How much will recent changes to Facebook’s newsfeed impact ad prices? The answer could be quite a bit.
The math. Wall Street believes that Facebook’s revenue will continue to rise even as average time spent dropped 5%. This could be accomplished by either increasing the ad load and/or raising the average CPM $.
The projected price increase for Facebook advertising:
1) Next 3 months: +25%
2) Next 6 months: +48%
3) Next 12 months: +79%
This is on top of the 20% increase between Q4–2016 and Q4–2017.
Bottom line. This coming fall it could cost $2.15 to get the same impact that you got for $1.00 in Q4–2016.
Facebook is also preparing the launch of pre-roll ads on their Watch platform. Videos on this platform have garnered 50%+longer view times than the newsfeed.
Ad increases are not limited to Facebook.
The cost per click on mobile search rose 25% in 2017.