The cost-per-mille of advertising on social media was **** U.S. dollars in the fourth quarter of 2024. In other words, advertisers had to pay this much to have their ads viewed by a thousand potential customers. Social media CPM is usually higher in the final quarters of each year. The surge in costs is prompted by increased demand for advertising space during pre-Christmas time, as brands compete for a share of the typically high consumer spending. Is social media advertising profitable? According to recent calculations, social media impression numbers have improved year-on-year by close to ** percent, which means that more and more advertising is viewed by social network users. However, this is mainly true for more passive types of ads such as video or stories. When it comes to traditional forms of advertising on social media the situation is reversed – clicks and clickthrough rates are decreasing. It might be because of this ever-changing environment that global marketers are divided on whether or not they are able to measure social media marketing ROI.

In the second half of 2023, the average cost-per-mille (CPM) of programmatic out-of-home (OOH) advertising in the United States grew by nearly one percent to 7.24 U.S. dollars. In residential venues, the average CPM grew by 10.6 percent to 8.24 dollars. The average CPM for programmatically bought transit displays increased by over 11 percent to 6.4 dollars, making it the fastest-growing venue category during the second half of that year. Programmatic digital out-of-home (known as pDOOH or prDOOH) advertising is a growing trend among OOH marketers worldwide.

Among the countries/territories presented in the dataset, Facebook’s highest advertising cost-per-mille (CPM) was in the United States, valued at 35 U.S. dollars in the third quarter of 2021. For comparison, the lowest CPM, one U.S. dollar, was recorded in Pakistan.
What are other Facebook advertising costs and metrics?
Cost-per-click (CPC) is another popular metric when it comes to advertising on the social platform. Globally, the average CPC on Facebook stood at 63 cents at the end of 2018 . Certain studies reveal that CPCs vary depending on the marketing campaign objective. This means that campaigns aiming at app installs, lead generation and product catalog sales are the most expensive, whereas campaigns targeting post engagement, messages and video views are on the opposite side of the spectrum. How does Facebook compare with other social media among marketers?
The majority of marketers indicate that Facebook is the most important social platform for their business, with a staggering 40 percent lead over LinkedIn and even Facebook’s own platform - Instagram. However, with recent data breaches Facebook has seen some decrease in growth. Its position is still strong enough that marketers increase their spending on the social network. However, Instagram seems to be overtaking the older brother, and more industry professionals are planning to increase investments in the photo sharing platform than in Facebook.

This statistic presents the average cost-per-mille (CPM) of Facebook advertising campaigns worldwide as of March 2018, by campaign objective. According to the findings, product catalog sales had the highest average CPM among the various objectives listed, with a value of 4.77 U.S. dollars. The average Facebook ad campaign CPM was listed at five U.S. cents.

Global Internet Advertising Market size valued at US$ 556.16 Billion in 2023, set to US$ 1445.91 Billion by 2032 at a CAGR of about 11.2% from 2024-2032.

In 2018, programmatic marketers in Sweden paid on average 7.01 U.S. dollars per mille or thousand impressions for a programmatic advertisement. Although this cost per mille (CPM) decreased by more than three U.S. dollars compared to the previous year, it generally grew in the past years. In 2012, the amount was only 1.44 U.S. dollars on average.

What are programmatic advertisements? Programmatic advertising is a rapidly growing software-based method to automatically trade ad content in real time. Advertisers use user information, like demographics, interests, or behaviors to individualize the ads. As of 2017, the spending on programmatic advertising in Sweden was nearly 2.2 billion Swedish kronor, up from roughly 1.36 billion kronor generated the year before. Furthermore, it is expected to reach over 3.6 billion Swedish kronor in 2020.

Which other payment models are possible for programmatic ads? In contrast to traditional advertising, programmatic ads do not have fixed prices per campaign. Apart from cost per mille, there are other payment models for programmatic advertising, for example cost per click (CPC), cost per lead (CPL), and cost per order (CPO).

In mid-March 2020, during the coronavirus pandemic outbreak worldwide, brands had to pay on average around 81 U.S. cent for a thousand impressions on Facebook ads. This figure represents a significant drop from the CPM of 1.88 U.S. dollars posted in November 2019, indicating that Facebook advertising has become cheaper in light of COVID-19 impact on social media usage..

Search advertising cost-per-mille (CPM) in Ukraine grew by 57 percent in August 2022 relative to the period from August to October 2021. On the other hand, in-stream advertising CPM fell by over 60 percent over the same period.

In January 2024, the mean cost-per-mille (CPM) of an active ad in the Meta ecosystem (Facebook, Instagram, Messenger) stood at 1.27 euros. The median CPM dropped down to 0.86 euros, from 1.09 as of the last month of the previous year.

Between May 9 and July 14, 2024, cost-per-mille (CPM) on Facebook and Instagram in the United Kingdom (UK) oscilated between 4.35 U.S. dollars and 9.82 U.S. dollars. UK to emerge as third largest market As of 2022, the UK was the third largest market globally - behind the United States and China - for social media advertising. By the end of 2023, the industry is expected to generate approximately 14 billion U.S. dollars. Furthermore, the United Kingdom and Germany were two European markets to be featured in the top five within the industry globally. Mobile advertising takes the lead Annual revenue growth has also been forecast for the industry until 2027. The average revenue generated per internet user for social media ads in the UK was recorded at nearly 223 U.S. dollars in 2022. By 2027, this is expected to reach approximately 265 U.S. dollars. Most of this will be generated through mobile advertising, which is forecast to make up a significantly larger share of advertising each year over desktop.

