The cost of advertising on the world’s most popular social media platform has increased dramatically over the last year as advertisers clamour to engage with Facebook’s users.

Pay per click advertising on Facebook in the second quarter of this year cost 74 per cent more than advertising via the same method in the second quarter of 2010. The price of display advertising, set per thousand impressions, increased by nearly half over the same period.

The figures, pulled together by marketing company TBG Digital based on 200 billion ad impressions for 167 of their clients, reflect that Facebook is ramping up its efforts to monetise the platform ahead of its expected launch on the stock markets.

The report also found that the number of brand advertising campaigns had more than doubled over that period.

Facebook is currently consulting with a “client council” of advertisers to explore new ways of advertising on the site.