Google CPM Analysis: 2024 Year in Review

Google remains one of the most mature digital advertising platforms in the space, historically characterized by predictable and stable CPMs. This analysis examines the latest trends and patterns in Google's advertising costs, providing crucial insights for advertisers navigating the evolving digital landscape.

To help shed light on industry-wide trends, we have partnered with Varos to dig into and analyze advertising data across industries and verticals. Our goal is to help advertisers understand whether the price changes they're seeing are specific to their account, or a result of industry-wide trends.

2024 CPM Trends Overview

The story of 2024 has been one of modest growth in the first half followed by a slight cooling in the latter half of the year. Quarter-by-quarter performance shows interesting patterns:

• Q1 2024: $17.77 (1.1% increase from 2023)
• Q2 2024: $18.26 (4.1% increase from 2023)
• Q3 2024: $18.33 (-1.3% decrease from 2023)
• Q4 2024: $19.15 (-1.1% decrease from 2023)

Q4 2024 Deep Dive‍

The fourth quarter of 2024 showed surprising stability, with CPMs actually decreasing slightly to $19.15, marking a 1% decrease compared to Q4 2023. This trend was consistent across the quarter:

1. The Black Friday/Cyber Monday (BFCM) period showed flat performance year-over-year
2. Non-BFCM periods also saw a modest 1% decrease in CPMs
3. This stability stands in stark contrast to other platforms like Meta, which saw significant increases during the same period

Historical Context

‍Analyzing the five-year trend from 2020 to 2024 reveals several important patterns:

• The platform has maintained remarkably stable CPMs since 2022, hovering around the $17-20 range
• The most significant period of growth occurred between 2020 and 2021, with CPMs jumping from $14.58 to $18.83 in Q4
• 2024's highest quarterly CPM ($19.15 in Q4) fell short of the platform's peak in Q4 2022 ($19.76)
• The slight cooling in 2024 suggests a maturing market finding its equilibrium

Looking Ahead

^‍While changes in iOS tracking and upcoming cookie deprecation have made some advertisers more cautious about analytics and measurement, Google's CPM stability suggests it remains a reliable platform for advertisers. The platform's mature nature and broad reach continue to provide predictable costs for advertisers, even during traditionally volatile periods like Q4.This stability could make Google an increasingly attractive option for advertisers seeking predictable ad costs, especially when compared to platforms experiencing significant CPM increases. As we move into 2025, this predictability may become even more valuable as the digital advertising landscape continues to evolve.

*Data as of January 2025; Includes advertisers spending at least $1K+/month; Source: Varos

‍Varos offers real-time benchmarks for digital marketing and revenue metrics (CAC, retention, CPM, CTR, Conversion Rate, etc.) compared to similar companies. They’re a data co-op that has 6,000+ companies sharing data with them ($4bn annual ad spend tracked).