Gupta Media’s annual “State of Social Media CPM Report” presents a detailed analysis of social media advertising costs across major platforms, including Facebook, Instagram, TikTok, Snapchat, and YouTube. Using data from billions of ad impressions, the report sheds light on CPM (cost-per-thousand-impressions) rates, seasonal trends, and key developments in 2024 digital advertising.
Key Findings
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Snapchat’s Leading CPM Growth |
Snapchat stands out with the highest year-over-year growth in CPM, showing a 27.6% increase—surpassing all other platforms. This positions Snapchat as the platform with the most rapidly rising ad costs in 2024. |
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Meta’s Ad Rates on Facebook and Instagram |
Contrary to industry forecasts, Meta’s platforms, Facebook and Instagram, have shown more gradual CPM increases than other platforms. In early 2024, although there was seasonal fluctuation, Facebook and Instagram reported year-over-year declines in ad rates for the first quarter. |
Holiday Season Advertising Trends
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Seasonal Spike in Ad Costs |
November and December see a surge in ad costs as brands compete for consumer attention around Black Friday and Cyber Monday, with CPM rates rising by up to 66% during this period. |
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Early Shopper Advantage |
An emerging trend identified in the report is the early start of the holiday shopping season. Brands that advertise ahead of the peak period can benefit from lower CPMs while still reaching consumers in the initial stages of holiday planning. |
Impact of the 2024 U.S. Election
Political ad spending in battleground states is expected to drive up CPM rates on Meta’s platforms, impacting advertisers across political and non-political sectors even after the election.
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Insights for Advertisers
The report about Social Media Advertising Costs provides advertisers with monthly CPM trends, the evolution of rates year-over-year, and platform comparisons. It includes insights into which platforms offer the best value during peak periods and explores the rapid increase in Snapchat’s ad rates, advising marketers on strategic spending.
Looking Forward
With the 2024 holiday season and political ad spending on the horizon, this report serves as a guide for advertisers aiming to optimize their budgets. It includes five essential tips for campaign efficiency and maximizing returns.
Background of the Report
Gupta Media’s annual reports build on the foundation of its Facebook CPM tracker launched in 2020, which initially highlighted Facebook’s declining ad rates during the pandemic. Over the years, Gupta expanded its tracker to cover multiple platforms, with insights featured in the Wall Street Journal, Ad Age, and Digiday. This year’s report is based on an analysis of tens of billions of ad impressions, offering advertisers a resource to navigate social media ad rates, plan around seasonal changes, and improve budget allocations.
Link to the full report: https://www.guptamedia.com/social-media-ads-cost
