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TikTok CPM Analysis: 2024 Year in Review

Published

July 5, 2024

Updated

February 7, 2025

As TikTok continues to evolve as an advertising platform, understanding its CPM trends becomes increasingly crucial for advertisers looking to optimize their social media spending. This analysis examines the platform's cost trends throughout 2024, providing insights into its maturing advertising ecosystem.

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 changes they're seeing are specific to their account, or a result of platform-wide trends.

2024 CPM Trends Overview

2024 has been a year of significant fluctuation for TikTok's CPMs, with notable differences across quarters:

  • Q1 2024: $6.52 (-8.0% decrease from 2023)
  • Q2 2024: $8.70 (28.7% increase from 2023)
  • Q3 2024: $7.34 (9.9% increase from 2023)
  • Q4 2024: $7.21 (-16.6% decrease from 2023)

Q4 2024 Deep Dive

The fourth quarter of 2024 showed an unexpected decrease in CPMs to $7.21, marking a 17% decrease compared to Q4 2023. This decline was consistent across the quarter:

  1. The Black Friday/Cyber Monday (BFCM) period saw a 19% decrease in CPMs year-over-year
  2. Non-BFCM periods experienced a 16% decrease
  3. This downward trend contrasts sharply with Meta's 22% increase and even Google's modest 1% decrease during the same period

Historical Context

Looking at TikTok's CPM evolution since 2020 reveals several interesting patterns:

  • The platform has shown significant maturation since its early days in 2020, when Q2 CPMs were just $1.11
  • 2022 marked a period of peak CPMs, with rates consistently above $7 across all quarters
  • 2023 saw some stabilization with Q4 reaching $8.65, the highest in the platform's history
  • 2024's fluctuations suggest the platform is still finding its pricing equilibrium

Market Position and Platform Evolution

TikTok's CPM trends in 2024 paint an interesting picture when compared to other major platforms:

  • While Meta saw significant Q4 increases (22%) and Google remained stable (-1%), TikTok's 17% decrease suggests a different dynamic at play
  • The platform's CPM levels remain significantly lower than both Meta ($12.16) and Google ($19.15)
  • The Q4 decrease could indicate increased inventory availability, improved ad delivery efficiency, or changes in advertiser behavior

Looking Ahead

The significant Q4 decrease in CPMs, particularly during the traditionally expensive holiday season, suggests potential opportunities for advertisers in 2025. While the platform continues to evolve, these lower CPMs combined with TikTok's high engagement rates could present attractive ROI opportunities for advertisers who can effectively leverage the platform's unique format and audience.

*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).

Katie Freiberg is a growth marketer with over 12 years of experience leading teams and building best-in-class marketing strategies. Most recently, she was an operating partner at TSG Consumer where she advised their portfolio of D2C companies, including well-known brands like Corepower Yoga, Backcountry, VICI Collection, and Rough Country. Prior to that, her experience included ThirdLove, MachineZone, Thumbtack, One Kings Lane, and more. In her free time, you can find her playing ice hockey or working on a woodworking project.

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