Meta CPM Analysis: Q1 2025 Review

Originally published: 07/15/2024

Let's face it: Keeping tabs on Meta's CPM isn't just busywork—it's the compass that guides smart ad spend and drives ROI. In this deep dive, we're unpacking what happened with Meta's ad costs during the first quarter of 2025. These numbers fluctuate like the weather, and staying informed means staying ahead of the curve when optimizing your campaigns.

We've teamed up with our friends at Varos to pull back the curtain on what's really happening across industries. Their massive dataset helps answer that nagging question: "Is it just my account seeing these price hikes, or is everyone dealing with this?"

Q1 2025: The Price Climb Continues

Well, the numbers don't lie: Q1 2025 was expensive. Really expensive. Meta's CPM rates shot up to levels we haven't seen before, with the quarter clocking in at $10.88 on average. That's a hefty 19.2% jump from where we were in Q1 last year.

Breaking it down month by month tells an interesting story:

• January kicked things off with a bang at $10.48 (up 26.8% from January 2024).
• February eased back slightly to $10.35 (still up 13.1% year-over-year).
• March ramped up to a whopping $11.86 (17.8% higher than March 2024).

March deserves special attention here. At nearly $12, it wasn't just the priciest month of the quarter—it signals intensifying competition for ad space as Q1 wrapped up.

Looking Back: Five Years of Q1 Data

When we zoom out and look at the five-year picture, some interesting patterns emerge:

• Q1 2025's $10.88 average isn't just high; it's the highest Q1 we've seen since at least 2021.
• Remember that dip in 2023? CPMs crashed to $8.79, but they've been climbing steadily since then.
• We've now blown past the previous Q1 record from 2022 ($10.11).
• March is consistently the most expensive month in Q1— a pattern that's held true every year

Inside the Quarter: Monthly Swings

The rhythm of Q1 2025 followed familiar beats, just at a higher octave:

January, typically a "recovery month" after the holiday season, started hot this year at $10.48 . February took a small breather at $10.35, before March exploded to $11.86. That March surge isn't unusual (we see it every year), but the intensity this time around caught many advertisers off guard.

What This Means for Your 2025 Strategy

Here's the reality check: Q1 2025 suggests we're operating in a new, more expensive environment for Meta ads. That 19.2% year-over-year spike isn't just a blip —it's likely the new normal.

If past patterns hold, we might see some relief in Q2, but don't count on costs dropping back to 2024 levels. The smart move? Revisit your forecasts and budget allocations now, because 2025 is shaping up to be the year of premium-priced Meta inventory across the board.

Data current as of April 2025; Analysis includes advertisers spending $1K+/month; Source: Varos

Varos provides real-time benchmarking for digital marketing and revenue metrics by pooling anonymized data from over 6,000 companies (representing $4bn in annual ad spend). Compare your CPM, CAC, retention rates, and more against businesses similar to yours at varos.com.

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