Wednesday, April 10, 2013

Festive Times for Facebook CPC & CPM in Sri Lanka

Facebook CPC and CPM in Sri Lanka

As some of you might first ask what is this CPC & CPM? CPC is cost-per-click. You’re paying for every click that Facebook directs to you. And CPM is cost-per-mille. You’re bidding $X.XX for every 1000 impressions. Getting back to the topic; as many of you know it’s once again the festive season in sunny Sri Lanka. And during this period the CPC & CPM rates on Facebook tend to sky rocket as usual.The same trend was visible during the 2012 Christmas season. Social network advertising profits was predicted to reach $10 billion internationally by 2013, a number easily financed to by countries like Russia, Japan & Australia. If given a choice advertisers will choose CPC over CPM, because it gives them more control over the expenses.If you break it down CPC is mainly used to requisite a user action and CPM is used for visibility at the moment. Many Advertisers are terrified to take the plunge of going into CPM; because they have an uncertainty of their creative not getting user clicks.

According to Social Bakers the suggested CPC rate for Sri Lanka is about $0.09.There was a time where $0.03 was more than sufficient to run an effective Facebook campaign. What i noticed was since the beginning of the month the numbers of Actions by users who click on the Facebook ads have drastically reduced and the daily ad budgets have not being fully utilized. By tracing previous year’s trends i am under the impression it’s because advertisers in Sri Lanka are adopting more and more social media advertising and they are dumping money to get their message through to the final consumer.
Talking to some industry folk, the sentiments were Sri Lankan brands are spending more cash for clicks on their Facebook advertisements during festive seasons.All this heavy spending will create a ripple effect to the market on the long run.When the average CPC & CPM rates stay high for long periods Facebook’s will always bloat the price of a click to ridiculous proportions. As they have already done in the past. If you are one of the 552 million plus users who visits Facebook on a daily basis, you could have a feel that the number of advertisers are growing and its getting cluttered by the day. Facebook advertising rivalry between brands is reaching a point where advertisers need to spend more on clicks and impressions to showcase their banner ads for more visibility. A Higher CPC or CPM bid is more likely to be entertained by Facebook in front of its target demographic than a poorer bid, cause end of the day it’s all about the Benjamin’s.

Going through some of the statistics on Social Bakers &, countries like Russia and Japan was paying a lofty amount(Rs.160) per click during November 2012. Sri Lanka currently has an Internet penetration of around 12% ,as the prediction goes when it reaches about 45% in the year 2015 it will be very tough to find cheap clicks. Cause advertisers have already spoiled the market (E.g. Bangladesh). So, we as digital marketers are going to find a challenge of a lifetime because cheap clicks are going to be no more.


By the Year 2015 CPC will be unaffordable for most brands due to advertisers pampering the market. CPM will be the main way to survive in the digital advertising landscape. The creatively fittest will have more exposure to the end consumer. More and more creative ideas will need to be generated to stay on top and to get the CTR going towards your brand. The Madmen will always have to have the next big idea right around the curb where loads of research and development hours will need to be spent on finding the perfect ad mix. All in all, creativity and adjusting strategies will be needed continuously stay profitable.


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