The cost of Facebook advertising is up 30 percent compared to this time last year, when many brands paused marketing efforts amid the pandemic and social justice movements, according to AdExchanger reporting. Now brands want back in—and that’s contributing to a rise in prices. Moreover, Facebook CPMs are expected to continue to rise through the year, as companies seek to capitalize on pent-up demand while the economy recovers from the pandemic.
Last year at this time, Facebook’s lower user acquisition costs were attractive to performance-based advertisers, and ecommerce brands and small businesses took advantage. But an increase in competition within the marketplace is driving prices up.
To prepare for this development, Jen Strojin, SVP of account services at growth agency Aisle Rocket, suggests that brands should develop benchmarks for metrics on Facebook, including cost per acquisition and lifetime value. Companies advertising on the platform should take a data-driven, efficient approach to marketing, she says, particularly in Q4 when holiday spending picks up. That includes closely monitoring campaign results and audience performance.
For more on how brands can navigate Facebook’s price increase, read on in AdExchanger.