The year is coming to an end. Accordingly, it is possible to analyze how Facebook ads have developed in 2020. What has happened to the CPC, the CPM and the CTR on Facebook? Zweidigital has analyzed this for BASIC thinking.
Facebook revenue continues to grow in 2020
For many companies, entrepreneurs and self-employed people, 2020 was and is a difficult year. And the outlook for 2021 is also subdued, to say the least. Facebook has come through the crisis seemingly unaffected.
The social network was able to increase its revenues continuously throughout the year. In the third quarter of 2020, revenues amounted to $21.2 billion. That is 22 percent more than in the same period of the previous year.
And Facebook’s profit also continues to grow. This amounted to 7.85 billion US dollars in the period from July to September 2020. Compared to 2019, this represents an increase of more than 29 percent.
This is how the prices for Facebook ads have developed in 2020
What remains constant, however, is the role Facebook Ads play in the financial picture. For example, revenue from Facebook Ads again accounted for well over 90 percent of Facebook’s revenue in 2020.
But how did the crucial key figures around Facebook Ads develop in 2020? The digital agency Zweidigital has evaluated this exclusively for BASIC thinking.
The basis for assessment is 1,764 Facebook campaigns with a total budget of 5.615 million euros.
1. price development of the Facebook CPC 2020
Let’s start with a look at the CPC – i.e. the cost per click. These had settled at around 35 cents at the beginning of the year. Due to the start of the Corona crisis, prices initially fell. In the following months, there were strong fluctuations.
Then, in November 2020, a price rally began due to the international shopping events. For example, the Facebook CPC was 59 cents on Black Weekend. Since then, the costs are lower again – but at a higher level.
- Facebook CPC Average: 0.32 cents
- Facebook CPC maximum: 0.59 cents (week 48)
- Facebook CPC minimum: 0.22 cents (week 17)
2. price development of the Facebook CPM 2020
A similar development can also be seen in the CPM or the CPT. Compared to the CPC, the so-called thousand-contact price showed fewer fluctuations overall over the course of the year.
There was also a slump in the spring. However, this was less pronounced. The average in the first three quarters was 3.29 euros. It was not until the fourth quarter that prices picked up significantly. The maximum price of 8.82 euros was reached on Black Friday.
- Facebook CPM Average: 3.81 euros
- Facebook CPM maximum: 8.82 euros (week 48)
- Facebook CPM minimum: 1.99 euros (week 12)
3. development of Facebook CTR 2020
The third key performance indicator for Facebook Ads is the click-through rate or CTR. This has developed relatively consistently throughout the year. Only at the beginning of the year were there some fluctuations. However, these had nothing to do with the Corona crisis.
But why is the Facebook CTR independent of positive and negative events? The answer is simple: the click rate depends only on the relevance of the ads. As long as marketers set up good Facebook campaigns, they will be rewarded with a good CTR.
- Facebook CTR Average: 1.183 percent
- Facebook CTR maximum: 1.68 percent (week 48)
- Facebook CTR minimum: 0.77 percent (week 12)