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A year ago I said Facebook ads are still a bargain. Now?

Published: December 8, 2014

Author: Alex Houg


The days of ultra-cheap Facebook ads appear to be over. To what extent, and what does that mean for you? We’ll break it down.
In 2013, our average CTRs on Facebook were up 95%, CPCs down 40%.
Screen Shot 2013-09-17 at 5.09.51 PM
Today, CTR is continuing to increase, largely because of mobile placement. And CPC is now up because of Q4 holiday bidding.
Back in 2010¹, we bought traffic at 18-cent CPMs, meaning we paid 18 cents for every thousand ads we served, regardless if we bid CPC or CPM.
In 2012², we paid 52 cents per thousand impressions for right-hand side impressions, which is nearly 3 times the price. Yet our cost per click (34 cents in 2010 and 36 cents in 2013³) was about the same.
And this year, we’re looking at about $6 CPMs for blended News Feed on both Facebook and Twitter.
Apple iAds are the cheapest at under 25-cent CPMs, which is causing the CPCs to be a lot lower, too.
You saw the our ads for the Golden State Warriors had 60X the CTR in mobile compared to right-hand side, leading to traffic at a quarter the cost.
You see how CTR has steadily increased and is spiking this year? This is desktop and mobile News Feed, where we will see CTRs as high as 10%.
Watch your placement mix, since your CPMs, CPCs, and conversion rates will vary!

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