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Facebook's Ad Business Surges Before IPO

Tuesday, 17 Apr 2012 | 5:04 PM ET
Facebook Timeline
Source: Facebook
Facebook Timeline

Facebook's ad business is flourishing before its IPO, allowing for the social networking giant to charge advertisers more.

The company's cost per thousand impression (CPM) has increased 23 percent since the fourth quarter of 2011, according to a report by TBG Digital, a marketing company.

Facebook also saw ad performance improve overall between the first quarter of 2011 and the fourth quarter. Click-through rates increased by 18 percent during this period in the five major markets measured (Canada, France, Germany, UK and US), suggesting Facebook users are engaging more with ads, according to the report.

In the U.S., however, ad engagement was down eight percent between the first and last quarters of 2011.



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