What is CPM on Facebook
Facebook advertising: This is how CPC, CPM and CTR have evolved since January
Facebook advertising is and will remain an important marketing channel - especially for small businesses. But how have the CPC, the CPM and the CTR developed since the beginning of the year? What role does the corona pandemic play in this? An analysis now shows that.
Facebook has a huge image problem. This has been made clear - once again - over the past few weeks. Due to the lack of action against hatred and discrimination, more than 1,000 global corporations stopped their Facebook advertising in July 2020.
Whether this will cause Facebook problems in the medium and long term depends entirely on the consistency of the advertisers. Regardless of this, however, Facebook is still an essential advertising channel, especially for small and medium-sized enterprises (SMEs).
This is how the cost of Facebook advertising changed in 2020
Small and local companies in particular can use Facebook to reach their target group in a very targeted manner - and often inexpensively.
But how have the cost-per-click (CPC), the cost-per-mille (CPM) or thousand-contact price and the click-through rate (CTR) in Facebook advertising developed since January 1, 2020 ?
Zweidigital examined this in a large analysis. For this purpose, the Frankfurt-based performance agency evaluated several million impressions and clicks from Facebook campaigns with a budget in the double-digit million range between January 1, 2020 and July 1, 2020.
The CPC of Facebook Ads in 2020
If you look at the start and end date of the investigation at the CPC, you will see that a click has become a cent more expensive on average - more precisely, the price is included 0.26 euros.
The lowest point was in the area of the CPC during the complete lockdown on April 2, 2020 with a value of 0.21 euros reached. After the first easing, prices soared. The interim maximum was on May 25, 2020 0.39 euros.
The CPM of Facebook Ads in 2020
A different picture emerges with CPM or in the German abbreviation TKP. This value was already included on January 1, 2020 3.95 euros reached its peak of the year. Half a year later, the price is included 3.17 euros.
As for the fluctuations, they mostly fall in the low range. The low of the thousand contact price on Facebook was on March 18, 2020 at the beginning of the lockdown with a price of 2.01 euros reached.
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The CTR of Facebook Ads in 2020
In comparison, the most constant value of the study is the CTR - the ratio of impressions to clicks on ads on Facebook. So the value at the beginning of the year was 1.56 percent.
Due to the outbreak of the coronavirus, the CTR is open for a short time 0.73 percent crashed. However, it has recovered relatively quickly and has been around since the onset of summer 1.23 percent (As of July 1, 2020) leveled off.
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