The cost-per-click for Facebook ads in the US grew by ten per cent in the fourth quarter of 2011, according to a new report from TBG Digital.
Growth was particularly evident between Thanksgiving and December 17th, with costs rising 55.7 per cent.
However, the same data showed that for those ads which click through to a retailer's page on Facebook, costs actually decreased by 29 per cent.
Lower rates for keeping traffic on Facebook further highlight the importance of having a strong presence on the social networking site.
"More and more brands in a huge range of business sectors are building a presence within Facebook to harness these lower costs," the TBG Digital report states.
Facebook is now earning 23 per cent more in ad rates than it was at the start of 2011, while optimization firm Efficient Frontier expects ad spending on the social networking site to reach five per cent of all online advertising spending in 2012.
Posted by Rachel Wheeler