Last week, we took a look at Facebook’s financials and wondered AllFacebook reports that both the CPM and the minimum spend for some Facebook have dropped 50% since October of last year:
At the time Facebook homepage advertisements attracted a $10 CPM and required a $50,000 minimum investment. Since then it appears that Facebook’s ad rates have dropped significantly and the minimum ad spend has also dropped to $10,000.
Now, how could 32% growth in the US cause this? Of course, it’s entirely possible that it didn’t. But let’s take a look at the numbers to understand just how good—or bad—that growth rate is.
How can more than doubling your worldwide user base be a bad thing? Well, when you don’t have a solid plan to monetize some or even most of those users, when advertisers simply aren’t spending as much to reach those audiences—when the growth of your most potentially profitable audiences is outpaced by the growth of the audiences that are marginally or just plain not profitable.
The US is not the most profitable audience in terms of online advertiser spend per Internet user, as Comments
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