Facebook Advertisers Get Discount for Linking Back

All Facebook reports that the social networking giant is busy inspiring advertisers to link back to Facebook pages instead of their own sites by offering them a 50% discount on the ads, which is a major source of earnings for the social network.

It has been noticed that auction-based pricing is much more effective to encourage users to Like Sponsored Stories or install a Facebook app than linking to a site outside of Facebook.

Considering the Google’s recent concerns over the newly launched social search and antitrust issues, Facebook is much more careful in its approach to keep the users’ interest alive within its social networking site.

Facebook itself has experienced a tough time for its different approaches to ensure that users won’t leave the social network, while Sir Tim Berners-Lee describing the social networking giant as a “Walled Garden”.

TBG’s Chief Executive Simon Mansell while talking to the Financial Times says that the recent move of the Facebook is aggressive, but “If brands invest money coming up with campaigns that are social by design, Facebook gives them some money back in lower advertising – that feels fair to me.”

While analyzing 326 million impressions from 266 clients in 205 countries, TBG described how the recent changes were met by its audience, the Facebook user. It has been reported that the click-through rates on ads gone up to 18% from the first to fourth quarter. For instance, in France, click-through rates doubled in the last quarter after seeing an increased use in Sponsored Stories. This clearly suggests that users are taking keen interest in clicking ads that are more of Facebook than web.

In the United States, on the other hand, Sponsored Stories don’t actually manage to impress the users as the click-through figure lowered by 2% in the region. Where linking back to Facebook might actually help advertisers earn some discount, the cost per thousand impressions rose by 23%.

Furthermore, the recent move from the social networking giant to drop Sponsored Stories in users’ news feed will most probably help the social network to increase click-through rates in the coming quarter.

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