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CPA is down 9% across E-Commerce Companies 📉

CVR is Down 27% for E-Commerce Companies 📉

CTR Decreased 11% in North America 📉

CPM is down 10% across all Advertisers Spending $5k+/Month  📉

Marketing Movements - January 2022

The turn of the new year started to mark the very end of a very busy festive shopping season which saw advertisers from all vertices spend aggressively on paid media in order to push their festive deals & reach revenue targets.

 In January we started to see a normalization of key metrics across Facebook as CPMs across all advertisers spending $5k+ Month, came down by 10%+ which is due to the decreased auction bidding wars happening between advertisers in January. Ecommerce businesses also started to see their CPA figures significantly drop by up to 9% which is in part due to the CPM decreases we noticed across all ad platforms as well.

Advertisers in North America might have suffered from a decrease in CTR, falling by an average of 11% however this was fairly foreseeable as Festive Deals no longer incentivise customers to click through and make purchases. Conversions rate also dropped pretty significantly as a result of less offers being present during January however the drop is of course being compared to very inflated numbers that are always seen in December so the sharp fall off conversions isn’t too irregular to see during this early period of the year. 

The turn of the new year also saw Facebook make several changes to the types of ads which are allowed to be run on their platform, but most noticeably, Facebook is now allowing Crypto related business run ads after the business obtains consent to do so. This opens the door to hundreds if not thousands of new advertisers to enter Auctions with their high budgets & aggressive goals which means the rest of the advertisers are of course likely to see even higher costs of CPMs in general across the year, just as we have for every single year in the past as well.

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