Facebook is one of the most known platforms worldwide and has grown monumentally ever since it was launched. It has now become a great advertising platform with so much potential and so much to offer. They have almost made 4 billion USD in revenue from advertising. Their ads come in a variety of options. You can choose to promote your page, posts on your Page, actions users took, or your website itself. Their focus has been increasing on native ads and retaining traffic on the site, and you can still send users to your website. Their ads are targeted to users based on location, demographics, and profile information, and a lot of these options are available on Facebook only. You need to understand that the businesses that genuinely succeed on Facebook ads are the ones that ask users to sign up and not buy. To be successful, you have to use low friction conversions. The users on Facebook are fickle and would most likely click back if you expect a significant commitment upfront, so you must stick to more minor things like filling out forms or giving email addresses to avoid failures. In this guide, you will go through Facebook ads and the possible revenue you can generate from them.
Facebook Ad CPM Rates by Country 2020
Here, we have segmented the Facebook Ad CPM rates according to country. However, it is essential to remember that Facebook offers some of the best CPM rates available.
Facebook Ad CPM Rates in India 2020
The CPM rates for Facebook ads for Indian traffic varies from 30 cents to 1.5 USD and are highly dependent on the niche of the content and the engagement from the audience. You can expect the CPM rates to be well under 1 USD, primarily for Indian traffic. However, if your posts are long, you could place 3-4 ads on your site and earn a CPM rate of over 2.5 USD. According to the number of ad units on your page, you can expect an RPM of around 2 USD. However, if your content is purely technology-based, your CPMs would be much higher. These articles tend to get 1.5X higher page views than website traffic and can be an oomph to the overall earnings. The CPM rates for the technology niche for Indian traffic would be around 1.5 USD, and you can extend it to over 6 USD by adding a couple of ad units on your page.
Facebook Ad CPM Rates in the US
It is no surprise that the tier 1 countries get the best CPM rates and the USA pretty much tops the list. It is important to remember that the USA advertisers achieve much higher CTRs than any other country, so the extremely high CPM rates are justified. It is also important to remember that other such factors like the kind of engagement, the quality of the ads, and more. The average CPM for Facebook Ads for the USA traffic is 7.34 USD. However, their CPCs are much lower and are just 1.10 USD.
Facebook Ad CPM Rates in the UK
The UK is another tier 1 country, and you can expect pretty good CPM rates out of it. However, it is not the case for Facebook advertising. The average CPM for Facebook Ads for UK traffic is just 3.15 USD. Also, their CPC rate is just at an average of 78 cents. Thus, even though the USA and the UK present a very similar market, there is a significant difference in the CPM rates offered. The problem is that the CTRs are much lesser here. Therefore, the advertising cost in the UK is considerably lesser than in the USA.
Facebook Ad CPM Rates in Indonesia
It is a fact that the CPM rates are lower for countries in the Asian region and around the Pacific region. However, Indonesia seems like an exception because they get much better rates than the other countries. It is important to remember that the CTRs here are very low and range from 0.01%-0.05%, because of which they get an average CPM of about 20 to 40 cents. Also, their CPCs vary from 15 t0 25 cents.
Facebook Native Ad CPM Rates
Native advertising is one of the most popular forms of advertising at the moment. This is when the created ads are very cohesive and natural and are conglomerated with the design of the content and consistent with the platform’s behavior that it seems that it is a part of the content. Some of the most famous examples of it are promoted search results and sponsored social media posts, and they give the same kind of organic search result to make it feel very organic. The non-disruptive nature of these ads makes them very preferred.
Facebook Video Ad CPM Rates
Video ads have become increasingly popular to retain the audience’s attention better and better engagement. They have turned out a great way to connect with the audience because they are highly preferred. Anyone would rather watch a video than read up an ad. Facebook vouches to provide whatever solution you are looking for. You can put it on your feed, where people share ideas and inspiration or stories to create and engage just like your customers do. You can also choose to make it in-stream and create advertising that plays in the videos people watch.
Facebook CPM Rates for Apps
With the advent of better technology, people have shifted from other devices to mobile phones, and they are more used than other devices. This is because people depend on their cellular devices for so much. Owing to this, the generation of ad revenue because of mobiles and apps increased. In 2017, 25% of the total ad revenue was generated from mobiles, and a large chunk of it was developed from apps. It has only grown since. Therefore, you can expect a CPM rate higher than 5.5 USD, but that is dependent on a variety of factors.
The Best Performing Niches for Facebook Ad
In general, technology and e-commerce are a perfect niche and will bring you higher CPMs, as you have already seen in the example given above. On Facebook, Fitness is a very popular niche, and even though broad, you can focus on it. It is highly profitable because everyone has become insecure in the age of digitalization. The niche of Cannabis is spread across the USA, and the industry was expected to hit $19.4 billion in 2020.
You must have gained an insight into how efficiently Facebook ads work. Facebook has become one of the largest platforms to advertise on, clearly so, because of the vast number of users that use Facebook. This article must have given you a fair idea about the potential revenue capacity from Facebook. I hope this helps.
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