Facebook advertising is becoming less and less satisfactory

Advertising on Facebook looks today is less attractive than it before 2010 effect, and the future not everything attractive, either sees. According to Trefis, a Commons analysis service average advertising revenue through Facebook for each 1,000 search conducted on your site has fallen significantly and is likely to continue in the foreseeable future its descent.

Sales per share (RPS) is currently at $5, according to Trefis. This is down from $8 back in 2008 and $6 back in 2009.

“We expect to decline Facebook’s RPS over the years as Facebook is not a search engine like Google or Baidu, Bing, Microsoft’s core” according to Trefis. “Also isn’t open Web portal such as Yahoo or AOL and requires that users perform login searches.” “The international character of the total searches increases decline will lead to RPS.”

Specifically, Trefis indicates the RPS in U.S. higher than most other global markets always which means, that as Facebook’s blend of total searches more international receives, RPS will be pulled down.

Also, the company looking for ambiguity of Facebook’s future target emphasizes. “If search is central to Facebook as the type of search can become more commercial promoting higher paying advertisers on Facebook will attract.” A risk is the search on Facebook remains a complementary function and the kind of searches on Facebook to be not as attractive to advertisers. “

Trefis expected RPS to $4.60 in 2011 and $3.20 2017 decline. Its members expect slower decline, however. Trefis members anticipate RPS, $5.30 per 1,000 searches in 2011 and $4.70 2017 be.

The company values Facebook at $45.1 billion, 60.1% attributed this market capitalisation of text and display map, 16.8 percent to credits on games and applications, 11.0 percent of e-commerce Search 8.3 percent to advertising and 3.7 percent cash (net of debt).

Meanwhile, Web trends recently unveiled some results of their study of over 11,000 campaigns on Facebook in a bid to establish benchmarks for brands that advertise in search on the social networking site.

The study found that in 2010, the average click through rate (CTR) for Facebook ads 0.051 percent, down from 0,063 percent in 2009, and half the industry standard of 0.1 per cent

Cost per click (CPC) was $0.49 in 2010, up from $0.27 in 2009 according to Web trends.

The company finds that older users click on ads more frequently prepares Facebook and that women have a slightly higher click rates than men.

While users in Wyoming and North Dakota higher-than average click-through rates, users in Hawaii a CTR have almost half of the average.

Popular press and blogs boasted a CTR 0.261 percent and a CPC of $0.12 while media and entertainment show make a CTR of 0.949 and a CPC of $0.25, these two categories that had most successful. The least successful were health care (CTR 0.011%, CPC of $1.27) and Internet and software (CTR 0.021 percent, CPC of $1.30).