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What's Happening with Facebook CPMs?


March 25, 2024


April 27, 2023

Over the last few years, Meta aka Facebook CPMs have been a rollercoaster. From Apple’s iOS 14 rollout to the pandemic to general macroeconomic instability, it’s been a challenging time for advertisers to understand and manage the constantly fluctuating CPM environment. 

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. 

Data as of March 22, 2024; includes advertisers spending at least $1K/month; source: Varos

For the majority of 2023, Meta CPMs trended on average 21% higher than the same month in 2022, until Q4. Surprisingly, 2023 Q4 CPMs did not increase as much as the previous year and were actually similar to 2022, which could be attributed to a variety of factors including macroeconomic conditions, shifts in channel allocations, technological improvements, and supply and demand dynamics. 

For example, a lower spike in CPMs in Q4 of 2023 could be due to an improvement in Meta’s algorithm, which enters auctions at variable CPMs in order to hit advertisers’ CAC or ROAS targets. Or, it could be a result of decreased competition due to lower spend if advertisers pulled budgets forward throughout the year or allocated them to other channels, like TikTok or Google

As for Q1 of 2024, CPMs are currently trending down—in line with 2022 and 20% lower than 2023—which could mean it’s a good time to invest. However, before making any decisions about your paid ads strategy off of CPM trend data, make sure to consider both macroeconomic factors as well as what’s going on in your specific market and business. 

What does this mean for advertisers?

With Facebook CPMs continuing to remain volatile, many Right Side Up clients—both B2C and B2B—have been speaking with us about channel diversification. Some have chosen to experiment with emerging channels like TikTok ads, others have been exploring podcast advertising, and many have been investing in performance-oriented influencer programs.

If you're interested in chatting about Facebook ad performance or channel diversification, reach out to us. We'd love to discuss your growth strategy, no strings attached.

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).

Right Side Up is a marketplace to access premium marketing freelancers—with all of the marketing chops, and none of the agency fluff. We’re trusted by the most respected early-stage ventures, the fastest growing tech companies, and well-established Fortune 500 teams to do one thing better: growth. Marketers in our marketplace have deep in-house experience, serious strategic skills, and executional expertise. We curate the best freelancers to help you develop customer acquisition strategies, concept creative campaigns, solve attribution challenges, scale teams, or pinch-hit whenever you need. Simply put, we provide the marketing team we would have hired when we were in-house. Strategic. Creative. Transparent.

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Let's talk growth

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