Seasonal fluctuations in CPMs are inevitable for publishers. While you cannot completely avoid them, you can definitely mitigate the damages if you are prepared. Knowing the underlying cause behind the fluctuations will enable you to predict the ups and downs in the CPMs way before they occur. So, let’s understand CPM seasonality and the reasons behind it.
Table of Contents:
- What is CPM seasonality?
- Why you should care?
- What causes seasonal fluctuations?
- When to expect seasonal fluctuations in CPM?
- Can Header Bidding be the solution?
- What’s Next?
What is CPM Seasonality?
While observing a time-series (sequence of data points in successive order), seasonality refers to events that occur regularly. Since the events occur on a regular basis, it is easy to predict their arrival.
For example, if you talk about a calendar year (a time series), you can easily say which month of the year will have the highest average temperature because every year you’ve experienced the temperature rise in those months. So the rise in the temperature is seasonal, regular, and predictable.
Something similar happens with your CPMs too. All across the industry, publishers experience CPMs rise and fall during some specific periods within a year. The phenomenon is called CPM seasonality.
Why Should You be Aware of Seasonality?
While you are buying traffic, then seasonal dips in the CPM can be the opportunities to acquire more traffic by spending less. You can direct this traffic to your paid services like newsletter subscriptions or memberships to access content behind paywalls.
When you know the patterns of your CPM then it won’t be hard for you to figure out whether the fluctuations are occurring due to seasonal changes or due to an internal fault with your site. Knowing the cause will save you a lot of time.
Even during the Q4, if your revenue is not reaching as high as it should reach then, you are incurring opportunity cost. Q4 gives you opportunities to increase your revenue with affiliate links. You also have the chance to spiking up your traffic by enhancing your existing content and by creating season specific content.
So you can take the measures necessary to keep your revenue up before the seasonality hits. In this way, you’ll avoid any potential losses. Additionally, the seasonality in Q4 will give you many opportunities for earning additional revenue. You’ll be able to take the required actions at the right time only when you’re aware of the seasonality patterns.