Facebook infographic illustrates advertising underperformance
An infographic published by Wordstream, the search marketing provider,has illustrated how Facebook adverts are underperforming relative to the Google Display Network.
The display advertising portion of Google (which excludes search advertising) tops Facebook in several key advertising metrics with Google banner ads 10x more likely to be clicked than Facebook ads.
It also illustrates how the cost per thousand impressions on Facebook is increasing whilst Google offers twice as many display formats including in-video and mobile games alongside standard industry formats.
Larry Kim, Founder and CTO of WordStream , said: “So far, Facebook's advertising platform hasn't kept pace with the explosive growth of its social network, and it remains to be seen if CEO Mark Zuckerberg even wants to focus on advertising as a source of revenue. In his 2,500+ word letter to shareholders this month, he mentioned advertising just once.”
The research casts doubt on the extreme $104.2bn valuation being placed upon Facebook as its long heralded initial public offering draws ever closer.