Facebook Cut Ad Rates as Pandemic Sank Demand

Advertising spending on Facebook (NASDAQ: FB) has taken a big hit amid the COVID-19 pandemic, and the company has cut the rates it charges for those ad in recent weeks. 

Citing companies that run ads on the tech company's platform, The Wall Street Journal reported an ad that gets in front of 1,000 Facebook users cost 15% to 20% less in March compared to February. Wpromote, a digital marketing agency that handles $130 million in yearly ad spending on the social media platform, told The Wall Street Journal that Facebook's rates have declined 25% from February to March.

Meanwhile, 4C Insights, a marketing company that manages $350 million in ad spending on tech platforms, said ad costs on Instagram to get in front of 1,000 users dipped 22% in the same period. Total ad spending on Facebook and Instagram at 4C was up 2% month-over-month in March. But in normal times, the company would expect to have seen a 10% month-over-month increase.

Continue reading

Source Fool.com