CPC (cost per click) is one of the important indicators in programmatic advertising.
When delivering ads with IMP billing recommended by Meta, Facebook ads
“CPM” and “CTR” influence the rise and fall of this CPC.
※Glossary
CPM: cost per million. Cost of 1,000 impressions
CTR…Click through rate. The ratio of clicks to ad impressions.
■What are CPM and CPC in the first place?
Facebook's CPC is calculated with the following formula:
・Calculation formula of CPC
CPM ÷ Clicks (1,000 impressions) = CPC
If CPM is 4,000 yen,
If 10 clicks out of 1000 impressions, CPC can be calculated by the following calculation.
4,000 yen ÷ 10 times = 400 yen
One way to reduce CPA in Facebook ads is to reduce this CPC.
In other words, you can see how cheap CPM and high CTR need to be.
■ Summary of CPM fluctuations (January 2020 to December 2021)
This time, we summarized the seasonal fluctuation factors of “CPM”, which is one of the important indicators.
*Referring to some figures of projects currently being managed by our company
This table is a graph of the CPM transition of advertising accounts (overall) that our company has been requested to operate as an agency by our clients.
There is a change every month in a year, and there is a difference of about 1,000 yen between the highest price and the lowest price.
The average CPM value for one year is 1,730 yen, but this average value is exceeded in March, April, May, November, and December.
June to August is the period with the lowest CPM of the year, with the lowest CPM value of 1,476 yen in August.
1,541 yen in June followed by 1,602 yen in July, resulting in a low CPM value.
Since the figures are only for the advertising accounts that we act on behalf of,
I apologize in advance that it is not the same as CPM trends for Facebook ads as a whole.
As can be seen from this, the following tendencies are presumed.
・ CPM tends to rise in the closing month
March and December, when we have a lot of financial statements, are the months when it is easy for the advertising industry to spend the excess budget. It is a well-established theory that CPM and CPC are likely to increase when each company scrambles for a limited amount of advertising space, but Facebook advertising seems to be affected by this without exception.
・ Fluctuations due to the number of corona infected people
Over the past two years, the world has been in turmoil due to COVID-19, and it is believed that the CPM of Facebook ads has also been greatly affected.
Japan's first state of emergency was declared in April 2021, but the CPM figures are very low compared to other months. After that, while calming down, the CPM value decreased when the infection spread again in January 2021.
Until the number of infected people decreased sharply in October of the same year, CPM was maintained at around 1,000 yen.
CPM values have risen sharply since October, when the state of emergency was lifted.
Due to the number of infected people, we are forced to take a leave of absence, and we cannot activate economic activities.
It is speculated that the CPM fell because advertising activities also became passive accordingly.
■Summary
For the two years from 2020, it is thought that the CPM value of Facebook ads was going back and forth due to Corona.
In recent years, it is considered that the situation is becoming less affected than before due to the increase in the number of people who are vaccinated and the world's familiarity with corona.
It depends on the industry, but companies that were actively advertising and attracting customers even at the time of the increase in the number of corona infected people said that the CPM was on an upward trend, saying, "Even though I was able to attract customers with a low CPA before, I think it's becoming easier for the phenomenon of "CPA to rise recently" to occur.
Regarding this, because the timing of the increase in the number of corona infected people was irregular,
Considering the current CPM, etc., we think that it will be necessary to reorganize the customer attraction activities with an appropriate CPA.