The cost-per-mille of advertising on social media was 5.33 U.S. dollars in the second quarter of 2023. In other words, advertisers had to pay this much to have their ads viewed by a thousand potential customers. Social media CPM is usually higher in the final quarters of each year. The surge in costs is prompted by increased demand for advertising space during that time, as brands compete to win over prospective clients.

Is social media advertising profitable?

According to recent calculations, social media impression numbers have improved year-on-year by close to 20 percent, which means that more and more advertising is viewed by social network users. However, this is mainly true for more passive types of ads such as video or stories. When it comes to traditional forms of advertising on social media the situation is reversed – clicks and clickthrough rates are decreasing. It might be because of this ever-changing environment that global marketers are divided on whether or not they are able to measure social media marketing ROI.