Facebook and Instagram CPM (cost-per-mille) in the UK 2021

Cost-per-mille (CPM) on Facebook and Instagram in the United Kingdom (UK) dropped below 1.5 U.S. dollars in March and April 2020, as the coronavirus pandemic started to impact the advertising industry. Since May, the cost per thousand impressions has increased again, climbing consistently from week 44 to reach 5.53 U.S. dollars in week 48, the highest recorded figure since the first lockdown. After Google, both Facebook and Instagram command the second and third largest share of revenue generated from digital advertising in the UK. Instagram in particular is expected to see a larger growth leading up to 2021, with a forecasted revenue share of 9.4 percent, nearly double that of its 4.9 percent in 2018.

UK to emerge as third largest market

Even after adjustments made due to the expected impact of COVID-19, the UK is forecast to be the third largest market globally - behind the United States and China - for social media advertising. By the end of 2020 the industry is expected to generate nearly 6 billion U.S. dollars. The UK is also the only European market to be featured in the top five within the industry, globally.

Mobile advertising takes the lead

Annual revenue growth has also been forecast for the industry until 2024. The average revenue generated per internet user for social media ads in the UK was recorded at nearly 90 U.S. dollars in 2019. By 2024, this is expected to reach approximately 122 U.S. dollars. Most of this will be generated through mobile advertising, which is forecast to make up a significantly larger share of advertising each year over desktop.