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Facebook video (in-stream )was the only format to get more expensive in the third quarter of 2020, according to data from Socialbakers. The cost-per-click (CPC) and cost-per-thousand (CPM) of the format rose by 10.4% and 16.7%, respectively, to reach $0.254 and $1.616 in Q3 2020. This makes in-stream video the most expensive on a CPM basis among the four formats.
However, the cost of Facebook feed advertising fell by double-digits over the same period. Instagram’s CPC and CPM also dropped over the period, with feed advertising falling by 20.1% in cost-per-click and 11.9% in cost-per-thousand.
In comparison, digital video CPM is expected to rise by 4.1% this year and digital display will grow by 2.6%.
The largest changes in Facebook advertising costs this year were seen at the height of the coronavirus (COVID-19) outbreak. The second quarter (April to June) saw the largest increase for in-stream video and the biggest decline in the cost for feed advertising.
There’s been a rebound after this significant Q2 period – the CPM across all Facebook platforms and formats reached the highest level of 2020 in August. This helped the company’s advertising revenue grow 22.1% to $21.2bn in Q3.
Further growth in the cost of advertising by the end of this year is likely as Facebook expands into e-commerce and advertiser demand grows amid a challenging festive period.
