On April 28, Facebook released their earnings report, showing that the company doubled its Q1 earnings compared to last year. Compared to 2020, advertising was up 146% while daily active users increased by 8%.
According to the CFO outlook, the reason for the increase was driven mostly by an increase in ad prices. “We are pleased with the strength of our advertising revenue growth in the first quarter of 2021, which was driven by a 30% year-over-year increase in the average price per ad and a 12% increase in the number of ads delivered.”
Lauren Clawson, social media team lead at Portent said that they saw an increase in both CPC and cost-per-purchase across their client portfolio regardless of industry.
With the increase in ad prices, more than likely predicted revenue increases are expected to keep going.