I recently did an analysis to understand changes in CPM across the market over the last two years. I’m not going to sugarcoat it - the data isn't exactly cause for celebration. But knowledge is power, so let's dive into what we've found and what it might mean for your campaigns going forward.
This data is based on about $220 million spend (across multiple clients).
Key Findings:
- CPMs in June 2024 have risen by 28% compared to the same month last year. This substantial jump indicates a growing competitiveness in the social media advertising landscape.
- From May to June 2024, CPMs climbed by 21%. This increase suggests advertisers may need to adjust their budgets more frequently to maintain their desired reach.
- CPMs reach a 6-month peak—June 2024 marks the highest CPM levels observed since January.
What This Means for Your Campaigns
- Budget adjustments might be necessary. With CPMs on the rise, advertisers might need to allocate larger budgets to maintain the same level of reach and engagement they achieved in previous months or years.
- Quality is more important than ever: With CPMs climbing, your ads need to work harder. Make sure they're scroll-stopping good.
- Consider diversifying your social media mix or experimenting with newer, potentially less expensive ad formats to offset rising costs on established channels.
- Get serious about seasonal planning: The significant month-over-month increase suggests that CPMs may fluctuate considerably throughout the year. Marketers should factor these potential swings into their long-term planning.
We're not going to pretend this is great news. The paid social landscape is getting more challenging, and your strategies might need some tweaking. But that's why we’re here, right? To stay on top of these trends and adapt your strategies so you’re getting the most from your budget.
Change is part of the game in digital marketing. Rising costs are a challenge but also an opportunity to get creative and refine your approach, especially if you’re ahead of the curve. My recommendation is to keep a close eye on your metrics, be ready to adjust your budget and focus on creating top-notch ads.
You've got this! Stay sharp and adaptable, and may your ROAS be ever in your favor.
