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Facebook ads CPM up by 700% YoY while ROI doubles

Overall Facebook advertising costs and ROI have seen an increase from last year, Kenshoo stats from November have found.

The figures found that there was an aggregate average 700 per cent increase in CPM in Facebook ads from November 2013 compared to 2014.

It was suggested that the higher demand for Newsfeed ads has driven up prices. Kenshoo also suggested that increased mobile usage by consumers - and competition from advertisers for mobile adviews - had pushed up prices.

Laura Ruszkowski, marketing research analyst at Kenshoo, said: “As Facebook advertising has evolved, it has given marketers the opportunity to identify and target their highest valued audiences to drive engagement and conversions.

“Not only has the Facebook ecosystem shifted but so have marketers’ approaches and programmes to reflect the changing environment. By driving efficiencies and optimisations in their paid social programmes, marketers have become more sophisticated and their strategies more vigorous, thus increasing overall competition within Facebook advertising and, in turn, upping the worth of Facebook users.”

According to Kenshoo, ROI on Facebook ads has almost doubled, which it suggested is down to the better performance of Newsfeed ads.

Featured by The Drum