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Facebook Ads Become ‘Costlier’ Choice for Small Businesses

Rising Rates Put Pressure on Limited Ad Budgets; Facebook Points to More Valuable Outcomes


When it comes to advertising on Facebook  these days, small-business owners are competing for more limited ad space—and paying more for ads even if they don’t result in sales.

During Facebook Inc.’s earnings call last month the social-networking company revealed the average per ad price increased 123% in the most recent quarter compared with a year ago. Ad impressions—the number of ads it displayed—declined 25%, while ad revenue rose 67% to $2.68 billion, the company said.

Facebook says it is providing better outcomes for its advertisers. “The price of ads correlates to the value that they create,” Dave Wehner, Facebook’s chief financial officer, said on the call. “We continue to focus on making those ad units better and better, more relevant and targeted for the people who use Facebook, as well as for marketers.”

Read full article here from Wall Street Journal


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