Ads are not getting more "expensive."

Author

Areeb Mirza
July 22, 2025

There's a lot of talk about ad costs rising year over year, Netflix subscriptions go up, groceries get pricier, and yes, advertising costs do too. But here's the math people don’t look at.

CPM (cost per 1,000 impressions) is rising, but so is CTR (click-through rate).

Check this out (data from Gupta Media, Sept 2022 – Jun 2025):

Year

Avg CPM

Avg CTR

Avg CPC

2022 (Sep–Dec)

$7.55

0.97%

$0.77

2023

$7.26

0.85%

$0.85

2024

$8.07

1.01%

$0.79

2025 (YTD)

$8.30

1.06%

$0.79

Here's what that means for you:

  • Yes, ads per impression (CPM) have gotten pricier by about 10% a year.

  • BUT, average click-through rates (CTR) improved by about 6% annually, meaning you're getting more clicks from the same impressions.

  • Result: Your actual cost per click (CPC) has stayed nearly the same since 2022.

What does this mean practically?

  • Don’t just look at CPM, also focus on CPC and especially your cost per acquisition (CPA).

  • The better your creative, the lower your costs, because high-quality ads earn discounts in Meta's auctions.

  • If your landing pages and offers convert well, you’re actually protected against rising ad prices.

Takeaway:

Ads aren’t really getting more expensive, as long as your CTR and conversion rates keep pace.

Keep testing your creative regularly, optimize your funnels, and always measure what matters: clicks and conversions, not just impressions.

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