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Why do CPMs decrease every quarter? What can publishers do about CPM seasonality?

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Publishers running ad-supported websites are quickly realizing that CPMs are anything but static. Such sudden changes in CPMs can pose a problem for publishers and directly impact their revenue. Although publishers cannot completely prevent a quarterly decline in CPMs, they can certainly mitigate the impact of this issue if they are prepared. In this blog, we discuss CPM seasonality and what publishers can do about it.


What is CPM seasonality?


Seasonality refers to events that occur regularly. Because events occur regularly, it is easy to predict their occurrence. For example, in a calendar year, you can easily see which months the temperature is high and which months the temperature is low. Therefore, temperature rise and fall are seasonal and predictable. Something similar happens with the publisher's CPM.All publishers experience increases and decreases in their CPM during certain periods within a year. This is called CPM seasonality.


Quarterly Pattern


Companies generally spend quarterly on their marketing budgets. At the beginning of the quarter, companies are cautious with their spending. But at the end of the quarter, companies try to exhaust their budget so as not to miss an opportunity.This is why the CPM remains low at the beginning of the quarter and continues to increase towards the end of the quarter.


What can publishers do about CPM seasonality?


The seasonality of CPM is inevitable for publishers and cannot be completely avoided. However, publishers should keep an eye on their statistics from the last few years and see if there is a regular decline at the beginning of each quarter. It is also important to monitor payback as it should increase at the end of each quarter.If the decline continues, other causes may be affecting the CPM.