LiveIntent, the people-based marketing platform that reaches 250 million logged-in people each month via its 2,500 brands and publisher partners, announced the findings of a commissioned study that looked at Marketers’ reactions to rising CPM costs on Facebook. The study was conducted by polling more than 200 marketers spending over $100K on Facebook during October 2019.
CPMs on Facebook have grown 90% YOY for marketers, research from earlier this year found, and that number only continues to grow. The LiveIntent commissioned survey found that this rising cost is a concern for 85% of marketers, with 13% extremely concerned about it. That concern is exacerbated since 42% of marketers are spending more in 2019 than in 2018. That rise in spending, however, is largely due to the increase in the cost of advertising on Facebook. If costs continue to rise, almost half (47%) of marketers believe they could be priced out of paid Facebook advertising.
“Facebook has been a huge channel for us, but we like to operate like it’s going to disappear tomorrow,” said Bret Fredrickson, Customer Acquisition Marketing Manager at athletic clothing company Vuori. “So, what does that mean? Taking full advantage while it’s here, but also looking at new channels and investing where we think attention is going.”
A separate study commissioned by LiveIntent’s own customers who started advertising within the LiveIntent platform in the past year found that 35% of new LiveIntent customers had moved spend to LiveIntent due to either slowing performance or rising costs on Facebook. 42% of brands had run into audience fatigue on Facebook, coming to LiveIntent to find differentiated audiences and inventory that didn’t exist on Facebook.
“Facebook is a necessity for any brand looking to grow its business, right alongside search,” said Kerel Cooper, SVP Global Marketing at LiveIntent. “But there is a growing discontent due to the steadily rising costs of advertising on the platform. The benefits of Facebook advertising — reaching a logged-in audience with highly targeted and measurable campaigns — aren’t limited to just Facebook. In order to compete in an era with rising Facebook costs, marketers must diversify their ad spend and turn elsewhere to reach new and incremental audiences and inventory.”