Ad Costs are Going Up

Ad costs are probably going up. Do not be surprised if you notice CPMs begin to surge.

Here’s why…

Increasing Competition

We are now in prime election season in the US. That means a whole lot of money is getting dumped into ads. Your ads will be competing for eyeballs. That competition runs up bids in the auction.

And once the elections happen in early November, guess what? It’s not over. Then brands will begin dumping more money into the auction for the holidays. Companies need to hit those Q4 goals.

If it costs twice as much to reach people, your results should be twice as bad, right? Not necessarily.

Success Remains Possible

This increased competition doesn’t mean ad results will get worse, especially once we reach the holidays. If you’re promoting an e-commerce brand, this is the time of year when conversion rates go up. People are looking to buy. So even if it’s more expensive to reach people, you may get great results.

That said, it could get more difficult if you’re not the typical e-commerce brand though. If your products or services aren’t in further demand this time of year, your ads could get buried in a sea of sales. If CPM costs go up, you’ll need the conversion rate to go up, too.

Otherwise, you’re in danger of burning money. If that happens, you may consider lowering your budget or turning off ads entirely for a while. But, don’t assume bad performance before it happens. Let results be your guide.

What’s your plan for Q4?

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