Over the past six months, the amount of money publishers spent to distribute branded content on Facebook has risen dramatically, according to Keywee, a content marketing tool. In the fourth quarter of 2017, spending on branded-content distribution leapt 159 percent year over year and is still on an upward trajectory.
The reason? To some extent, that uptick was driven by growth in branded content, with more content studios producing more campaigns that require more paid distribution. However, higher prices played a role, too. Over the past two months, the cost per click publishers pay for Facebook ads grew 16 percent year over year.
And with organic reach expected to continue dropping and brands holding publishers to higher standards when it comes to their content distribution, the pressure on publishers’ branded-content margins is likely to grow.