Social ads just might be working out the way Facebook hoped. According to studies by Marin Software, the addition of Facebook’s new ad units, Sponsored Stories, appears to have boosted Facebook’s ad performance as a whole—perhaps proving that ads with a social context do, in fact, resonate more with Facebook users.
Marin Software compared Facebook’s worldwide advertising performance metrics from April 2011 to March 2012 and called out increases in clickthrough rates (CTRs), costs per click (CPCs) as well as costs per thousand (CPMs).
The upticks suggest that Sponsored Stories may have had a positive impact on Facebook’s ad revenue. Clickthrough rates have improved 20%. Moreover, CPM has risen 51% and CPC has increased 26%.
Read more details on this study at emarketer.