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Facebook Ad Price Increase..How Does It Affect Small Businesses?

As stated in The Wall Street Journal’s “Facebook Ads Become ‘Costlier’ Choice for Small Business, Facebook recently announced that it increased the average per ad price by 123% since last year. However, ad impressions declined by 25%, while Facebook’s revenue rose 67% to $2.68 billion. What does this mean for small-businesses? It means they will be paying more for ads even if they don’t result in sales.

According to Dave Wehner, Facebook’s chief financial officer, “The price of ads correlates to the value that they create. We continue to focus on making those ad units better and better, more relevant and targeted for the people who use Facebook, as well as for marketers.” However, some small-business owners do not agree. Nathan Latka, Chief Executive of, feels that this is “great news for Facebook’s top line, but it buries the small-business owner who has a limited ad budget.”


Facebook can be a great marketing tool for businesses as long as they have the means to sustain a successful campaign. Small businesses are at a disadvantage because unlike larger organizations, they don’t have the financial ability or a department dedicated solely to creating a successful social-media ad campaign, including designing the ads, tracking their reach and constantly updating to sustain effectiveness.

In an April survey of 728 small-business owners, 83% said they aren’t going to spend anything this year on Facebook ads. Could the value of using Facebook as a marketing tool be weakening? Share your thoughts!

To read the full article, click here.

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Saturday, 23 October 2021

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