I think the majority of people will be happy to see the back of 2020, but how has it affected Facebook’s CPM’s? and what should be expected heading into the busiest commercial period of the year…
Covid’s Impact
With Covid-19 taking hold in March you can see that Facebook’s CPM’s were initially affected by roughly 20%, by what we understand as pre-emptive budget cuts/withdrawals. In an attempt to self-preserve, plan and generally understand what climate and markets were going to look like for the rest of the year.
Immediately after March, you can see a progressive acceleration in the CPM, to actually overtake pre-covid levels. With record revenues produced throughout the ‘singles day’ campaigns in Asia, it would suggest that Christmas and the new year will bring much of the same.
What Do We Predict?
With a lot of companies Q4’s hanging in the balance and the cash-rich companies looking to capitalise on key sales periods, it is likely that the CPM will reach it’s highest levels ever! We also believe this will continue into the Q1 of 2021. Why? Because with the introduction of successful vaccines and many markets like travel and tourism looking to get back to normality, we suspect that digital advertising budgets will be used to help accelerate the return to normalcy.
