In just the past few months we've seen the average FB advertising CPM (cost per 1000 views) drop an insane amount.
From $1.88 USD ($2.88 AUD) to $0.81 USD ($1.24 AUD).
That's a 43% drop in price in 4 months.
WHY ARE PRICES SO MUCH LOWER NOW?
In short:
COVID-19.
In long:
COVID-19 has forced more people online, more often, and more consistently throughout the day. This means there's a glut of consistent supply.
No more peak periods after 5 - 9 pm on weekdays, for example.
On the other side of the equation, big brands have stopped major campaigns and entire industries have pulled out completely - think travel, tourism, auto.
This means demand has eased up, creating a vacuum into which we're seeing these dramatically falling prices.
This will continue for as long as we're all in lockdown for.
HERE'S THE OPPORTUNITY
Now is the perfect time to start going all-in on your digital marketing campaigns.
The longer you wait, the more traditional agencies and the big brands they represent will jump back in - meaning more demand.
The closer we get to COVID-19 being finally over, the less people will be online as we head back to normality - meaning less supply.
That means prices will jump right back up, and you'll lose your chance at more eyeballs at a fraction of the price.
I'm not saying this will happen quickly. Just that it WILL happen.
No one can predict how long this pandemic will last for, but for as long as people are kept inside, the longer prices will remain low.
WHAT CAN YOU DO?
If I were you, I'd be pouring money into two areas:
- Your best converting offers
You want to be able to get consistent leads or sales each week through paid traffic. If you haven't got something working before, now is the time to get going. This is your consistent, short-term sales activation activity. Plus, the more buyers you can get onto your list, the better off you'll be over the long-term.
- Branding around your USP
More eyeballs, more often, spreading a consistent core message as to why you're unique within the marketplace will help with trust and act as a multiplier for your other campaigns. This is a long-term brand building activity, which supports your short-term sales activation campaigns. I'd advise against 'nothing', 'feel-good' statements, instead drilling into your core value propositions for your main demographics and clearly stating why they should consider your company.
Now that you've got some clues, what will you do with them?
Create some new campaigns and test them out? Or just carry on with what you're doing?
If you want to do this stuff but have no idea where to start, hit 'reply' and send me a message. I can help you out.
