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Why the cost of digital advertising is rising

Meta’s pricing increases are pushing advertisers to increase spending to keep pace.

Toby Richkind (Credit: Courtesy of the Pekoe Group)

Inflation is a reality of modern life; each grocery bill feels a bit more expensive than the last, subway rides are steadily ticking upwards, and $1 slices are becoming a thing of the past. This trend is verifiable. According to the Consumer Price Index, as of March 2026, prices for all measured items in the U.S. increased by 3.3 percent relative to the year prior.

Unsurprisingly, advertising is far from immune from this phenomenon. The price per ad on Meta is increasing — a fact that even Meta acknowledges. Every advertiser, producer and general manager should be paying attention.

The upward slope

In its Q1 2026 quarterly earnings report, Meta disclosed lots of interesting information. Most pertinent to us is the year over year increase in the price per ad. For Q1 2026, the price per ad increased by 12 percent year over year.

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