Meta Ads’ price drop, and how it impacts your charity’s tax campaign.
Ad impressions are up by 26%.
But ad users are up by only 2%.
So why is ad space getting cheaper?
According to Meta’s first quarterly report of 2023, “price per ad” is down 17% this year. This possibly means that Meta is increasing ad inventory available per user. Ad inventory is the total amount of advertising space that Meta has available for advertisements at any given time.
So, what does this mean for your not-for-profit’s end of financial year campaign? Let's take a closer look.
Keep an eye out for decreasing advertising prices this Tax Time.
With Meta increasing ad inventory, charities *may* be able to secure cheaper ad space during this Tax Time season.
But we put a BIG caveat here. Traditionally, EOFY prices spike hard across the board, and while a drop in ad price might be showing in the US, it can be a different story here in Australia.
However, we recommend keeping an eye on metrics like Cost-Per-Mile on your live campaigns to see if this is the case, and make channel and budget decisions accordingly. Cheaper ad prices will allow charities to stretch their budgets further and reach a wider audience.
Embrace video content and use this as an opportunity to test new advertising creative on Reels.
With Meta providing content creators broader options to monetise reels through ads, it’s highly likely that most of any new advertising space will be on Reels. Charities can take advantage of the increased ad density and test out new advertising creative on Reels. This is a prime opportunity to showcase compelling video content that resonates with your target audience.
Take a look at our latest article for how you can make your creative stand out.
Take full advantage of Meta’s ad targeting tools.
Meta’s advanced targeting options allow charities to reach their target audience with precision. That’s why it’s still one of the most important advertising channels for charities.
In particular we encourage you to:
Use Meta’s first-party data targeting options to directly target your donor database.
Create lookalike audiences of your existing donors so you can find more just like them.
Use Meta’s third-party data targeting options to find people based on interests, behaviours, demographics and more to ensure your ads reach the right people.
Despite the price drop, advertising on Meta during EOFY will most likely remain expensive, and competitive.
Despite the decrease in the price per ad, advertising during EOFY will remain expensive. With numerous commercial organisations and charities competing for limited ad space, charities will need to carefully plan their campaigns and target their ads to stand out from the crowd.
Don't over-rely on Meta ads, instead build an omni-channel approach
While Meta's increased ad inventory presents a unique opportunity for charities, it's important not to over-rely on this platform. Charities should consider diversifying their advertising efforts across different channels, including Google, display, and programmatic advertising, to reach as many potential supporters as possible.
According to McKinsey, getting omnichannel personalisation right could help increase revenue by 5 - 15%.
The increased ad inventory on Meta could be a good thing for charities during the upcoming end of financial year season. We recommend you test out video ad creative, advanced targeting options, and keep an eye on advertising prices. However, with increased competition on the platform, it's important to carefully plan campaigns and diversify advertising efforts across multiple channels to maximise impact.