Facebook Ad Prices Are Increasing

On March 2, 2017 by Dubzz Digital Marketing

Thumbs-Up-for-Facebook-AdvertisingFacebook is one of the best platforms to advertise your products or services online. Its targeting options are fantastic and the cost of advertising to a high-quality audience is great value. But the price of Facebook ads have increased significantly in 2016 and going by trends, 2017 is looking at continued price increases for Facebook ads.

Why is the price increasing?

The main cause of the increased cost of Facebook Ads is the shift in time spent on mobile devices versus desktops. Facebook users spend much more time in the mobile app where Facebook does not show the lower value right hand column ads. This has resulted in a higher cost for ad placement than compared to the traditional desktop platform.
Facebooks Advert Manager now allows users to place their adverts inside Instagram streams and the price per placement on this platform are significantly higher than the cost of Facebook Ads because of a higher conversion rate. Users need to be aware when setting up Facebook Ads that the Instagram placement is automatically ticked and if your Instagram account is connected to your adverts manager then you may be creating Instagram Ads without knowing.
Pricing is also increasing simply due to supply and demand. As more businesses use social media advertising, the average cost of impressions have increased. Social media advertising has shown to provide quality traffic and while the costs may be increasing year on year Facebook ads are still providing great value compared to more traditional forms of advertising.

How to overcome price increases

Now more than ever, it is imperative that Facebook Ad users have a deep understanding of the ad platform to optimise returns on investment. Businesses need to reduce wasteful expenditure and improve effectiveness of each boosted post. It is no longer beneficial to simply boost a post but rather have a carefully thought out marketing approach to get better bang for your buck.
If there is one crucial ingredient to Facebook advertising, it is targeting the right audience. A keen appreciation of your audience translates into lower costs, greater engagement and higher conversion rates. Keep a close eye on ad relevance score as this indicates how successful your ad is targeting a relevant audience. Businesses need to remove unresponsive audiences to keep costs down and avoid wasting budget.

If you are looking for help creating engaging, cost effective Facebook Ads that target your desired audience, check out our Facebook for Business courses or give us a call and we’ll be happy to answer any of your questions.

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