Digital ad market not yet 'back to normal' but recent stability fuels optimism

Campaign 04 May 2020 02:32

The digital advertising market appears to have settled into a holding pattern after demand for inventory on Facebook and Google plunged in March amid coronavirus lockdown measures.

While the key cost-per-clicks and cost-per-milles metrics are not yet showing price increases, several sources have told Campaign that they are broadly holding steady across UK, European and North American markets. Asia, whose countries have begun to ease lockdown restrictions, are seeing an increase in prices as economic activity picks up.

According to Socialbakers, CPCs on Facebook and Instagram have held steady in western Europe, and were even beginning to creep up in the third week of April. 

The average CPC on Facebook and Instagram in the region was $0.22 for the week commencing 20 April, up 22% from $0.18 in the week beginning 23 March. However, this is still only two-thirds of what the average figure in February of $0.30.

The picture is slightly worse in North America, where the average CPC on Facebook-owned platforms was $0.27 in April, compared with $0.32 in March and $0.40 in February. 

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