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Market demand pushes up cost of Facebook advertising for car dealers

Increasing demand has made it more difficult and expensive for car dealers to benefit from Facebook advertising with costs per click and per 1,000 impressions soaring in quarter four of last year.

Marketing agency HPS Group analysed more than 41 million ad impressions within the automotive sector to reveal the following on Q4 compared to the previous quarter:

• Costs per click increased by 15% in the automotive sector on Facebook adverts in Q4
• Costs per 1,000 impressions increased by 28p on average
• Adverts on Facebook desktop site most effected, with cost per click increasing by 32p
• The market is saturated market and Christmas, Black Friday and Cyber Monday were key reasons for these increases.

Due to higher demand, the automotive average cost per thousand impressions (CPM) has increased to £1.47. Right-hand side adverts remain the lowest priced at 47p as the least competitive placement, but their new, larger image display, these are likely to see their CPM rise. Cost per click (CPC) has risen by 4p on average.

>> HPS Group - Q4 2014 Auto Benchmark Report

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