If you’re on a see-saw, you expect one side to go up while the other goes down. But when you’re paying for advertising. . . not so much. Still, that’s exactly what’s happening on Facebook says a new report from TBG Digital.
In the simplest terms, the average CPM rates on Facebook ads have risen 41% year over year. There was an initial, corresponding rise in click-throughs through Q3 of last year, but since then clicks have dropped off. In the US, the decline was 8%. France got hit the hardest with a 13% decline.
The reason for the drop? TBG blames it on the change in number of ads displayed per page. Facebook now shows up to 7 ads at a time, but statistically we know that only one will get clicked. Even I can do that math. Only 4 ads per page equals 1 in 4 chance of getting a click. 7 ads drops to 1 in 7.