Social Ad CPMs and Impressions Surge Year-Over-Year – eMarketer

As social ad costs rise across platforms in 2024, new data reveals TikTok’s rapid growth in ad cost-per-thousand-impressions (CPM), marking a notable trend in social advertising. With advertisers increasing spend across video and social commerce formats, competition for audience attention continues to intensify. This forecast highlights the upward trend in CPM rates on major platforms like Meta, TikTok, Snapchat, and YouTube, shedding light on key opportunities and challenges for advertisers.

Social media CPMs have increased year-over-year, signaling that advertisers are willing to invest more to capture attention on top platforms. This trend is largely driven by the growing appeal of social video and e-commerce ads, which engage audiences in a personalized way that traditional formats lack. eMarketer’s report suggests that with the economic climate stabilizing, brands are shifting more budget towards social media ads, positioning platforms like TikTok and Meta as valuable spaces for high-impact marketing.

TikTok stands out with a predicted CPM increase of 15.6% year-over-year by Q1 2025, surpassing the growth rate of other platforms. The short-form video app continues to captivate younger demographics, appealing to brands focused on Gen Z engagement. TikTok’s growth trajectory indicates a maturing ad ecosystem, with advertisers showing confidence in the platform’s ability to drive both reach and conversion. Its soaring CPMs underscore that demand is outpacing supply, especially as the platform expands its e-commerce capabilities and launches new ad formats tailored for direct conversions.

While Meta maintains a stronghold with the highest impressions and CPM rates, TikTok’s rapid growth is closing the gap. Meta’s established position makes it a premium choice for advertisers, particularly due to its vast audience base and sophisticated targeting tools. However, TikTok’s momentum highlights a shift where advertisers are diversifying their budgets and exploring TikTok’s potential to engage audiences with authentic, video-based content. The narrowing CPM gap between Meta and TikTok suggests that TikTok is gaining ground as a formidable advertising platform.

YouTube and Snapchat are also seeing incremental growth in CPMs. YouTube remains a solid platform for long-form content, while Snapchat’s CPM increases indicate its efforts to capture niche, interactive ad experiences through features like augmented reality. For advertisers, understanding how each platform’s CPM trends align with their target audience’s media habits will be crucial in optimizing budget allocation and maximizing campaign performance.

Impression growth across social platforms has decelerated compared to previous years. Yet, thanks to increased ad inventory and longer user engagement times, platforms like Meta and TikTok continue to deliver high impression volumes. Meta leads with the most extensive impression reach, creating opportunities for brands to achieve high visibility, particularly on Instagram and Facebook. However, as user growth plateaus, platforms may need to prioritize innovative ad formats and engaging content to sustain advertiser interest and meet CPM expectations.

Advertisers should consider these trends when planning their 2025 social ad strategies:

• Prioritize Video Content: Platforms are emphasizing video ad formats, with higher engagement levels driving CPM increases. Investing in high-quality, targeted video ads on TikTok and Meta can yield strong returns.
• Diversify Platform Spend: With TikTok’s growth narrowing the gap with Meta, allocating budgets across multiple platforms can improve reach and performance. This strategy is especially beneficial for brands looking to connect with different age groups and interests.
• Leverage Audience-Specific Features: Platforms like Snapchat and YouTube are continually innovating with audience-focused ad features, such as augmented reality and shoppable videos. Aligning ad content with these features can increase relevance and engagement.
• Monitor CPM Trends Closely: As CPMs continue to rise, advertisers should stay informed on platform-specific trends and adjust their bids to remain competitive. Regular analysis can reveal seasonal opportunities and identify cost-saving strategies.