Last updated Aug 11th, 2021
Facebook may be a goldmine of information for marketers, but is it making your company's marketing budget too expensive?
As of July 2021, the 5 major social media platforms showed an impressive increase in numbers:
Similarly, recently published data from BusinessInsider and MediaPost show how much ad costs are rising across major platforms, as measured by average CPM, with the focus on Amazon having a 20% increase in CPM costs between Q1 and Q2.
Also, the average CPMs rose from $3.60 in February to $8.60 in May and June, according to WPromote, a performance ad agency.
Supply is going up while demand pretty much stays the same with Facebook ads.
With increasing competition, the cost per 1000 impressions (CPM) is increasing dramatically.
Special attention should be given to the recent events and the effects of the COVID-19 pandemic.
If there is anything to learn from these terrible times, it is how COVID-19 changed the game of the way retail companies acquire customers forever.
Unless you’re a big brand (such as Apple, for example), it’s highly unlikely that you will have huge lines of people waiting in front of your brick-and-mortar doors.
The focus of every retail brand should be redirected towards the online world.
The benefits of selling your products on the web are well-known. You will probably hear people telling you that e-commerce is the next big thing.
And they’re not wrong.
But the problem is, with bigger online competition each day, Facebook marketing becomes more expensive.
If you don’t know how to survive this, you won’t be able to get amazing results with a $20.000 per month budget like you used to.
Let’s say that one year ago, with $20.000 spent on your Facebook ads, you were able to reach around 10.000.000 users.
Quite an impressive number.
Right now, with that money, you will barely reach 7.500.000 users.
So the main questions are:
How do we survive the dramatic CPM increase?
How to be sure that moving to e-commerce won’t drain out your budget?
This article aims to answer those questions.
Only for Paid Social marketers