What’s Happening with TikTok CPMs?

Keeping tabs on TikTok's CPM is crucial for fine-tuning ad spend and boosting ROI on what has become an increasingly important platform for marketers. This article breaks down the latest trends, benchmarks, and core factors shaping CPM rates on TikTok, offering insights to help you stay agile and maximize ad impact. Staying updated on these shifts ensures you're always in sync with the platform’s evolving 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 increases they're seeing are specific to their account, or a result of industry-wide trends.

MONTHLY CPM TRENDS

Data as of 10/2/2024; Includes advertisers spending at least $1K+/month; Source: Varos

TikTok is seeing some interesting trends that are a bit harder to pick apart. YTD (through Q3) CPMs are up 35% driven largely by the first half of the year. Q3 of 2023 saw spikes in CPMs so 2024 numbers from a percentage standpoint aren’t seeing as much of a spike due to the higher 2023 comps.

It’s likely that advertisers are continuing to adopt TikTok from a paid ads perspective, which is driving more competitive CPMs, in addition to shifts in the types of campaigns advertisers are running (i.e. optimizing towards conversions, which often drives up CPMs). 

If you're interested in chatting about TikTok ad performance or channel diversification, reach out to us. We'd love to discuss your growth strategy.

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