Facebook Pre-COVID-19 vs May 2020 for identical ad campaigns:
The news is out that during the pandemic, social media usage increased a significant amount. I wanted to dive into how Facebook/Instagram recruitment ads performed during the pandemic in the month of May versus before the pre-pandemic timeframe of January 1 – February 29. Luckily, one of our clients hires food delivery drivers (think UberEats, Grubhub, Postmates, etc…) and has run campaigns using the same ad copy in the same markets both during the shelter at home orders as well as before. Here’s what I found:
Cost per 1,000 impressions: Pre-pandemic, the cost of 1,000 impressions was $14.92 vs $10.67 during shelter at home. As I mentioned above, social media usage is up during the pandemic, meaning there is more ad inventory and thus a lower cost per impression.
Cost Per Click: $.53 vs $.54. Negligible difference. It turns out more ad space doesn’t necessarily mean a lower cost per click.
Cost Per Application: $3.42 per application vs $6.49 during the pandemic. This is an interesting one – the cost per application went up a significant amount. Anecdotally, this could be attributed to stimulus checks, the extra $600 per week from unemployment, or the fact that people don’t necessarily want to be delivery drivers during a pandemic and expose themselves to risk. Jury is out on this one.
Click Through Ratio: 2.81% pre-pandemic vs. 1.98% during the pandemic. This could be attributed to the above statement regarding risk or the fact that more inventory means the Facebook algorithms aren’t as focused on who receives the ads as they have inventory to use.
What I find interesting is the application cost. Intuitively I thought it would decline because unemployment numbers are the highest in recent history, yet the cost of applications are up significantly. Thoughts?