Meta Ads averages $1.10 CPC and $7.80 CPM. YouTube Ads is bought on CPM only, averaging $7.00. Analysis for Retail in 2026.
Facebook and Instagram advertising - highly targetable social ads
Video advertising on YouTube - skippable and non-skippable
The auction, the creative, the budget floor — the three things you actually need to know before picking a platform.
Meta (Facebook + Instagram) runs an auction across Feed, Stories, Reels, Marketplace, and Audience Network. You optimize for a conversion event; Meta's algorithm decides bid and placement. Effective CPM is $6–12, effective CPC $0.80–1.50 depending on optimization goal and vertical.
Feed: 1:1 (1080×1080), 4:5 portrait (1080×1350). Reels/Stories: 9:16 (1080×1920). Video 15–60s. Carousel supports 10 cards. Copy ~125 chars before the truncate. Creative fatigue is the #1 cost driver — refresh every 2–3 weeks.
The algorithm needs ~50 conversion events per week per ad set to exit learning phase. For a $30 CPA that's ~$1,500/week or $6K/month per campaign. Below that, performance is a lottery.
YouTube ads run through Google Ads on CPM (for TrueView and Bumper) or CPV (cost per view — you pay only when viewer watches 30s or engages). CPM averages $6–10; TrueView effective CPV is $0.05–0.15. Non-skippable pre-roll runs $15–25 CPM.
6s bumpers (non-skippable), 15/30s non-skippable, and TrueView (skippable after 5s, but you're only charged if viewer engages). 16:9 1920×1080; vertical 9:16 for Shorts inventory. Companion banners boost CTR.
$50–100/day covers TrueView on a defined-topic audience. Bumper campaigns can start at $30/day. YouTube's audience-based targeting means small budgets are viable for niche verticals.