Facebook IPO Reveals The Reach and Challenges of Their Online PPC Marketing Platform

Brisbane,Qld (PRWEB) May 11, 2012

Facebook’s recent IPO filing and update revealed some very interesting and hitherto unknown facts about their business and particularly their online pay per click marketing platform. The documents stated that there are now 901 million active users on Facebook around the world generating advertising revenue of $ 3.2Billion. Of those 901 million users,over 500 million are mobile phone users. The countries that have adopted Facebook on mobile phones in the greatest numbers are the USA followed by Indonesia, India, UK, Mexico, Brazil, Germany, France, Turkey and Canada according to their IPO filing.

This huge mobile factor has caused Facebook a serious headache however as reported yesterday by CNN,the growth of people accessing Facebook on mobile phones is greater than Facebook’s ability to monetize the traffic. The company’s ability to turn mass use into revenue works very well with their desktop pc/mac traffic and even on ipads but by their own admission in the IPO update, mobiles including the iphone are not generating meaningful revenue. In wednesday’s IPO update this issue was addressed by CFO David Ebersman when he said that there was a substantial investment going into their mobile platform(they recently paid $ 1 billion in cash for Instagram), he also stated Facebook’s commitment to developing the user experience and advertising opportunities on the mobile phone.

The pay per click advertising model that Facebook have developed is quite different to the Google adwords ppc platform. Clicks are currently a lot cheaper, for example than adwords clicks according to Online Marketing Specialist,David Twigg,he says Typically you will pay between $ 1-2 per click in most markets though that greatly depends on the country that you are marketing to and a range of other factors. Demographic selection opportunities are better with Facebook, for example an advertiser is able to have their ads showing only on Facebook pages of 35-45 year old women in Germany(or any other country or state) that list a specific interest like sport. Equally advertising only to fans of the TV show Mad Men would have great appeal to many businesses. One aspect of advertising with Facebook that usurps Google is the average session time of a user, studies have shown that people are exposed to Facebook ads for longer because they are spending longer looking at a Facebook page than they are looking at a Google search results page. Twigg however doesn’t think it is yet a serious challenger to Google Adwords In the end Facebook advertising will always be interuptive because people are not on Facebook for any reason other than to communicate, the amazing platform created by Google means that advertising is included seamlessly, most of the time people don’t know they are clicking on an ad.

Online marketing will continue to evolve, pay per click marketing too.

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