The cost of advertising on Facebook has increased by 40 per cent in the first three months of 2011, as marketers are starting to realise the potential of the social media site.
That is according to Efficient Frontier's Digital Marketing report for the first quarter of 2011, which also found that the digital sector is performing well.
It revealed that the cost of adding pay per click ads on Facebook has increased as these offer a high return on investment.
David Karnstedt, president and chief executive of the marketing company, said: "We're seeing great demand for Facebook's ad products as the social networking giant's ad offerings continue to evolve.
"This is all solid evidence of an economic recovery, and that marketers are seeing tremendous results when they intelligently allocate their marketing spend and optimise across channels."
The social media site is currently trialling a new real-time advertising feature, which enables the social network to serve up ads based on a user's interests and browsing history immediately.
