Increasing numbers of direct-to-consumer (DTC) advertisers are reducing their ad spend on Facebook and seeking alternative outlets. Many have blamed the another 30 percent year-on-year increase in CPM prices seen after January's algorithm change, while others cited increased competition for limited ad inventory. Jake Kassan, the CEO of DTC watch company MVMT, said the barrier to entry for start-ups had been raised too high to use Facebook as a jumping-off point for advertising, and said the site was no longer regarded as a "premier channel".
Increasing numbers of direct-to-consumer (DTC) advertisers are reducing their ad spend on Facebook and seeking alternative outlets. Many have blamed the 122% year-on-year increase in CPM prices seen after January's algorithm change, while others cited increased competition for limited ad inventory. Jake Kassan, the CEO of DTC watch company MVMT, said the barrier to entry for start-ups had been raised too high to use Facebook as a jumping-off point for advertising, and said the site was no longer regarded as a "premier channel".