Facebook Ad Prices Near a Tipping Point and That’s a Problem

It wouldn’t be accurate to say social networking giant Facebook is the only game in town when it comes to advertising on the web. There’s always Alphabet’s Google, and though they reach a smaller crowd, Twitter and Snap property Snapchat are decent alternatives in their own way. When it comes to outright reach, engagement, and total click-throughs, however, Facebook is still the go-to choice for most advertisers. While it’s arguably earned every penny of the price increases it’s been able to impose on advertisers, Facebook could be close to pricing itself right out of the market. That could, in turn, create an alarming headwind for the company’s revenue growth. The grumbling first started to take a discernible shape early last year, after a major “tweak” to its News Feed in January more than doubled March’s cost per 1,000 ad impressions on a year-over-year basis.

Translate »