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Facebook advertising spend grows by 93% in last year, says Adobe's Digital Index


By The Drum Team | Editorial

April 11, 2012 | 2 min read

Advertising spend on Facebook has grown by 93% in the last year, according to the findings of the latest Adobe Digital Index.

The index also discovered that the growth of ad spend through the social networking giant now represented between 3% and 5% of search spend, as the growth of social continued.

The report focused on the digital advertising industry during Q1 of 2012 , with search found to be the biggest driver of ROI for marketers. Spending on mobile platforms reach 8% of all search spend in the US and 11% in the UK, with mobile devices and tablets found to be lower-cost channels, which contributed to Google’s cost-per-click decline of 5% year-on-year, in contrast with Bing/Yahoo’s 18% year-on-year increase.

Traffic through mobile devices also grew, specifically through tablets, with advertisers growing their mobile and tablet investments by 250% in the last year, it was also discovered.

Adobe analyses over £2bn in annualised spend each month, and has set out key trends for the rest of 2012 as a result. These include; a continued increase in search spend, from a rate of 10% to 15%, while tablet and mobile spend is expected to make up between 15% and 20% of all search spend by the end of 2012. This is expected to mean an investment in tablet advertising as the number of tablet visitors grow.

Facebook’s ad CPC have increased by 40% each quarter for the last three quarters, although its ‘Sponsored Stories’ were found to be lower than ‘Marketplace Ad’s’ which Adobe believes may contribute to a temporary decrease in CPCs.

David Karnstedt, vice president and general manager, Advertising Solutions for Adobe’s Digital Marketing Business; commented: “Investing resources in social has undoubtedly become a key focus for marketers over the last year. While social is absolutely on the rise and an important channel, search is still the key driver of digital marketing ROI. With the emergence of tablets, mobile creates a new opportunity for search investment with efficiency gains to their overall program, at least in the short-term.”

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