CPM is inversely proportional to audience size, so when targeting custom lists of constituents (active donors, lapsed donors, on-file nondonors, etc.), advertisers continue to see even more elevated costs. Within the nonprofit sector, Meta’s CPMs are ranging from the high teens to $30, and in some cases even higher.
Prospecting costs have also increased, due to less-precise algorithmic targeting, which requires a greater number of signals to optimize. Following the release of Apple’s iOS 14.5, Meta projects that it lost approximately 60%, if not more, of available signals and data points. Meta’s algorithm, which historically could optimize based off signals of audiences of 5,000 or more, now requires audiences in the hundreds of thousands to achieve similar results. Additionally, Meta’s decision to remove social issue targeting from the platform has adversely and disproportionately impacted the nonprofit sector.
CCAH is working closely with our clients and can help your team in the lead-up to, and during, year-end fundraising to ensure an appropriate media mix and targeting strategy, to balance revenue with new donor acquisition.
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