According to Aisle Rocket, Facebook currently stands at $8 per CPM, roughly the same as pre-pandemic levels in 2020.
The cost of Facebook advertising is currently up by around 30% than mid-March 2020. The social media giant’s ad pricing has been trending up since May after dipping by as low as 50%. While heading into Thanksgiving week, Facebook CPMs observed a significant hike.
CPMs went down drastically in 2020, mainly because many advertisers paused marketing activities due to COVID-19 and social justice movements. Higher prices in the auction now indicate that more brands are making a comeback and pivoting to ecommerce post-COVID.
The agency projects CPMs can go up to $11 by late summer. Aisle Rocket’s Jen Strojin said advertisers would need to “… understand their thresholds for cost per acquisition, lifetime value [and other related metrics] as they navigate the higher CPMs.”
[3 minute read]