CPMs For Facebook Applications
Inside Facebook has pulled together an excellent post noting the claimed CPMs by several Facebook developers for their Facebook Applications.
Here are the numbers:
$0.60 CPM with Social Media
$1.50 CPM with VideoEgg
$0.27 CPM with Cubics, down from $0.43 earlier this month
$0.40 CPM with Cubics
$4.78 eCPM with Social Media
[? This is so out of line with the others I think great skepticism is called for here]
$0.50 CPM each with AdSense, FB Exchange, Social Media, and RockYou (and by combining 2 units on a page is making $1.00 CPM)
$0.125 CPM with Lookery ($0.25 with 2 ads above the fold)
$0.10 CPM with Cubics, down from $0.43
$0.04 CPM with AdSense
Note especially that last very sad Adsense CPM of $0.04 That's four cents per *thousand* impressions, hardly something you'd want to write home to your angel funders about. Clearly few if anybody has found the recipe for great monetization of the social networking experience - that is unless you count the amazing ability of companies like Facebook and Ning to garner investment capital based on huge company valuations.
Another issue that is not yet well resolved is the simply enormous discrepancy between these sad CPMs and those that are charged to many advertisers. It's still common to see advertising rates of $30 CPM and even more for highly targeted websites. Clearly advertisers see a lot more value in targeting than simple numbers, and based on the limited data to date it does appear that social network advertising is conspicuously inferior to other forms of ads.
Yet are the targeted website CPMs of over 500 times what most of these Facebook developers are seeing sustainable for the long term?
Here are the numbers:
$0.60 CPM with Social Media
$1.50 CPM with VideoEgg
$0.27 CPM with Cubics, down from $0.43 earlier this month
$0.40 CPM with Cubics
$4.78 eCPM with Social Media
[? This is so out of line with the others I think great skepticism is called for here]
$0.50 CPM each with AdSense, FB Exchange, Social Media, and RockYou (and by combining 2 units on a page is making $1.00 CPM)
$0.125 CPM with Lookery ($0.25 with 2 ads above the fold)
$0.10 CPM with Cubics, down from $0.43
$0.04 CPM with AdSense
Note especially that last very sad Adsense CPM of $0.04 That's four cents per *thousand* impressions, hardly something you'd want to write home to your angel funders about. Clearly few if anybody has found the recipe for great monetization of the social networking experience - that is unless you count the amazing ability of companies like Facebook and Ning to garner investment capital based on huge company valuations.
Another issue that is not yet well resolved is the simply enormous discrepancy between these sad CPMs and those that are charged to many advertisers. It's still common to see advertising rates of $30 CPM and even more for highly targeted websites. Clearly advertisers see a lot more value in targeting than simple numbers, and based on the limited data to date it does appear that social network advertising is conspicuously inferior to other forms of ads.
Yet are the targeted website CPMs of over 500 times what most of these Facebook developers are seeing sustainable for the long term?
Labels: Advertising, Facebook, Online Advertising, social networks
posted by Joseph Hunkins at 6:33 PM
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4 Comments:
wow some interesting numbers - adsense does have very low eCPMs. Does anyone know better alternatives out there
This is really provocative data! What you have documented is the popping of another bubble - advertisers desperate to get a piece of social media are now starting to pay for performance.
Don Dodge found one that is even lower, as low as 2 cents per thousand - from a major Facebook application with 300MM pageviews:
http://dondodge.typepad.com/the_next_big_thing/2008/04/the-future-of-s.html
Daya I think adsense works much better with highly targeted websites. Typically in the travel sector adsense can deliver a $3-$5 CPM.
My working hypothesis is that Social Networks are underrated for ads - especially branding campaigns - while targeted sites are overrated at some of the higher CPMs.
I have some interesting thoughts on what Ad Networks can do to try to get a higher CPM rate - Have a look and please let me know your thoughts. Are high CPM rates for Social Networking App Developers possible?
Thanks!
Hussein Fazal
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