TikTok CPM Analysis: Q1 2025 Review

Originally published: 07/05/2024

TikTok's advertising platform has matured rapidly over the past few years, and tracking its CPM trends has become just as crucial as monitoring Meta’s or Google’s. In this analysis, we're diving into what happened with TikTok's ad costs during Q1 2025. Understanding these shifts is key to maximizing your return on ad spend as the platform continues to evolve.

As with our other platform analyses, we've partnered with Varos to bring you insights based on aggregated data from thousands of advertisers. This helps us distinguish between account-specific fluctuations and broader market trends that all advertisers are experiencing.

Q1 2025: A Surprising Reversal

After a year of steady increases throughout 2024, TikTok's Q1 2025 brought an unexpected plot twist: CPMs actually decreased year-over-year. The quarter averaged $6.59 across all three months, representing a 22.2% decrease from Q1 2024's $8.47 average.

The monthly breakdown reveals an interesting pattern:

• January started at $5.82 (22.7% lower than January 2024)
• February increased to $7.35 (3.4% lower than February 2024)
• March dipped again to $6.50 (41.4% lower than March 2024's peak of $11.09)

That March comparison is particularly striking. After hitting a record high of $11.09 in March 2024, this year's $6.50 represents a dramatic correction that has many advertisers breathing a sigh of relief.

Looking Back: Five Years of Q1 Data

When we examine the five-year trend for TikTok's Q1 performance, we see a rollercoaster rather than a straight line:

• Q1 2021 started relatively low at $4.99 as the platform was still building its advertising business
• Q1 2022 jumped to $6.76 (a 35.5% increase) as competition heated up
• Q1 2023 eased slightly to $6.55 (a 3.1% decrease)
• Q1 2024 surged to $8.47 (a 29.3% increase) as the platform reached peak popularity
• Q1 2025 has now reset to $6.59 (a 22.2% decrease), almost identical to 2023 levels

Unlike Meta and Google, which have shown more consistent upward trends over five years, TikTok's CPM pattern suggests a platform still finding its equilibrium.

Inside the Quarter: Monthly Volatility

Q1 2025 exhibited the familiar up-and-down pattern we've come to expect from TikTok:

January started at a relatively affordable $5.82, before February jumped to $7.35 (a 26.3% month-over-month increase). Then March brought another shift, dropping back down to $6.50. This V-shaped pattern within the quarter has become somewhat typical for the platform, though the specific timing and magnitude of these swings can be hard to predict.

What This Means for Your 2025 Strategy

Here's the takeaway: After a year of escalating costs in 2024 (culminating in that eye-watering $11.09 CPM last March), TikTok appears to be offering advertisers better value in 2025. The 22.2% year-over-year decrease stands in stark contrast to Meta's 19.2% increase during the same period.

This could indicate several things: increased ad inventory, algorithm changes, or shifts in user engagement patterns. Whatever the cause, advertisers who pulled back from TikTok due to rising costs in 2024 might want to reconsider their allocation in 2025.

The platform's volatility remains something to watch closely. Monthly swings of 25% or more are not uncommon, making timing an important factor in campaign planning. We recommend maintaining flexibility in your TikTok budgets and being prepared to scale up quickly when CPMs are favorable.

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.

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