Ad network margins hit 40% average in 2025. Up from 30% two years ago.
Some bitter facts that nobody talks about, but every marketer need to understand. Episode 3.
Ad network margins hit 40% average in 2025. Up from 30% two years ago. It’s not a secret – you can read about it in Meta, Google, Applovin earnings reports.
But “average” hides the real story:
1) New advertisers: 0% margins (you get nice results quickly, I call it “I see the money” behavior)
2) Established players: 40-50% margins (At this step usually you hit “the ceiling” – every change in scale results in losses)
3) Some extreme cases: up to 80% margins (works with either very good converting products at scale or just a random distribution to get to 40% avg where you weren’t a lucky one)
Your customer’s real cost could be HALF what you’re paying for it
The same user, same conversion, but you pay 2x because you’re not in the club.
Your margin is their loss. They don’t want you profitable – they want you hooked.
Show just enough green to keep you chasing. Classic casino psychology.
Meta admitted it in earnings – they’re cramming 35% more ads per user. We all saw these 4-in-1 type of ads, where every impression is charged as individual but in fact all 4 of them are a waste of budget.
Same eyeballs, more “impressions” = inflated metrics and degraded performance. You’re paying more for users who are increasingly blind to ads.
Data: Applovin margins in 2025.
