Facebook CTR is 0.04%

Man….. this has got to hurt but it makes total sense. Teens with very little disposable income and ad blindness don’t tend to click on links. Time to think of something else.

So Facebook, which has been letting people know it’s on track for $150m in revenues in 2007, must be an awesome advertising platform. Well, sorry to rain on the parade, but no. Media buyers — the agency people who book campaigns — report that the college social network is a truly terrible target. They’re mainly students, with low disposable income, of course; but, beyond that, the users appear to be too busy leaving messages for eachother to show much interest in advertising. Facebook’s members appear indifferent even to movie advertising aimed at their demographic. Clickthrough rates, the percentage of time users click on an ad, average 0.04% — just 400 clicks in every 1m views — according to one report seen by Valleywag.


  1. This is no big news flash. However, it is a relevant reminder that behemoth social networks like Facebook and MySpace are often portrayed in the media as “this highly sought after demographic group.” Now, this is likely sure for television, and ring tones, but beyond that, young people between the ages of 18-27, typically have minimal disposable income.

    The opportunity is to get users involved with selecting the advertising by asking a simple question: What ads would you be mostly like to click and purchase from? That’s it. Those Enterprise Rental car ads, University of Phoenix ads would disappear because, if you are already in school, why click. Yet, the University of Phoenix and Verizon are some of the top spenders for online advertising.

    Unfortunately however, the very large social networking sites have cast an ominous shadow that does not lend well to winning any of GE’s ecomagination campaign. Facebook and MySpace for that matter are dating sites, with minimal redeeming value proposition for campaigns where people actually click. Besides, if you go visit your page each day, and spend 45-60 minutes a pop, you would do well to ask your visitors what are their favorite sites from which then tend to purchase. More on my blog about this and other subjects for big media at http://globalsocial.blogspot.com/






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