Digital advertising CPMs increased in 2017

Anne Freier | March 26, 2018

Mobile Advertising

According to a new eMarketer report, programmatic pricing across mobile, mobile app and video as well as desktop increased over the past 12 months.
Based on data from demand-side platforms, ad exchanges and networks, the report found that CPMs for 300×250 desktop display ad units had increased around 1% between Q4 2016 to Q4 2017. A variation in CPM rise comes from different platforms reporting different growth.
Additional sources reported a rise of 10% for the year.
However, analyst of the report, Lauren Fisher, said that the study was not a benchmark guide on what CPMs should be aimed for. Instead, it demonstrates the rise in CPMs over time.
Similar findings were reported by automation platform AdStage, which noted that Twitter CPMs had increased from $5.30 to $6.72 in six months from January 2017 – a rise of 27%. The average CPC rose $0.50 to $0.80 during the same time.
The report cited a variety of reasons for the increased CPMs including declining interest from advertisers to increase their budgets. Indeed, 49% of marketers had stated that they were not interested in investing in Twitter ads.

At the same time, Nanigans reported that global average CPMs had increased 8% from Q1 2016 to Q1 2017 to $6.52.
Within gaming, CPMs rose 17% quarter-on-quarter and 24% for the whole reporting period. This was largely due to game advertisers allocating higher budgets to video mobile app install formats. These typically carry higher CPMs.

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