Social CPMs dive double digits as marketers navigate monetization challenges

Article by Alexandra Samet  | Sep 29, 2023
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Social CPMs dive double digits as marketers navigate monetization challenges
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Social Media Marketing
United States

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Key stat: Paid search CPMs declined by double digits YoY every quarter in the past four quarters—29% in Q2 2023 alone, per Skai. Paid search CTRs have not seen the same pattern of decline.

Behind the chart:

  • As social media network user growth wanes across key platforms and advertisers navigate the complexities of measurement post AppTrackingTransparency (ATT), social media platforms have increased ad loads to boost revenue.
  • Pinterest’s ad load increased by 30% in Q2 of this year, while Meta's ad inventory grew by 34%. While these higher ad loads are contributing to an increase in social ad spend, we project US social network ad spend to increase just 3.4% this year.
  • Social platforms will prioritize lower-funnel formats, leveraging AI to drive commerce through initiatives like Meta’s Advantage+ Shopping Campaigns (ASC+).

Use this chart:

  • Budget your 2024 paid social spend based on recent ad trends.

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