Are CPMs increasing this holiday season?
Meta advertisers often see an increase in cost-per-thousand-impressions (CPM) costs during the holidays. This is especially true during the most competitive weeks of Black Friday and Cyber Monday.
While this growth has been significant and automatic over the past few years, it hasn’t always happened in recent years. What about 2024?
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I use a resource called Inside Marketing Pulse to check this out. They provide data based on their clients’ ads, which generate $5 billion in e-commerce revenue.
One of their charts shows that CPMs for both Facebook and Instagram have increased since the last week of November.
- Instagram CPM increased 65% year-over-year on December 1
- Facebook CPM increased by 38% year-on-year on December 2
Some of these increases are due to the holidays falling on different dates than a year ago, but that’s not entirely the case.
Another chart shows that the average CPM increased from $7 on November 8 to about $15 on December 3.
While these increases are not what we saw a few years ago when CPMs tripled or even quadrupled, these costs have clearly risen.
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Of course, increasing CPM does not mean that you cannot obtain good results. The reason costs increase is because more advertisers are spending more money during this time. But these brands are willing to pay more because consumers are willing to spend.
This is an opportunity. If done correctly, the effectiveness of advertising often outweighs the added cost.
Do you see costs going up?
