It is no secret to anyone that in the midst of the health contingency the advertising market was impacted with a reduced budget. Although with a minor impact, the digital terrain also suffered and one of the key indicators in this regard was the advertising prices of platforms such as Facebook and Instagram.
In mid-April, various sources warned that the prices of Facebook and Instagram would have collapsed.
For example, from The Wall Street Journal They pointed out that in March 2020 a fall in the price of CPM was reported, calculated between 15 to 20 percent compared to what was registered during February of that same year.
In this same line, with 25 percent were the projections of the digital agency Wpromote, while from martech 4C Insights they calculated the setback at 20 percent.
In particular, in the case of Instagram, it was estimated that the cost of CPM would have been diluted by 20 percent.
With this in mind, many companies saw a good opportunity to reach their audiences from Facebook with lower prices and a possible greater reach. Facebook was growing but not at the expected rate or with the expected earnings.
The numbers show it. According to data from 4C, advertising on Facebook and Instagram would have grown by 2 percent between February and March; However, before the crisis, this advance was expected at 10 percent. In fact, it was estimated to have fallen 5 percent compared to what was achieved in March 2019.
A year has passed since these figures shocked the sector and now everything seems to indicate that the recovery for the Facebook empire is going from strength to strength.
At the very least, the estimates provided by Aisle Rocket indicate that for March of this year CPM prices for Facebook are 30 percent higher than those registered in March of last year.
It is more interesting to recognize that advertising costs are now higher compared to the prices recorded at the beginning of last year, when the health emergency was not on the radar.
From time to time it is estimated that prices are now between 5 and 10 percent higher than what was paid in January and February of last year.
The truth is that this growth will only become more marked in the months to come.
For now, the numbers indicate that the average CPM is priced at $ 8 average; however, for the summer months it is expected to reach $ 11.
Although this is undoubtedly good news for the Facebook business, the reality is that for brands it translates into a new brake in the middle of this recovery process.
It is clear that digital is the standard to follow. The benefits that this land offers go beyond the “low prices” offered by platforms when compared to traditional channels.
In reality, the need for advertisers to be digital is that the audiences are now there and although this is not new, the phenomenon took a new turn in the midst of the pandemic.
This is how a recent Hootsuite study becomes relevant, which indicates that among all the social media platforms available, Instagram will rise as the top winner in the distribution of the advertising budget.
In this way, Instagram will see a 61 percent growth in the budget that brands will allocate to their advertising solutions.
Behind the social network of stories, Facebook will be located, with a growth of 46 percent, YouTube with 45 percent and LinkedIn with 44 percent. Added to the list are Twitter with a growth of 26 percent and WhatsApp with 17 percent.
The reason for the dominance that Instagram will have is none other than the confidence of the marketing leaders around this platform.
And is that although 78 percent of marketers say that Facebook is the most effective social network to meet objectives, 70 percent give this qualification to Instagram.
With this in mind, brand investments should be more strategic. The turn to digital will only require actions and investments that are much more punctual and focused, an issue that will not be easy at a time that requires speed of adaptation.
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