CPMs back to pre-pandemic levels

New Ideas in MarketingEssential news for marketers, summarised by YouGov
March 25, 2021, 4:12 PM GMT+0

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.”

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