Despite the social network’s attempt pull in more advertisers, new studies revealed that engagement with Facebook ads in the U.S. has dropped eight percent over the past year.
Last week, a similar report was shared from advertising agency TBG Digital. In it, the company found that ads on Twitter were out-performing those on Facebook. For this study, the company measured 372 billion ad impressions in nearly 200 countries for 235 clients over the course of a year.
Although engagement has dropped, the average cost-per-thousand impressions for Facebook ads has increased by 41 percent. Additionally, cost-per-click rates have increased, which has sparked greater competition between Facebook and Twitter, as both social giants try to direct readers to news sites.
The company noticed a 196 percent increase in click-through rates for news sites. It appeared that Facebook’s Open Graph apps were off to a bit of a slow start, but the social readers are proving to be major traffic drivers.
TBG Digital CEO Simon Mansell doesn’t think that the drop is cause for concern, citing the fact that Facebook has gone from four to seven ads on many Pages. The increase in ads and cost puts Facebook’s revenue stream in a good position.
However, while it might not be alarming for Facebook, companies purchasing the ads might not feel so fortunate. The added competition on Pages, as well as with Twitter, and the drop in engagement could lead to a lot of wasted advertising dollars.
With that said, we don’t believe that it’s time to jump ship and ditch Facebook’s ad platform altogether. The social network has had a lot of success with ads, including Sponsored Stories, in the past. Instead of tweaking your advertising budget, re-evaluate your ads and see if there’s a way you can make your call-to-action more noticeable.