FB ad prices increase 74%

Ouch! bad news for advertisers.

According to a study by Webtrends this year, Facebook's average click-through rate for an ad was 0.05 per cent of people who saw it in 2010, at an average cost per click of $0.49.
On Monday, Facebook's self-service advertising system recommended setting a price of 68p per click for an ad targeted at all 26m UK users aged over 18.

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I'm sure moves like these are going to stop some companies from using the ad system..

I think a big reason for this though, is that a lot of people have started using the ad system with no clue as to what they're doing or how to work the system to make ads cheaper. The guy who was managing the facebook ads for the page of the company i work for was paying .75 a click before I took over all the social media stuff last year. Now we are paying .04 cents per click.

As long as people who start using the ad system don't manipulate the targeting and just go with whatever facebook's super high suggested bid is, the overall ad numbers will continue to be inflated way beyond what can be achieved.

Only for UK or for everyone?