Promoted Posts are getting more expensive in terms of Paid reach on Facebook

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It’s been a challenging Quarter around for Digital Marketers and Media Buyers at Opus Communication in terms of giving results to our clients, but so far satisfied them all. Most of the people in the Digital Marketing Industry especially Page Admins have known for quite a while, Facebook’s organic reach is becoming more hard to pin down. But a study by Flightpath shows paid reach on Facebook is also getting increasingly expensive.

Flightpath tracked and analyzed the Cost Per Impression (CPM) of three of its major clients, concluding that paid reach has grown from roughly $3 in February to more than $10 in June 2014.

Team at Flightpath elaborates the issue by writing:

“There is always the possibility this decline in paid reach was caused by minor changes in content and scheduling but for the most part we have followed a consistent campaign strategy since implementing promoted posts. It seems highly unlikely that we would see this trend across multiple clients all within the same time frame.

One thing to note is that although paid reach decreased, engagement levels appeared to remain the same.

So what does this mean? It’s hard to say for certain but it could force companies to dish out even more money to reach the same number of fans. In other words, expect the cost of effective promoted posts to rise (especially as more and more brands start to utilize this advertising option).”

We at Opus forecast that brand managers will have to ask their digital marketers to focus on narrowing the targeted audiences on promoted ads, bidding Facebook ads to increase engagement rates and ramping up influencer marketing strategies to see continued success on Facebook.

Here’s a look at the graph showing paid reach over time.

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Images courtesy of Flightpath.
Salman Naeem

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