How Marketers Can Approach the Rise in Facebook Advertising Costs

Posted on by Chief Marketer Staff

Facebook advertisingThe 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.

More

Related Posts

Chief Marketer Videos

by Chief Marketer Staff

“Trapped in Advertising” sounds like a hashtag you might use after a bad day at work, but for Pringles and Adult Swim, it was a year-long, pop culture-forward campaign aimed at ad-averse 18- to 35-year-old “Rick and Morty” fans. The goal was to sustain engagement and become part of the cultural conversation in order to…

	
        

PRO Awards

ProAwards

Join your industry peers for a fast-paced afternoon of inspired conversations led by industry leaders and live celebrations as we announce the winners of the 2021 PRO Awards. Click here to register.
	
        

CHIEF MARKETER 200

CM 200

Click here to sign up for more information on the 2022 CM200 call for entries and to view the CM 200 2021 List.