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Companies are rethinking, digital ads as prices rise and targeting becomes more difficult

The cost of digital advertising is increasing, forcing companies and advertisers to reconsider their entire marketing strategy. At the same time that advertisements are more expensive, more difficult to identify, they are creating significant barriers to the entry of modern electronic businesses looking for their first clients.

Analyzing the CPM, or the cost per thousand view shows that the cost of advertising on Facebook is 33% higher than it was in Q3 2019 well before the Covid situation.

According to marketing company Tinuiti, Instagram costs per thousand appearances (CMP) have increased by 23% over the same period, while Google’s per click (CPC) cost have increased by 23%.

This is yet another example of how the pandemic has changed the way we do business and our lives. Advertisers backed out at the beginning of the Covid, but the lifesaving process accelerated the transition to digital, so when the economy reopened this year, advertising revenue went up sharply. The level of ads is increasing due to the intense competition for ad space.

According to Andy Taylor, CP research analyst, digital marketing platforms are more competitive than even before. The price is always up for most advertising.

With each click on per impression, one e-commerce VP especially for consumer cosmetics product tells Axios that the company’s digital ads are now 50% cheaper than they were in January.

As ad prices rise, so do consumer capabilities targeted social media, thanks to Apple’s new changes that prioritized data protection. Instagram and Facebook CPM’s are actually starting to get on the roof, the e-commerce manager says their identification is worse than before. Due to rising costs and poor return on investment, some companies have recently begun moving their advertising budgets to other areas such as TV broadcasting, regular TV, and even direct mail.

The cost of these solutions have increased and, albeit slower in the past, according to the officials. Of prices remain high, the impact on firms seeking their first customer waves can be felt. For digital consumers of businesses dealing with businesses like Warby Parker and Allbirds, the leisure time may be cover.

This is very difficult time to start. Many of them previously relied heavily on social media to keep tract of their business. They usually have limited marketing budgets, and you need to see a return on your investment, as an e-commerce manager.

Illustration: FreePik
Read next: Facebook Highlights the Need for Diversity in Advertising in New Report

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