07 May Facebook and programmatic ad rates fall due to coronavirus
COVID-19 presents opportunities for digital advertisers to reach more customers for less money
Right now, it’s a buyer’s market for digital advertisers. According to Ezoic, ad rates are at their lowest since May 2016.
For instance, between February and March, the cost for 1,000 impressions of a Facebook ad dropped 15% to 20%.
“I would characterize Facebook ads as being quite the bargain right now,” said Aaron Goldman, chief marketing officer at 4C Insights Inc., a marketing technology company that helped brands manage $350 million in ad spending across major tech platforms including Facebook, Instagram, and Twitter from January to March.
Facebook isn’t alone. Between February and March, the cost of 1,000 impressions fell 22% on Instagram and 15% to 20% on YouTube.
Some brands are cutting back on advertising, which we don’t advise. But low Facebook costs offer companies new opportunities to increase awareness of their brands and reinforce their thought leadership in this uncertain economy.
Include programmatic, CPM, and CPC
Now is an ideal time to capitalize on cost-effective and flexible channels such as programmatic advertising. The reason: consumer presence and available impressions are increasing. It’s an ideal opportunity for marketers to acquire new customers at a lower cost.
“Programmatic pricing is down an average of 10-20% globally. Cost per views (CPVs) are declining week-over-week,” said Justin Taylor, Managing Director at ad tech vendor Teads U.K.
More people spending more time online
A recent survey by digital media company Centro shows the impact of the COVID-19 pandemic on media consumption habits:
• 22% increase in week-over-week web traffic
• 12% uptick in video streams
• Increase in connected TV inventory
• Elimination of paywalls for premium content
• Replacement of most, if not all, in-person interaction with social media
• Decrease in print media
The takeaway is clear: People across the country and around the world are spending more time consuming media. They are online working remotely, playing games, streaming videos, TV shows, and music. And as we know, not only consumers but healthcare professionals spend time on social platforms such as Facebook and LinkedIn.
Simultaneously, many companies are cutting their marketing and media budgets:
• 69% of brands expect they will decrease ad spend in 2020
• 34% have cancelled an advertising campaign completely
• 68% expect COVID-19 to result in reduced ad spend into 2021
• 47% of display ads have been paused, cancelled, or pulled
As a result, now may be an ideal time to purchase media at favorable rates.
Take advantage while costs are low
Because of current economic crisis, ad rates quickly declined. But that also means that they may be one of the first parts of the economy to turn around once the worst of the coronavirus is over. So take advantage of this unusual buyer’s market while it lasts.
Can we be of help? Don’t hesitate to let us know. Contact Bryant Brown Healthcare.
More from the Bryant Brown Healthcare blog