The Tide that Always Rises – Digital Ad CPMs

by Kraig Guffey | Aug 10, 2021

It may not be what you want to hear, but it is something you need to hear.

CPMs only go up.

Sure, you might see fluctuations when you are looking at month-over-month metrics or diving deeper into individual campaigns, but at the industry level, CPMs only go up.

**For those that may not know: CPM stands for Cost-per-thousand. It is a common metric used to determine what it costs to reach 1,000 people using a particular advertising channel.**

A recent article from BusinessInsider highlighted the most recent data regarding year-over-year CPM growth. Here are the cliff notes – you guessed it, they went up. BIG.

  • Facebook: Up by 89%
  • Google: Up by 108%
  • YouTube: Up by 108%

The article didn’t cover LinkedIn, but looking at the data that spans our B2B portfolio, you guessed it again, it went up. BIG.

  • LinkedIn: Up by 59%

These numbers certainly do not shock us. Nor should they evoke any fear. When you can predict something accurately, you should be able to have a plan in place to address that known prediction. This is no different with the rising CPM costs on digital platforms. You can create a plan to ensure you are competitive, even while costs increase.

There are 3 primary levers to focus on to counterbalance the rising costs – and they are the same 3 primary levers that point to success regardless of price:

  1. Tight targeting
  2. Clear & compelling creative made specifically for that target
  3. Landing page/web experience that is constructed exactly for that intelligently targeted audience, that matches and builds off the ad creative

So don’t get swept away by the constantly rising tides of CPM increases, or changes in platforms, or the complexities of digital media. By focusing on the three elements above you can execute your plan to compete in an arena that is always changing.

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 by Kraig Guffey

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