Facebook ad costs have seen increase, say stats

Kenshoo stats from November have found that Facebook advertising costs and ROI have seen an increase from last year, with an aggregate average 700 per cent increase in CPM in Facebook ads from November 2013 compared to 2014. That report suggests that the higher demand for Newsfeed ads has driven up prices, and also mobile usage by consumers.

Laura Ruszkowski, marketing research analyst at Kenshoo, commented:

“As Facebook advertising has evolved, it has given marketers the opportunity to identify and target their highest valued audiences to drive engagement and conversions. Not only has the Facebook ecosystem shifted but so have marketers’ approaches and programmes to reflect the changing environment. By driving efficiencies and optimisations in their paid social programmes, marketers have become more sophisticated and their strategies more vigorous, thus increasing overall competition within Facebook advertising and, in turn, upping the worth of Facebook users.”