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Social Media Advertising Costs

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Not too long ago, social media was looked at as the “thing” brands needed, but had no idea how to use. Fast forward to 2016, and we have 1.35 billion monthly active users on Facebook, 284 million on Twitter and don’t forget Instagram with another 300 million users. Social media is no longer on its own island. Instead, it is part of a unified content marketing strategy that tips traditional silos on their side in the name of a holistic inbound marketing strategy. As social media marketers, we are constantly seeking data in the name of ROI and to see where our own campaigns stack up in the crowded world of social promotion. The data below highlights something very important. Social media is not going anywhere.

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2015 Social Media Advertising Highlights:

Social Media CPMs:

  • Facebook – $6.37 (Includes all Facebook ad placements)
  • Instagram – $5.86 (Includes all Instagram ad placements)
  • Twitter – $14.18 (Includes all Twitter ad placements)

Cost Per Engagement:

  • Facebook – $0.66
  • Instagram – $0.23
  • Twitter – $0.72

We’ve calculated the above CPM and CPE based off our own client’s data, showing a much more realistic expectation for campaigns with different targeting and audience parameters.

Moving into 2016, we expect to see a continued rise in Facebook advertising costs as inventories continue to shrink on the network. Q4 2015 was the first time ad inventory on the channel increased since 2013, with even larger percentages of ad budgets shifting to the channel. Facebook-owned Instagram will dive deeper into advertising with the launch of multiple account access and ad retargeting through Facebook, and vice versa. Finally, we expect Twitter to continue struggling overall, with the only upside being its event targeting, which we have seen success with around the Super Bowl and NFL playoffs. As a whole, social media advertising will see its share of media budgets increasing to 20% by 2017, as more ad products come online and video platforms such as Snapchat open their ad platform to the masses.

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