If you’re a publisher, one of your key measures should be the CPM (or cost per thousand) of impressions. Cost per thousand impressions is a measure of how much money a website makes by displaying advertisements. While CPMs are subject to change all year long, many publishers see a significant decrease in January. This essay will discuss some of the causes of the January slump in CPM for publishers and what can be done about it.
It’s widely believed that the winter holiday season is a major contributor to the CPM decline that occurs in January. It’s no secret that companies spend more money on marketing throughout the months of November and December in order to reach customers in time for their Christmas shopping. As a result of the surge in interest, CPMs for publishing platforms have risen. When the winter holidays are gone, however, advertisers often reduce their expenditure, resulting in less demand and lower CPMs for publishers.
The start of a new year is likely another contributor to the CPM decline that occurs in January. Advertising firms often reevaluate their expenditure plans and strategies at the start of a new year, often resulting in reduced spending. However, many businesses’ fiscal years finish in December, which might also contribute to decreased ad spending in the new year.
This decrease in CPM may also be attributable to the rise in available advertising space in the first month of the year. Several online publications make more room on their sites for advertisements at the beginning of the new year. As a result of increased competition among advertisers, CPMs may decline as a result of the expansion of available ad space.
Although January’s CPM reduction may cause some anxiety for publishers, there are ways to lessen its effects. Including different types of advertisements (such native ads or video ads) in your inventory will help. In turn, this may boost the number of advertisers interested in purchasing your available ad space. Long-term contracts with advertisers may provide your ad income greater predictability, so it’s worth trying to strike such partnerships.
Focusing on expanding one’s fan base is another another tactic. Advertisers that are hoping to reach a certain demographic may be enticed by a dedicated and active fan base. Increasing the perceived worth of your ad inventory may result in better CPMs, therefore it’s important to prioritise audience interaction and community development.
It’s safe to say that many publishers see a decline in CPMs every January. In spite of this decline, you may still keep your ad income and expand your company by investigating the causes and taking appropriate action. Your CPMs may rise as a result of increased demand for your ad inventory, which you can facilitate by increasing the diversity of your ad inventory, negotiating long-term partnerships with advertisers, and growing a large audience.