Understanding CPM and RPM Rates for Facebook Ad Monetization
Facebook advertising presents a major opportunity for publishers and content creators to monetize their content.
With over 17.2 billion monthly active visits, Facebook provides unparalleled reach for displaying ads alongside videos, images, posts and more.
But how much can you really earn from Facebook ad monetization?
In this post, we’ll break down the key metrics of CPM and RPM to help you estimate your potential Facebook ad earnings.
What is CPM and RPM?
CPM stands for “cost per thousand” and RPM stands for “revenue per thousand”.
These acronyms refer to the amount of money made per 1000 impressions or views of an ad.
CPM is the average amount that advertisers pay for every 1000 impressions of their ad.
RPM is the average revenue that publishers earn for every 1000 views or impressions of an ad displayed on their content.
Typical CPM Rates on Facebook
Facebook’s auction-based advertising model means that CPM rates can vary significantly based on factors like audience targeting, positioning, format and more.
However, average CPM rates tend to fall within the following ranges:
- Facebook feed CPM: $2 – $8
- Facebook story ad CPM: $10 – $12
- Facebook video ad CPM: $25 – $35
According to Facebook’s 2022 Q2 earnings, the average worldwide CPM across all ad formats on Facebook was $7.19.
This represents a 14% increase year-over-year.
Higher CPMs are associated with more targeted ad placements focused on specific demographics and interests.
Video ads also command much higher CPMs compared to image and text ads.
Typical RPM Rates on Facebook
While Facebook CPM rates provide insights into advertiser costs, RPM rates reveal the potential publisher earnings.
Facebook RPM varies significantly based on factors like:
- Ad format (video vs image)
- Audience demographic
- Ad placement
- Monetization method
Some typical Facebook RPM benchmarks include:
- Affiliate marketing: $1 – $2 RPM
- AdSense: $0.50 – $2 RPM
- Video ads: $1 – $3 RPM
- Lead generation: $2 – $5 RPM
According to recent studies, the average Facebook RPM in 2022 is around $1.60.
However, with effective audience targeting and high-converting offers, RPMs of $3 to $5 are certainly achievable.
Compared to other platforms like YouTube (average $3 RPM), Facebook RPMs tend to be lower.
However, Facebook offers more overall ad inventory and impression volume potential.
(Ad Impressions x Ad CPM) / 1,000 = $ Earnings
CPM on Facebook ranges from $1 to $8.50 for 1000 views.
Then after Facebook deducts their 45%, the Publisher get 55% of the Ad revenue.
So, Facebook Publishers get paid anywhere from $0.5 to $4.25 for every 1000 views (RPM).
The actual amount varies depending on the Niche or Topic of the video, Location of your viewers, Length of the video and Watch-time.
Estimating Earnings from Facebook Ad Views
So how can you translate these CPM and RPM benchmarks into estimated earnings?
Here are some examples:
Earnings for 1,000 ad views:
- At a $2 RPM rate, 1,000 ad views would generate around $2 in revenue
- At a $4 RPM rate, 1,000 ad views would generate around $4 in revenue
Earnings for 10,000 ad views:
- 10,000 views x $2 RPM = $20 revenue
- 10,000 views x $4 RPM = $40 revenue
Earnings for 100,000 ad views:
- 100,000 views x $2 RPM = $200
- 100,000 views x $4 RPM = $400
Earnings for 1 million ad views:
- 1,000,000 views x $2 RPM = $2,000
- 1,000,000 views x $4 RPM = $4,000
As you can see, the potential earnings from Facebook ads can add up quickly, especially with high traffic volumes.
Maximizing RPM should be a top priority.
How to Increase RPM on Facebook
Here are some proven tips to help boost RPM from Facebook ads:
- Leverage video ads – Video ad formats tend to deliver higher RPMs on Facebook. Prioritize video over image/text.
- Use detailed targeting – Precise demographic, interest and behavior targeting will increase your CPMs and RPMs.
- Test different placements – Not all ad positions have equal impact. Find the most lucrative placements.
- Optimize landing pages – Ensure your landing pages maximize conversion rates after clicks.
- Experiment with ad formats – Play around with different ad sizes and types for your niche.
- Try multiple monetization models – Affiliate links, lead gen, product sales, etc can all be viable.
Comparing Facebook RPM to Other Platforms
To put Facebook RPM rates in context, here’s how they compare to some other top platforms:
- YouTube: $3 – $5 RPM
- Instagram: $1 – $2.50 RPM
- TikTok: $2 – $4 RPM
- Twitter: $1 – $2 RPM
- Pinterest: $0.50 – $1 RPM
YouTube and TikTok offer the highest earnings potential per thousand views.
However, Facebook’s massive reach and huge variety of ad placements make it a key platform for publishers.
Using CPM and RPM Data to Estimate Facebook Ad Earnings
Let’s walk through some examples of how publishers and creators can use CPM/RPM benchmarks to estimate potential Facebook ad earnings.
Estimating earnings from Facebook Page post ads:
- You have a Facebook Page with 100,000 followers
- Average organic post gets 40,000 impressions
- You decide to “boost” the post as an ad to reach more users
- The boosted Facebook Page Post ad receives 80,000 impressions
- Average Facebook feed ad CPM is $7
- Average Facebook feed ad RPM is $2
- 80,000 impressions
- $7 CPM
- That’s $560 earned by Facebook from the advertiser
- With a $2 RPM, as the publisher you would earn around $160
- Run 10 boosted page post ads per month = $1600 potential earnings
Estimating earnings from monetized Facebook video ads:
- You upload an engaging 2 minute video to Facebook
- The video receives 300,000 organic views
- You “boost” the video post to reach more users.
- The boosted video ad receives 600,000 impressions
- Average Facebook video ad CPM is $30
- Average Facebook video ad RPM is $3
- 600,000 impressions
- $30 CPM
- $18,000 earned by Facebook from advertiser
- With a $3 RPM, you as publisher earn $1,800
- For 10 similar videos you could earn $18,000 in revenue
As you can see, the earnings potential is significant, especially from high value video ads.
CPM and RPM benchmarks provide estimates to guide your Facebook video and advertising strategies.
Frequently Asked Questions
What is a good RPM rate on Facebook?
A good RPM rate on Facebook typically ranges from $1 to $3. Top performing content niches can achieve $5+ RPM.
But between $2 to $3 RPM is an attainable benchmark for most publishers.
How do you increase RPM on Facebook?
Some tips for increasing Facebook RPM include:
- Boosting high-performing posts, especially video
- Using precise audience targeting to raise CPM bids
- Testing different ad placements on page
- Using video and native ad formats over image/text
- Driving clicks to high-converting landing pages
How do Facebook ads pay publishers?
Facebook pays publishers a share of the revenue generated from ads displayed on their content.
On average, publishers earn 55% of the total ad revenue. Facebook’s minimum payout threshold is $100.
What pays more YouTube or Facebook?
On average, YouTube RPM rates are higher at around $3 to $5 vs $1 to $3 on Facebook.
However, Facebook has more ad inventory and impression opportunities.
The platforms are best used together with a cross-promotion strategy.
Can you make money from 1000 Facebook views?
Yes, you can absolutely generate revenue from just 1000 Facebook views.
At an average RPM of $2, 1000 views would earn around $2.
With 10,000 views that jumps to $20. While the revenue from low thousands of views is small, it adds up over time.
In summary, analyzing CPM and RPM rates provides a benchmark for estimating potential earnings from Facebook ad monetization.
While actual revenue varies based on content and audience factors, CPM and RPM metrics offer insights to guide your Facebook ad and video strategies.