You might notice a dip in CPMs during June and July. While it can be concerning, this seasonality decline is a well-established industry trend. Here’s why it happens and what to expect later in the year.
The Summer Slowdown:
- Consumer Behavior: During summer, people are often on vacation or spending less time online, leading advertisers to reduce budgets.
- Budget Reallocations: Early in the quarter, CPMs typically dip by about 20% as advertisers plan and allocate their budgets. Spending increases later in the quarter, driving up CPMs.
- Q4 Preparations: Advertisers hold back in summer to allocate more resources for back-to-school and holiday seasons when consumer spending spikes.
CPM Seasonality: Key Patterns
The chart shows consistent trends with dips in June and July, followed by a peak in Q4. The only outlier is 2020, impacted by COVID-19. However, 2024 shows more stability with less pronounced dips. This pattern confirms that mid-year declines are normal, with strong rebounds later.
And these trends can vary by vertical. CPM seasonality isn’t one-size-fits-all. It’s essential to tailor your content and ad strategy to your specific vertical’s seasonal trends to optimize revenue opportunities throughout the year. Analyze your site performance to better understand your audience.
What This Means for Publishers:
While the summer dip is frustrating, it’s temporary. CPMs typically pick up in August with back-to-school campaigns and soar in Q4 during the holiday season.
Strategies for Success:
- Optimize Ad Inventory: Use summer to fine-tune placements and targeting for the busy season ahead.
- Leverage AI and Data: Use AI tools and first-party data for precise targeting, increasing CPMs.
- Diversify Revenue: Explore new revenue streams like partnerships or subscriptions for stability.
- Prepare for Q4: Start planning your Q4 strategies now to maximize revenue.
Conclusion:
Understanding these trends helps manage expectations. While June and July may bring lower CPMs, they also provide time to prepare for the high-revenue periods ahead. The back-to-school season and Q4 will bring the boost you need to finish the year strong.