In the first half of the financial year 2024, the cost per mille incurred by advertisers on gaming platforms was the highest across all sectors, with the beauty and personal care sector paying a CPM of 430 Indian rupees. Meanwhile, the cost of advertising on over-the-top platforms and short-form video (SFV) platforms was comparable. The e-commerce sector spent 320 Indian rupees on SFV platforms surpassing the CPM of OTT platforms during that period.

Cost per mille or cost per thousand refers to the cost paid for 1,000 views or impressions by an advertiser.

Between July 1 and July 16, 2024, cost-per-mille (CPM) of ads on Facebook and Instagram in Italy oscillated between 0.70 U.S. dollars and 1.50 U.S. dollars. Social media ad spending in Italy was estimated at roughly 2.14 billion euros in 2024. A pullback in spending Aside from spending in advertising, investments in marketing actions are expected to be significantly reduced over the first half of 2020. A survey conducted among Italian professionals revealed that about 30 percent of them believed the coronavirus (COVID-19) crisis would result in a decrease in marketing investments of more than 30 percent. A similar percentage of respondents estimated a decline of 20 to 30 percent. Areas of (non) investment Italian companies might reduce their investment also in other strategic business areas. A survey conducted during the first week of national lockdown showed that 39 percent of companies would cut off investments in business development, while 33 percent stated they would refrain from launching new services or products.

Between May 9 and July 14, 2024, cost-per-mille (CPM) of ads on Facebook and Instagram in Germany oscillated between 2.56 U.S. dollars and 8.05 U.S. dollars. Social media ad spending in Germany was estimated at roughly 5.1 billion euros in 2024.

All digital advertising formats in Ukraine witnessed a fall in average prices in August 2022 relative to the period from August to October 2021. Search advertising in Ukraine experienced the largest decrease, at negative 96 percent. In particular, Ukraine's cost-per-mille (CPM) of search ads fell by over 60 percent during the observed period.

In March 2023, apparel and footwear was the industry with the highest click-through rate (CTR) for Facebook ads worldwide, at 2.06 percent. The lowest CTR was recorded for technology products and services, at 0.93 percent.

How is ad success measured?

Click-through rate - the number of times an ad clicked divided by the number of total views - is a commonly used measure to gauge the effectiveness of an online advertisement. In the second quarter of 2023, CTR for social networks stood at 1.36 percent. This marked an increase of 13 percent compared to the previous quarter. Cost-per-mille (CPM) - the price of each 1,000 views of ads on one web page - is another noteworthy metric to examine the success of an advertisement. In the second quarter of 2023, global social media ads' CPM was 5.33 U.S. dollars.

The most click-worthy industry: apparel

The most valuable brand from the industry with the highest CTR in 2023 was Oregon-based giant Nike, which had a brand value of roughly 75 billion dollars. Apparel companies have spent heavily on advertising not only to build immense brand awareness and value, but also to cater brand loyalty. For instance, U.S. apparel and accessory stores ad spend amounted to 531 million dollars in 2022. In the same year, the average consumer spend just for female apparel in the United States was around 730 dollars. As long as consumers keep clicking on ads for clothing and footwear items, the apparel industry’s ad spend can be expected to grow proportionately.

In December 2024, the average monthly cost-per-click (CPC) in Google Ads search advertising in the United Kingdom stood at 1.17 U.S. dollars and was the highest among the 38 countries presented in the data set. Among countries from Central and Eastern Europe, Montenegro recorded the highest CPC with 52 U.S. cents.

During the second quarter of 2023, the effective cost-per-mille (eCPM) for in-app banner ads for Android in the United Kingdom (UK) experienced a slight increase, raising from 0.27 dollars in April 2023 to 0.3 U.S. dollars in the last measured month.

The average monthly cost-per-click (CPC) in Google Ads search advertising in Israel in December 2024 was 1.12 US dollars, the highest among the 14 countries represented in the data set. UAE and Bahrain in second and third.  TV advertisement in MENA  The increase in TV advertisement spend in the Middle East and North Africa in 2020 was significantly lower than the previous year. In 2020, the average time spent watching television in Saudi Arabia was about five hours, compared to a lower figure in Kuwait. In 2020, total advertising spending in the Middle East and North Africa (MENA) region fell. In comparison, TV advertising spending in the MENA region is expected to exceed 2.2 billion U.S. dollars in 2022.  Advertising spending worldwide       Newspaper ad spending in the region fell significantly in 2020, while internet ad spending increased during the same period in the MENA region. The global advertising market, on the other hand, went through some rough patches between 2000 and 2010. However, the situation has stabilized since 2011, and advertising spending growth has also remained stable. The coronavirus outbreak in 2020 resulted in a significant drop in ad spend. According to projections, the industry's expenditure growth will return to around 7.6 percent by 2024, with the Internet serving as the primary advertising medium.

In 2024, programmatic advertising spending in Sweden stood at approximately four billion U.S. dollars. The figure was expected to increase to nearly six billion dollars by 2029. What is programmatic advertising? Programmatic advertising is the use of technology to purchase and sell digital advertising, fully automated and individualized in real-time. Thus, advertisers can effectively reach a specific audience because of targeted banners, videos, and spots based on user information, such as demographics, interests, or devices. Any platform and channel can be accessed, for example, out-of-home, television, and audio media. The spending on programmatic advertising worldwide has been growing steadily since 2017 and is forecasted to reach roughly 779 billion dollars by 2028. How to pay for programmatic advertising? Contrary to traditional advertising accounting methods, there is no fixed price per campaign. The marketer only pays if the advertisement is a success. Payment models include, for example, cost per click (CPC), cost per lead (CPL), cost per mille (CPM), and cost per order (CPO). For instance, in May 2023, the average monthly CPC in Google Ads search advertising in Sweden amounted to 0.79 dollars.