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State of the Screens

Why You Should Be Prepared for Facebook Ad Prices to Rise

By February 12, 2018No Comments

How much will recent changes to Facebook’s newsfeed impact ad prices? The answer could be quite a bit.

The math. Wall Street believes that Facebook’s revenue will continue to rise even as average time spent dropped 5%. This could be accomplished by either increasing the ad load and/or raising the average CPM $.

The projected price increase for Facebook advertising:
1) Next 3 months: +25%
2) Next 6 months: +48%
3) Next 12 months: +79%

This is on top of the 20% increase between Q4–2016 and Q4–2017.

Bottom line. This coming fall it could cost $2.15 to get the same impact that you got for $1.00 in Q4–2016.

Facebook is also preparing the launch of pre-roll ads on their Watch platform. Videos on this platform have garnered 50%+longer view times than the newsfeed.

Ad increases are not limited to Facebook.

The cost per click on mobile search rose 25% in 2017.

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.