Seasons change and so do CPM. If you are reading this, it’s probably because you saw your website’s CPM dip, but before you jump from your seat, take a deep breath and acknowledge that this is completely normal. Especially in January. Let us tell you about a little thing called: Seasonality.
What is CPM Seasonality? What affects CPM?
Brief recap. CPM aka Cost per Mille is the amount of money advertisers will pay you for an ad unit per one thousand ad impressions. It is one of the metrics every Publisher should know by heart since it helps you understand your ad inventory’s worth. CPM fluctuates throughout the year due to changes in the seasonal trends.
CPM is determined by a “second price auction” which is the second-highest bid + 0.01. This means that the volume of advertisers looking to buy advertising space greatly affects the CPM. The more advertisers there are trying to buy ad inventory, the higher the CPM is going to be. That’s why during the seasons when there’s less demand the CPMs tend to drop, while they skyrocket when the demand increases (i.e., during Christmas).
There are many (trust us, many) things that can affect your CPM. The price of CPM is determined by lots of factors you can control like the quality of your website, and others you don’t have much power over like the amount of competition for ad space in a certain period.
Seasonality can have a big impact on your CPM. Unfortunately, it is out of everyone’s control and all you can do to make up for it is to keep your website optimized, be mindful of your floor prices to maintain a decent fill rate even when CPM tends to dip, and deliver great content to keep that traffic flow moving!
CPM Seasonality Patterns
Q1
Enjoyed the high CPM you had last Q4? We hate to break it to you, but CPM tend to drop at the beginning of the year after the Holidays. This phenomenon is known as the “January Blues”. People are tight on money after all the spending sprees from Black Friday and Christmas. Advertisers are investing less and focusing on planning their campaigns for the year. It is completely normal for this to occur during the first few months, so no need to spin into panic mode. Brighter times will come later in the year! Just keep your website’s engines running!
Q2
Things are starting to look better for Publishers! In the second quarter of the year you may see a slight improvement in your CPM prices compared to Q1. Holidays like Mother’s Day (Europe and the US) and Easter present great opportunities for advertisers to pick up their investment in ad campaigns. Continue making the needed adjustments to your ad strategy, so you don’t miss out on any potential revenue!
Q3
Just as you go on your way to relax during summer, so do CPM. You may see another dip around July due to the lack of advertising competition, even though it is not as bad as the January Blues. Summer is a good occasion for travel blogs. Lots of people are researching travel locations, hotels, and flights. Also, there are special occasions during this season where CPMs tend to peak due to sports events such as the Summer Olympics or the World Cup. So take advantage of these situations!
The third quarter is a very convenient time to start preparing for the most important period of the year: the famous Q4. Don’t let it take you by surprise!
Q4
Q4 is like the Super Bowl for a Publisher. It’s the ideal moment to score a big WIN. This season is heavily packed with the biggest shopping holidays of the year: Black Friday, Cyber Monday, Christmas, Single’s Day…you name it. The huge demand for premium ad space makes CPM skyrocket. Advertisers are burning through their budget for the last stretch of the year, and they are fighting for their lives to get their ads in front of the perfect audience. Q4 is your time to shine as a Publisher, so update your ads.txt files, post engaging content, use high-value ad formats, and enjoy the high ad revenue ride.
What can you do to face CPM seasonality like a champ?
When the seasonality trends strike, you can anticipate the changes and tune your ad strategy to fit your needs. CPM depends on a lot of factors such as the ad space demand and competition. All you can do is focus on the things you can control: your website. Keep refining your site and your ad monetization strategy to ensure you are getting the best results you can get all times.
A few things you can do to get your website ready to shine include updating your ads.txt file, creating brand-safe content, utilizing well-placed high-value ad formats, and having a top-notch AdTech partner supporting you! Don’t be afraid to ask for a hand if you need it! Hit us up at Refinery89 and we’ll help you make the most out of the situation all year long!
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