CPC and CPM: This is how high the advertising costs on Facebook were in the first half of 2021

Last winter there was the long third lockdown in Germany, now many corona rules have been relaxed again. A lot happened in the first half of 2021 that also affected advertising costs on Facebook and Instagram. The Frankfurt Social ads agency ZweiDigital has evaluated performance data based on real customer campaigns from January to June 2021, which shows the development of these costs for the CPC and CPM models.

The concrete figures: This is how much advertising on Facebook cost recently on average

The ZweiDigital agency regularly scrutinizes the development of CPC and CPM values ​​on the Facebook advertising network. Several million clicks and impressions from real customer campaigns with a total budget in the double-digit million range serve as a valid database. The assessment basis for the current analysis was formed by 1,856 campaigns with a budget of 3,651,404 euros.

CPC (cost-per-click) and CPM (cost-per-mille) describe the advertising costs for a click or per 1,000 contacts and are the key figures for quantifying the expenditure for advertising on Facebook and Instagram.

At the CPC, a turbulent 2020 was followed by stabilization in the first half of 2021. Many marketers are consistently relying on Facebook Ads again. There was an outlier downwards during the Easter holidays – ZweiDigital suspects that many might have escaped everyday corona here, which is why advertising spending also fell slightly during this period. In the company’s analysis of the coming weeks and months, it says:

It will be exciting to see over the next few months what effects the easing of the pandemic-related restrictions will have on general advertising pressure and whether marketing budgets are increasingly being used again classic Advertising will flow.

The average CPC has already settled at a high level year-on-year. In 2019 the value was 28 cents and in 2020 it was 32 cents. It is now in 2021 – as of today (after calendar week 24) – at 35 cents.

  • Average CPC 2021: 0.35 euros
  • Max: 0,49 Euro (KW 24)
  • Min: 0.24 Euro (KW 1)
The CPC development on Facebook in the first half of 2021 (take a look at the picture to get a larger view), © ZweiDigital

CMP: The costs are constantly increasing

After a few sharp swings in 2020, the CPM on Facebook showed a rather calm course in the first half of this year. The analysts at ZweiDigital put the “New Normal” factor in the room:

The largely confident handling of the imponderables of the pandemic, especially compared to 2020, was also reflected in the behavior of online marketers. A closer look at the development of the CPM shows that the value – quietly and secretly, so to speak – rose constantly during the first half of 2021.

In 2020, the CMP was still at an average of 4.07 euros, currently it is 4.71 euros. In a year-on-year comparison, this means an increase of 15.72 percent. This development is a further indication of the growth of Facebook and Instagram as advertising platforms. After all, these media also have new advertising options almost every few weeks.

In relation to different industries, the analysis shows a special feature. This is because the costs of service companies have increased significantly recently. The CPM in this segment was sometimes three times as high as in e-commerce, for example. As an explanation, the “sometimes blatantly higher budgets and margins on the services and products offered” are listed in the analysis.

  • Average CPM in 2021: 4.77 euros
  • Max: 6,06 Euro (KW 23)
  • Min: 3.51 Euro (KW 1)
The CPM development on Facebook in the first half of 2021
The CPM development on Facebook in the first half of 2021 (take a look at the picture to get a larger view), © ZweiDigital

A look at the click-through rate: Resistance to crises means little change

In addition to the CPC and the CPM, the analysis of advertising expenditure on Facebook also took into account the click-through rate (CTR). This proved to be largely crisis-resistant. With only a few swings up and down, the CTR value this year was at an average strong level of 1.48 percent. In 2020, the CTR showed even higher volatility.

Since there are hardly any changes in the CTR, it can be assumed that Facebook ads were always similarly relevant for potential end customers despite the temporary lower utilization of the advertising spaces (especially in 2020).

  • CTR median 2021: 1.37 percent
  • Max: 1.67 percent (week 14)
  • Min: 1.12 Per cent (KW 6)
The CTR development on Facebook in the first half of 2021
The CTR development on Facebook in the first half of 2021 (take a look at the picture to get a larger view), © ZweiDigital

ZweiDigital continues to follow the developments of CPC, CPM and CTR on Facebook and is updated weekly. The industry can look forward to the upcoming changes in advertising costs – and possibly include such information in its own advertising strategy.

The information in this article comes from the official press release from ZweiDigital.

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Source: OnlineMarketing.de by onlinemarketing.de.

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