If you’ve noticed lower CPMs lately, you’re not alone and it’s not just your site. Q1 2025 saw a notable decline in programmatic performance across the board, with CPMs dropping about 17% YoY and 23% QoQ. While some dip is expected after Q4’s holiday surge, the size of this drop points to broader industry headwinds.
What’s Driving the Decline?
Several factors are converging to create a softer programmatic market:
- Macroeconomic Uncertainty: Rising tariffs and concerns about consumer spending are making advertisers more conservative.
- Post-Election Dip: Q1 2024 benefited from early political ad spend. With no election pressure this year, campaigns are leaner.
- Reduced Traffic: Seasonal traffic declines after Q4 are contributing to lower overall opportunity.
- Stricter Ad Standards: Tighter IAB regulations and increased brand safety filters are reducing the number of impressions that pass buyer scrutiny.
- DSP Selectivity: Advertisers are prioritizing performance and ROI, meaning fewer bids and lower auction pressure.
Platform-by-Platform Snapshot
- Amazon saw CPMs drop by 29% QoQ, likely a mix of softer retail demand and conservative brand budgets.
- Index Exchange fell 18%, signaling reduced competition in SSP auctions.
- Interestingly, Ad Exchange CPMs rose slightly (+2%), suggesting optimization and better bid density can still drive gains.
Fill Rates Also Down
Industry fill rates fell from 42% in Q1 2024 to 38% in Q1 2025, a sign that demand is not keeping pace with available inventory, especially as buyer requirements become more selective.
What Can Publishers Do?
Tough markets call for smart strategy. Here’s how to stay competitive and protect revenue:
✅ Test High-Value Formats: Instream video, native, and sticky placements are showing stronger performance.
✅ Leverage First-Party Data: Boost targeting precision with authenticated user signals.
✅ Optimize Floor Prices: Align pricing to current demand to avoid pricing yourself out of the auction.
✅ Secure Direct Deals: Programmatic guaranteed and PMPs offer more control and predictable revenue.
✅ Continuous Testing: Monitor performance by format, device, and demand partner—and stay agile.
✅ Align Content with High-RPM Verticals: Financial services, tech, and health still command strong advertiser interest.
Final Thought
Yes, CPMs are down. But that doesn’t mean revenue has to be. Publishers who lean into optimization, embrace smarter targeting, and diversify demand sources are weathering the storm—and in some cases, outperforming market averages.
Need help adapting your monetization strategy? Adapex clients have access to real-time dashboards, transparent reporting, and custom support to help them grow, no matter what the market throws at us.
