lower costs than offsite campaigns.

1. Global Facebook Advertising Report
Q4 2011
© 2011 TBG Digital

2. 326 BILLION
impressions measured
205 involved
countries
266
clients analyzed
The Cambridge University Psychometrics Centre has verified the
results, graphical illustrations and methodology used in this report
based on the data provided by TBG Digital.
© 2011 TBG Digital

3. Major territory analysis
Stabilizing Facebook growth in US sees increase in advertising costs
Figure 1 Average Cost per Click across five major markets  Avg CPCs increased
by 10% in US
 Demand increases as
Average Cost per Click (CPC)
more brands
advertise on
Facebook
 Supply plateaus as US
user growth slows
 CPCs reduced by 11%
in UK
Q1 Q2 Q3 Q4
2011
Canada France Germany UK US
Figures based on 214 billion impressions served in the United States, United Kingdom, Canada, France and Germany throughout 2011. CPC values are
confidential and have been removed.
© 2011 TBG Digital

4. Major territory analysis
Facebook earns 23% more in ad rates since Q1 2011
Figure 2 Average Cost per Thousand rates across five major  Avg CPM rates
markets
increased by 8% in
Q4
 CPM increased by
Cost per Thousand (CPM)
23% in 2011
 Facebook has seen an
increase in their
earnings per
impression every
quarter in 2011
Q1 Q2 Q3 Q4
2011
Canada France Germany UK US
Figures based on 214 billion impressions served in the United States, United Kingdom, Canada, France and Germany throughout 2011. CPM values are
confidential and have been removed.
© 2011 TBG Digital

5. Major territory analysis
Ad performance improves by 18% in 2011
Figure 3 Average Click Through Rates across five major markets  CTR increased by 18%
in 2011
 Advertisers are
Average Click Through Rate (CTR)
making their ads
more relevant
 Facebook’s ads are
connecting to their
user base
Q1 Q2 Q3 Q4
2011
Canada France Germany UK US
Figures based on 214 billion impressions served in the United States, United Kingdom, Canada, France and Germany throughout 2011. CTR values are
confidential and have been removed.
© 2011 TBG Digital

6. Sector analysis
Top 5 Sectors comprise almost 70% of total impressions
Figure 4 Volume of impressions by sector  18 sectors measured
 Top 5 amount to 70%
of total impressions
Finance
18%
in Q4
Others  Facebook should
32%
broaden the sectors
Food & Drink they appeal to
15%  Finance sees growth
in share from 12% to
18%
Retail
Games 13%
 Internet & Telecom is
13% just out of the top 5
Entertainment 9% but showed an
increase of 21%
Sector Analysis figures based on 78.5 billion impressions served in Q4 2011.
© 2011 TBG Digital

7. Sector analysis
Sector Click Through Rate League
Food & Drink  Food & Drink takes
Beauty & Fitness top spot
Retail  Beauty & Fitness drop
Home & Garden
down one place
Not for Profit
Travel
 Not For Profit and
Computers & Electronics
Home & Garden
Internet & Telecom enter the top 5 for
Games the first time
Entertainment  These sectors will be
Autos & Vehicles
enjoying low CPCs
Directories
Jobs & Education
News
Finance
Sector Analysis figures based on 78.5 billion impressions served in Q4 2011.
© 2011 TBG Digital

8. Sector analysis
Finance accounts for over 60% of impressions in Offsite campaigns
Figure 6 Share of impressions by sector  Finance brands have
100%
become even more
90%
80%
dominant in Offsite
70% campaigns
60%  Finance has seen an
50% increase of 50% this
40%
quarter and has a
30%
20%
share of 61% of Q4’s
10% Offsite impressions
0%  Similar to
Q1 Q2 Q3 Q4 PPC, Finance is seeing
2011 high CPC costs (200%
Entertainment Finance Food & Drink Games Retail
more than average
CPC in Q4) and low
CTR (48% lower than
average CTR in Q4)
Sector Analysis figures based on 78.5 billion impressions served in Q4 2011.
© 2011 TBG Digital

9. Campaign type analysis
Facebook incentivizing advertisers to stay within Facebook
 Previous study in Q2
analyzed CPCs by
Campaign Type
 Fanning / Facebook
App CPCs were 29%
cheaper than Offsite
CPCs
 Q4 CPCs for ads that
kept traffic within
Facebook were even
cheaper at 45% less
than Offsite CPCs
Figures based on 74.5 billion impressions served in Q4 2011.
© 2011 TBG Digital

10. Seasonal analysis
CPCs increase from Thanksgiving to Saturday 17th December
Figure 7 CPCs from 21st Nov 2011 to 3rd Jan 2012  Activity measured between
21st November 2011 and 3rd
January 2012
 CPCs continued to rise until
18th December
 CPCs increased by 55.7%
between 21st November and
17th December
11/21/2011
11/23/2011
11/25/2011
11/27/2011
11/29/2011
12/1/2011
12/3/2011
12/5/2011
12/7/2011
12/9/2011
12/11/2011
12/13/2011
12/15/2011
12/17/2011
12/19/2011
12/21/2011
12/23/2011
12/25/2011
12/27/2011
12/29/2011
12/31/2011
1/2/2012
Figures based on a sample size of 5.2 billion impressions served between 21st November 2011 and 3rd January 2012 in the US only.
© 2011 TBG Digital

11. Thank you
© 2011 TBG Digital