Facebook Sponsored Stories and Post Ads perform significantly better than Social or Web Ads when measured by click-through rate (CTR), according to June 2012 research from Kenshoo Social and Resolution Media. With high CTRs contributing to lower cost-per-clicks (CPCs), Post Ads have the lowest CPC rates, though Sponsored Stories easily lead in a new metric measuring targeted reach. The report defines the ads as follows:
A Post Ad is content generated through owned media that gets turned into paid media. In this case, a post made on a Facebook Page becomes an ad unit and placed within the newsfeed or on the Facebook homepage of targeted users. A Sponsored Story is content generated by earned media that gets turned into paid media. In other words, the ad itself is generated by Facebook users through their social interactions with a brand on Facebook. A Web Ad encourages Facebook users to engage with owned media outside of the Facebook network, and a Social Ad encourages Facebook users to engage with owned media existing within the Facebook network. Read the rest at MarketingCharts.