Facebook’s $710,000 ads

March 23, 2012

Advertisers desirous of taking of advantage of Facebook’s newest placement opportunity, the log-out page, should prepare for a little sticker shock. The digital billboard space is rumored to require a minimum daily ad spend of $710,000.

Log-out page placement alone costs $160,000 a day in the U.S., but the option is only available to advertisers who spend $550,000 a day on News Feed ads, a source told AdAge.

Facebook log-out page ads were first introduced at Facebook’s marketing conference in late February. The social network demoed the placements to marketers as a new, optional fourth placement and touted them as a way for advertisers to reach the 37 million U.S. users who log-out of Facebook each day with giant, interactive ads.

Bing, Ford, and Titanic ads have made appearances on Facebook’s log-out page since the new placement was announced.

“This is a fairly traditional play in the ad world,” Mindjet head of marketing Jascha Kaykas-Wolff told VentureBeat at the time. “It’s a natural progression for them … it’s clearly a huge amount of inventory, and I don’t think people are going to turn [the ads] down, but it’s not a silver bullet by any stretch of the imagination.”

The ads, Kaykas-Wolff said, are nothing new in the world of advertising, and will flop with Facebook members, though buyers will snatch them up anyway. “This is another indication that Facebook is a larger network and that it does have different types of inventory that, as a buyer, you can think about in concert with buying on CBSi, Yahoo, or MSN,” he said.

The exorbitant price-point, however, will narrow the pool of potential buyers to just the big brands with large advertising budgets, especially considering that the $700,000 commitment is in the same ballpark as the cost for single-day homepage ads on Yahoo or YouTube.

When reached for comment, a Facebook spokesperson said the social network doesn’t discuss the terms of its advertiser agreements.

Copyright 2012, VentureBeat

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