Google CPM Analysis: Q1 2025 Review

Originally published: 07/09/2024

Keeping an eye on Google's CPM trends is essential for anyone managing digital ad spend in 2025. This quarter's review unpacks what's been happening with Google's ad costs during Q1. Why does this matter? Because understanding these trends helps you optimize campaigns and make smarter decisions about your advertising investments during what's shaping up to be another year of rising acquisition costs.

We've once again collaborated with our data partners at Varos to bring you insights from across the digital advertising ecosystem. Their comprehensive dataset helps answer the million-dollar question: "Are my Google CPMs out of whack, or is everyone facing the same challenges?"

Q1 2025: Steady Climb Continues

The verdict is in: Google's Q1 2025 CPMs maintained their upward trajectory, though with less dramatic increases than we've seen on other platforms. The quarter averaged $17.60 across all three months, representing a modest but meaningful 1.9% increase from Q1 2024.

Let's break down the quarter month by month:

• January started strong at $17.24 (5.3% higher than January 2024)
• February actually saw a decrease to $16.92 (6.0% lower than February 2024)
• March surged to $18.59 (5.7% higher than March 2024)

That March figure deserves a closer look. At $18.59, it's not just the highest of the quarter—it's the highest monthly average we've tracked for Google in our five-year dataset. Competition is clearly intensifying as we move deeper into 2025.

Looking Back: Five Years of Q1 Data

When we step back and examine the five-year trend, several notable patterns jump out:

• Google's Q1 CPMs have increased every single year since 2021, from $14.39 to $17.60. That's a 22.3% jump over five years.
• The growth rate has been slowing down – from 5.1% (2021-2022) to 11.6% (2022-2023) to 2.3% (2023-2024) to this year's 1.9%.
• Unlike some other platforms, Google hasn't experienced any significant "crash" years—just steady upward pressure.
• March has been the most expensive month in Q1 for three of the past five years (2021, 2024, and 2025).

Inside the Quarter: Monthly Patterns

The rhythm of Q1 2025 followed an interesting pattern:

January kicked off at $17.24—already starting high after the holiday season. February brought an unexpected reprieve at $16.92 (the only month showing a year-over-year decrease), before March shot up to that record-setting $18.59. This V-shaped pattern within the quarter differs from some previous years and caught many advertisers by surprise.

What This Means for Your 2025 Strategy

Here's the bottom line: Google's CPM trajectory suggests a relatively stable advertising environment with continued gradual price increases. The 1.9% year-over-year growth is significant, but far less dramatic than Meta's 19.2% jump during the same period.

The February dip to $16.92 is particularly interesting—possibly indicating a brief window of opportunity for advertisers who can time their heaviest spending strategically. As we move into Q2, don't expect prices to fall dramatically, but the more moderate growth rate on Google offers some relief compared to the double-digit increases we're seeing elsewhere.

Smart advertisers will be keeping a close eye on these platform-specific trends in 2025, potentially adjusting their channel mix to optimize for efficiency as the digital advertising landscape continues to evolve.

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.