Several factors could have contributed to the increase in Facebook's average CPM. One of the main factors is the increase in online spending due to the pandemic. As more people turned to online platforms for shopping and entertainment, the demand for online advertising increased, leading to a rise in the cost of impressions. Additionally, Facebook's large user base and high engagement rates make it an attractive platform for advertisers, which could also drive up the cost of impressions.
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Since the pandemic accelerated online spending to $26.7 trillion in 2020, the average starting cost of 1000 impressions for a Facebook ad went up with it. For example, the average starting CPM in 2019 was around $5.12, but by May 2020, it had risen to $7.19. In October of 2021, Facebook's average CPM is $11. Now compare that to TikTok, which brings in $1.3 billion in annual ad sales. In 2020, Facebook generated around $84 billion. In fact, for every one dollar per user TikTok makes, Twitter makes five, YouTube makes seven, and Facebook and Instagram make nine.