NEW DELHI: The cost of advertising on Facebook in India has doubled since the social media platform changed its news feed algorithm this year to prioritise posts from family and friends over promotional content, digital media agencies and advertisers said.
Prior to the algorithm change in January, average cost per thousand impressions, also called cost per mile (CPM) — which refers to the price of 1,000 advertising impressions on a webpage — on Facebook was around Rs 150. Now, it is touching Rs 300, making advertising on the platform significantly expensive for small businesses that rely heavily on digital platforms for promoting their businesses, media agency insiders said.
This is mainly due to Facebook reducing space for ads as a large chunk of people’s news feed is now focused on posts from family and friends, said Varun Duggirala, content chief of The Glitch, an agency acquired by WPP recently.
Vinayak Katkar, founder of Pune-based digital marketing agency Amura Marketing Technologies, explained: “If Facebook was showing, say, 10 ad slots initially till January, now they show only 5. The supply (of advertising inventory) has reduced and advertisers are increasing. Rate for the same slot has gone up.”
read more: https://economictimes.indiatimes.com/tech/internet/facebook-advertising-rates-double-with-fresh-news-feed-algorithm/articleshow/65833880.cms
Prior to the algorithm change in January, average cost per thousand impressions, also called cost per mile (CPM) — which refers to the price of 1,000 advertising impressions on a webpage — on Facebook was around Rs 150. Now, it is touching Rs 300, making advertising on the platform significantly expensive for small businesses that rely heavily on digital platforms for promoting their businesses, media agency insiders said.
This is mainly due to Facebook reducing space for ads as a large chunk of people’s news feed is now focused on posts from family and friends, said Varun Duggirala, content chief of The Glitch, an agency acquired by WPP recently.
Vinayak Katkar, founder of Pune-based digital marketing agency Amura Marketing Technologies, explained: “If Facebook was showing, say, 10 ad slots initially till January, now they show only 5. The supply (of advertising inventory) has reduced and advertisers are increasing. Rate for the same slot has gone up.”
read more: https://economictimes.indiatimes.com/tech/internet/facebook-advertising-rates-double-with-fresh-news-feed-algorithm/articleshow/65833880.cms
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