Social advertising CPMs have spiked by 47% as of March 7th after flat or decreased numbers YoY at the start of the year, according to a study by StitcherAds.
This finding, which could also reflect similar spending patterns in email and other channels, is based on a comparison with last year.
“While we do see CPMs starting to get more expensive, the main cause of this spike is the drop in costs last year,” states Bryan Cano, director of strategy, StitcherAds.
Social advertising CPMs plummeted last March as brands pruned their budgets due to uncertainty over consumer behavior.
President Biden’s stimulus package is having an effect on ad spend this year.
Cano notes that “brands throughout the country considered activating additional budgets for performance marketing channels like paid social.”
In the weekend following the stimulus package, “we saw some brands report improvement in ROAS of up to 25% compared to their 3-day average,” Cano says.
Cano notes that as consumers prepare to get back to normal activities and routines, retailers and brands are expecting an increase in demand leading to the U.S. economy experiencing the fastest growth in more than two decades. This means an increase in paid social investments from brands and a rise in buying by consumers.”