Meta CPM Analysis: 2024 Year in Review

Tracking Meta's CPM is essential to refine ad spend and maximize ROI. This article dives into the latest trends, benchmarks, and key factors driving CPM rates on Meta's platforms, equipping you with the insights needed to navigate shifts and optimize ad performance. These shifts happen often, so arming yourself with regular data will ensure you're always aware of what's happening in Meta's 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 Meta-wide trends.

2024 CPM Trends Overview

The story of 2024 has been one of consistent growth, culminating in a significant surge during Q4. Year-over-year CPM growth strengthened throughout the year, with each quarter showing notable increases:

• Q1 2024: $8.59 (3% increase from 2023)
• Q2 2024: $9.71 (12.3% increase from 2023)
• Q3 2024: $10.18 (18.1% increase from 2023)
• Q4 2024: $12.16 (22% increase from 2023)

Q4 2024 Deep Dive

‍The fourth quarter of 2024 saw remarkable CPM levels, reaching $12.16, marking a 22% increase compared to Q4 2023. This surge manifested differently across the quarter:

1. The Black Friday/Cyber Monday (BFCM) period experienced a 20% YoY increase in CPMs
2. Excluding BFCM, Q4 saw an even more pronounced 23% YoY increase in CPMs
3. Election-related advertising continued to impact rates through early November
4. Holiday season advertising maintained strong pressure on inventory through December

Historical Context

‍Looking at the five-year trend from 2020 to 2024, we can observe several notable patterns:

• Q4 consistently shows the highest CPMs of each year
• 2024's Q4 CPM of $12.16 surpassed the previous record of $12.03 set in Q4 2021
• The market has recovered from the temporary dip seen in 2023, with 2024 showing strong growth across all quarters
• Q3 2024 ($10.18) matched the performance of Q3 2021 ($10.19), indicating a return to peak-level CPMs

Looking Ahead

‍Advertisers should note that while election-related spending has concluded, the overall trend suggests sustained higher CPMs compared to previous years. This new baseline, particularly evident in the non-BFCM Q4 performance, may require adjustments to advertising strategies and budgets for 2025.

*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).