Social media ads are getting expensive and one direct proof of that is Facebook average price per ad in the second quarter of 2014 as compared to the same period a year back.
“The average price per ad was 123 percent costlier in the second quarter of 2014 compared to last year,” Dave Wehner, Facebook CFO, said in the latest earnings call.
Facebook has cut down on the total number of ads being displayed on its site and according to latest numbers, it displayed 25 per cent lesser ads but revenues from advertising still increased by 67 per cent.
“The price of ads correlates to the value that they create. We continue to focus on making those ad units better and better, more relevant and targeted for the people who use Facebook, as well as for marketers,” Wehner added.
A design change in April this year left lesser space for advertisement on a page.
The company said “people will see fewer ads on Facebook so some advertisers may see increased prices at auction”.
